Chapter 3 learnsmart

______ factors result from the processes and actions of government bodies that influence the decisions and behavior of firms.

Political

According to the PESTEL model, which of the following are kinds of forces that exist in the general external environment? (Check all that apply.)

Technological economic ecological

In the PESTEL model, political factors are those that relate to ______.

government bodies

The relationship between the natural environment and business organizations can best be described as ______.

interdependent

The economic factors that affect a firm's external environment are ______.

largely macroeconomic

An example of a recent innovation in process technology is ______.

lean manufacturing

Deregulation of industries leads to intensified competition and higher value at lower prices for consumers. This is an example of ______ factors influencing business.

legal

According to Michael Porter, the profit potential of an industry is ______.

a function of five forces related to competition

The external forces called technological factors ______.

capture the application of knowledge to create new process and products

Sociocultural factors are constantly in flux and also differ across groups. True or False?

True

Which of the following are examples of sociocultural factors?

A growing number of U.S. consumers have become more health-conscious about what they eat. The growth of the Hispanic population.

Growth rates, interest rates, and levels of employment would be considered ______ factors in a firm's general environment.

economic

Through use of the PESTEL model, firms are able to do what?

evaluate external trends monitor external factors