Question 1

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the smallest in terms of breadth of product line?

Accepted Answer

A)  Hyundai,Kia
B)  Toyota,Ford,General Motors,Chrysler,Honda,Nissan
C)  Chery,Geely,Tata Motors
D)  Mercedes,BMW,AudiE) None of the above
F) A) and D)

Question 2

Environmental analysis requires continual questioning of all these assumptions except

Accepted Answer

A)  a priori ideas about the structure of the relevant industry.
B)  continual updating of environmental knowledge.
C)  presuppositions about who is and is not a competitor.
D)  biases about how to make money in the industry.E) All of the above
F) A) and B)

Question 3

Two of the key inputs to developing forecasts discussed in the text are

Accepted Answer

A)  environmental scanning and stakeholder identification.
B)  assessing internal strengths and environmental scanning.
C)  environmental scanning and competitive intelligence.
D)  environmental scanning and a SWOT analysis.E) A) and B)
F) A) and C)

Question 4

Classifying an industry into strategic groups involves judgment.If it is useful as an analytical tool,we must exercise caution in deciding what dimensions to use to map these firms.Dimensions include all of the following except

Accepted Answer

A)  breadth of product and geographic scope.
B)  price and quality.
C)  degree of vertical integration.
D)  management team.E) A) and B)
F) C) and D)

Question 5

Which of the following would be an entry barrier?

Accepted Answer

A)  easy access to raw materials
B)  low switching costs
C)  large economies of scale
D)  low capital requirementsE) B) and C)
F) All of the above

Question 6

End users are not

Accepted Answer

A)  the final consumers in a distribution channel.
B)  the first customers in a distribution channel.
C)  likely to have greater bargaining power because of the Internet.
D)  usually the C in B2C.E) B) and D)
F) B) and C)

Question 7

Perceptual acuity,according to Ram Charan,is the ability to know for certain what will happen in the future.

Accepted Answer

A) True 
 B)False

Question 8

Which one of the following statements is an example of how to improve perceptual acuity?

Accepted Answer

A)  A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team.
B)  A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company.
C)  A CEO meets with direct competitors to analyze current industry trends.The CEOs share their conclusions with their respective companies.
D)  Outsiders are brought in to the board meeting to critique the company strategy,which considers the new information in its potential revamping of the strategy.E) C) and D)
F) B) and C)

Question 9

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Accepted Answer

A)  by shifting customers away from issues of price
B)  by consolidating the marketing message that consumers use to make a purchase decision
C)  by making competitors in cyberspace seem less equally balanced
D)  by highlighting unique selling advantages of a firmE) A) and D)
F) None of the above

Question 10

Scenario planning is a useful technique for firms competing in industries characterized by ________ and ________.

Accepted Answer

A)  predictability;stability
B)  low profit margins;stability
C)  unpredictability;change
D)  high profit margins;stabilityE) A) and B)
F) A) and C)

Question 11

The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a correct usage of the SWOT framework?

Accepted Answer

A)  build on its strengths
B)  remedy the weaknesses or work around them
C)  take advantage of the opportunities presented by the environment
D)  protect the firm from environmental weaknessesE) B) and D)
F) B) and C)

Question 13

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

Accepted Answer

A) True 
 B)False

Question 14

Reintermediation is responsible for an overall reduction in business opportunities.

Accepted Answer

A) True 
 B)False

Question 15

Competitive Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 16

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Accepted Answer

A) True 
 B)False

Question 17

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp. ,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

Accepted Answer

A)  poor forecasting of future consumer demand.
B)  overestimation of uncertainty.
C)  excellent forecasting.
D)  good prediction skills.E) A) and B)
F) A) and C)

Question 18

SWOT analysis is a framework for analyzing the internal and external environment of a company.It consists of strengths,weaknesses,opportunities,and threats.According to a SWOT analysis,which of the following is not an aspect that the strategy of the firm must follow?

Accepted Answer

A)  build on its weaknesses
B)  remedy the weaknesses or work around them
C)  take advantage of the opportunities presented by the environment
D)  protect the firm from the threatsE) A) and C)
F) None of the above

Question 19

Emerging sociocultural changes in the environment include

Accepted Answer

A)  changes in the ethnic composition.
B)  the increasing educational attainment of women in the past decade.
C)  progressively less disposable income by consumers.
D)  changes in the geographic distribution of the population.E) All of the above
F) C) and D)

Question 20

Which of the following would be considered part of the general environment of a firm?

Accepted Answer

A)  decreased entry barriers
B)  higher unemployment rates
C)  increased bargaining power of the firm's suppliers
D)  increased competitive intensityE) A) and D)
F) A) and C)

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Which of the following would be an entry barrier?

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In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp. ,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

Correct AnswerverifiedShow Answer

Perceptual acuity,according to Ram Charan,is the ability to know for certain what will happen in the future.

Correct AnswerverifiedShow Answer

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Correct AnswerverifiedShow Answer

The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

Correct AnswerverifiedShow Answer

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the smallest in terms of breadth of product line?

Correct AnswerverifiedShow Answer

End users are not

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Reintermediation is responsible for an overall reduction in business opportunities.

Correct AnswerverifiedShow Answer

Which of the following would be considered part of the general environment of a firm?

Correct AnswerverifiedShow Answer

Classifying an industry into strategic groups involves judgment.If it is useful as an analytical tool,we must exercise caution in deciding what dimensions to use to map these firms.Dimensions include all of the following except

Correct AnswerverifiedShow Answer

Which of the following is not a correct usage of the SWOT framework?

Correct AnswerverifiedShow Answer

Emerging sociocultural changes in the environment include

Correct AnswerverifiedShow Answer

Environmental analysis requires continual questioning of all these assumptions except

Correct AnswerverifiedShow Answer

Competitive Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Correct AnswerverifiedShow Answer

Which one of the following statements is an example of how to improve perceptual acuity?

Correct AnswerverifiedShow Answer

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Correct AnswerverifiedShow Answer

Two of the key inputs to developing forecasts discussed in the text are

Correct AnswerverifiedShow Answer

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

Correct AnswerverifiedShow Answer

SWOT analysis is a framework for analyzing the internal and external environment of a company.It consists of strengths,weaknesses,opportunities,and threats.According to a SWOT analysis,which of the following is not an aspect that the strategy of the firm must follow?

Correct AnswerverifiedShow Answer

Scenario planning is a useful technique for firms competing in industries characterized by ________ and ________.

Correct AnswerverifiedShow Answer

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Scenario planning is a useful technique for firms competing in industries characterized by and .

Correct Answer
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