QUESTION $1(7\mathrm{.}5$marks$)$

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 $2(7\mathrm{.}5$ 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 $(2$marks$)$