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MNG3701 - STRATEGIC PLANNING
QUESTIONS AND ANSWERS 2025
Importance of Analyzing the External Environment -correct
answer- -Managers can mitigate threats.
-Managers can leverage opportunities.
-Gain understanding of potential impacts.
-Understand the source / proximity of factors.
The PESTEL Model -correct answer- -Groups environmental
factors into six segments:
--Political
--Economic
--Sociocultural
--Technological
--Ecological
--Legal
These factors can create:
--Opportunities
--Threats
Political Factors -correct answer- -Processes & actions of
government bodies
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-Firms can shape this factor through:
--Lobbying
--Public Relations
--Contributions
--Litigation
Example: Tesla
-Has a build-to-order sales model
-Cuts out dealers
-Dealers are lobbying for new legislation
Economic Factors -correct answer- -Largely macro-economic
Examples include:
--Growth rates
--Levels of employment
--Interest rates
--Price stability
--Currency exchange rates
Sociocultural Factors -correct answer- Society's cultures,
norms, and values
-Are constantly in flux
-Differ across groups
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Demographic trends
-Present opportunities and threats
-Population characteristics related to age, gender, family size,
ethnicity, sexual orientation, religion, and socioeconomic class
Technological Factors -correct answer- Application of
knowledge
-To create new processes
-To create new products
Innovations in process technology:
-Lean manufacturing, Six Sigma quality, and biotechnology
Innovations in product technology:
-Smartphones, computer tablets, and high-performing electric
cars such as the Tesla Model S
Legal Factors -correct answer- Official outcomes of political
processes:
-Laws
-Mandates
-Regulations
-Court decisions
MNG3701 - STRATEGIC PLANNING
QUESTIONS AND ANSWERS 2025
Importance of Analyzing the External Environment -correct
answer- -Managers can mitigate threats.
-Managers can leverage opportunities.
-Gain understanding of potential impacts.
-Understand the source / proximity of factors.
The PESTEL Model -correct answer- -Groups environmental
factors into six segments:
--Political
--Economic
--Sociocultural
--Technological
--Ecological
--Legal
These factors can create:
--Opportunities
--Threats
Political Factors -correct answer- -Processes & actions of
government bodies
,2 | Page
-Firms can shape this factor through:
--Lobbying
--Public Relations
--Contributions
--Litigation
Example: Tesla
-Has a build-to-order sales model
-Cuts out dealers
-Dealers are lobbying for new legislation
Economic Factors -correct answer- -Largely macro-economic
Examples include:
--Growth rates
--Levels of employment
--Interest rates
--Price stability
--Currency exchange rates
Sociocultural Factors -correct answer- Society's cultures,
norms, and values
-Are constantly in flux
-Differ across groups
, 3 | Page
Demographic trends
-Present opportunities and threats
-Population characteristics related to age, gender, family size,
ethnicity, sexual orientation, religion, and socioeconomic class
Technological Factors -correct answer- Application of
knowledge
-To create new processes
-To create new products
Innovations in process technology:
-Lean manufacturing, Six Sigma quality, and biotechnology
Innovations in product technology:
-Smartphones, computer tablets, and high-performing electric
cars such as the Tesla Model S
Legal Factors -correct answer- Official outcomes of political
processes:
-Laws
-Mandates
-Regulations
-Court decisions
