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External Business Environment

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

The events and trends inside an organization that affects management, employees, and organizational culture.

a)

Internal Environment

b)

External Environment

c)

General Environment

d)

Specific Environment

2.

Forces and events outside a company have the potential to influence or affect it.

a)

Internal Environment

b)

External Environment

c)

General Environment

d)

Specific Environment

3.

Which business environment does not affect the function of the business?

a)

forces of economic factors

b)

forces of changing factors

c)

forces of technological factors

d)

forces of social factors

e)

forces of political factors

4.

Identify the features in corporate culture.

a)

How the organization conducts its business, treats its employees, customers, and wider the community.

b)

How commited employees are towards collective objectives.

c)

How power and information flow through its hierarchy.

d)

The extent to which freedom is allowed in decision making, developing new ideas, and personal expression.

e)

All of the answers above

5.

What is the threat of new entrants in barriers of entry?

a)

Legal and government created barriers

b)

Corruption barriers

c)

Free entry barriers

d)

illegal and fraud barriers

6.

Which environment should be the first step we must check before we do business?

a)

Internal Environment

b)

External Environment

7.

The technological environment influences the business in terms of investment in technology, consistent application of technology, and the effect of technology on markets.

a)

True

b)

False

8.

Macro Environment focuses on political-legal, financial, technological, and economic.

a)

True

b)

False

9.

The technological environment includes:

a)

advances in production technology

b)

advances in information technology

c)

popularity of e -banking

d)

all of the above

10.

Which of the following is not the element of the political environment:

a)

Constitution of the country

b)

prevailing political system

c)

popularity of e-banking

d)

Level of political morality

11.

Following are the elements of the social environment:

a)

Educational system and literacy rates

b)

family structure

c)

caste and occupational structure

d)

all of the above

12.

The legal environment includes:

a)

government policies related to pricing

b)

the constitutional framework

c)

goverment policies related to import and export

d)

all of the above

13.

Which of the following is an example of a social environment?

a)

money supply in the economy

b)

consumer protection act

c)

The constitution of the country

d)

composition of family

14.

An examination of the organization's Strengths, Weaknesses, Opportunity & Threats

a)

Business Plan of Action

b)

SWOT Analysis

c)

PEST Analysis

d)

Mission Statement

15.

Strengths and Weaknesses in a business as referred to by SWOT analysis

a)

External Factors

b)

Poor Planning

c)

Internal Factors

d)

Good Management

16.

An example of Opportunities or Threats from the external environment

a)

Competitors

b)

GDP per capita

c)

Sales

d)

Strengths

17.

Things within a business that managers can influence and control (as it relates to SWOT)

a)

Employee Performance

b)

Sales Revenue

c)

External Factors

d)

Internal Factors

18.

Things outside a business that managers cannot control (as it relates to SWOT)

a)

Internal Factors

b)

External Factors

c)

Temperature

d)

Weather

19.

Great communication skills and analytical abilities is an example of a type of

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

20.

Global expansion in a company is an example of a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

21.

A business has a poor reputation among customers, this would be considered to be a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

22.

Changes in demographics results in shifting demand away from products, this is classified as a

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

23.

A company has a strong brand name, this would be a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

24.

New competitors are entering the market, this is an example of a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

25.

An employee notices an unfilled customer need, this is an example of a(n)

a)

Strength

b)

Weakness

c)

Opportunity

d)

Threat

26.

A company that has been established and successful for 10 years doesn't need to conduct a SWOT

a)

True

b)

False

27.

A PEST Analysis is used to examine the external indicators of the SWOT Analysis

a)

True

b)

False

28.

A PEST Analysis examines which two external SWOT components

a)

Strengths & Threats

b)

Opportunity & Weakness

c)

Opportunity & Threats

d)

Strengths & Weakness

29.

Trade restrictions have just been lifted, allowing your company to expand trade globally,

a)

Political Factor

b)

Economic Factor

c)

Social Factor

d)

Technological Factor

30.

Emerging customer needs would be considered a

a)

Political Factor

b)

Economic Factor

c)

Social Factor

d)

Technological Factor

31.

A shift in consumer taste, away from the firm's product is considered a

a)

Political Factor

b)

Economic Factor

c)

Social Factor

d)

Technological Factor

32.

Installation of new computer software for your company is an example of a

a)

Political Factor

b)

Economical Factor

c)

Social Factor

d)

Technological Factor