environmental scanning: SWOT and PEST analysis

Question 1

a major factor that influences a company’s operations

Answer 1

external environment

Question 2

refers to the conditions and elements that define its operations and determine its success

Answer 2

business firm environment

Question 3

consists of elements that have a direct impact on business operations

Answer 3

internal environment

Question 4

consists of factors that have indirect but significant influence on the operations of the business

Answer 4

external environment

Question 5

2 types of firm environment

Answer 5

internal environment
external environment

Question 6

2 types of external environment

Answer 6

micro-environment
macro-environment

Question 7

also known as the operating environment

Answer 7

micro-environment

Question 8

The factors in this environment have a direct relevance to the business operations but are uncontrollable to a certain extent.

Answer 8

micro-environment

Question 9

also known as the general environment

Answer 9

macro-environment

Question 10

The factors in this environment are beyond the control of the firm but are important determinants of success

Answer 10

macro-environment

Question 11

the actual monitoring and evaluation of information from the external and internal environment of a business organization

Answer 11

environmental scanning

Question 12

3 modes of environmental scanning

Answer 12

ad hoc environmental scanning
regular scanning
continuous scanning

Question 13

It is not often done and is usually applicable only during a crisis situation

Answer 13

ad hoc environmental scanning

Question 14

usually done at least once a year or at regular intervals

Answer 14

regular scanning

Question 15

refers to the continuous collection of data on a broad range of environmental factors

Answer 15

continuous scanning

Question 16

analyses consider the elements of a firm’s internal and external environment in formulating business plans and decisions

Answer 16

strategic planning technique

Question 17

is a quick and easy technique in analyzing business situations

Answer 17

SWOT analysis

Question 18

It is a versatile tool that can be applied at the different levels of the company

Answer 18

swot analysis

Question 19

SWOT

Answer 19

strengths
weaknesses
opportunities
threats

Question 20

include the company’s attributes that give a competitive edge over others

Answer 20

strength

Question 21

are the attributes of a company that need to be improved or changed

Answer 21

weaknesses

Question 22

are factors or events that can give a positive impact to the company if properly addressed

Answer 22

opportunities

Question 23

are external factors which may negatively impact the company

Answer 23

threats

Question 24

This technique focuses on the factors that define the macro-environment of the business

Answer 24

pest analysis

Question 25

PEST

Answer 25

political economic social technological

Question 26

include laws, regulations, and restrictions that may intervene or affect the company’s business course

Answer 26

political

Question 27

directly affect the capability of business to generate profits

Answer 27

economic

Question 28

include demographic aspects such as age, group affiliation, religion, civil status, and the economic status of consumers

Answer 28

social

Question 29

include research and development activities, automation, licensing, patenting, technological shifts and outsourcing decisions

Answer 29

technological

Question 30

help companies in formulation strategies and aligning their vision and mission to the general direction of the business environment where they operate

Answer 30

SWOT and PEST analysis

Question 31

focuses on the external environment through the threats and opportunities

Answer 31

SWOT analysis

Question 32

consider the external environment of the business firm

Answer 32

PEST analysis