Page 1 of 61
Strategic Environment and Work Design |
Questions and Answers | 2026 Update |
100% Correct
Q1
Which component of PESTLE analysis would most directly
assess the impact of carbon taxation on manufacturing costs?
A) Political
B) Economic
C) Environmental
D) Legal
Rationale: Carbon taxation is an environmental regulation with
economic consequences. While it has economic effects, the driver
is environmental policy, placing it under Environmental in PESTLE
framework.
Answer: C
,Page 2 of 61
Q2
In PESTLE analysis, the rise of generative AI regulations (e.g.,
EU AI Act) falls primarily under which two categories?
A) Political & Social
B) Political & Legal
C) Technological & Economic
D) Social & Environmental
Rationale: AI regulations are created by political bodies
(Political) and codified into law (Legal). While technology
enables the need, the analysis of regulatory environment is
political-legal.
Answer: B
Q3
,Page 3 of 61
A SWOT analysis identifies a strong R&D department as a(n)
______ and a new entrant with disruptive technology as a(n)
______.
A) Opportunity; Threat
B) Strength; Threat
C) Weakness; Opportunity
D) Strength; Weakness
Rationale: Internal capabilities = Strength (positive internal).
New entrant = Threat (external negative). Standard SWOT
classification.
Answer: B
Q4
According to Porter's Five Forces, which force is MOST directly
intensified by low switching costs for buyers?
, Page 4 of 61
A) Threat of new entrants
B) Threat of substitutes
C) Bargaining power of buyers
D) Rivalry among existing competitors
Rationale: Low switching costs increase buyer power because
customers can easily move to competitors without penalty.
Answer: C
Q5
What is the primary limitation of PESTLE analysis when used
alone for strategic decision-making?
A) It is too quantitative
B) It describes the environment but does not prescribe strategy
C) It only applies to multinational corporations
D) It ignores technological factors
Strategic Environment and Work Design |
Questions and Answers | 2026 Update |
100% Correct
Q1
Which component of PESTLE analysis would most directly
assess the impact of carbon taxation on manufacturing costs?
A) Political
B) Economic
C) Environmental
D) Legal
Rationale: Carbon taxation is an environmental regulation with
economic consequences. While it has economic effects, the driver
is environmental policy, placing it under Environmental in PESTLE
framework.
Answer: C
,Page 2 of 61
Q2
In PESTLE analysis, the rise of generative AI regulations (e.g.,
EU AI Act) falls primarily under which two categories?
A) Political & Social
B) Political & Legal
C) Technological & Economic
D) Social & Environmental
Rationale: AI regulations are created by political bodies
(Political) and codified into law (Legal). While technology
enables the need, the analysis of regulatory environment is
political-legal.
Answer: B
Q3
,Page 3 of 61
A SWOT analysis identifies a strong R&D department as a(n)
______ and a new entrant with disruptive technology as a(n)
______.
A) Opportunity; Threat
B) Strength; Threat
C) Weakness; Opportunity
D) Strength; Weakness
Rationale: Internal capabilities = Strength (positive internal).
New entrant = Threat (external negative). Standard SWOT
classification.
Answer: B
Q4
According to Porter's Five Forces, which force is MOST directly
intensified by low switching costs for buyers?
, Page 4 of 61
A) Threat of new entrants
B) Threat of substitutes
C) Bargaining power of buyers
D) Rivalry among existing competitors
Rationale: Low switching costs increase buyer power because
customers can easily move to competitors without penalty.
Answer: C
Q5
What is the primary limitation of PESTLE analysis when used
alone for strategic decision-making?
A) It is too quantitative
B) It describes the environment but does not prescribe strategy
C) It only applies to multinational corporations
D) It ignores technological factors
