External Environment part 1 Flashcards
1
Q
Parts of a PEST Analysis are:
A
Political / Legal
Economical
Sociological
Technological
2
Q
Three Levels of the External Environment are:
A
1) Macro Environment
2) Industry Environment
3) Competitive Environment
3
Q
What are the 5 Forces in Porter’s Five Forces Model?
A
1) Threat of new entrants
2) Threats of substitutes
3) Bargaining Power of Suppliers
4) Bargaining power of Buyers
5) Threat of competition / rivalry
4
Q
What is the 6th force?
A
Complements - items that go with the original item
e.g. golf heads with golf shafts with golf grips
snow boards with snow bindings
peanut butter and jelly
5
Q
Examples of Political and Legal Environment
A
Employment Laws: Taxation Environmental Regulations Industry & Trade Regulations Copyright and IP Laws Monopoly laws Censorship
6
Q
Examples of Economic environment
A
Interest Rates and Inflation Consumer confidence Economic growth Unemployment Levels Disposable Income
7
Q
Examples of Sociocultural environment
A
Population Demographics Values in society Lifestyles Tastes and preferences Levels of education Greening of Business and Society
8
Q
Examples of technological environment include:
A
New discoveries New product potential New communications technology Alternative means of providing goods/services Government expenditure on research
