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barriers to entry; substitute products
; the 
bargaining power of 
customers
; the bargaining power of 
suppliers
; 
competitive rivalry
. 
CHAPTER ROUNDUP 
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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
54
 
 
1
Environmental analysis is relevant when undertaking the strategy-making process. Is this true or false? 
2
Give four types of legal factor affecting a company. 
3
How can businesses influence government policy? 
4
Which of the following types of dismissal relates to the method of dismissal? 
A Unfair 
dismissal 
B Wrongful 
dismissal 
C Forced 
dismissal 
5
An individual who is the subject of personal data is a data ……………. . 
6
How can senior managers promote health and safety awareness? 
7
Information technology has encouraged which three of the following? 
A 
Flattening of organisation hierarchies 
B 
Widening spans of control 
C 
Smaller volumes of routine processing 
D 
More flexible working arrangements 
8 
Downsizing can reduce capacity. Is this true or false? 
9 
What are the five competitive forces? 
10 
Which one of the following is a primary activity in the value chain? 
A Technology 
department 
B Procurement 
C 
Human resources management 
D Marketing 
and 
sales 
11 
The purpose of value chain analysis is to understand customer price and quality preferences. True or 
false? 
 
 
QUICK QUIZ 
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CHAPTER 2
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THE BUSINESS ENVIRONMENT