Exam 3: The External Assessment

Which of these does not significantly affect firms?

According to Business Week,there are less than 500 corporate spies now actively engaged in intelligence activities.

What happens to the demand for discretionary goods when interest rates rise?

An increase in interest rates is directly related to an increase in both discretionary income and the demand for discretionary goods.

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

The Arab region is experiencing little change in terms of social priorities and population changes.

Political,governmental,and legal factors are considered key threats for most small and large organizations.

Which Arab country or territory has the highest percentage of population aged 60 years and older as of 2000 ?

Forward integration is used by firms to gain control or ownership of suppliers.

Competitive intelligence is not considered corporate espionage because 95 percent of the information a company needs to make strategic decisions is available and accessible to the public.

Learning from the partner is a major reason why Asian and European firms enter into cooperative agreements.

In Arab countries that are oil producers,government expenditures increase and jobs become more readily available when oil revenues increase.

A Competitive Profile Matrix allows strategists to summarize and evaluate economic,social,cultural,demographic,environmental,political,governmental,legal,technological,and competitive information.

"Innovate or evaporate; particularly in technology- driven businesses,nothing quite recedes like success" is a characteristic of the most competitive companies.

Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.

List three opportunities and three threats that could represent key factors facing your college or university.

Competition in virtually all industries can be described as intense,and sometimes as cutthroat in the Arab world.

According to Michael Porter,five competitive forces create vital opportunities and threats to organizations: 1)new entrants; 2)substitute products or services; 3)bargaining power of suppliers;

Which large ethinic minority in North Africa contributes significantly to the economic prosperity and development of the area?

An economic trend in the Arab world is an increasing number of two- income households.