Month: November 2024

With respect to an industry’s life cycle, during which stage would competition be expected to be most intense?

Select ONE answer:

1. Introduction
2. Growth
3. Maturity
4. Decline

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > It is the maturity stage of an industry’s life cycle that can last for a very long time. During this stage competition would be expected to be most intense (3). In the growth stage (2) there is still market enough for everyone, while in the introduction (1) and decline (2) stages there are far fewer participants in the industry.
4. Not correct

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Alex plc’s strategy is based on the matching of its internal resources and competences (strengths and weaknesses) with its environmental conditions (opportunities and threats).

According to Henry Mintzberg, Alex plc sees strategy as?

Select ONE answer:

1. Position
2. Poly
3. Pattern
4. Perspective

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Focusing on matching its internal strengths and weaknesses with its external opportunities and threats means that the business sees strategy as being about its position (1) in its environment and its market, according to Henry Mintzberg.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The specialist services division of Alex pic uses highly-qualified professional staff to provide its government-accredited service to its customers.

The division is developing its business plan and is reviewing a Five Forces Analysis that was conducted by a consultant, Lucy.

This identifies that rivalry between the very few providers of the specialist service will soon intensify.

The report contained two statements about factors that indicate increased rivalry among providers.

Statement 1 – Government subsidies for existing providers are to be removed

Statement 2 – Two key customers of the specialist service are to merge

Are these statements accurate or inaccurate?

Select ONE answer:

1. Statement 1 – Accurate / Statement 2 – Not accurate
2. Statement 1 – Accurate / Statement 2 – Accurate
3. Statement 1 – Not accurate / Statement 2 – Not accurate
4. Statement 1 – Not accurate / Statement 2 – Accurate

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct == > A concentration of customers will increase rivalry since the power of customers is therefore increased. Removal of government subsidies creates a more level playing field amongst competitors hence also increasing rivalry.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Alex pic operates in the financial services sector. Its marketing director is developing the firm’s marketing plan.

An external marketing consultant, Lucy, has recommended that the PESTEL framework should be used as part of this process.

Which of the following statements correctly describes the reason why the PESTEL framework might prove useful?

Select ONE answer:

1. It will identify Alex plc’s strengths and weaknesses
2. It will allow a detailed analysis of the structure of the financial services industry
3. It will act as a detailed checklist to assist in understanding the different influences in Alex pc’s environment
4. It will help to identify the relative levels of interest and power of Alex plc’s stakeholders

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Strengths and weaknesses (1)would be revealed by a SWOT analysis; the structure of an industry would be revealed by a Five Forces Analysis (2) and helping to identify the relative levels of interest and power (4) refers to stakeholder mapping. A PESTEL analysis (3) reveals the key influences in the organisation’s macro-environment (rather than its market or task environment)
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.