Scenario-based essay questions with SWOT and PESTEL...

 ✅ Scenario-based essay questions with SWOT and PESTEL...

Scenario-Based Essay Questions & Answers

Scenario 1 – SWOT Analysis

A local food delivery startup has been operating successfully in one city. It has strong customer loyalty and a well-designed mobile app. However, it struggles with high delivery costs, shortage of delivery staff, and strong competition from established players like Swiggy and Zomato. The company is considering expansion into nearby cities.

Question:

Using SWOT analysis, evaluate the startup’s position and suggest whether it should expand.

Answer:

Strengths:

Strong customer loyalty in the existing market.

User-friendly, efficient mobile application.

Weaknesses:

High delivery costs affecting profitability.

Shortage of delivery staff limiting service quality.

Opportunities:

Expansion into nearby cities with growing demand for online food delivery.

Partnerships with local restaurants to strengthen the network.

Threats:

Intense competition from Swiggy and Zomato.

Regulatory restrictions on gig workers or delivery staff.

Conclusion:

The company should expand cautiously. It must first address internal weaknesses—optimizing delivery costs and hiring more staff. Once the business model becomes cost-efficient, expansion can lead to growth and diversification.

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Scenario 2 – SWOT Analysis

An electronics company has a strong R&D team and an established global brand. Recently, however, its smartphone sales have declined due to rising competition from Chinese manufacturers offering affordable models. The company is considering entering the electric vehicle (EV) market.

Question:

Conduct a SWOT analysis to evaluate the company’s potential in the EV industry.

Answer:

Strengths:

Strong R&D capabilities and innovation culture.

Global brand reputation trusted by consumers.

Weaknesses:

Current decline in smartphone sales may affect financial stability.

Lack of prior experience in automobile manufacturing.

Opportunities:

Rapidly growing demand for electric vehicles worldwide.

Government incentives and policies favoring EV adoption.

Threats:

High competition from established EV players like Tesla and BYD.

Risk of technological failure or safety concerns in new ventures.

Conclusion:

The company has the innovation strength to enter the EV industry, but it should build strategic partnerships with automobile firms to compensate for lack of experience. If executed properly, this move could diversify revenue sources and secure future growth.

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Scenario 3 – PESTEL Analysis

A multinational fast-food chain is planning to open outlets in India. The company is analyzing the external environment before entering the market.

Question:

Using PESTEL analysis, evaluate the factors that may affect the company’s entry into India.

Answer:

Political: Government regulations on food safety, FDI policies, and taxation.

Economic: Rapidly growing middle class, rising disposable income, but price sensitivity among Indian consumers.

Social: Increasing preference for fast food among youth; cultural diversity requiring vegetarian and region-specific menus.

Technological: Growth of food delivery apps and digital payment systems enabling faster market entry.

Environmental: Rising concerns about plastic packaging; need for eco-friendly alternatives.

Legal: Compliance with health, labor, and franchise laws in India.

Conclusion:

The external environment is favorable but challenging. Success will depend on local menu adaptation, competitive pricing, and sustainable practices to match Indian consumer expectations and regulations.

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Scenario 4 – PESTEL Analysis

An automobile company producing petrol and diesel vehicles is facing declining sales. It wants to shift towards electric vehicle production in the next five years.

Question:

Evaluate the external environment of the automobile company using PESTEL analysis.

Answer:

Political: Governments worldwide promoting EV adoption through subsidies and stricter emission regulations.

Economic: Rising fuel prices pushing customers toward EVs, but high EV production costs remain a challenge.

Social: Consumers increasingly aware of climate change and preferring eco-friendly transport.

Technological: Advancements in battery technology, AI, and charging infrastructure creating growth opportunities.

Environmental: Pressure to reduce carbon footprint; bans on diesel vehicles in some cities.

Legal: Safety standards, environmental laws, and EV certification requirements.

Conclusion:

The company must accelerate EV development to remain competitive. Government incentives and consumer preferences provide opportunities, but success depends on technological innovation and cost management.

