Question 1

PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:

Accepted Answer

A) analyzing a firm's strengths and weaknesses along with the opportunities and threats that exist in the firm's environment. 
B) evaluating strategic groups in order to understand gaps in the industry that represent untapped opportunities. 
C) analyzing how much profit potential exists in an industry. 
D) evaluating profit potential of an organization's various business units or product lines. 
E) organizing factors within the general environment and identifying how these factors influence industries and the firms within them. 
A) analyzing a firm's strengths and weaknesses along with the opportunities and threats that exist in the firm's environment. 
B) evaluating strategic groups in order to understand gaps in the industry that represent untapped opportunities. 
C) analyzing how much profit potential exists in an industry. 
D) evaluating profit potential of an organization's various business units or product lines. 
E) organizing factors within the general environment and identifying how these factors influence industries and the firms within them.

Question 2

Attitudes toward obesity constitute a social factor in the PESTEL framework.

Accepted Answer

A) True 
 B)False

Question 3

Describe PESTEL analysis.

Accepted Answer

PESTEL analysis is an important tool tha

Question 4

Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?

Accepted Answer

A) Exit barriers in the industry are low 
B) Fixed costs in the industry are low 
C) Competitors are differentiated from each other 
D) Competition is based on the uniqueness of the industry's offerings 
E) The growth rate of demand for the industry's offerings is low 
A) Exit barriers in the industry are low 
B) Fixed costs in the industry are low 
C) Competitors are differentiated from each other 
D) Competition is based on the uniqueness of the industry's offerings 
E) The growth rate of demand for the industry's offerings is low

Question 5

The environmental segment involves the physical conditions within which organizations operate.

Accepted Answer

A) True 
 B)False

Question 6

Changes in legal factors can have a positive impact on the profit potential of many industries.

Accepted Answer

A) True 
 B)False

Question 7

Moore's Law suggests that the performance of alternative energy technology roughly doubles every four years.

Accepted Answer

A) True 
 B)False

Question 8

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

Accepted Answer

A) new entrants struggle to match incumbents' prices. 
B) this discourages customers from buying a new entrant's offerings. 
C) new entrants struggle to gather enough cash to get started. 
D) each incumbent has a group of loyal customers that enjoy its unique features. 
E) new entrants struggle to get their offerings to customers. 
A) new entrants struggle to match incumbents' prices. 
B) this discourages customers from buying a new entrant's offerings. 
C) new entrants struggle to gather enough cash to get started. 
D) each incumbent has a group of loyal customers that enjoy its unique features. 
E) new entrants struggle to get their offerings to customers.

Question 9

Which of the following segments of PESTEL analysis includes elements such as inflation rates, unemployment rates, and levels of disposable income?

Accepted Answer

A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental 
A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental

Question 10

Breadmakers, Inc.produces and supplies fresh sandwich breads to various sandwich businesses.Breadmakers has recently decided to open its own stores for selling sandwiches to consumers.This is an example of:

Accepted Answer

A) forward horizontal integration 
B) backward vertical integration 
C) horizontal diversification 
D) backward horizontal integration 
E) forward vertical integration 
A) forward horizontal integration 
B) backward vertical integration 
C) horizontal diversification 
D) backward horizontal integration 
E) forward vertical integration

Question 11

Which of the following is an example of forward vertical integration?

Accepted Answer

A) A start-up company created by an entrepreneur enters an industry 
B) A supplier firm chooses to enter its customers' business 
C) A foreign firm plans to enter a new geographic area 
D) A buyer firm decides to enter its suppliers' business 
E) A local firm diversifies itself by entering a new industry 
A) A start-up company created by an entrepreneur enters an industry 
B) A supplier firm chooses to enter its customers' business 
C) A foreign firm plans to enter a new geographic area 
D) A buyer firm decides to enter its suppliers' business 
E) A local firm diversifies itself by entering a new industry

Question 12

Rivalry in fragmented industries tends to become bitter and fierce.

