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Internal and External Factors

Total questions: 48

Worksheet time: 27mins

Name
Class
Date
1.

What does the P in PESTEC stand for?

a)

Political

b)

Party

c)

Profit

d)

Partial

2.

What does the first E in PESTEC stand for?

a)

Economic

b)

Environment

c)

Education

d)

Exchange

3.

What does the S in PESTEC stand for?

a)

Social

b)

Sales

c)

Support

d)

Supplier

4.

What does the T in PESTEC stand for?

a)

Technological

b)

Time

c)

Training

d)

Teaching

5.

What does the last E in PESTEC stand for?

a)

Economic

b)

Employees

c)

Environment

d)

Ethos

6.

What does the C in PESTEC stand for?

a)

Company

b)

Competitive

c)

CEO

d)

Capital

7.

Who has the power over political factors?

a)

Businesses

b)

The Government

c)

Boris Johnson

d)

Nicola Sturgeon

8.

Social factors are about...

a)

Inflation rates

b)

Trends

9.

A ski resort can't sell passes because there is no snow. What external factor is this?

a)

Political

b)

Economic

c)

Environment

d)

Social

10.

Morrison's does not have "scan as you go". They can not currently afford it. What internal factor is this?

a)

Staff

b)

Finance

c)

Management

11.

Greggs in Renfrew wants to expand its store, but it has had its planning permission refused. What external factor is this?

a)

Political

b)

Social

c)

Competitive

12.

Unemployment is at an all time high. What external factor is this?

a)

Political

b)

Economic

c)

Competitive

d)

Technological

13.

External factors are out of a business' control.

a)

True

b)

False

14.

Internal and external factors can have both a positive and negative affect on a business.

a)

True

b)

False

15.

This external factor looks at the trends and beliefs of the customer.

a)

Political

b)

Social

c)

Economic

d)

Competition

16.

Identify an internal stakeholder.

a)

Customer

b)

Banks and lenders

c)

Supplier

d)

Employee

17.

Identify an internal factor of an organisation.

a)

Political

b)

Environmental

c)

Technology

d)

Competition

18.
What external factor may mean a company has to purchase new safety equipment which increases costs and lowers profit
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
19.
What external factor may grant permission for a company to expand current factory and increase output 
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
20.
What external factor may make it more expensive to pay back a bank loan which may mean a company will delay any big plans that a company has to expand
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
21.
What external factor may mean that the company has greater sales due to a 'boom' which means higher dividends for to owners or profits to use to purchase new machinery and become more efficient
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
22.
What external factor may mean that suppliers cannot deliver raw materials due to bad weather and customer orders are delayed as a result
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
23.
What external factor may mean that the company must improve how it gets rid of wastage to avoid pollution of local rivers and the bad reputation doing so may bring
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
24.
What external factor may mean that the company has to alter its range of clothing to what customers currently want or face getting into financial difficulties.
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
25.
What external factor may mean that the company needs to carry out market research to find out what is currently in demand and may be in demand in the future (think of Subway and Halal meat)
a)
Political/Legislation
b)
Economic
c)
Social 
d)
Environmental
26.
What external factor may mean that the company needs to consider using social media to communicate with customers if they wish to attract new clients
a)
Technological
b)
Economic
c)
Social 
d)
Environmental
27.
What external factor may mean that the company will save storage costs and take better decisions since better quality information is available to all staff no matter where they are working
a)
Technological
b)
Economic
c)
Social 
d)
Environmental
28.
What external factor may mean that the company needs to take out additional advertising on TV/radio and launch money-off or BOGOF offers to keep customers loyal and avoid a drop in sales
a)
Technological
b)
Economic
c)
Social 
d)
Competition
29.
What external factor may mean that the company needs to take out additional advertising on TV/radio and launch money-off or BOGOF offers to keep customers loyal and avoid a drop in sales
a)
Technological
b)
Economic
c)
Social 
d)
Competition
30.
The introduction of the National Living Wage of £7.20 for 25 year olds and over in April 2016 is an example of which external factor?
a)
Political
b)
Economic
c)
Social
d)
Competition
31.
The pressure for Easter Egg manufacturers to reconsider their packaging to reduce the materials used is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
32.
The collapse of the UK steel industry is mainly due to cheap imports from China who have 'over-produced'. This is an example of what external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
33.
The withdrawal of the £1 glass Irn Bru bottles in 2015 was partially due to fewer customer returning these 'glass cheques' for 30p refund. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Environmental
34.
The strength of £ sterling against the euro in 2015 meant that it was dearer for companies abroad to purchase UK goods. This is an example of which external factor
a)
Political
b)
Social
c)
Competition
d)
Economic
35.
Low interest rates has meant that it is a good time for companies to consider taking out loans to expand their business or purchase more advanced machinery to increase automation. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
36.
In many towns, fast food outlets such as McDonalds are suffering from falling sales due to a preference for more healthy snacks. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
37.
An increase in working mums and longer hours has led to an increase in the number of companies offering home cleaning services. This is an example of which external factor?
a)
Political
b)
Social
c)
Competition
d)
Economic
38.
There are three main internal factors. Which is NOT one of these?
a)
Availability of Finance
b)
Availability of Staff
c)
Availability of Current Technology
d)
Availability of Good Publicity
39.
The use of ICT and robots will mean that ...
a)
costs will increase and profits reduce
b)
faults will increase and customer complaints rise
c)
staff may find work more repetitive and morale may fall 
d)
equality act will be broken and compensation may need to be paid
40.
Availability of expert and capable staff will help a business develop and improve over time. Which department helps to keep staff motivated and working to their best?
a)
HR
b)
Operations
c)
Finance
d)
Marketing
41.
Managers are an internal factor who can greatly influence a business - but how?
a)
Through the quality of the decisions they take
b)
Through the wages and bonuses they earn 
c)
By the level of IT skills they have
d)
By the ways they communicate 
42.

If a business has lots of money, skilled human resources, and efficient current technology, what is it more likely to achieve?

a)

Increased government regulation

b)

Higher market competition

c)

Maximising customer satisfaction and profit

d)

Decreased employee satisfaction

43.

How does efficient current technology contribute to a business's success?

a)

By reducing the need for skilled human resources

b)

By increasing the chance of maximising customer satisfaction and profit

c)

By decreasing the availability of finance

d)

By leading to outdated business practices

44.

Which of the following is a potential consequence of a lack of human resources?

a)

The business needs to pay for training

b)

The business has surplus funds

c)

The business has a high employee retention rate

d)

The business has a strong market presence

45.

What might be the quality of products if there is a lack of human resources?

a)

Products may be poor quality

b)

Products may be of high quality

c)

Products may be innovative

d)

Products may be in high demand

46.

What might a business need to do if its staff are not skilled enough?

a)

Pay for training

b)

Hire more managers

c)

Increase product prices

d)

Expand to new markets

47.

What might managers struggle with if there is a lack of human resources?

a)

Making good decisions

b)

Increasing profits

c)

Reducing costs

d)

Expanding the business

48.

What might be a consequence of using outdated technology in production?

a)

Faster production times

b)

Poor quality products

c)

Higher customer satisfaction

d)

Lower production costs

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