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SM External Environmental Analysis

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

What does the external environment consist of?

a)

Outside forces affecting operations

b)

Internal organizational factors

c)

Employee rights and benefits

d)

Market share and competition

2.

Which act outlines employee rights in Malaysia?

a)

Trade Act 1980

b)

Environmental Quality Act 1974

c)

Competition Act 2010

d)

Employment Act 1955

3.

What is the minimum wage in Malaysia as of 2025?

a)

RM1,200

b)

RM2,000

c)

RM1,700

d)

RM1,500

4.

What is a consequence of high interest rates for firms?

a)

Higher demand for luxury goods

b)

Lower labor costs

c)

Pause in expansion

d)

Increased consumer spending

5.

What demographic change is affecting demand for healthcare services in Malaysia?

a)

Decreasing birth rates

b)

Aging population

c)

Rising immigration

d)

Increasing youth population

6.

Which of the following is a socio-cultural factor?

a)

Trade deficits

b)

Environmental regulations

c)

Cultural values

d)

Interest rates

7.

What does PEST analysis stand for?

a)

Political, Economic, Social, Technological

b)

Political, Economic, Social, Trade

c)

People, Environment, Society, Technology

d)

Policy, Economy, Strategy, Technology

8.

What is a key impact of the COVID-19 pandemic on Malaysia's economy?

a)

Increased tourism

b)

Higher unemployment rates

c)

Lower fuel prices

d)

Expansion of retail industries

9.

Which law prohibits price-fixing in Malaysia?

a)

Environmental Quality Act 1974

b)

Competition Act 2010

c)

Employment Act 1955

d)

Trade Act 1980

10.

What is a consequence of a weakening Ringgit?

a)

Higher consumer purchasing power

b)

Decreased demand for exports

c)

Increased cost of imports

d)

Lower production costs

11.

What is one effect of mobile technology advancements?

a)

Slower communication

b)

New service offerings

c)

Decreased internet usage

d)

Reduced transportation options

12.

What is a characteristic of Malaysia's cultural values?

a)

Globalism

b)

Materialism

c)

Collectivism

d)

Individualism

13.

What is the impact of high-speed internet on e-commerce in Malaysia?

a)

Decreased online shopping

b)

Booming e-commerce growth

c)

Lower consumer engagement

d)

Increased shipping costs

14.

What is a strategic response to increased labor costs due to minimum wage?

a)

Adjust pricing strategies

b)

Reduce employee benefits

c)

Increase working hours

d)

Outsource production

15.

What is a potential effect of trade deficits?

a)

Higher export revenues

b)

Increased self-sufficiency

c)

Dependency on foreign suppliers

d)

Lower import costs

16.

What is a key factor in the industry environment?

a)

Corporate social responsibility

b)

Employee satisfaction

c)

Five forces model

d)

Internal management structure

17.

What is one way firms can comply with environmental regulations?

a)

Reduce employee rights

b)

Increase emissions

c)

Manage waste responsibly

d)

Ignore waste management

18.

What is a consequence of an aging population in Malaysia?

a)

Decreased demand for healthcare

b)

Increased demand for retirement homes

c)

Lower insurance needs

d)

Reduced job opportunities

19.

What is a strategic consideration for telecommunications companies in Malaysia?

a)

Collusion with competitors

b)

Fair competition

c)

Price-fixing agreements

d)

Market-sharing deals

20.

What is a potential impact of inflation on consumer behavior?

a)

Lower interest rates

b)

Higher savings rates

c)

Decreased purchasing power

d)

Increased spending on luxury goods

21.

What is a key aspect of the industry environment?

a)

Employee turnover

b)

Internal policies

c)

Market competition

d)

Corporate governance

22.

What is a strategic response to changes in currency exchange rates?

a)

Reduce product quality

b)

Increase production volume

c)

Adjust pricing strategies

d)

Ignore import costs

23.

What is a characteristic of the economic environment?

a)

Interest rates

b)

Cultural values

c)

Technological advancements

d)

Employee rights

24.

What is a consequence of rapid technology transfer?

a)

Faster adoption of production techniques

b)

Decreased innovation

c)

Increased production costs

d)

Slower adoption of new techniques

25.

What is a strategic consideration for firms during economic downturns?

a)

Ignore market trends

b)

Expand product lines

c)

Reduce operational costs

d)

Increase marketing budgets