THE UNIVERSITY OF ZAMBIA

INSTITUTE OF DISTANCE EDUCATION

BUSINESS ENVIRONMENT, SOB 1052 Test 1

INSTRUCTIONS:
Answer all Questions
Monday, 03/07/2023

QUESTION 1 (7.5marks)

a) Briefly explain the need for the study of Business Environment.

b) Using an industry of your choice, describe Michael Porters five forces model and explain how it
can be used to assess an industry’s profitability.

QUESTION 2 (7.5 marks)

a) With an aid of an example, Demonstrate the importance of environmental scanning to a

business and how best the tools can be used.

b) Write short Notes.

I. Economies of Scale
II. Problems associated with the competitive environment
III. Competitive Advantage
IV. Importance of a Customer in Business
V. Impact of social factors on business (2marks)