Ch4

Question 1

External analysis - PESTEL

Answer 1

• Political
• Economic
• Social and demographic
• Technological
• Environmental
• Legal

Question 2

Porter’s diamond

1) Use
2) What

Answer 2

1) Porter identified the 4 key determinants of national competitive advantage

a) Factor conditions - supply side (banks)
b) Demand conditions - local consumers demanding innovation
c) Related and supporting industries
d) Strategy, Structure and rivalry - local competitive forces firms to be more efficient to survive