4.1 The external environment

Question 1

PESTEL is used primarily as a checklist to force the brain to consider different environmental perspectives. What does the “S” stand for?

Answer 1

Socio-cultural

Question 2

Johnson introduces “single-point forecasting” which focuses on a single figure, “range forecasting” which focuses on a range of possibilities, and “alternate futures” forecasting.

What is the difference between range and alternate futures forcasting?

Answer 2

In alternate future forecasting, the possible end options are clearly defined, whereas in range forecasting they are not as there are too many risk factors.

Question 3

“When thinking about the micro environment it is important to start from an economic dynamic.”

Why is this?

Answer 3

Because we can identify the type of market in which the business operates, i.e. whether it is a monopoly / oligopoly / perfect environment.

Question 4

It is important to decide where the company or its product sit in the product life cycle. In all four phases, Wearden lists the reaction of competitors. What are the competitors doing when the product is in the mature stage?

Answer 4

Competitors will focus on product differentiation.

Question 5

In strategic (game) theory, the essence of the game is that the outcome depends not only on the actor’s own actions but on the actions of _____.

Answer 5

others

Question 6

The most famous game in game theory is known as the __________ dilemma.

Answer 6

prisoner’s