EXTERNAL ENVIRONMENT

If a new law requires all firms to adopt stricter environmental standards, which type of external factor primarily influences this change?

• Technological

• Political

• Legal

• Sociocultural

A firm faces difficulty entering an industry because existing players have strong brand loyalty. Which barrier from Porter's model does this represent?

• Economies of scale

• Product differentiation

• Capital requirements

• Access to distribution channels

A sudden global recession causes consumers to cut back on luxury goods. Which external factor is most directly affecting the industry?

• Political

• Economic

• Technological

• Sociocultural

A company notices that competitors are lowering prices aggressively to maintain market share in a slow-growth industry. This situation illustrates:

• High buyer power

• Intense competitive rivalry

• Threat of substitutes

• Weak supplier power

When switching to another supplier would involve huge costs for a firm, suppliers gain leverage by:

• Offering credit facilities

• Creating artificial scarcity

• Exploiting high switching costs

• Reducing exit barriers

A firm wants to anticipate competitor moves by studying their objectives, strategies, and assumptions. This process is known as:

• Industry scanning

• Competitor analysis

• Supplier bargaining

• Market segmentation

If buyers can easily shift to another product at little to no cost, the industry faces a high:

• Threat of substitutes

• Supplier power

• Capital requirement

• Government regulation

A new competitor is trying to enter an industry where government licensing is mandatory and difficult to obtain. This shows that:

• Switching costs are high

• Government policy acts as an entry barrier

• Exit barriers prevent fair competition

• Suppliers have bargaining power

A technology firm struggles because rapid innovation makes its product obsolete quickly. Which external factor is most critical here?

• Political

• Technological

• Sociocultural

• Environmental

If customers increasingly demand eco-friendly packaging, this reflects which external influence?

• Sociocultural factor

• Political factor

• Legal factor

• Technological factor