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Students assignment...

⬆️ MCQs  based on the SWOT & PESTEL scenarios and essays above.

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MCQs on SWOT and PESTEL Analysis

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Scenario 1 – Food Delivery Startup (SWOT)

Q1. In the SWOT analysis of the food delivery startup, which of the following is a weakness?

a) Strong customer loyalty

b) User-friendly mobile application

c) High delivery costs

d) Growing demand in nearby cities

Answer: 

---

Q2. The startup’s decision to expand into nearby cities falls under which SWOT category?

a) Strength

b) Weakness

c) Opportunity

d) Threat

Answer: 

---

Scenario 2 – Electronics Company Entering EVs (SWOT)

Q3. Which of the following is a strength of the electronics company planning to enter the EV industry?

a) Lack of automobile manufacturing experience

b) Strong R&D capabilities

c) Declining smartphone sales

d) Competition from Tesla

Answer: 

---

Q4. Government incentives for EV adoption are considered:

a) Strength

b) Weakness

c) Opportunity

d) Threat

Answer: 

---

Scenario 3 – Fast-Food Chain Entering India (PESTEL)

Q5. Which PESTEL factor is reflected in the need to introduce vegetarian options in India?

a) Political

b) Social

c) Economic

d) Legal

Answer: 

---

Q6. Concerns about plastic packaging by a fast-food chain belong to which PESTEL dimension?

a) Economic

b) Technological

c) Environmental

d) Political

Answer: 

---

Scenario 4 – Automobile Company Shifting to EVs (PESTEL)

Q7. Rising fuel prices encouraging customers to buy EVs falls under:

a) Social factor

b) Economic factor

c) Political factor

d) Legal factor

Answer:

---

Q8. Government subsidies and stricter emission regulations in the EV industry are:

a) Political factors

b) Technological factors

c) Environmental factors

d) Legal factors

Answer: 

---

Comparative Understanding

Q9. Which of the following best distinguishes SWOT from PESTEL?

a) SWOT focuses only on external factors, PESTEL on internal.

b) SWOT covers internal and external factors, PESTEL covers only external factors.

c) Both SWOT and PESTEL are limited to internal analysis.

d) PESTEL is short-term, SWOT is long-term.

Answer:

---

Q10. If a company identifies “poor digital presence” as a limitation, it is considered:

a) External Threat

b) Internal Weakness

c) External Opportunity

d) Internal Strength

Answer: 

✅

SWOT & PESTEL – 25 Practice MCQs

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Part A – Scenario 1: Food Delivery Startup (SWOT)

Q1. Which of the following is identified as a strength for the startup?

a) Strong customer loyalty

b) High delivery costs

c) Shortage of staff

d) Strong competition

Answer:

---

Q2. “Expansion into nearby cities” is categorized under:

a) Strength

b) Opportunity

c) Weakness

d) Threat

Answer: 

---

Q3. Competition from Swiggy and Zomato is a:

a) Opportunity

b) Threat

c) Weakness

d) Political factor

Answer:

---

Q4. Which strategy should the startup adopt first before expanding?

a) Enter global markets

b) Reduce delivery costs and strengthen staff base

c) Increase app features

d) Ignore competitors

Answer:

---

Part B – Scenario 2: Electronics Company Entering EV Market (SWOT)

Q5. Decline in smartphone sales is a:

a) Threat

b) Weakness

c) Opportunity

d) Strength

Answer:

---

Q6. Which factor is a threat in the EV industry?

a) Government subsidies

b) Competition from Tesla and BYD

c) Innovation culture

d) Brand reputation

Answer:

---

Q7. The company’s “strong R&D capabilities” are categorized as:

a) Political factor

b) Strength

c) Weakness

d) Opportunity

Answer: 

---

Q8. Entering the EV market mainly represents:

a) Threat

b) Opportunity

c) Weakness

d) Legal risk

Answer

---

Part C – Scenario 3: Fast-Food Chain in India (PESTEL)

