A telecommunications business is preparing a PEST analysis to evaluate potential strategic risks before launching a new satellite network.
Which of the following would be correctly classified as a Political/Legal factor in this framework?
Cambridge International A Level · Business (9609)
Business strategy (A Level): Practice Questions
5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Business strategy (A Level).
A national supermarket chain decides to enter the home insurance and personal banking sector by creating entirely new financial products under its brand name.
According to the Ansoff Matrix, which strategic growth option does this decision represent?
Using Porter's Five Forces framework to develop a Business strategy, which of the following factors would most likely weaken the bargaining power of suppliers?
A large multinational is conducting a SWOT analysis. It identifies that a major competitor has recently gone bankrupt. In which quadrant of the SWOT matrix should this be placed?
According to the Ansoff Matrix, which strategy involves selling new products in existing markets?
Identify the two internal elements of a SWOT analysis that a business would use when developing its long-term strategy.
Write your answer out first, then check it against the worked solution.
A retail company is using Force Field Analysis to evaluate a proposed expansion. It identifies 'increasing competition' as a restraining force with a score of 4, and 'availability of low-interest loans' as a driving force with a score of 5.
Based only on these two factors, explain whether the company should proceed with the Business strategy according to Lewin’s model.
Write your answer out first, then check it against the worked solution.
A firm using Ansoff’s Matrix decides to pursue diversification by launching a new range of electric vehicles in a previously untapped international market. Explain why this represents the highest level of strategic risk compared to market penetration or product development.
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A large multinational electronics firm is considering a Business strategy to enter a highly competitive market currently dominated by two major players. The CEO suggests using Porter's Five Forces to analyse the industry structure.
a) Identify two forces in Porter's model that would directly affect the firm's ability to set prices in this new market.
b) Explain how a high 'threat of substitutes' might influence the company's long-term strategic decisions.
Write your answer out first, then check it against the worked solution.
A large technology firm is facing a decline in market share due to the entry of several aggressive new competitors. The CEO has proposed a move towards a Blue Ocean Strategy to regain its competitive advantage.
(a) Analyse how the use of Porter's Five Forces could help the firm understand the intensity of competition in its current market.
(b) Explain how the Core Competence Framework might be applied by the firm to identify potential areas for a Blue Ocean Strategy.
Write your answer out first, then check it against the worked solution.
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