Tag: KS3

Having entered an overseas market and achieved a reasonably dominant position in just under a year, Alex plc is pleased to have noticed that the threat of new entrants into the market seems to be relatively low.

Which of the following factors is likely to have contributed towards this situation?

Select ONE answer:

1. Low initial capital costs
2. A customer base consisting of a few large customers
3. A highly competitive supplier market
4. The market is for services rather than manufacturing

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 == > Low initial capital costs (1) reduce risk in a project by decreasing the break-even point, allowing time to build up a large customer base. This can encourage new entrants. (3) may increase rivalry but it does not affect new entrants; (4) has no effect. The relatively concentrated customer base (2) however means that existing players have a distinct advantage, and it also gives the customers higher bargaining power, so makes the sector less attractive to new entrants.
3. Not correct
4. Not correct

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

Lucy is carrying out a PESTEL analysis for her employers, Alex plc.

During her research, the ageing of the UKs’ population has become apparent to Lucy as a potentially important strategic issue for the company.

In which section of her analysis should Lucy record this matter?

Select ONE answer:

1. P
2. S
3. T
4. L

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  –> Age is a demographic factor that falls under the Social aspect of PESTEL analysis
3. Not correct
4. Not correct

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

Alex works for Lucy plc.

Alex has been asked by his manager, Bob, to undertake an internal analysis of the company as part of a STRATEGIC planning review.

Which ONE of the following analytical techniques will be useful in this context?

Select ONE answer:

1. Porter’s five forces analysis
2. The BCG Matrix
3. PESTEL analysis
4. Ansoff’s Matrix

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  –> Options (1) and (3) are methods of analysing the company’s external environment . Option (4) is a means of assessing potential growth strategies of the company.
3. Not correct
4. Not correct

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