Q9. Which PESTEL factor requires offering vegetarian options?

a) Political

b) Economic

c) Social

d) Legal

Answer

---

Q10. Growth of food delivery apps in India is:

a) Technological factor

b) Legal factor

c) Political factor

d) Environmental factor

Answer:

---

Q11. Tax policies affecting the fast-food chain are part of:

a) Economic factor

b) Political factor

c) Social factor

d) Environmental factor

Answer:

---

Q12. Concerns about plastic packaging fall under:

a) Environmental

b) Technological

c) Political

d) Legal

Answer: 

---

Part D – Scenario 4: Automobile Company Shifting to EVs (PESTEL)

Q13. Rising fuel prices encouraging EV demand are a:

a) Social factor

b) Economic factor

c) Political factor

d) Technological factor

Answer:

---

Q14. Government subsidies on EVs are classified as:

a) Political

b) Economic

c) Social

d) Legal

Answer: 

---

Q15. Consumer preference for eco-friendly cars is a:

a) Legal factor

b) Technological factor

c) Social factor

d) Economic factor

Answer:

---

Q16. EV battery technology advancements are part of:

a) Political

b) Economic

c) Technological

d) Environmental

Answer: 

---

Q17. Ban on diesel cars in some cities is a:

a) Legal factor

b) Social factor

c) Political factor

d) Strength

Answer: 

---

Part E – Conceptual & Comparative Questions

Q18. SWOT differs from PESTEL because:

a) SWOT covers internal + external; PESTEL covers only external.

b) SWOT is external; PESTEL is internal.

c) Both analyze only internal factors.

d) Both are future-oriented.

Answer: 

---

Q19. Which of the following is an internal factor in SWOT?

a) Government regulations

b) Competitors

c) Customer loyalty

d) Inflation

Answer: 

---

Q20. Which analysis is more future-oriented?

a) SWOT

b) PESTEL

c) Both equally

d) None

Answer: 

---

Q21. A company’s “poor digital marketing” is classified in SWOT as:

a) Threat

b) Weakness

c) Opportunity

d) Political

Answer: 

---

Q22. Rising unemployment in the economy is analyzed under:

a) Social

b) Economic

c) Political

d) Legal

Answer: 

---

Q23. If a company faces lawsuits for safety standards, this is part of:

a) Political factor

b) Social factor

c) Legal factor

d) Environmental factor

Answer: 

---

Q24. Which of the following BEST combines SWOT & PESTEL?

a) PESTEL for internal, SWOT for external

b) SWOT identifies company position; PESTEL scans environment

c) SWOT is future, PESTEL is present

d) Both are identical

Answer: 

---

Q25. Which of the following pairs is correct?

a) Threat – Internal factor

b) Opportunity – External factor

c) Strength – External factor

d) Weakness – External factor

Answer:

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Solution...

MCQs on SWOT and PESTEL Analysis

Scenario 1 – Food Delivery Startup (SWOT)

Q1. In the SWOT analysis of the food delivery startup, which of the following is a weakness?

a) Strong customer loyalty

b) User-friendly mobile application

c) High delivery costs

d) Growing demand in nearby cities

Answer: c) High delivery costs

Explanation: High delivery costs reduce profitability, making it a weakness.

---

Q2. The startup’s decision to expand into nearby cities falls under which SWOT category?

a) Strength

b) Weakness

c) Opportunity

d) Threat

Answer: c) Opportunity

Explanation: Expansion into new markets is an external chance for growth → Opportunity.

---

Scenario 2 – Electronics Company Entering EVs (SWOT)

Q3. Which of the following is a strength of the electronics company planning to enter the EV industry?

a) Lack of automobile manufacturing experience

b) Strong R&D capabilities

c) Declining smartphone sales

d) Competition from Tesla

Answer: b) Strong R&D capabilities

Explanation: R&D is an internal advantage, categorized as a strength.

