Political
Why is the “P” of PEST the factor that is most susceptible to influence by businesses?
Can directly impact political through lobbying, collaboration, and advertising.
Compare Debt and Equity Financing
Debt = borrow money; retain control
must be repaid
Must pay interest (tax deductible)
Legally binding
Equity = give up ownership
no interest or repayment
share control and profits
Why do demographics matter?
Predictors of behaviour/trends, predicts supply/demand.
What are the elements of technological factors?
Internet
Information technologies
Materials & equipment
What is market development and why would you do it?
Selling what you already produce to new target markets (market segments) or new geographic markets.
Why do it: Capitalize on production capabilities, economies of scale, pursue less contested or larger market; diversification of customer base
What are some factors in comparing countries?
Population, Average Spending, Customer Reachability, Competition, Liability of Foreignness, Distance, Administrative Barriers.
Why is $1 today worth less than $1 in a year?
Risk
Real interest
Inflation
What 4 factors determine characteristics?
Economics, Technology, World Events/News, Parenting.
What are 5 industries radically changed by tech?
Music
Travel
Transportation
Publishing
Retail
What are the 4 questions to ask when deciding to go international and which models do they connect to?
Can We? Diamond E external.
Should We? Diamond E external.
Where? Pest, Porters.
How? Strategies.
List the 6 expansion strategies.
Indirect Export, Sales Agent/ Distributors, Licensing/Franchising, Alliance/Joint Venture, Local Sales Office, Foreign Subsidiary
What are the elements of economic factors?
Inflation/deflation
Interest rates
Employment rates
Exchange rates
What are some differences between Boomers and GenX?
:)
What are 3 current business tools?
E-COMMERCE & OMNICHANNEL
VIRTUAL & AUGMENTED REALITY
ARTIFICIAL INTELLIGENCE
What tactics can you use in product development?
Extend product
Repackage existing products
Create bundles of complementary products that add value to each other
Why would you use indirect export?
No additional cost
No market knowledge, export experience or new infrastructure needed
No risk from foreign market political volatility
What kind of company would use an investment dealer?
Large and Established, Going Public
Explain how the “S” of PEST affects the other PEST factors and how it is affected by the other PEST factors.
:)
What are the 4 components of the vicious/virtuous cycle?
What tactics can you use for diversification?
Acquire other business
Use joint ventures and alliances
What are the risks/costs of establishing a foreign subsidiary
Cost of facility and establishment of operations; sometimes need permission of foreign government
What is the "n" value in this question?
What is the FV of $100 received monthly for three years and compounded at 5% semi-annually?
36
List 5 characteristics of genZ.
Digitally savvy, Value uniqueness, want to “know” brand, Customization & personalization, experiences vs assets, Frugal/avoid debt, Socially minded, Meaningful, flexible, work-life balance, Several careers.
What are the 4 types of innovation, and an example of each.
Radical: sliderule->Calculator
Modular: film->digital camera
Architectural: IBM mainfraims -> desktop computer
Incremental: image stabilizing in cameras
What are the foreign entry tactical strategies?
Agent, License/ Franchise, Sales office/local distributor, Foreign subsidiary