PESTEL Analysis and Environmental Factors

What is PESTEL analysis used for?

• To understand a company's internal operations.

• To map out the external environment of an organization.

• To analyze a company's financial performance.

• To create new business ideas.

What kind of factors does PESTEL analysis specifically focus on?

• Internal factors

• Micro-environmental factors

• Macro-environmental factors

• Task environment factors

Which of these is considered an internal factor of a company?

• Competitors

• Suppliers

• Organizational structure

• Customers

Which of these is considered an external factor that has a direct contact and two-way relationship with a company?

• Company culture

• Shareholders

• Distributors

• Reward systems

What is the main difference between macro-environmental factors and task environment factors?

• Macro factors have a two-way effect, while task factors have a one-way effect.

• Macro factors have a one-way effect, while task factors have a two-way effect.

• Macro factors are internal, while task factors are external.

• Macro factors are about politics, while task factors are about economics.

What does the 'P' in PESTEL stand for?

• Production

• Political

• Pricing

• People

Which of the following is an example of a political factor that can influence a business?

• Inflation rates

• Population growth rate

• Government policy

• Technological advancements

What economic factor directly affects the purchasing power of consumers?

• Age distribution

• Disposable income

• Cultural barriers

• Foreign trade policy

What do technological factors in business mainly deal with?

• Changes in government policies and laws.

• Innovations in technology and related rules.

• How people interact with each other.

• The availability of natural resources.

How can technological factors affect a business?

• They decide how much money a company makes.

• They help companies choose which products to launch or where to produce them.

• They only affect how many employees a company has.

• They are not important for business decisions.