Page 255 - E2 Integrated Workbook STUDENT 2018

Supplementary objective test questions

4.2 XYZ is a large delivery company, with a fleet of over 10,000 vans, delivering
parcels all over Country F. XYZ is undertaking a corporate appraisal and has
identified several important factors in its business environment.

Categorise each factor according to PESTEL analysis and complete the
following sentences using some of the words provided.

There is increasing pressure on the delivery industry to minimise its carbon
footprint. This should be classified as _______________.

The government is planning a change to employment law, to prevent drivers
working more than ten hours in any 24 hour period. This should be classified as
_______________.

The use of Global Positioning Systems (GPS) and smartphones are now
becoming an industry threshold competence. This should be classified as
_______________.

The current government is unpopular with voters, and there may be an election
soon. XYZ is unsure of the impact this would have on its business. This should
be classified as _______________.

Political Economic Legal

Social Technological Environmental

4.3 Which of the following statements regarding Porter’s five forces model is
correct?

A Where an industry is dominated by a few large companies, rivalry within
that industry will be more intense.

B The presence of one or two dominant suppliers will result in the power of
suppliers being low.

C Economies of scale will reduce the barriers to entry to an industry.

D If buyers can switch easily between suppliers, the competitive rivalry within
the industry will be stronger.

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