Which one of the following pairs of techniques can help identify important external factors that may influence strategy?

The pairing of PESTLE and 5 Forces is indeed effective for identifying important external factors that can influence strategy.

PESTLE analysis provides a framework for examining the external macro-environmental factors that may impact an organization, including Political, Economic, Social, Technological, Legal, and Environmental aspects. This allows organizations to understand broader trends and changes in the external environment that could affect their strategy and operations.

On the other hand, the 5 Forces model, developed by Michael Porter, focuses specifically on the competitive dynamics within an industry. It assesses the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitute products or services, and the intensity of competitive rivalry within the industry. This technique helps organizations understand the competitive landscape they operate in and how various factors can shape their competitive strategy.

When used together, PESTLE provides insights into the macro-environment, while the 5 Forces analysis zeroes in on the industry level dynamics, equipping organizations with a comprehensive view of both external pressures and competitive forces. This combined knowledge is crucial for effective strategy formulation and adjustment in response to changing external conditions.