Chapter 3: Environmental Scanning and Industry Analysis

What is the primary goal of environmental scanning in strategic management?

• To set financial objectives

• To monitor internal processes

• To identify external opportunities and threats

• To establish company

Which framework is commonly used for analyzing the external environment at a macro level?

• SWOT Analysis

• PESTEL Analysis

• Value Chain Analysis

• VRIO Framework

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

• Political

• Social

• Technological

• Competitive

In Porter's Five Forces model, which force examines the impact of alternative products?

• Threat of new entrants

• Bargaining power of suppliers

• Threat of substitute products

• Bargaining power of buyers

What does the term 'industry analysis' primarily focus on?

• Evaluating internal company processes

• Analyzing competitors and market structure

• Assessing employee performance

• Developing a marketing strategy

Which factor is included in the Economic dimension of the PESTLE framework?

• Stability Government

• Interest rates

• Consumer behavior

• Technological innovation

In environmental scanning, the task environment includes:

• Economic policies

• Industry competitors

• Technological trends

• Societal values

Which of the following is an example of a technological force in PESTLE analysis?

• Changes in tax laws

• New product innovations

• Political lobbying

• Shift in consumer values

Which force in Porter's model directly affects the pricing power of suppliers?

• Threat of new entrants

• Bargaining power of suppliers

• Rivalry among competitors

• Threat of substitutes

The External Factor Evaluation (EFE) matrix is used to:

• Evaluate internal strengths

• Assess external opportunities and threats

• Measure employee satisfaction

• Develop marketing campaigns