LSUS MBA 705 - Minsun Kim Exam 1
Questions and Actual Answers 2026.
PESTEL Analysis - Answer 6 segments of general environment, use to identify how these
factors influence industries and the firms within them
P - Political
E- Economic
S- Socio- Cultural
T - Technological
E- Environmental
L - Legal
Political Factors - Answer -include tax policies, changes in trade restrictions and tariffs, and
stability of governments
- example : immigration policy, clean energy policies
Economic Factors - Answer - include elements such as interest rates, inflation rates, gross
domestic product, unemployment rates, levels of disposable income and general growth or
decline of economy
- example: Covid crisis of 2020
Unemployment Rate - Answer percentage of labor force looking for employment over the
last 4 weeks
Housing Starts - Answer number of houses, apartments and condos on which new
construction has been started
- includes concrete, steel, wood, plumbing, and banks as suppliers, carefully watched measure
of economic condition
Gross Domestic Product (GDP) - Answer - market value of goods and services within a
country produced in a given time period
-rough indicator of a country's standard of living
Federal Reserve System ("The Fed") - Answer US's central banking system, attempts to
strengthen economy, ie by setting short-term interest rates
Discretionary Income - Answer amount of money individuals have to spend after all bills are
paid
, Socio-cultural factors - Answer -capture a society's cultures norms, societal values and trends
- trends in demographics such as population size, age, ethnic mix, as well as attitudes toward
obesity and consumer activism
Hemline Theory - Answer -women's skirt lengths predict stock market increases and
decreases. Raised skirts when times are good, lowered skirts in tough economic times
Technological Factors - Answer -centers on improvements in products and services that are
provided by science
-ie changes in product development, increases in automation and advancements in service
industry delivery
Moore's Law - Answer performance of microcircuit technology roughly doubles every 2 years
Environmental or Ecological Factors - Answer - physical/ecological conditions within which an
organization operates
-includes factors such as natural disasters, pollution levels, global warming and weather
patterns
Legal Factors - Answer - centers on how courts and laws influence business activity
- ie employment laws, health and safety regulations, discrimination and anti-trust laws
Intellectual Property - Answer A product of the intellect, such as an expressed idea or
concept, that has commercial value.
-ie pixar movie or adobe program, piracy of it would be illegal
Sherman Antitrust Law of 1890 - Answer limits cartels and monopolies in US
Industry - Answer group of firms that produce competing products/services
Industry Effects - Answer -firms within the same industry often have the same suppliers and
buyers
- firm performance is due to the structure of the industry in which the firm competes
- makes up 20% of a firm's performance
Firm Effects - Answer - firm performance due to actions strategic leaders take
Questions and Actual Answers 2026.
PESTEL Analysis - Answer 6 segments of general environment, use to identify how these
factors influence industries and the firms within them
P - Political
E- Economic
S- Socio- Cultural
T - Technological
E- Environmental
L - Legal
Political Factors - Answer -include tax policies, changes in trade restrictions and tariffs, and
stability of governments
- example : immigration policy, clean energy policies
Economic Factors - Answer - include elements such as interest rates, inflation rates, gross
domestic product, unemployment rates, levels of disposable income and general growth or
decline of economy
- example: Covid crisis of 2020
Unemployment Rate - Answer percentage of labor force looking for employment over the
last 4 weeks
Housing Starts - Answer number of houses, apartments and condos on which new
construction has been started
- includes concrete, steel, wood, plumbing, and banks as suppliers, carefully watched measure
of economic condition
Gross Domestic Product (GDP) - Answer - market value of goods and services within a
country produced in a given time period
-rough indicator of a country's standard of living
Federal Reserve System ("The Fed") - Answer US's central banking system, attempts to
strengthen economy, ie by setting short-term interest rates
Discretionary Income - Answer amount of money individuals have to spend after all bills are
paid
, Socio-cultural factors - Answer -capture a society's cultures norms, societal values and trends
- trends in demographics such as population size, age, ethnic mix, as well as attitudes toward
obesity and consumer activism
Hemline Theory - Answer -women's skirt lengths predict stock market increases and
decreases. Raised skirts when times are good, lowered skirts in tough economic times
Technological Factors - Answer -centers on improvements in products and services that are
provided by science
-ie changes in product development, increases in automation and advancements in service
industry delivery
Moore's Law - Answer performance of microcircuit technology roughly doubles every 2 years
Environmental or Ecological Factors - Answer - physical/ecological conditions within which an
organization operates
-includes factors such as natural disasters, pollution levels, global warming and weather
patterns
Legal Factors - Answer - centers on how courts and laws influence business activity
- ie employment laws, health and safety regulations, discrimination and anti-trust laws
Intellectual Property - Answer A product of the intellect, such as an expressed idea or
concept, that has commercial value.
-ie pixar movie or adobe program, piracy of it would be illegal
Sherman Antitrust Law of 1890 - Answer limits cartels and monopolies in US
Industry - Answer group of firms that produce competing products/services
Industry Effects - Answer -firms within the same industry often have the same suppliers and
buyers
- firm performance is due to the structure of the industry in which the firm competes
- makes up 20% of a firm's performance
Firm Effects - Answer - firm performance due to actions strategic leaders take
