A framework that categorizes and analyses and important set of external factors (political, economic, sociocultural, technological, ecological, and legal) that might impinge upon a firm. These factors can create both opportunities and threats for the firm. - Answer-PESTEL Model
1. Growth Rates
...
a framework that categorizes and analyses and impo
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WPC 480 - Chapter 3 Exam Questions
and Answers
A framework that categorizes and analyses and important set of external factors
(political, economic, sociocultural, technological, ecological, and legal) that might
impinge upon a firm. These factors can create both opportunities and threats for the
firm. - Answer-PESTEL Model
1. Growth Rates
2. Levels of Employment
3. Interest Rates
4. Price Stability
5. Currency Exchange Rates - Answer-Economic factors in a firm's external
environment
A measure of the change in the amount of goods and services produced by a nation's
economy. - Answer-Growth rates
Growth rates are directly affected by the ______ ______ ______. - Answer-Level of
employment
The amount that creditors are paid for use of their money and the amount that debtors
pay for that use, adjusted for inflation. - Answer-Interest rates
The lack of change in price levels of goods and services. - Answer-Price stability
Determines how many dollars one must pay for a unit of foreign currency. - Answer-
Exchange rates
Capture a society's cultures, norms, and values. - Answer-Sociocultural factors
Capture the application of knowledge to create new processes and product. - Answer-
Technological factors
Involve broad environmental issues such as the natural environment, global warming,
and sustainable economic growth. - Answer-Ecological factors
The official outcomes of political processes manifested in laws, mandates, regulations
and court decisions - all of which can have direct bearing on a firm's profit potential -
Answer-Legal factors
A group of incumbent companies that face more or less the same set of suppliers and
buyers. - Answer-Indsutry
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