©THEBRIGHTSTARS 2024
SGMA 591 Chapter 2 Exam Study Guide.
Business environment - answer✔all the external influences that affect its decisions and
performance
PEST analysis - answer✔Environmental scanning framework used to understand macro
environmental factors affecting industries and marketing in which companies compete.
political economic social technological
why is pest analysis popular - answer✔it provides simple yet systematic approach to
identifying factors that are likely to shape the competitive conditions within an industry
political example - answer✔licensing, taxation, trademark and intellectual property
economic examples - answer✔cost of labor, capital and energy, level of economic activity
social examples - answer✔shifting attitudes
technological - answer✔shopping online vs brick and mortar
strategic analysis approach broad to narrow - answer✔macro environment
immediate industry environment
specific competitors
internal analusis
industry microenvironment - answer✔customer
competition and new entrants
suppliers
macro environment - answer✔PEST
the more compettion - answer✔the less the surplus received by customers
profit not always surplus - answer✔when an industry has powerful / monopolistic suppliers or
employees united by a strong labor union surplus may be appropriated by suppliers
SGMA 591 Chapter 2 Exam Study Guide.
Business environment - answer✔all the external influences that affect its decisions and
performance
PEST analysis - answer✔Environmental scanning framework used to understand macro
environmental factors affecting industries and marketing in which companies compete.
political economic social technological
why is pest analysis popular - answer✔it provides simple yet systematic approach to
identifying factors that are likely to shape the competitive conditions within an industry
political example - answer✔licensing, taxation, trademark and intellectual property
economic examples - answer✔cost of labor, capital and energy, level of economic activity
social examples - answer✔shifting attitudes
technological - answer✔shopping online vs brick and mortar
strategic analysis approach broad to narrow - answer✔macro environment
immediate industry environment
specific competitors
internal analusis
industry microenvironment - answer✔customer
competition and new entrants
suppliers
macro environment - answer✔PEST
the more compettion - answer✔the less the surplus received by customers
profit not always surplus - answer✔when an industry has powerful / monopolistic suppliers or
employees united by a strong labor union surplus may be appropriated by suppliers
