Analysing the business environment best assists in
Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.
Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
Auditing external and organisational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.
Correct Answer :
B. Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.
Related Questions
In relation to the PESTEL framework, which of the following statements is correct?
It assists in the assessment of organisational strengths and weaknesses.
It allows a detailed analysis of the structure of an industry.
It can be used as a checklist to understand the different environmental influences in the macro environment.
Takes an historical perspective on the main political, economic, sociocultural, technological, environmental and legal factors.
The following is not a component of culture
Attitudes.
Beliefs.
Education.
Life expectancy.
General Agreement on Trade in Services will not be applicable to
Services supplied from one country to another cross border supply
Transaction of goods across the border Export Import
Individuals traveling from own country to supply services in another presence of natural persons.
Consumers/firms making use of a service in another country consumption abroad.
Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
High level of inequality of power and wealth within the society
Low level of inequality of power and wealth within the society
High level of Political corruption
Low level of Human development Index
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesnt consider
Direct payments to farmers are permitted.
Indirect assistance and support to farmers including R & D support by govt. are not permitted
Domestic policies which directly effect on production and trade have to be cut back.
Least developed countries do not need to make any cuts.
Capitalistic, communistic and mixed are the types of
Economic system
Political system
Social System
Cultural Attitudes
Which of the following is an advantage of turnkey projects?
Can earn a return on knowledge asset
Will not create a competitor
Tight control of operations
All the above
International business does not result in the following
Innovation is encouraged.
International cooperation is encouraged.
Imports are rendered cheap.
Consumption is minimized.
Firm that operates internationally is able to
earn a greater return from their skills and core competencies
realize location economies where they can be performed most efficiently
realize greater experience curve economies, which reduces the cost of production
All the above
Business across several countries with some decentralization of management decision making to subsidiaries is
Global business.
Multinational business.
Transnational business.
Multi-regional business.
The following factors are key drivers of globalisation
Government action, exchange rates, competition and sociodemographic factors.
Market convergence, competition, exchange rates and cost advantages.
Cost advantages, government action, economic cycles and competition.
Market, cost, competition and government policies.
As a part of WTO guidelines, Agreement on Agriculture (AOA) doesnt consider
Direct payments to farmers are permitted.
Indirect assistance and support to farmers including R & D support by govt. are not permitted.
Domestic policies which directly effect on production and trade have to be cut back.
Least developed countries do not need to make any cuts.
Porter suggests the following reasons for one nation being more competitive than another
Ability to speak English; developed network of supporting industries; absence of competition; and low labour cost.
Abundant natural resources; skilled labour force; temperate climate; and democracy.
Factor conditions; demand conditions; related and supporting industries; and firm strategy, industry strategy and rivalry.
Strong sporting ethos; emphasis on individual achievement; strong national party in power; large home market.
The Theory of Absolute Cost Advantage is given by
Adam smith
D. Richardo
Raymond Varnoon
Porter
_______ theory states that, lack of resources often helps countries to become competitive
Competitive theory
Porters Diamond Model
Theory of Mercantilism
Product life cycle theory
The income level of residents in a country is indicated by
gross national income.
gross domestic product.
per capita gross national income.
per capita gross domestic product.
By entering into international business, a firm expects improvement in
Marketing.
All spheres of marketing, operation and finance simultaneously.
Any or all spheres of marketing, operation and finance.
Finance only.
The role of women is restricted in
Eastern countries.
Middle East countries.
Traditional Islamic countries.
India.
Quantitative restrictions refer to limit set by countries to curb
Imports
Exports
Imports and Exports
All of the above
Theory of Mercantilism propagates
Encourage exports and imports
Encourage exports and discourage imports
Discourage exports and imports
Discourage exports and encourage imports
Monetary policy relates to controlling
money supply.
money supply and interest rate.
money supply, interest rate and exchange rate.
credit creation by banks.
Social stratification is done based on
Income level.
caste.
education.
any of the above.
Which of these is/are the characteristic of a licensing agreement
The licensor might provide access to some of its patents or trademarks
The licensor might provide access to technology
It might be used to avoid the risks of foreign involvement
All of the above
Which one of the following is a method for an exporter to get a contract
Proforma invoice
Purchase order
Sales contract
All the above
Social mobility is measured by
The extent to which an individual can move the strata to which he/she belongs.
The promptness with which an individual accepts foreign assignments.
The extent to which inter- caste marriage is encouraged by the society.
The extent to which the society as a whole shifts its habitat.
A country with high uncertainty avoidance will witness
lower level of stress among people.
decision taken as a result of group consensus.
less dependence on rules and regulations.
people are serene.
Free international trade maximizes world output through
Countries specializing in production of goods they are best suited for.
Reduction in taxes.
Increased factor income.
Encouraging competition.
A firm investing in a foreign country to distribute the products there in creation of
Asset seeking FDI.
Backward vertical FDI.
Forward vertical FDI.
Distribution FDI.
B2B sector specific policy of Indian Government is
FDI up to 100% subject to condition that they invest 26 % in favour of Indian Public within 5 yrs
FDI up to 100%
FDI up to 100% subject to condition that they invest 26 % in favor of Indian Public within 10 yrs
FDI up to 49%
Which is the right sequence of a stages of Internationalization
Domestic, Transnational, Global, International, Multinational
Domestic, International, Multinational, Global, Transnational
Domestic, Multinational, International, Transnational, Global
Domestic, International, Transnational, Multinational, Global