Business Enviroment

Question 1

What does Pestle mean?

Answer 1

P - Political 
E - Environmental 
S - Social
T - Technology 
L - legal 
E - Economic

Question 2

What are porters 5 forces?

Answer 2

Supplier power
Buyer power
Competitive rivalry 
Threat of substitution 
Threat of new entry

Question 3

What’s is the political aspect of PESTLE Analysis?

Answer 3

This include factors that the government might change, such as laws. This includes tax, trade tariffs, fiscal policy etc

Question 4

What’s is the economical aspect of PESTLE Analysis?

Answer 4

These are factors that affect the economy, for example inflation will cause companies to increase prices of their products. Economic factors include inflation rate, exchange rate, interest rates etc

Question 5

What’s is the social aspect of PESTLE Analysis?

Answer 5

This focuses on social environment of the market, this includes cultural trends, demographic, population analysis etc

Question 6

What’s is the technological aspect of PESTLE Analysis?

Answer 6

Technology can affect the business environment, these factors can include automation, research and development of new technologies. Technology is expected to play a big part in sustainability.

Question 7

What’s is the legal aspect of PESTLE Analysis?

Answer 7

The legal aspect of this includes employment laws, discrimination laws, health and safety and copyright laws.

Question 8

What’s is the environmental aspect of PESTLE Analysis?

Answer 8

The environment aspect of this depends on the environment, this includes weather, climate change, environmental laws, pollution and sustainability.

Question 9

What is supplier power in porters five forces?

Answer 9

This refers to how much a company depends on its supplier, these factors include, uniqueness of product, strength, control and cost to switch. In short the less supplier choices the more you need suppliers help making them more powerful.

Question 10

What is the buyer power in porters five forces?

Answer 10

This refers to how easily is it for buyers to drive your prices down, this depends on importance of individual buyers and cost of them switching. In short the less powerful buyers you have, the more they can dictate terms to you.

Question 11

What is competitive rivalry in porters five forces?

Answer 11

This depends on the number of competitors, if you have loads of competition doing the same or similar things your doing, then you have little power in the business. Because people can go elsewhere for a better deal.

Question 12

What is the threat of substitution in Porters five forces?

Answer 12

This depends on the product or services your offering, if it can be easily replaced, it weakens your power in the industry

Question 13

What is the threat of new entry in porters five forces?

Answer 13

This means that if a new company can join your industry with little time and money, and compete effectively it means that new competitors can join the market and weaken your position.

Question 14

What are the governments five main objectives?

Answer 14

Control inflation
Economic growth
Reducing unemployment
Favourable balance of payment 
Controlled public borrowing

Question 15

What is fiscal policy?

Answer 15

Government plans spending and taxation to promote economic growth and reduce povery

Question 16

What is monetary policy?

Answer 16

This is when the central bank of a nation controls the amount of money available to the nation’s banks, consumers, businesses and interest rates, to promote economic growth.