Question and Answer Paper: Business and Society Exam (Coursework Sample)

Name
Instructor
Course
Date
Business and Society Exam
Mimma's Cafe, Located at 1307 East Brady Street, has announced it is closing at the end of this year. You have decided to open up another business in that location beginning in January, 2017.
1 A). What type of business will you open?
Clothing Retail Store
B). Who will you focus on as the most important stakeholder in opening the business in order to succeed?
The local government
C). Explain why you selected this stakeholder as critical to the success of the business.
The government often creates the frameworks and rules that the business should adhere to succeed. More so, the regulations determine how different companies will compete in the industry. Notably, over time, the authority changes the frameworks and rules that force the entrepreneurs to adjust the way they do business (Minniti 779). In this case, the industry is significantly influenced by the local government policy. Some of the primary areas that the regulations control business include the economic policy and the legal changes.
Some of the financial rules that affect business include taxation policy, interest rates policy and government spending. In essence, the regulations that are governed by the authority often affect business because the owner does not have control over these areas (Minniti 779). In this case, the entrepreneur has to adhere and ensure that the business is run within the given frameworks. In the same way, the clothing retail store will have to operate in line with the local regulations of the area.
2 In doing an environmental analysis, what will you pay the most attention to (that is going on around you) that would impact your business?
All businesses operate within an environment that shapes the success of the venture. Notably, there are different factors around the business that the entrepreneur should pay attention to to succeed in the area (Allwood et al. 1234 ). Some of the important factors that I will consider are concerned with the buyers, the suppliers, the competitive rivalry and the new entrants.
In the case of the buyers, the primary concern will be the ability of the people within the neighborhood to purchase the products. The analysis will allow for proper setting of prices that will be profitable for the business and still affordable for the people around the area (Allwood et al. 1235). The other concern involves the suppliers. Given that the store will operate as retail and not as manufacturing, it will be crucial to understanding the ability of the suppliers to deliver the products as expected and the price ranges they offer. More so, it will be important to consider how much they charge for other services such as delivery of goods to the store. The evaluation will allow for price setting for specific items.
In the case of competitive rivalry, the considerations will include an assessment of the intensity of competition in the clothing retail industry within the locality. The analysis will reveal relevant information on how the rivalry will influence the number of customers the business will receive. Moreover, how sustainable the profit margins will be in the face of such competition (Allwood et al. 1235). Given that people are still opening new businesses in the locality, it will be important to investigate the threat of new entrants in the clothing retail market. The rationale for this is because these new ventures may reduce the market share in the business, therefore, influencing the success of the clothing store.
3 If you identify an issue, analyze it, develop options, then take action, how will you go about obtaining and evaluating the results to determine the success of your action?
The identified issue is the threat of a new entrant that would bring competition and may reduce the market share in the locality. The action that would be taken would be to inc...