QUESTION 2
a) Name five factors that determine the nature and intensity of competition. (5 marks)
b) What is external of recruitment? (2 marks)
c) List four (4) sources of external recruitment. (4 marks)
a) Five factors that determine the nature and intensity of competition are:
1. **Industry Structure**: This includes the number of competitors within the market, the level of market saturation, and whether the industry is growing, static, or shrinking.
2. **Market Demand**: The level of consumer demand for a product or service will affect competition. Higher demand can lead to increased competition as more firms enter the market to capitalize on the opportunity.
3. **Product or Service Differentiation**: The uniqueness of a company’s offerings as compared to its competitors can influence competition. Greater differentiation can lead to reduced price competition as customers may be willing to pay more for distinctive features or quality.
4. **Barriers to Entry and Exit**: The difficulty for new competitors to enter or existing ones to leave the market significantly shapes the competitive landscape. High barriers to entry protect established firms, while low barriers can intensify competition.
5. **Supplier and Buyer Power**: The relative power of suppliers and buyers can impact the competitive dynamics. If suppliers have significant power, they can control terms and prices, while powerful buyers can drive prices down by demanding better terms.
b) External recruitment refers to the process of seeking new employees from outside the existing workforce. Instead of filling vacancies with current employees, external recruitment looks to bring new talent and skills into an organization from the labor market.
c) Four sources of external recruitment are:
1. **Online Job Portals**: Websites such as Indeed, Monster, LinkedIn, and specific industry job boards where employers can post job openings and potential candidates can submit applications.
2. **Recruitment Agencies**: Professional organizations that specialize in matching employers with suitable candidates. They have databases of job seekers and provide screening and shortlisting services.
3. **Educational Institutions**: Collaborating with universities, colleges, and vocational training centers to recruit recent graduates or interns.
4. **Social Media**: Utilizing platforms like LinkedIn, Facebook, and Twitter to advertise job openings and reach a broad audience, including passive job seekers who may not be actively looking for a job but are open to new opportunities.