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CS Professional · Strategic Management and Corporate Finance · Strategic Analysis and Planning

A Pune-based packaged foods company lists the forces it expects to affect it: a proposed change in GST rates on snacks, a rise in urban disposable incomes, a new cold-chain technology and tightening plastic-packaging rules. Which framework is it using if it groups these under Political, Economic, Social, Technological, Legal and Environmental headings?

The company is using PESTLE analysis. It sorts external macro factors such as tax changes, incomes, technology and packaging regulation under political, economic, social, technological, legal and environmental headings. Porter's Five Forces studies industry structure, BCG studies a portfolio, and VRIO evaluates internal resources.

  1. APESTLE analysisCorrect
  2. BPorter's Five Forces
  3. CBCG matrix
  4. DVRIO analysis

Explanation

Grouping macro-environmental factors under political, economic, social, technological, legal and environmental headings is PESTLE analysis. Porter's Five Forces looks at industry rivalry and bargaining power, BCG classifies a portfolio of businesses, and VRIO tests internal resources.

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