Question 1

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

Accepted Answer

A)  0 to 4 
B)  0 to 5 
C)  1 to 4 
D)  1 to 5 
E)  0 to 10 
A)  0 to 4 
B)  0 to 5 
C)  1 to 4 
D)  1 to 5 
E)  0 to 10 C

Question 2

To perform an external audit, a company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.

Accepted Answer

A) True 
 B)False  True

Question 3

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n)

Accepted Answer

A)  Comprehensive Profile Analysis (CP
A) . 
B)  Dynamic Trends Analytical Framework. 
C)  Porter's Five Forces Model. 
D)  External Factor Evaluation (EF
E) . 
E)  Evaluative Forces Matrix (EFM). 
A)  Comprehensive Profile Analysis (CP
A) . 
B)  Dynamic Trends Analytical Framework. 
C)  Porter's Five Forces Model. 
D)  External Factor Evaluation (EF
E) . 
E)  Evaluative Forces Matrix (EFM). D

Question 4

Discuss the process of performing an external audit.

Accepted Answer

To perform an external audit, a company

Question 5

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

Accepted Answer

A)  tariffs. 
B)  environmental regulations. 
C)  level of defense expenditures. 
D)  legislation on equal employment. 
E)  population changes by race, age, sex, and level of affluence. 
A)  tariffs. 
B)  environmental regulations. 
C)  level of defense expenditures. 
D)  legislation on equal employment. 
E)  population changes by race, age, sex, and level of affluence.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The shift to a service economy is an example of a(n) ________ force.

Accepted Answer

A)  technological 
B)  social, cultural, demographic, and environment (SCD
E)  
C)  economic 
D)  legal 
E)  political 
A)  technological 
B)  social, cultural, demographic, and environment (SCD
E)  
C)  economic 
D)  legal 
E)  political

Question 8

What is the first step in designing an External Factor Evaluation (EFE) Matrix?

Accepted Answer

A)  Identifying key external factors 
B)  Summing the weighted score for each competitor 
C)  Calculating the sales of each competitor 
D)  Drawing the horizontal and vertical lines for the matrix 
E)  Determining four competitors 
A)  Identifying key external factors 
B)  Summing the weighted score for each competitor 
C)  Calculating the sales of each competitor 
D)  Drawing the horizontal and vertical lines for the matrix 
E)  Determining four competitors

Question 9

________ forces are shaping the way people live, work, produce, and consume.

Accepted Answer

A)  SCDE 
B)  VUCA 
C)  IO 
D)  Porter's five- 
E)  Internal 
A)  SCDE 
B)  VUCA 
C)  IO 
D)  Porter's five- 
E)  Internal

Question 10

Major competitors' weaknesses can represent internal opportunities.

Accepted Answer

A) True 
 B)False

Question 11

A strong dollar enables ________ firms to purchase raw materials more cheaply from other countries.

Accepted Answer

A)  European Union 
B)  United States 
C)  Indian 
D)  Russian 
E)  Chinese 
A)  European Union 
B)  United States 
C)  Indian 
D)  Russian 
E)  Chinese

Question 12

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

Accepted Answer

A) True 
 B)False

Question 13

A low value of the dollar means lower exports and higher imports.

Accepted Answer

A) True 
 B)False

Question 14

Hiring top executives from rival firms is a way companies obtain competitive intelligence.

Accepted Answer

A) True 
 B)False

Question 15

Unpublished sources of external strategic information include all of the following EXCEPT

Accepted Answer

A)  abstracts. 
B)  customer surveys. 
C)  market research. 
D)  speeches at professional and shareholders' meetings. 
E)  conversations with stakeholders. 
A)  abstracts. 
B)  customer surveys. 
C)  market research. 
D)  speeches at professional and shareholders' meetings. 
E)  conversations with stakeholders.

Question 16

The World Economic Outlook report predicts a global growth rate of around ________ percent.

Accepted Answer

A)  3.6 
B)  7.8 
C)  2.1 
D)  1.8 
E)  5.3 
A)  3.6 
B)  7.8 
C)  2.1 
D)  1.8 
E)  5.3

Question 17

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

Accepted Answer

A)  1.0 
B)  4.0 
C)  5.0 
D)  10.0 
E)  100.0 
A)  1.0 
B)  4.0 
C)  5.0 
D)  10.0 
E)  100.0

Question 18

Intensity of competition ________ in lower-return industries.

Accepted Answer

A)  is lowest 
B)  is nonexistent 
C)  is highest 
D)  is not important 
E)  fluctuates 
A)  is lowest 
B)  is nonexistent 
C)  is highest 
D)  is not important 
E)  fluctuates

Question 19

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

Accepted Answer

A) True 
 B)False

Question 20

What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.

Accepted Answer

External forces can be divided into five

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

To perform an external audit, a company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n)

Discuss the process of performing an external audit.

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

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

The shift to a service economy is an example of a(n) ________ force.

What is the first step in designing an External Factor Evaluation (EFE) Matrix?

________ forces are shaping the way people live, work, produce, and consume.

Major competitors' weaknesses can represent internal opportunities.

A strong dollar enables ________ firms to purchase raw materials more cheaply from other countries.

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

A low value of the dollar means lower exports and higher imports.

Hiring top executives from rival firms is a way companies obtain competitive intelligence.

Unpublished sources of external strategic information include all of the following EXCEPT

The World Economic Outlook report predicts a global growth rate of around ________ percent.

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

Intensity of competition ________ in lower-return industries.

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.

The Nature of Strategic Management

The Business Vision and Mission

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Implementing Strategies: Finance and Accounting Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters

Exam 3: The External Assessment

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?

To perform an external audit, a company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends.

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n)

Discuss the process of performing an external audit.

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

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

The shift to a service economy is an example of a(n) ________ force.

What is the first step in designing an External Factor Evaluation (EFE) Matrix?

________ forces are shaping the way people live, work, produce, and consume.

Major competitors' weaknesses can represent internal opportunities.

A strong dollar enables ________ firms to purchase raw materials more cheaply from other countries.

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

A low value of the dollar means lower exports and higher imports.

Hiring top executives from rival firms is a way companies obtain competitive intelligence.

Unpublished sources of external strategic information include all of the following EXCEPT

The World Economic Outlook report predicts a global growth rate of around ________ percent.

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

Intensity of competition ________ in lower-return industries.

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.

The Nature of Strategic Management

The Business Vision and Mission

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Implementing Strategies: Finance and Accounting Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters