True or False

2. We can use the PESTEL model to analyze a company's strengths and weaknesses.

3. Level of unemployment is a legal factor in the PESTEL model.

4. Demographic trends are political factors in the PESTEL model.

5. Industry is a group of companies facing more or less the same set of suppliers and

buyers.

6. The five forces model identifies factors that determine the profit potential of an

industry and shape a firm's competitive strategy.

7. The stronger the five forces, the higher the industry's profit potential.

8. The threat of substitutes is from products or services from outside the focal industry.

9. A major difference between perfect competition and monopolistic competition is

that a monopolistically competitive industry has differentiated products.

10. The bargaining power of suppliers tends to be high when the supplier's industry is

concentrated.