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Questions and Answers
What is the main purpose of the PESTEL model?
What is the main purpose of the PESTEL model?
- To help businesses analyze their macro-environment (correct)
- To identify internal strengths and weaknesses of a business
- To analyze microeconomic factors affecting a business
- To forecast consumer demand for products and services
In the context of industry analysis, what does the term 'equilibrium' refer to?
In the context of industry analysis, what does the term 'equilibrium' refer to?
- Group of customers for specific products or services
- Broad industry group or group of markets
- Market's ability to produce a good or service
- Condition in which the quantity demanded equals the quantity supplied (correct)
According to Porter's Five Forces Framework, when is the bargaining power of buyers likely to be high?
According to Porter's Five Forces Framework, when is the bargaining power of buyers likely to be high?
- Buyers are powerful and can demand cheap prices or product/service improvements (correct)
- There is a low threat of new entrants in the industry
- The market experiences high demand for products or services
- Suppliers have strong control over the market
What distinguishes an industry from a sector?
What distinguishes an industry from a sector?
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What is the primary focus of the PESTEL model in business analysis?
What is the primary focus of the PESTEL model in business analysis?
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