Question

question 16
__________ analysis looks at external factors such as political, economic, and environmental influences on a business.

• monte carlo
• swot
• pestle
• business impact

Explanation:

Analyze the question prompt

Using the External Environment knowledge point

The question asks to identify the type of analysis that examines external factors such as political, economic, and environmental influences on a business.

Evaluate the given options

• Monte Carlo: A mathematical simulation technique used to understand the impact of risk and uncertainty in financial, project management, and other forecasting models.
• SWOT: An acronym for Strengths, Weaknesses, Opportunities, and Threats. While it includes external factors (Opportunities and Threats), it also heavily focuses on internal factors (Strengths and Weaknesses).
• PESTLE: An acronym for Political, Economic, Social, Technological, Legal, and Environmental analysis. This framework is specifically designed to scan and monitor the external macro-environmental factors that impact an organization.
• Business impact: Typically refers to a Business Impact Analysis (BIA), which is a systematic process to determine and evaluate the potential effects of an interruption to critical business operations as a result of a disaster, accident, or emergency.

Select the correct option

The factors listed in the prompt (political, economic, and environmental) directly match the components of a PESTLE analysis. Therefore, PESTLE is the correct term to fill in the blank.

Answer:

• (A) Monte Carlo
• (B) SWOT
• (C) PESTLE (Correct answer)
• (D) Business impact