PESTLE Analysis

What does PESTLE stand for in the context of the external environment analysis for organisations?

• Political, Economic, Social, Technological, Legal, Environmental

• Political, Educational, Systematic, Technological, Legal, Environmental

• Political, Economic, Social, Technological, Legislative, Ethical

• Political, Economic, Social, Technical, Legal, Ecological

Which of the following is NOT a political factor that might be considered in a PESTLE analysis?

• Government policies on international trade

• Policies that encourage foreign investment

• The rate of VAT and other taxes

• The company's internal employment policies

How might a government encourage the protection of domestic industries according to the text?

• By reducing taxes for all businesses

• By imposing tariffs on imports

• By allocating more funds to the public sector

• By encouraging foreign investment

What is the potential impact of the local authority's newly announced sustainability policies on Milroyd Medical?

• Decrease in the use of plastics

• Reduction in medical regulations

• Increase in foreign investment

• Decrease in employment costs

What challenge is Milroyd Medical facing due to changes in national insurance contribution rates?

• Decreased profits due to higher employment costs

• Increased volume of sales

• Reduced need for compliance with medical regulations

• Lower taxes on exported goods

Which of the following factors determines how much it will cost to borrow money in the way of interest payable on loans?

• Exchange rates

• Disposable income

• Interest rates

• Cost of living

What is likely to happen to the prices of UK goods and services for non-UK customers if the British pound is strong?

• The prices will be more expensive because they will get more for their money.

• The prices will be cheaper because they will get less for their money.

• The prices will remain the same as currency strength does not affect pricing.

• The prices will be cheaper because UK businesses can get more for their money.

What is a direct result of a growing economy on disposable income?

• Disposable income decreases due to higher taxes.

• Disposable income increases due to job creation and high levels of employment.

• Disposable income is unaffected by the economy.

• Disposable income decreases as the cost of living remains static.

What is demand-pull inflation?

• It occurs when the cost of goods increases due to higher production costs being passed on to customers.

• It happens when demand for goods and services outstrips supply, driving up prices.

• It is the result of decreased spending on goods and services.

• It is inflation caused by a decrease in the cost of living.

Which of the following is a phase that an economy can go through according to the text?

• Stagnation

• Contraction

• Expansion

• Hyperinflation