Accepted Answer

A) True 
 B)False

Question 13

The analysis of strategic groups can reveal gaps in the industry that represent untapped opportunities.

Accepted Answer

A) True 
 B)False

Question 14

What does the environment of any organization consist of? How can a business influence the environment?

Accepted Answer

For any organization, the environment co

Question 15

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

Accepted Answer

A) PESTEL 
B) SWOT 
C) Porter's 
D) BCG matrix 
E) Five forces 
A) PESTEL 
B) SWOT 
C) Porter's 
D) BCG matrix 
E) Five forces

Question 16

Bitter rivalry between an industry's competitors is especially detrimental to the competing firms if their competition is based on unique features of their products or services.

Accepted Answer

A) True 
 B)False

Question 17

The environment provides resources that an organization needs in order to create goods and services.

Accepted Answer

A) True 
 B)False

Question 18

According to the Five Force Analysis, if a firm is to make more profit, it must take that profit from a rival, a supplier, or a buyer.

Accepted Answer

A) True 
 B)False

Question 19

The political segment includes elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.

Accepted Answer

A) True 
 B)False

Question 20

Viable substitutes are available in all industries.

Accepted Answer

A) True 
 B)False

PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:

Attitudes toward obesity constitute a social factor in the PESTEL framework.

Describe PESTEL analysis.

Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?

The environmental segment involves the physical conditions within which organizations operate.

Changes in legal factors can have a positive impact on the profit potential of many industries.

Moore's Law suggests that the performance of alternative energy technology roughly doubles every four years.

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

Which of the following segments of PESTEL analysis includes elements such as inflation rates, unemployment rates, and levels of disposable income?

Breadmakers, Inc.produces and supplies fresh sandwich breads to various sandwich businesses.Breadmakers has recently decided to open its own stores for selling sandwiches to consumers.This is an example of:

Which of the following is an example of forward vertical integration?

Rivalry in fragmented industries tends to become bitter and fierce.

The analysis of strategic groups can reveal gaps in the industry that represent untapped opportunities.

What does the environment of any organization consist of? How can a business influence the environment?

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

Bitter rivalry between an industry's competitors is especially detrimental to the competing firms if their competition is based on unique features of their products or services.

The environment provides resources that an organization needs in order to create goods and services.

According to the Five Force Analysis, if a firm is to make more profit, it must take that profit from a rival, a supplier, or a buyer.

The political segment includes elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.

Viable substitutes are available in all industries.

Mastering Strategy: Art and Science

Leading Strategically

Managing Company Resources

Selecting Business-Level Strategies

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

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Exam 3: Evaluating the External Environment

PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:

Attitudes toward obesity constitute a social factor in the PESTEL framework.

Describe PESTEL analysis.

Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?

The environmental segment involves the physical conditions within which organizations operate.

Changes in legal factors can have a positive impact on the profit potential of many industries.

Moore's Law suggests that the performance of alternative energy technology roughly doubles every four years.

The likelihood of new entrants joining an industry is low if capital requirements to enter the industry are high because:

Which of the following segments of PESTEL analysis includes elements such as inflation rates, unemployment rates, and levels of disposable income?

Breadmakers, Inc.produces and supplies fresh sandwich breads to various sandwich businesses.Breadmakers has recently decided to open its own stores for selling sandwiches to consumers.This is an example of:

Which of the following is an example of forward vertical integration?

Rivalry in fragmented industries tends to become bitter and fierce.

The analysis of strategic groups can reveal gaps in the industry that represent untapped opportunities.

What does the environment of any organization consist of? How can a business influence the environment?

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

Bitter rivalry between an industry's competitors is especially detrimental to the competing firms if their competition is based on unique features of their products or services.

The environment provides resources that an organization needs in order to create goods and services.

According to the Five Force Analysis, if a firm is to make more profit, it must take that profit from a rival, a supplier, or a buyer.

The political segment includes elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.

Viable substitutes are available in all industries.

Mastering Strategy: Art and Science

Leading Strategically

Managing Company Resources

Selecting Business-Level Strategies

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters