Page 45 - DMGT401Business Environment

Business Environment

Notes Complementary Products: Products that add value to some other product
Continuous Scanning: Continuous structured data collection and processing on a broad range of
environmental factors

Corporate Intelligence: Technique of adopting industry/research expertise to analyse the
information available on competition
Critical Success Factors: Areas in which good results will help ensure an organization's success
against competition
Environment Scanning: Process by which organization monitors their relevant environment to
identify opportunities and threats

ETOP: Environmental Technology Opportunities Portal
External Environment: Factors external to the industry having significant impact on the firm's
strategies

Internal Environment: Internal to the organisation and can be controlled
Macro Environment: Environment, which an organization faces in its specific arena
Regular Scanning: Studies done on a regular schedule

SLEPT Factors: Social, legal, economical, political and technological factors
Spying: Corporate espionage
Strategic Groups: Clusters of competitors that share similar strategies

Substitute Products: Products that can replace another product

1.8 Self Assessment

State whether the following statements are true or false:
1. RBI makes changes in the changes in the monetary policy to control the increased demand
in the market.
2. The goal of the firm to takeover a significant amount of marker share and take a lead form
competitors forms a part of the internal environment.

3. Business environment has the same meaning and same impact on all businesses.
4. Products like motorcycle and scooter are complementary products.
5. An organisation brings out the facts related to its standing in the market vis-à-vis the
competition by doing a SWOT analysis.
6. Sales manager and salesmen have to be in regular touch with the market so that they are
updated with the currents trends. They do a regular scanning.

7. The field of biology and bio-technology poses a big weakness for Indian economy.
8. National Development Council consists of Planning Commission and governors of the
state.

Fill in the blanks:
9. The economic environment is a subset of …………………… environment.
10. Kellogg's failed miserably in India in its first attempt because it failed to assess India's
…………………… environment.

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