PESTEL Analysis Quiz Questions And Answers

19 Questions | By Cme_medchoice20 | Updated: Apr 3, 2022 | Attempts: 6253

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Attempt this PESTEL analysis quiz questions and answers and check your knowledge regarding business marketing. In business analysis, a PESTEL analysis is an abbreviation for a tool used by marketers for identifying the macro-environmental forces facing an organization. Do you know what does it stand for? Let's check it out with this quiz. So, what are you waiting for? Play the quiz, try to attempt all the questions, and then see your result. Best of luck, dear!

Questions and Answers

1.

Used to describe a framework for the analysis of macroenvironmental factors:
- A.
  
  PEST Analysis
- B.
  
  SWOT Analysis
- C.
  
  Case Analysis
2.

PESTEL stands for:
- A.
  
  Political, Economic, Social, Technological, Environmental, and Legal
- B.
  
  Political, Strength, Economic, Technological, Environmental, and Legal
- C.
  
  Political, Strength, Economic, Threat, Environmental, and Legal
3.

The following are examples of Economic Factors except:
- A.
  
  Economic growth
- B.
  
  Interest rates
- C.
  
  Trade restrictions and tariffs
4.

Which of the following is considered as a Social Factor?
- A.
  
  Career attitudes
- B.
  
  R&D activity
- C.
  
  Environmental regulations
5.

These factors include demographic and cultural aspects of the external macroenvironment and affect customer needs and the size of potential markets.
- A.
  
  Economic Factors
- B.
  
  Political Factors
- C.
  
  Social Factors
6.

Which of the following is not considered as an internal strength of firms that succeed in cost leadership
- A.
  
  High level of expertise in manufacturing process engineering.
- B.
  
  Efficient distribution channels
- C.
  
  Access to leading scientific research
7.

This type of strategy calls for the development of a product or service that offers unique attributes that are valued by customers:
- A.
  
  Cost leadership Strategy
- B.
  
  Differentiation Strategy
- C.
  
  Focus Strategy
8.

This strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation.
- A.
  
  Cost leadership Strategy
- B.
  
  Differentiation Strategy
- C.
  
  Focus Strategy
9.

A smaller number of firms increase rivalry because fewer firms must compete for the same customers and resources.
- A.
  
  True
- B.
  
  False
10.

This indicates the percent of market share held by the four largest firms
- A.
  
  Concentration Ratio
- B.
  
  Market Ratio
- C.
  
  Competition Ratio
11.

A high concentration ratio indicates that a high concentration of market share is held by the largest firms. This means:
- A.
  
  The industry is concentrated
- B.
  
  The industry is characterized by many rivals
- C.
  
  The industry is close to a monopoly
12.

Low switching costs increases rivalry. When a customer can freely switch from one product to another, there is a greater struggle to capture customers.
- A.
  
  True
- B.
  
  False
13.

This term refers to a market in which there are many suppliers and one buyer.
- A.
  
  Monopoly
- B.
  
  Monopsony
- C.
  
  Monomarket
14.

Barriers to entry arise from the following sources except:
- A.
  
  Government
- B.
  
  Patents and Propriety knowledge
- C.
  
  Asset specificity
- D.
  
  None of the above
15.

An industry is difficult to enter if there is:
- A.
  
  Patented of propriety know-how
- B.
  
  Difficulty in brand switching
- C.
  
  Restricted distribution channels
- D.
  
  All of the above
16.

According to Schumpeter and Porter, dynamism of markets is driven by:
- A.
  
  Price
- B.
  
  Innovation
- C.
  
  Technology
17.

It’s the primary context of industry rivalry.
- A.
  
  Business unit level
- B.
  
  Market level
- C.
  
  Competitor’s level
18.

This statement describes the company’s business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.
- A.
  
  Mission statement
- B.
  
  Vision statement
- C.
  
  Objective statement
19.

This is related to the firm’s business position, and may include measures such as market share and reputation.
- A.
  
  Financial objective
- B.
  
  Strategic objective
- C.
  
  Business objective