MNG3701 Strategic Planning LU3: Strategic Analysis & External Environment Analysis 2026–2027 | Complete Study Guide, Practice Questions & Exam Review

MNG3701 Strategic Planning LU3: Strategic Analysis &
External Environment Analysis 2026–2027 | Study Guide &
Exam Review
Importance of Analyzing the External Environment - correct answers --Managers can mitigate threats.

-Managers can leverage opportunities.

-Gain understanding of potential impacts.

-Understand the source / proximity of factors.




The PESTEL Model - correct answers --Groups environmental factors into six segments:

--Political

--Economic

--Sociocultural

--Technological

--Ecological

--Legal

These factors can create:

--Opportunities

--Threats




Political Factors - correct answers --Processes & actions of government bodies

-Firms can shape this factor through:

--Lobbying



1

, --Public Relations

--Contributions

--Litigation




Example: Tesla

-Has a build-to-order sales model

-Cuts out dealers

-Dealers are lobbying for new legislation




Economic Factors - correct answers --Largely macro-economic

Examples include:

--Growth rates

--Levels of employment

--Interest rates

--Price stability

--Currency exchange rates




Sociocultural Factors - correct answers -Society's cultures, norms, and values

-Are constantly in flux

-Differ across groups




Demographic trends

-Present opportunities and threats

2