WorksheetsUnderstanding 5 Forces and PESTEL
Total questions: 13
Worksheet time: 10mins
Differentiation strategy is best described as one in which firms seek a competitive advantage:
through establishing their uniqueness
through having a lower cost than their competitors
through concentrating on a narrow market segment
through achieving a match between their internal and external environments
Which of the following is not an element of Porter’s 5 Forces Model?
The firm’s macroeconomic environment.
The firm’s existing competition.
The bargaining power of suppliers.
The potential competition from new entrants.
In Porter’s five forces model, conditions are more favourable for firms within an industry if:
Buyer power is high
Supplier power is high
Entry threat is low
Substitute threat is high
How a company is situated relative to its competitors is referred to as _____.
market share
position
competitive advantage
brand leadership
Which industry type is characterised by a large number of firms of approximately equal size?
fragmented industry
declining industry
mature industry
consolidated industry
In assessing competitors it might face in the soft drink (cola) industry, how would a Sarsaparilla drink business position in this industry?
a direct competitor
an indirect competitor
a future competitor
a follower competitor
What's the biggest threat to a new firm's viability when creating a new market?
government deregulation
government determination that the firm is a monopoly
recession
larger, better-funded firms copying them
From the list below, identify which factor does not form one of the six key areas of a PESTEL analysis.
Technological changes
Ecological changes
Education changes
Political changes
Which of the following are considered political elements of PESTLE?
Visa requirements and trading tariffs.
Weather and climate
Currency inflation and interests rates.
Age and gender.
How does PESTLE help your strategic development team?
It helps you to identify the strengths of your company.
It helps you to find solutions to problems, create marketing strategies, and stay ahead of your competition.
It helps you to find the weaknesses of your company.
It helps you to see how your company's financial well-being is affecting the environment.
What are the six elements of PESTLE?
Peace, Elements, Search, Tape, Legal, and Environment
Power, Environment, Science, Teaching, Legal, and Education
Paper, Element, Savings, Trust, Labels, and Entry
Political, Economic, Social, Technological, Legal, and Environmental
Why is PESTEL Analysis called 'Environmental Scanning'?
Because it looks at climate change
Because it scans the environment for potential positive and negative factors
Because it is done on a computer
Because it compares organisations against each other
The countries unemployment rate is an external force impacting on which environment?
Economic
Social
Politic
Environmental
