Topic 4 - External Environment Analysis (Industry)

Question 1

What are the 8 Macro-environmental factors that make up PESTELID?

Answer 1

Political
Economic
Sociocultural
Technological
Environmental
Legal
International
Demographic

Question 2

True or False:
Industries will have varying levels of Direct Government Involvement and Political Exposure.

Answer 2

Question 3

What are the differences between an:
Industry, Market and Sector?

Answer 3

An industry is a group of firms producing products and services that are essentially the same. For example, the automobile industry and the airline industry.

A market is a group of customers for specific products or services. It can be very broad, or it can be very specific and niche - for example, market for luxury cars or market for the niche adventure tourism

A sector is a broad segment of the economy, for example, the for-profit sector, the higher education sector, mining sector and so forth

Question 4

What are the “Five Forces” that affect Industry?
- Thrxxt of nxx Entrxxxs
- Barxxxxing power of Supxxxxs
- Thrxxt of Subxxxxutes
- Barxxxxing power of Buxxrs
- Rivalry among existing competition

Answer 4

Question 5

If a Five Forces model was made for Virgin Australia, what would its Capabilities be?

Answer 5