---

Q4. Government incentives for EV adoption are considered:

a) Strength

b) Weakness

c) Opportunity

d) Threat

Answer: c) Opportunity

Explanation: External supportive policies create growth opportunities.

---

Scenario 3 – Fast-Food Chain Entering India (PESTEL)

Q5. Which PESTEL factor is reflected in the need to introduce vegetarian options in India?

a) Political

b) Social

c) Economic

d) Legal

Answer: b) Social

Explanation: Cultural and consumer preferences are part of the social environment.

---

Q6. Concerns about plastic packaging by a fast-food chain belong to which PESTEL dimension?

a) Economic

b) Technological

c) Environmental

d) Political

Answer: c) Environmental

Explanation: Packaging sustainability is an environmental issue.

---

Scenario 4 – Automobile Company Shifting to EVs (PESTEL)

Q7. Rising fuel prices encouraging customers to buy EVs falls under:

a) Social factor

b) Economic factor

c) Political factor

d) Legal factor

Answer: b) Economic factor

Explanation: Fuel prices directly affect consumer purchasing power → Economic.

---

Q8. Government subsidies and stricter emission regulations in the EV industry are:

a) Political factors

b) Technological factors

c) Environmental factors

d) Legal factors

Answer: a) Political factors

Explanation: Policies, subsidies, and emission laws are influenced by government decisions.

---

Comparative Understanding

Q9. Which of the following best distinguishes SWOT from PESTEL?

a) SWOT focuses only on external factors, PESTEL on internal.

b) SWOT covers internal and external factors, PESTEL covers only external factors.

c) Both SWOT and PESTEL are limited to internal analysis.

d) PESTEL is short-term, SWOT is long-term.

Answer: b) SWOT covers internal and external factors, PESTEL covers only external factors.

Explanation: SWOT = internal (S & W) + external (O & T); PESTEL = external only.

---

Q10. If a company identifies “poor digital presence” as a limitation, it is considered:

a) External Threat

b) Internal Weakness

c) External Opportunity

d) Internal Strength

Answer: b) Internal Weakness

Explanation: A company’s own digital capabilities = internal factor → Weakness.

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SWOT & PESTEL – 25 Practice MCQs with Answers

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Part A – Scenario 1: Food Delivery Startup (SWOT)

Q1. Which of the following is identified as a strength for the startup?
a) Strong customer loyalty
b) High delivery costs
c) Shortage of staff
d) Strong competition

Answer: a) Strong customer loyalty
Explanation: Internal advantage = Strength.

---

Q2. “Expansion into nearby cities” is categorized under:
a) Strength
b) Opportunity
c) Weakness
d) Threat

Answer: b) Opportunity
Explanation: External growth chance = Opportunity.

---

Q3. Competition from Swiggy and Zomato is a:
a) Opportunity
b) Threat
c) Weakness
d) Political factor

Answer: b) Threat
Explanation: Rivalry is an external challenge = Threat.

---

Q4. Which strategy should the startup adopt first before expanding?
a) Enter global markets
b) Reduce delivery costs and strengthen staff base
c) Increase app features
d) Ignore competitors

Answer: b) Reduce delivery costs and strengthen staff base
Explanation: Weaknesses must be managed before expansion.

---

Part B – Scenario 2: Electronics Company Entering EV Market (SWOT)

Q5. Decline in smartphone sales is a:
a) Threat
b) Weakness
c) Opportunity
d) Strength

Answer: b) Weakness
Explanation: It reduces financial stability → Internal Weakness.

---

Q6. Which factor is a threat in the EV industry?
a) Government subsidies
b) Competition from Tesla and BYD
c) Innovation culture
d) Brand reputation

Answer: b) Competition from Tesla and BYD
Explanation: Strong rivals are external threats.

---

Q7. The company’s “strong R&D capabilities” are categorized as:
a) Political factor
b) Strength
c) Weakness
d) Opportunity

Answer: b) Strength
Explanation: Internal advantage → Strength.

