PESTEL Analysis Quiz

Factors related to a country's economy such as economic growth, unemployment, inflation, interest rates, exchange rates, trade deficits/surpluses, and GDP per capita. These factors can significantly influence a company's operations and profitability.

The overall increase in the production of goods and services in a country. Positive economic growth indicates a healthy economy.

The percentage of the workforce who are unemployed and actively seeking work. High unemployment indicates a struggling economy.

The rate at which prices for goods and services increase over time. High inflation can erode purchasing power.

The cost of borrowing money. Higher interest rates make it more expensive for businesses to borrow money and invest.

The value of one currency compared to another. Fluctuations in exchange rates can affect the cost of imports and exports.

The difference between a country's exports and imports. A trade surplus means a country exports more than it imports. A trade deficit means it imports more.

The total value of goods and services produced in a country divided by its population. A higher GDP per capita generally indicates a higher standard of living.

The framework used for understanding an organization's external environment, its strengths, weaknesses, opportunities, and threats, and how it will execute its strategy.

These are the different levels of an organization's external environment, ranging from the immediate, directly impactful factors to the broader, less immediately relevant ones.

The immediate environment of a company, including customers, competitors, suppliers, and other stakeholders.

The broader environment that influences the competitive environment. It includes factors like political, economic, sociocultural, technological, environmental, and legal forces.

A framework used to analyze the external environment of a company by focusing on six key factors: political, economic, social, technological, environmental, and legal.

Analysing how political factors, like government policies, regulations, political climate, and international relations, impact a company's operations and strategy.

Economic factors like economic growth, inflation, interest rates, exchange rates, and employment levels can significantly affect a company's performance.

Understanding social factors like demographic trends, consumer preferences, cultural shifts, and lifestyle changes is crucial for a company's success in the long term.

The study of how populations grow, shrink, and age. This includes factors like birth rates, death rates, and migration patterns.

The concentration of a population in cities, specifically those with over 10 million inhabitants.

The spread of people across a region, including factors like population density and rural vs. urban distribution.

The collection of innovative products, processes, and technologies that create new opportunities.

Advancements that disrupt existing markets and industries, often with significant impacts on society.

Forces that impact the natural environment, including climate change, resource scarcity, and pollution.

The attitudes, values, beliefs, and behaviors of a society.

The changes in the balance of planetary systems, particularly focusing on atmospheric changes.