Exam 3: Analyzing the External Environment

When changes occur in the activities that help create new knowledge or in the activities that help transform new knowledge into new processes, products or materials - these changes are known as ____.

Which of the following IS NOT one of the basic areas that a company like Boeing should study in order to understand in which areas its competitor, Airbus is strong or weak?

Subprime mortgages are the leading cause of the 2007-2008 financial crisis in the US.

When a firm experiences improvements in efficiency as it incrementally increases its size, the firm is said to have created which of the following barriers to entry?

Why is it important for firms to analyze the industry environment and how is Michael Porter's five forces model useful as an analytical tool.

Economies of scale and capital requirements are two of the barriers to entry that companies might try to establish in order to reduce the chances that a new competitor might enter the industry.

The increase in the number of Hispanic consumers in the United States reflects which of the following demographic trends?

Which of the following IS NOT and economic trend?

As switching costs and the industry growth rate decline, competitive rivalry will also decline.

Personal opinions and casual observations about the external environment provide exactly the kind of information that managers should use when formulating strategies.

Which of the following conditions DOES NOT increase the bargaining power of buyers?

Which of the following IS NOT a potential barrier to entry?

Digital storage disks, photo editing software, and photo printers are complimentary products to digital cameras.

When companies like Home Depot and Lowes analyze the external environment they are trying to understand how demographic trends might impact future profitability.

Complementary products can facilitate the sale of another product or

By the year 2015 the world population will grow to