GUIDE QUESTIONS ON INDUSTRY AND ENVIRONMENTAL ANALYSIS

1. When you decide on putting up a business, how do you choose the market that you
should cater to? Explain your answer.

You need to look at your current customer base first because customers who repeatedly
purchase the goods or services of a business. These customers are a main source of
revenue for a company, second is check out your competition knowing who your
competitors are, and what they are offering, can help you to make your products,
services and marketing stand out, you can also use this knowledge to create marketing
strategies that take advantage of your competitors' weaknesses, and improve your own
business performance and of course analyze your product/service this part is defining
features and benefits, identifying and describing the market need,
identifying product differentiation and defining your value proposition and the last
is the culture and lifestyle because trends in consumption patterns, as means to
identify the goods and services that will fit into these celebration and spending
behavior. But in business you also need to think about economic forces, physical
environment, political factors and many more.

2. In what way do rice farmers lose to imports from neighboring countries? Explain
your answer.

The effect of the importation on palay production is that the farmers will be forced
to sell their crops even lower than the break-even cost. The low import also goes in
accordance with the climatic changes employed in the particular area. The ecologist
Williams details the losses which happens from harvesting the rice that is bought but
not consumed.

3. What is the significance of Industry and Environmental Analysis in identifying

business opportunities? What is the main difference between the two?

Industry analysis, as a form of market assessment, is crucial because it helps a

business understand market conditions. It helps them forecast demand and supply and,
consequently, financial returns from the business while environmental analysis is an
extremely important tool in understanding and decision making in all situation of the
business. Success of the firm depends upon the precise decision making ability. Study
of environmental analyses enables the firm to select the best option for the success
and growth of the firm. Environmental analysis is a strategic business activity
involving examination of a business’s external circumstances, including the remote,
operating and competitive environment. A marketing environment is composed of specific
elements of a business’s external operating and competitive environment related to the
needs of a product’s intended consumer, also known as the target market member.
Marketing environments are often tied to the product’s stage in the business marketing
life cycle.

4. Under the environmental analysis, how can political factors affect the survival or
growth of the business?

Economic growth and political stability are deeply interconnected. On the one hand,
the uncertainty associated with an unstable political environment may reduce
investment and the pace of economic development. On the other hand, poor economic
performance may lead to government collapse and political unrest. Political factors
can impact a business by making the market environment more or less friendly for that
business. Typically, governments have a great deal of power over businesses and many
times, there is not much that businesses can do about it.