Flashcards on Business Sectors and Environmental Analysis
Business Sectors and Environmental Analysis: A Student Guide
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Business sectors and business environments
10 cards
Card 1
Question: What business sector does Bestie Fruit Canning (BFC) operate in? Quote the scenario to support your answer.
Answer: Secondary sector — BFC manufactures canned foods (manufacturing is in the secondary sector). Quote: "Bustie Fruit Canning manufacturers a variety of c
Card 2
Question: Identify a challenge BFC faces related to competition and classify its business environment.
Answer: Challenge: BFC lost customers to Death Fruit Canning because their products are of high quality. Business environment: Market environment.
Card 3
Question: State the extent of control BFC has over losing customers to a competitor and why.
Answer: Extent of control: Partial/Some/Limited — The business can improve product quality, marketing or pricing but cannot fully control competitors' actions
Card 4
Question: Identify the challenge in the scenario related to management and classify its business environment.
Answer: Challenge: The profitability of BFC decreases due to poor management skills. Business environment: Micro environment.
Card 5
Question: State the extent of control BFC has over poor management skills and why.
Answer: Extent of control: Full/Complete — Management quality is an internal factor the business can directly change (hire, train, reorganize).
Card 6
Question: Identify the financial challenge BFC faces and classify its business environment.
Answer: Challenge: Bestie Fruit Canning borrowed money at a high interest rate. Business environment: Macro environment.
Card 7
Question: State the extent of control BFC has over borrowing at a high interest rate and why.
Answer: Extent of control: No control — Interest rates are set by external financial markets and institutions beyond the business's control.
Card 8
Question: Which business sector does Super Energy Enterprise (SEE) operate in and why?
Answer: Secondary sector — SEE produces maize meal and instant soft porridge (manufacturing/processing of raw materials).
Card 9
Question: Name three challenges faced by SEE and classify each by business environment.
Answer: (a) Employees are regularly absent from work — Micro environment. (b) Supplier (Early Bird Maize Farm) is sometimes out of stock — Market environment.
Card 10
Question: How do you decide whether a challenge belongs to the micro, market, or macro environment?
Answer: Micro: internal factors the business controls directly (e.g., management, employees). Market: factors in the immediate trading environment like suppli