18 Questions
What does the macro environment encompass for businesses?
Characteristics of the world at large beyond direct control
Which of the following is NOT a category examined by the PESTEL analysis tool?
Ethical factors
How can American Electric Power be negatively impacted by the macro environment?
Environmental regulations restricting its coal usage
What do economic factors include in the macro environment?
State of national and global economies
Which of the following is an example of a political factor in the macro environment?
Labor regulations
What is the purpose of studying the macro environment according to strategists?
To learn about facts and trends that may impact the firm
What factor influences firms to target products to specific market segments by studying the needs and preferences of demographic groups?
Sociocultural factors
How do sociocultural factors impact an organization's products and services?
They influence the suitability of products for customers' needs.
Which demographic group might be interested in affordable textbooks but couldn’t afford to buy new cars?
College students
What demographic group is mentioned as potentially willing to pay for lawn-mowing services but not interested in adventure tourism?
Elderly population
Which demographic information is included in the sociocultural factors category?
Ethnic and racial composition of a population
How do demographic factors influence market challenges and possibilities for firms?
By affecting the quantity and quality of available employees
Which of the following is an example of a sociocultural factor influencing product targeting?
General interest in health and fitness
How has environmental awareness influenced product demand according to the text?
Increased demand for solar panels and electric cars
Which factor directly affects the sales of appliances, cars, and homes?
Interest rates
What is one major risk faced by firms operating across national borders?
Fluctuations in exchange rates
In what way have technological factors influenced how companies work with their suppliers?
Introduced materials requirement planning systems
How do demographic factors differ from economic indicators in their impact on firms?
Demographic factors include income levels and education, while economic indicators focus on employment and oil prices.
Learn how firms analyze economic indicators to make strategic decisions about market entry, expansion, and workforce management. Explore the impact of employment rates, interest rates, and exchange rates on business operations.
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