Question 1

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

Accepted Answer

A)  Identifying key external factors 
B)  Summing the weighted score for each competitor 
C)  Summing the weighted scores for each variable to determine the total weighted score for the organization 
D)  Drawing the horizontal and vertical lines for the matrix 
E)  Determining the preferred strategic factors 
A)  Identifying key external factors 
B)  Summing the weighted score for each competitor 
C)  Summing the weighted scores for each variable to determine the total weighted score for the organization 
D)  Drawing the horizontal and vertical lines for the matrix 
E)  Determining the preferred strategic factors

Question 2

In 2012, ________ passed the world's first legislation that would treat marijuana like alcohol, taxing and regulating its sales.

Accepted Answer

A)  Arkansas 
B)  Colorado 
C)  New Hampshire 
D)  New York 
E)  North Carolina 
A)  Arkansas 
B)  Colorado 
C)  New Hampshire 
D)  New York 
E)  North Carolina

Question 3

Florida is one of nine states that has zero state income tax.

Accepted Answer

A) True 
 B)False

Question 4

Forecasts are educated assumptions about future trends and events.

Accepted Answer

A) True 
 B)False

Question 5

An external audit focuses on identifying and evaluating trends and events within the control of management.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a published source of external strategic information?

Accepted Answer

A)  Periodicals 
B)  Customer surveys 
C)  Journals 
D)  Reports 
E)  Directories 
A)  Periodicals 
B)  Customer surveys 
C)  Journals 
D)  Reports 
E)  Directories

Question 7

The trend toward an older society is a threat for restaurants, hotels, and airlines.

Accepted Answer

A) True 
 B)False

Question 8

One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that

Accepted Answer

A)  CPM includes both internal and external issues. 
B)  the weights and total weighted scores have different meanings. 
C)  CPM ratings range from 1 to 10. 
D)  CPM is performed only for the company, whereas EFE is performed for both the company and its competitors. 
E)  CPM is only used in small firms. 
A)  CPM includes both internal and external issues. 
B)  the weights and total weighted scores have different meanings. 
C)  CPM ratings range from 1 to 10. 
D)  CPM is performed only for the company, whereas EFE is performed for both the company and its competitors. 
E)  CPM is only used in small firms.

Question 9

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

Accepted Answer

A)  internal, but not external issues. 
B)  external, but not internal issues. 
C)  both internal and external issues. 
D)  neither internal or external issues. 
E)  only non-quantifiable data. 
A)  internal, but not external issues. 
B)  external, but not internal issues. 
C)  both internal and external issues. 
D)  neither internal or external issues. 
E)  only non-quantifiable data.

Question 10

The emergence of 3D printing is an example of a(n) ________ force that impacts organizations.

Accepted Answer

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

Question 11

The United States is getting older.

Accepted Answer

A) True 
 B)False

Question 12

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.

Accepted Answer

A) True 
 B)False

Question 13

A weak dollar means

Accepted Answer

A)  lower exports and higher imports. 
B)  lower exports and lower imports. 
C)  lower exports and no effect on imports. 
D)  higher exports and higher imports. 
E)  higher exports and lower imports. 
A)  lower exports and higher imports. 
B)  lower exports and lower imports. 
C)  lower exports and no effect on imports. 
D)  higher exports and higher imports. 
E)  higher exports and lower imports.

Question 14

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

Accepted Answer

A)  Economic 
B)  Political 
C)  Technological 
D)  Competitive 
E)  Multinational 
A)  Economic 
B)  Political 
C)  Technological 
D)  Competitive 
E)  Multinational

Question 15

A forward integration strategy is used by firms to gain control or ownership of suppliers.

Accepted Answer

A) True 
 B)False

Question 16

The process of performing an external audit needs to include

Accepted Answer

A)  only top level managers, as it is a planning function. 
B)  as many managers and employees as possible. 
C)  primarily front-line supervisors. 
D)  between 15 to 20 managers for it to be valid. 
E)  stockholders and external government agencies. 
A)  only top level managers, as it is a planning function. 
B)  as many managers and employees as possible. 
C)  primarily front-line supervisors. 
D)  between 15 to 20 managers for it to be valid. 
E)  stockholders and external government agencies.

Question 17

What are the five steps needed to develop an EFE Matrix?

Accepted Answer

The EFE Matrix can be developed in five

Question 18

According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces. Name these forces.

Accepted Answer

1) Rivalry among competing fir

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

________ is NOT a basic mission of a competitive intelligence program.

Accepted Answer

A)  Providing a general understanding of an industry 
B)  Providing a general understanding of a company's competitors 
C)  Identifying industry executives who could be hired by the firm 
D)  Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors 
E)  Identifying potential moves a competitor might make that would endanger a firm's position in the market 
A)  Providing a general understanding of an industry 
B)  Providing a general understanding of a company's competitors 
C)  Identifying industry executives who could be hired by the firm 
D)  Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors 
E)  Identifying potential moves a competitor might make that would endanger a firm's position in the market

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

In 2012, ________ passed the world's first legislation that would treat marijuana like alcohol, taxing and regulating its sales.

Florida is one of nine states that has zero state income tax.

Forecasts are educated assumptions about future trends and events.

An external audit focuses on identifying and evaluating trends and events within the control of management.

Which of the following is NOT a published source of external strategic information?

The trend toward an older society is a threat for restaurants, hotels, and airlines.

One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

The emergence of 3D printing is an example of a(n) ________ force that impacts organizations.

The United States is getting older.

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.

A weak dollar means

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

A forward integration strategy is used by firms to gain control or ownership of suppliers.

The process of performing an external audit needs to include

What are the five steps needed to develop an EFE Matrix?

According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces. Name these forces.

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

________ is NOT a basic mission of a competitive intelligence program.

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

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

In 2012, ________ passed the world's first legislation that would treat marijuana like alcohol, taxing and regulating its sales.

Florida is one of nine states that has zero state income tax.

Forecasts are educated assumptions about future trends and events.

An external audit focuses on identifying and evaluating trends and events within the control of management.

Which of the following is NOT a published source of external strategic information?

The trend toward an older society is a threat for restaurants, hotels, and airlines.

One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

The emergence of 3D printing is an example of a(n) ________ force that impacts organizations.

The United States is getting older.

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.

A weak dollar means

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

A forward integration strategy is used by firms to gain control or ownership of suppliers.

The process of performing an external audit needs to include

What are the five steps needed to develop an EFE Matrix?

According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces. Name these forces.

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

________ is NOT a basic mission of a competitive intelligence program.

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