BA Revision Session 6 - External Environmental Factors

What does SWOT stand for?

• Sales, Weakness, Opportunities, Targets

• Strengths, Wages, Objectives, Threats

• Strengths, Weakness, Opportunity, Threats

• Selective, Wealth, Open, Tact

A PESTLE analysis looks at the external factors that can affect an organisation. These are Political, ............, Social, Technological, Environmental and Legal factors.

In an extremely competitive market, a business may be forced to:

• Increase costs to enable price reductions

• Increase costs to enable price rises

• Cut costs to enable price rises

• Cut costs to enable price reductions

The external environmental concerns features of the business environment that are:

• Outside the control of a business

• Within the control of a business

• Positive for a business

An example of a likely consequence for a market as a consequence of an ageing population would be:

• Increased demand for care home services

• Lower demand for private healthcare

• Higher demand for private education

• Increased demand for childcare services

Each of the following are example of environmental issues facing most businesses, except which one?

• Sustainability of resource usage

• Cost of rising energy taxes

• Waste and pollution from the production process

• Impact of high net migration into the UK

What are market forces?

• The sequences of processes involved in the production and distribution of products and services.

• The actions of buyers and sellers that cause the prices of goods and services to change, without being controlled by the government.

• A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

• A general increase in prices and fall in the purcahsing value of money.

Which of the following is a primary factor influencing the business environment?

• Internal management policies

• Government regulations

• Employee satisfaction

• Company culture

What is a common strategy businesses use to adapt to changing market conditions?

• Ignoring market trends

• Increasing product prices without reason

• Conducting market research

• Reducing product quality

Which of the following is NOT a component of a PEST analysis?

• Political factors

• Economic factors

• Technological factors

• Internal factors