12 Questions
What does a SWOT analysis help identify?
Internal strengths and weaknesses
Which of the following is a factor considered in PESTEL analysis?
Sociocultural aspects
What does the General Environment encompass in business strategy?
External factors with significant impact on strategy
Which tool is commonly used for predicting trends and events in the business environment?
PESTEL Analysis
What is the purpose of environmental scanning in the context of analyzing the external environment of a firm?
To alert the organization to critical trends and events before competitors recognize them.
Which process helps firms define and understand their industry as well as identify their rivals' strengths and weaknesses?
Competitive intelligence
What aspect is involved in environmental forecasting as part of analyzing the external environment of a firm?
Developing plausible projections about the direction of environmental change.
How does scenario analysis differ from environmental forecasting in analyzing the external environment?
It involves a more in-depth approach by drawing on multiple interests and disciplines.
What are the major factors considered in a PESTEL analysis?
Political, Economic, Social, Technological, Environmental, Legal
In Porter's Five Forces model, which force refers to the intensity of rivalry among competitors in an industry?
The Intensity of Rivalry Among Competitors in an Industry
What does the Threat of New Entrants in Porter's Five Forces model refer to?
The possibility that established firms' profits may be affected by new competitors
Which factor is not part of the PESTEL analysis framework?
Competition
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
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.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
