SPM 4013 STRATEGIC PROJECT
MANAGEMENT PLANNING AND
EXECUTION TEST PAPER 2026
◉ Political/Legal Segment
Answer: - employee regulations
- tax policies
- trade restrictions
- tariffs
- consumer protection laws
- labor training laws
◉ Economic Segment
Answer: - interest rates
- inflation rates
- gross domestic product
- unemployment rates
- levels of disposable income
- growth or decline of the economy
,◉ Demographic Segment
Answer: -population size
- age structure
-ethnic mix
-geographic distribution
-income distribution
◉ Sociocultural Segment
Answer: -attitudes
-cultural values
-lifestyles
◉ Technological Segment
Answer: -product innovation
-increases in automation
-applications of knowledge
-focus on private and government-supported R&D expenditures
-new communication technologies
◉ Global Segment
Answer: -important international political events
-increasing global trade
,-trade agreements
◉ Sustainable Physical Environment
Answer: -natural disasters
-weather patterns
-climate change
-reduction of environmental impact
◉ Threat of Entry
Answer: Mitigated by barriers to entry
-Economics of scale
-Product differentiation
-Capital requirement
-Switching costs
-Access to distribution channels
-Cost advantages independent of scale
-Government policy
-Expected retaliation
◉ Threat of Rivalry
Answer: High Rivalry = Zero-sum Competition
-Numerous or equally balanced competitors
, -Slow industry growth
-High fixed or storage costs
-Lack of differentiation or switching costs
-Capacity added in large increment
-High exit costs
-Product is perishable
◉ Threat of Substitutes
Answer: Strong threat with:
-low switching costs
-substitute has lower price
-close substitutes
◉ Threat of Suppliers
Answer: Facilitating Supplier Power:
-Few large suppliers
-Few substitutes
-Industry is not a significant customer of supplier
-Supplier's goods are important to industry
-High switching costs
-Supplier's goods are differentiated
-Supplier may integrate forward into focal industry
MANAGEMENT PLANNING AND
EXECUTION TEST PAPER 2026
◉ Political/Legal Segment
Answer: - employee regulations
- tax policies
- trade restrictions
- tariffs
- consumer protection laws
- labor training laws
◉ Economic Segment
Answer: - interest rates
- inflation rates
- gross domestic product
- unemployment rates
- levels of disposable income
- growth or decline of the economy
,◉ Demographic Segment
Answer: -population size
- age structure
-ethnic mix
-geographic distribution
-income distribution
◉ Sociocultural Segment
Answer: -attitudes
-cultural values
-lifestyles
◉ Technological Segment
Answer: -product innovation
-increases in automation
-applications of knowledge
-focus on private and government-supported R&D expenditures
-new communication technologies
◉ Global Segment
Answer: -important international political events
-increasing global trade
,-trade agreements
◉ Sustainable Physical Environment
Answer: -natural disasters
-weather patterns
-climate change
-reduction of environmental impact
◉ Threat of Entry
Answer: Mitigated by barriers to entry
-Economics of scale
-Product differentiation
-Capital requirement
-Switching costs
-Access to distribution channels
-Cost advantages independent of scale
-Government policy
-Expected retaliation
◉ Threat of Rivalry
Answer: High Rivalry = Zero-sum Competition
-Numerous or equally balanced competitors
, -Slow industry growth
-High fixed or storage costs
-Lack of differentiation or switching costs
-Capacity added in large increment
-High exit costs
-Product is perishable
◉ Threat of Substitutes
Answer: Strong threat with:
-low switching costs
-substitute has lower price
-close substitutes
◉ Threat of Suppliers
Answer: Facilitating Supplier Power:
-Few large suppliers
-Few substitutes
-Industry is not a significant customer of supplier
-Supplier's goods are important to industry
-High switching costs
-Supplier's goods are differentiated
-Supplier may integrate forward into focal industry