---

Q8. Entering the EV market mainly represents:
a) Threat
b) Opportunity
c) Weakness
d) Legal risk

Answer: b) Opportunity
Explanation: EVs are a fast-growing industry = opportunity.

---

Part C – Scenario 3: Fast-Food Chain in India (PESTEL)

Q9. Which PESTEL factor requires offering vegetarian options?
a) Political
b) Economic
c) Social
d) Legal

Answer: c) Social
Explanation: Cultural preferences = Social factor.

---

Q10. Growth of food delivery apps in India is:
a) Technological factor
b) Legal factor
c) Political factor
d) Environmental factor

Answer: a) Technological factor
Explanation: Technology drives delivery platforms.

---

Q11. Tax policies affecting the fast-food chain are part of:
a) Economic factor
b) Political factor
c) Social factor
d) Environmental factor

Answer: b) Political factor
Explanation: Taxes, policies = Political environment.

---

Q12. Concerns about plastic packaging fall under:
a) Environmental
b) Technological
c) Political
d) Legal

Answer: a) Environmental
Explanation: Waste management & sustainability = Environmental factor.

---

Part D – Scenario 4: Automobile Company Shifting to EVs (PESTEL)

Q13. Rising fuel prices encouraging EV demand are a:
a) Social factor
b) Economic factor
c) Political factor
d) Technological factor

Answer: b) Economic factor
Explanation: Prices directly affect buying power.

---

Q14. Government subsidies on EVs are classified as:
a) Political
b) Economic
c) Social
d) Legal

Answer: a) Political
Explanation: Incentives & policies = Political.

---

Q15. Consumer preference for eco-friendly cars is a:
a) Legal factor
b) Technological factor
c) Social factor
d) Economic factor

Answer: c) Social factor
Explanation: Society’s awareness of environment = Social.

---

Q16. EV battery technology advancements are part of:
a) Political
b) Economic
c) Technological
d) Environmental

Answer: c) Technological
Explanation: Innovation = Technological.

---

Q17. Ban on diesel cars in some cities is a:
a) Legal factor
b) Social factor
c) Political factor
d) Strength

Answer: a) Legal factor
Explanation: Ban = Government legal regulation.

---

Part E – Conceptual & Comparative Questions

Q18. SWOT differs from PESTEL because:
a) SWOT covers internal + external; PESTEL covers only external.
b) SWOT is external; PESTEL is internal.
c) Both analyze only internal factors.
d) Both are future-oriented.

Answer: a) SWOT covers internal + external; PESTEL covers only external.

---

Q19. Which of the following is an internal factor in SWOT?
a) Government regulations
b) Competitors
c) Customer loyalty
d) Inflation

Answer: c) Customer loyalty
Explanation: Internal advantage = Strength.

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Q20. Which analysis is more future-oriented?
a) SWOT
b) PESTEL
c) Both equally
d) None

Answer: b) PESTEL
Explanation: PESTEL anticipates future macro trends.

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Q21. A company’s “poor digital marketing” is classified in SWOT as:
a) Threat
b) Weakness
c) Opportunity
d) Political

Answer: b) Weakness

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Q22. Rising unemployment in the economy is analyzed under:
a) Social
b) Economic
c) Political
d) Legal

Answer: b) Economic
Explanation: Employment levels affect economic conditions.

---

Q23. If a company faces lawsuits for safety standards, this is part of:
a) Political factor
b) Social factor
c) Legal factor
d) Environmental factor

Answer: c) Legal factor

---

Q24. Which of the following BEST combines SWOT & PESTEL?
a) PESTEL for internal, SWOT for external
b) SWOT identifies company position; PESTEL scans environment
c) SWOT is future, PESTEL is present
d) Both are identical

Answer: b) SWOT identifies company position; PESTEL scans environment

---

Q25. Which of the following pairs is correct?
a) Threat – Internal factor
b) Opportunity – External factor
c) Strength – External factor
d) Weakness – External factor

Answer: b) Opportunity – External factor
Explanation: Opportunities & threats = external, strengths & weaknesses = internal.

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