Question 1

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) B) and C)
F) A) and D)

Question 2

The strategic groups concept is valuable for identifying groups with ________ competitive positions.

Accepted Answer

A)   marginal
B)   exceptional
C)   healthy
D)   poorE) None of the above
F) A) and B)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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) All of the above
F) A) and C)

Question 5

In the SWOT framework, ________ are the same for all firms in the same competitive environment.

Accepted Answer

A)   strengths and weaknesses
B)   strengths and opportunities
C)   weaknesses and threats
D)   opportunities and threatsE) All of the above
F) B) and D)

Question 6

The threat of new entrants is high when there are

Accepted Answer

A)   high capital requirements.
B)   low economies of scale.
C)   high switching costs.
D)   high differentiation among competitor products and services.E) C) and D)
F) B) and D)

Question 7

The bargaining power of the buyer is greater than that of the supplier when

Accepted Answer

A)   volume of purchase is low.
B)   the buyer profit margin is low.
C)   cost savings from the supplier's product are minimal.
D)   threat of backward integration by buyers is low.E) B) and D)
F) B) and C)

Question 8

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Accepted Answer

A)   trends
B)   positions
C)   experience
D)   wealthE) None of the above
F) A) and B)

Question 9

Buyer power will be greater when

Accepted Answer

A)   the products purchased are highly differentiated.
B)   it is concentrated or when a buyer group purchases large volumes relative to seller sales.
C)   the industry product is very important to the quality of the buyer end products or services.
D)   there are high switching costs.E) B) and C)
F) A) and D)

Question 10

Interest rate increases have a ________ impact on the residential home construction industry and a ________ effect on industries that produce consumer necessities such as prescriptiondrugs or basic grocery items.

Accepted Answer

A)   positive; negligible
B)   negative; positive
C)   negative; negligible
D)   positive; negativeE) All of the above
F) B) and C)

Question 11

When the management frame of reference gets out of touch with the realities of the actual business situation, what can happen to the firm?

Accepted Answer

A)   Management perceptual acuity improves.
B)   Management gets across-the-board raises.
C)   The company business strategy no longer works.
D)   It becomes easier to maintain competitive advantage.E) A) and C)
F) None of the above

Question 12

Which of the following would not lead a manager to believe that an ethical concern exists?

Accepted Answer

A)   Have I done anything that coerced somebody to share this information?
B)   Have I done something to circumvent a system intended to secure or protect information?
C)   Is the contemplated technique for gathering information relevant?
D)   Have I misled anybody in order to gain access?E) B) and D)
F) B) and C)

Question 13

Even with all the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

Accepted Answer

A) True 
 B)False

Question 14

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 15

A major sociocultural trend in the United States is the increased number of women in the workforce that has increased the need for business clothing but decreased the demand for bakingproduct staples.

Accepted Answer

A) True 
 B)False

Question 16

Apple uses its ________ power to pay no more than 2 percent of its sales a square foot in rent.

Accepted Answer

A)   supplier
B)   competitor
C)   buyer
D)   restrainingE) B) and D)
F) C) and D)

Question 17

The bargaining power of suppliers increases as

Accepted Answer

A)   threat of forward integration by suppliers increases.
B)   importance of buyers to supplier group increases.
C)   switching costs for buyers decrease.
D)   more suppliers enter the market.E) A) and C)
F) A) and D)

Question 18

In the value net analysis, complementors are

Accepted Answer

A)   firms that produce substitute products.
B)   firms that produce products that have a positive impact on company product value.
C)   customers who compliment the company for their good products and services.
D)   firms that supply critical inputs to a company.E) A) and B)
F) A) and C)

Question 19

In the SWOT framework, Opportunities and Threats are environmental conditions internal to the firm.

Accepted Answer

A) True 
 B)False

Question 20

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Accepted Answer

A) True 
 B)False

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

The bargaining power of suppliers increases as

Correct AnswerverifiedShow Answer

A major sociocultural trend in the United States is the increased number of women in the workforce that has increased the need for business clothing but decreased the demand for bakingproduct staples.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The threat of new entrants is high when there are

Correct AnswerverifiedShow Answer

The bargaining power of the buyer is greater than that of the supplier when

Correct AnswerverifiedShow Answer

In the SWOT framework, Opportunities and Threats are environmental conditions internal to the firm.

Correct AnswerverifiedShow Answer

Even with all the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

Correct AnswerverifiedShow Answer

The strategic groups concept is valuable for identifying groups with ________ competitive positions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Apple uses its ________ power to pay no more than 2 percent of its sales a square foot in rent.

Correct AnswerverifiedShow Answer

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Correct AnswerverifiedShow Answer

Technological innovations can create entirely new industries and alter the boundaries of industries.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Correct AnswerverifiedShow Answer

When the management frame of reference gets out of touch with the realities of the actual business situation, what can happen to the firm?

Correct AnswerverifiedShow Answer

Interest rate increases have a ________ impact on the residential home construction industry and a ________ effect on industries that produce consumer necessities such as prescriptiondrugs or basic grocery items.

Correct AnswerverifiedShow Answer

Buyer power will be greater when

Correct AnswerverifiedShow Answer

In the value net analysis, complementors are

Correct AnswerverifiedShow Answer

In the SWOT framework, ________ are the same for all firms in the same competitive environment.

Correct AnswerverifiedShow Answer

Which of the following would not lead a manager to believe that an ethical concern exists?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Interest rate increases have a impact on the residential home construction industry and a effect on industries that produce consumer necessities such as prescriptiondrugs or basic grocery items.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified