1.1.1 The dynamic nature of business

• A static business continuously adapts to market changes.

  False
• Market trends do not impact business dynamism.

  False
• What qualities do entrepreneurs need to respond to the dynamic nature of business?

  Agile and responsive
• How do technological advancements impact business dynamism?

  Disrupt business models
• Globalization increases competition by introducing more competitors from different countries
• Government policies, such as changes in regulations and taxes, can significantly impact business operations
• Technological advancements can create opportunities for innovation
• The rise of online streaming disrupted the DVD rental business model of Blockbuster.

  True
• Amazon has thrived by expanding its market reach globally
• A dynamic business continuously monitors and adapts to market changes.


  True
• Competition drives businesses to differentiate themselves and gain a competitive edge
• What does the term "dynamic nature of business" refer to?

  Ever-changing business environment
• Which company failed to adapt to online streaming, leading to its decline?

  Blockbuster
• Match the factor with its impact on business dynamism:

  Market Trends ↔️ Change customer demands

  Technological Advancements ↔️ Disrupt business models

  Competition ↔️ Drive continuous improvement

  Government Policy ↔️ Impact business operations
• A dynamic business operates with fixed processes.

  False
• Order the characteristics of a dynamic business:

  1️⃣ Actively seeks new innovations

  2️⃣ Flexible processes that can be quickly modified

  3️⃣ Broad and evolving product range
• What is an example of a business that expanded its market reach through globalization?

  Amazon
• Businesses are required to adapt their products and services due to technological advancements and shifts in consumer preferences
• Changes in consumer behavior and expectations force businesses to evolve their offerings
• Businesses must continuously monitor external factors to remain competitive in the dynamic business environment.

  True
• A static business is characterized by slow adoption of new technologies.


  True
• Netflix became dominant by transitioning to a streaming-based service
• McDonald's customizes its menus based on local consumer preferences.


  True
• Innovation allows businesses to adapt to changing market conditions and stay ahead of their competitors
• The dynamic nature of business requires constant adaptation and innovation.innovation
• Netflix became a leader in the entertainment industry by embracing digital distribution
• Businesses must monitor key factors and adjust their strategies to remain competitive
• Netflix adapted to changes in consumer preferences by offering online streaming
• The rise of online streaming led to Blockbuster's success.

  False
• Zara adapts to global consumer preferences by customizing its menus.

  False
• Technological advancements can disrupt existing business models and create opportunities for innovation.


  True
• Competition between businesses drives the need for continuous improvement and differentiation.


  True
• Match the factor with its impact on business dynamism:

  Market Trends ↔️ Changing customer demands

  Technological Advancements ↔️ Disrupt existing business models

  Consumer Preferences ↔️ Force businesses to evolve offerings

  Competition ↔️ Drives continuous improvement

  Government Policy ↔️ Impact business operations
• Rigid business processes in a static business are unable to adapt to changing conditions
• Globalization has expanded market reach for businesses but also increased competition.


  True
• Market trends require businesses to adapt their products and services to changing customer demands
• An innovative business actively seeks new innovations to stay competitive.


  True
• Businesses that proactively engage with competition and embrace innovation are better positioned to succeed.


  True