SMGT2256 CHAPTER 3 EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
Principal Components of a Macro-Environment - ANS 1: Political Factors
2: Economic Conditions in general environment
3: Sociocultural Forces
4: Technological Factors
5: Environmental Factors
6: Legal/Regulatory Conditions
(PESTEL)
Political Factors - ANS Matters such as tax policy, fiscal policy, tariffs, political climate, and
strength of institutions (federal banking system).
Economic Conditions - ANS General economic climate and specific factors like interest rates,
exchange rates, inflation rate, unemployment rate, rate of economic growth, trade
deficits/surpluses, savings rates, and per-capita domestic product.
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Sociocultural Forces - ANS Societal values, attitudes, cultural influences, and lifestyles that
impact demand for particular goods and services, as well as demographic factors such as
population size, growth rate, and age distribution. Vary by location and change over time
Technological Factors - ANS Pace of technological change and technical developments that
have the potential for wide-ranging effects on society, such as genetic engineering,
nanotechnology, and solar energy technology.
Include institutions involved in creating new knowledge and controlling use of technology.
Environmental Factors - ANS Ecological and environmental forces (weather, climate, climate
change, etc) and associated factors (flooding, fire, etc).
Legal and Regulatory Factors - ANS Regulations and laws with which companies must comply,
such as consumer laws, labor laws, antitrust laws, and OH&S regulations.
Macro-Environment - ANS The broad environmental context in which a company's industry is
situated
Societal Shock - ANS Set of factors that occur more irregularly and unpredictably.
Terrorism, civil war, foreign invasion or occupation, epidemics and pandemics.
Five Forces Framework - ANS 1: Competition from rival sellers
2: Competition from potential new entrants to industry
3: Competition from producers of substitute products
4: Supplier bargaining power
5: Customer bargaining power
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
QUESTIONS AND ANSWERS GRADED A+
2026
Principal Components of a Macro-Environment - ANS 1: Political Factors
2: Economic Conditions in general environment
3: Sociocultural Forces
4: Technological Factors
5: Environmental Factors
6: Legal/Regulatory Conditions
(PESTEL)
Political Factors - ANS Matters such as tax policy, fiscal policy, tariffs, political climate, and
strength of institutions (federal banking system).
Economic Conditions - ANS General economic climate and specific factors like interest rates,
exchange rates, inflation rate, unemployment rate, rate of economic growth, trade
deficits/surpluses, savings rates, and per-capita domestic product.
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Sociocultural Forces - ANS Societal values, attitudes, cultural influences, and lifestyles that
impact demand for particular goods and services, as well as demographic factors such as
population size, growth rate, and age distribution. Vary by location and change over time
Technological Factors - ANS Pace of technological change and technical developments that
have the potential for wide-ranging effects on society, such as genetic engineering,
nanotechnology, and solar energy technology.
Include institutions involved in creating new knowledge and controlling use of technology.
Environmental Factors - ANS Ecological and environmental forces (weather, climate, climate
change, etc) and associated factors (flooding, fire, etc).
Legal and Regulatory Factors - ANS Regulations and laws with which companies must comply,
such as consumer laws, labor laws, antitrust laws, and OH&S regulations.
Macro-Environment - ANS The broad environmental context in which a company's industry is
situated
Societal Shock - ANS Set of factors that occur more irregularly and unpredictably.
Terrorism, civil war, foreign invasion or occupation, epidemics and pandemics.
Five Forces Framework - ANS 1: Competition from rival sellers
2: Competition from potential new entrants to industry
3: Competition from producers of substitute products
4: Supplier bargaining power
5: Customer bargaining power
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
