5 Questions
Which of the following is not a factor of the External Business Macro Environment according to the PESTEL Model?
Product differentiation/brand loyalty
According to the Porter 5 Forces Model, which factor refers to the pressure suppliers can exert on businesses by raising prices or reducing the quality of goods and services?
Supplier power
In the context of the Porter 5 Forces Model, what does 'Threat of new entrants' refer to?
Barriers to entry for new competitors
Which of the following is an example of a factor influencing 'Buyer power' according to the Porter 5 Forces Model?
Threat of substitutes
What factor in the External Business Micro Environment is related to the relative size of competitors and their intentions?
Competitor retaliation
Study Notes
PESTEL Model
- The PESTEL model analyzes the external business macro environment, but does not include a specific factor (to be identified)
Porter 5 Forces Model
- Supplier power refers to the pressure suppliers can exert on businesses by raising prices or reducing the quality of goods and services
- Threat of new entrants refers to the possibility of new competitors entering the market
- Buyer power is influenced by factors such as the concentration of buyers, the importance of each individual buyer to the seller, and the availability of substitutes
- Competitive rivalry is related to the relative size of competitors and their intentions
Test your knowledge about the factors that influence the macro and micro environments of businesses with this quiz. Questions cover topics such as PESTEL model and Porter 5 Forces model.
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