Week 5 Seminar questions

1. List and analyse the external factors for Boots Plc in a PESTEL analysis
2. Analyse the primary and secondary activities of Boots Plc to explain how they
can be used to gain a competitive advantage
3. Prepare a SWOT analysis for Greggs (with at least 2 items under each of the
S,W,O,T headings)

1) Which of the following would a large retailer monitor under the Political heading as part of
a PEST analysis?

A Interest rates/State of the economy/Oil price movements

B VAT legislation/Changes to planning regulations/Food labelling

C Predicted shopping patterns/Public concerns over small retailers

D Developments in till manufacture/Automated analysis of shopping patterns

2) According to Johnson and Scholes the social influences that should be monitored include
which of the following?

A Education levels/Income distribution/Social mobility

B Cultural tastes/Public attitudes/Consumerism

C Population size/Health/Lifestyle changes

D Employment levels/Housing quality/Social values

3) With regard to world demographics which of the following is correct:

A The population of the world is decreasing

B On average the human life span is increasing

C Developing countries are experiencing a “baby boom”

D The majority of health issues, such as diabetes and obesity, have been successfully addressed in
the USA and UK

4) Which of the following is not a way in which businesses can reduce the amount of damage
they cause to the environment?
A Rebranding of products

B Recycling
C Redesigning products to use fewer materials

D Careful production planning

5) Data protection legislation, such as the Data Protection Act in the UK, typically focuses
on:

A Issues concerning data held about incorporated entities

B Rights of the individual with regards to withholding information about oneself

C The way that data about the individual is to be obtained, used and stored

D Aligning the information requirements between different countries

6) In Porter’s 5 forces model, the fact that other products offer high quality at a comparable
price, would be included under the heading of:
A Barrier to entry

B Power of suppliers

C Threat of substitutes

D Power of buyers

7) Porter’s value chain determines whether and how a firm’s activities contribute to which of
the following?
A Its long term survival

B Its competitive advantage

C Its profitability

D Its productive capacity

8) Porter’s 5 forces collectively determine which of the following? -

A The degree of competition new entrants will face

B the profitability of existing firms in the industry

C The overall growth of the industry

D The overall profit potential of the industry

9)(a) (NB – this is not a MCQ, but has been included as it is useful for revision/understanding of this
topic)

Here are four short references to activities within Porter’s value chain:
A Storing and handling inputs

B Activities after the point of sale

C The way the business is organised

D Purchasing of all inputs, including materials

Required:

Identify the description above which is associated with each of the following value chain activities,
by writing A, B, C, D or None.

i) Inbound logistics
ii) Procurement
iii) Service
iv) Operations
v) Infrastructure

b) Below are a number of statements regarding Porter’s generic strategies.

A Focus involves offering general goods to a small segment of the market at a low price.

B Cost leadership involves manufacturing goods more efficiently than rivals.

C Businesses may become cost leaders by making their goods a lower quality than their rivals.

D A focus strategy tends to allow businesses to charge a premium price.

E Differentiation involves charging a premium for a product due to its actual or perceived benefits
to the customer.

F Businesses that are stuck in the middle are trying to sell products at too high a price.

Required:

Write down which three of the above statements are correct by selecting THREE of the letters from
A-F.