External Environment and Industry Analysis Quiz

What is the primary purpose of environmental analysis?

• To assess employee performance

• To identify opportunities and threats

• To formulate marketing strategies

• To identify internal weaknesses

Which of the following is NOT a method of environmental analysis?

• Pestleg analysis

• Scenario planning

• Porter's Five Forces model

• SWOT analysis

What does the 'P' in Pestleg analysis stand for?

• Public Environment

• Physical Environment

• Personal Environment

• Political Environment

Which scenario planning feature helps organizations think about their future?

• Depicts past trends

• Builds a shorter-term view

• Focuses solely on current data

• Structured way for organizations

What is a key factor that affects the threat of new entrants?

• High customer loyalty

• Low production costs

• High employee turnover

• Weak marketing strategies

In Porter's Five Forces model, what does 'bargaining power of buyers' refer to?

• The competition among suppliers

• The influence customers have on pricing and quality

• The threat of new competitors entering the market

• The ability of suppliers to dictate prices

What is a characteristic of powerful suppliers?

• They have many alternative products

• They have low switching costs

• They are dominated by a few companies

• They are not concentrated in the industry

Which of the following increases the intensity of rivalry among competitors?

• High market growth

• Few firms in the market

• Low customer loyalty

• High fixed costs

What does the External Evaluation Matrix focus on?

• Financial audits

• Employee performance metrics

• Current business conditions

• Internal strengths and weaknesses

What is the purpose of competitive intelligence?

• To analyze internal company performance

• To gather information about suppliers

• To interpret information about competitors

• To assess market trends