Engineering Management and Enterprise Exam

What does PESTLE stand for and what is it used for?

Political, economic, social, technological, legal and environmental. Used to analyse external (macroenvironment) factors affecting a business.

How can political changes affect the microcenvironment?

Government regulations and taxes can increase costs, trade policies can affect supply chains and sales

How can social changes affect the microenvironment?

Changes in lifestyles affect customer demand, population trends can change target markets

How can technological changes affect the microenvironment?

Automation can reduce costs and improve efficiency, new technology can create competitive advantage

How can economic changes affect the microenvironment?

Inflation and interest rates affect business costs, unemployment affects customer spending power

When is SWOT analysis used?

Used during strategic planning to evaluate internal strengths/weaknesses and external opportunities/threats

What does SWOT stand for?

Strengths, weaknesses, opportunities and threats

Give 3 examples of threats in SWOT analysis.

New competitors, economic recession, changing regulations

Give 3 examples of opportunities in SWOT analysis.

Entering new markets, technological advances, increased customer demand