Question

question 2

xyz corporation is a multinational company operating in the telecommunications industry. it is conducting an analysis of its external environment to better understand the factors that may impact its business strategy and financial performance.

which specific factor is xyz corporation considering when it analyzes customer purchasing power?

sociocultural forces
government and political forces
economic forces
technological advancements

Explanation:

Identify the core subject of analysis

Using the External Environment and PESTLE Analysis knowledge points
The question asks which specific external factor XYZ Corporation is considering when analyzing "customer purchasing power."

Map purchasing power to external forces

Using the PESTLE Analysis knowledge point

• Sociocultural forces relate to demographics, lifestyle trends, consumer attitudes, and cultural values.
• Government and political forces relate to laws, regulations, tax policies, and political stability.
• Economic forces relate to financial and monetary conditions such as inflation, interest rates, unemployment, exchange rates, and consumer purchasing power.
• Technological advancements relate to innovations, R&D activity, and automation.

Therefore, customer purchasing power directly falls under economic forces.

Answer:

• Sociocultural forces
• Government and political forces
• Economic forces (Correct answer)
• Technological advancements