Why is SWOT analysis useful in decision-making?

It identifies internal and external factors affecting the business

What does SWOT stand for in business analysis?

Strengths, Weaknesses, Opportunities, Threats

Which of the following best describes a ‘threat’ in a SWOT analysis?

A competitor launching a similar product

Porter’s Five Forces Model is used to:

Determine the competitive intensity of an industry

Which of the following businesses would be most affected by technological factors?

A company developing AI-powered automation tools

Why is analysing sociocultural factors important for businesses operating in different countries?

It allows businesses to align products and marketing with cultural values

What is the key purpose of conducting a PESTLE analysis?

To analyse the external factors impacting a business

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Questions 15

Answers

1
Why is SWOT analysis useful in decision-making?
It identifies internal and external factors affecting the business
It focuses only on financial performance
It helps businesses evaluate only external threats
It predicts competitors' future strategies
2
Which of the following is not a component of the PESTELE framework?
Economic
Leadership
Legal
Technological
3
What does SWOT stand for in business analysis?
Systems, Weaknesses, Output, Time
Strategies, Workforce, Operations, Tactics
Supply, Workers, Organisation, Technology
Strengths, Weaknesses, Opportunities, Threats
4
Which of the following best describes a ‘threat’ in a SWOT analysis?
Increased demand for a company’s product
A company’s strong brand reputation
Growth in a new market
A competitor launching a similar product
5
Which external force can cause market shifts due to new industry regulations?
Internal management changes
Political factors
Social factors
Product innovation
6
Which type of business decision is concerned with long-term organisational direction?
Tactical decisions
Operational decisions
Routine decisions
Strategic decisions
7
Porter’s Five Forces Model is used to:
Enhance internal communication
Evaluate company finances
Improve employee productivity
Determine the competitive intensity of an industry
8
What does the 7th component in the extended PESTELE framework represent?
Logistics
Ethical factors
Environmental protection
Equity
9
Which of the following is not an external factor affecting decision-making?
Internal company policies
Market competition
Technological advancements
Government regulations
10
Which economic factor is most likely to impact consumer purchasing power?
Interest rates
Taxation policies
Product safety regulations
Social mobility
11
Which of the following businesses would be most affected by technological factors?
A company developing AI-powered automation tools
A traditional farming business
A clothing brand
A local grocery store
12
Why is analysing sociocultural factors important for businesses operating in different countries?
It allows businesses to align products and marketing with cultural values
It reduces competition in foreign markets
It helps businesses determine legal obligations
It ensures businesses do not need to innovate
13
What is the key purpose of conducting a PESTLE analysis?
To analyse the external factors impacting a business
To measure internal productivity
To evaluate employee performance
To assess the success of marketing campaigns
14
The bargaining power of buyers is strongest when?
There are many suppliers
There are few alternatives for buyers
Switching costs are high
There are many alternative suppliers
15
Which of the following is an Economic factor in PESTLE?
Cybersecurity threats
Inflation rates
Cultural trends
Employment laws

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