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External influences (PESTEL, Porter)

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is a PESTLE analysis?

a)

To check external factors (outside of a business) that can influence your marketing activity

b)

To check internal factors (inside of a business) that can influence your marketing activity

2.

When is PESTLE analysis useful?

a)

When closing a business

b)

When hiring new staff

c)

When starting a new business

3.

What do we check in 'Political Analysis' in PESTLE?

a)

Evaluating trends in society and culture that can affect the business

b)

Checking government. decisions which can effect your business

c)

Analysing the strength of an economy

d)

Analysing changes in technology that can impact your business

e)

Examining the law to understand how it can influence the business

4.

Parents cannot afford after school clubs due to cost of living increasing

a)

Political

b)

Economic

c)

Social

d)

Technological

e)

Environmental/Ethics

5.

Child protection legislation

a)

Political

b)

Economic

c)

Social

d)

Legal

e)

Environmental/Ethics

6.

Decrease/Increase in birth rate affecting school admissions

a)

Political

b)

Economic

c)

Social

d)

Technological

e)

Legal

7.

PESTLE is a situational analysis tool which helps a business to analyse the external factors that affect their business.

a)

True

b)

False

8.

'S' is for social, which of these social factors do you think could affect your business, tick all that apply:

a)

Population growth

b)

Age distribution of the population

c)

Cultural barriers

d)

Trends

9.

What is Porters first name?

a)

Michael

b)

John

c)

Richard

d)

Simon

10.

In Porter's Five Forces, the 'threat of new entrants' relates to:

a)

Barriers to entry

b)

Substitutes

c)

Switching costs

d)

Buyer power

11.

Buyer power is high if:

a)

Differentiation is low

b)

Switching costs are low

c)

They have little information

d)

The buyer requires a high quality product for their own production

12.

Competitive rivalry will be high if:

a)

The industry is fragmented

b)

There are a few strong players in the industry

c)

There is a high degree of differentiation

d)

The industry is in its infancy

13.

A substitute product or service is:

a)

A competitor's product or service

b)

An alternative way of meeting the same need

c)

A new entrant into the industry

d)

A less attractive way of meeting the same need

14.

Which of the following businesses is best known for its ability to compete with its rivals on price?

a)

Primark

b)

Marks & Spencer

c)

J D Sports

d)

Selfridges

15.

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

a)

Increase costs to enable price reductions

b)

Increase costs to enable price rises

c)

Cut costs to enable price reductions

d)

Cut costs to enable price rises