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Questions and Answers
What does a SWOT analysis help identify?
Which of the following is a factor considered in PESTEL analysis?
What does the General Environment encompass in business strategy?
Which tool is commonly used for predicting trends and events in the business environment?
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What is the purpose of environmental scanning in the context of analyzing the external environment of a firm?
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Which process helps firms define and understand their industry as well as identify their rivals' strengths and weaknesses?
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What aspect is involved in environmental forecasting as part of analyzing the external environment of a firm?
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How does scenario analysis differ from environmental forecasting in analyzing the external environment?
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What are the major factors considered in a PESTEL analysis?
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In Porter's Five Forces model, which force refers to the intensity of rivalry among competitors in an industry?
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What does the Threat of New Entrants in Porter's Five Forces model refer to?
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Which factor is not part of the PESTEL analysis framework?
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Study Notes
SWOT Analysis
- Helps identify Strengths, Weaknesses, Opportunities, and Threats of a firm
PESTEL Analysis
- Considers factors such as: • Political • Economic • Social • Technological • Environmental • Legal
General Environment
- Encompasses external factors that can affect a firm's business strategy
Environmental Scanning
- Identifies opportunities and threats in the external environment of a firm
- Helps firms anticipate and respond to changes in the environment
Industry Analysis
- Helps firms define and understand their industry
- Identifies rivals' strengths and weaknesses
Environmental Forecasting
- Involves predicting trends and events in the business environment
- Uses tools such as scenario analysis
Scenario Analysis
- Differs from environmental forecasting in being a more detailed and specific prediction of future events
- Uses "what-if" scenarios to anticipate potential outcomes
Porter's Five Forces Model
- Refers to the intensity of rivalry among competitors in an industry (Competitive Rivalry)
- Threat of New Entrants refers to the likelihood of new firms entering the market
- Forces include: • Competitive Rivalry • Threat of New Entrants • Bargaining Power of Suppliers • Bargaining Power of Buyers • Threat of Substitute Products/Services
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Description
Learn how to perform a situation/scenario audit and develop forecasts for business firms operating in unpredictable industries. Explore the importance of understanding and forecasting the business environment to create an environmentally aware organization.