Question 1

Examples of important elements in the economic segment include exchange rates and global trade.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is considered an entry barrier?

Accepted Answer

A)  Large economies of scale 
B)  Low switching costs 
C)  Easy access to raw materials 
D)  Low capital requirements 
A)  Large economies of scale 
B)  Low switching costs 
C)  Easy access to raw materials 
D)  Low capital requirements A

Question 3

Porter's five forces model is designed to help us understand how social attitudes and cultural values impact Canadian businesses.

Accepted Answer

A) True 
 B)False  False

Question 4

The most watched economic indicator is the is the Toronto Stock Exchange (TSE), which is composed of 30 large industrial firms.

Accepted Answer

A) True 
 B)False

Question 5

In some industries, high switching costs can act as an important barrier to entry.

Accepted Answer

A) True 
 B)False

Question 6

Rivalry is most intense when there are high exit barriers and high industry growth.

Accepted Answer

A) True 
 B)False

Question 7

The general and competitive environments

Accepted Answer

A)  are independent and dynamic. 
B)  tend to be interrelated and dynamic. 
C)  have similar impact on organizations of different industries. 
D)  are independent and static. 
A)  are independent and dynamic. 
B)  tend to be interrelated and dynamic. 
C)  have similar impact on organizations of different industries. 
D)  are independent and static.

Question 8

Although changes in the general environment may often adversely or favourably impact a firm, they seldom alter an entire industry.

Accepted Answer

A) True 
 B)False

Question 9

Two key inputs to developing forecasts discussed in the text are

Accepted Answer

A)  environmental scanning and stakeholder identification. 
B)  environmental scanning and competitor intelligence. 
C)  assessing internal strengths and environmental scanning. 
D)  environmental scanning and a SWOT analysis. 
A)  environmental scanning and stakeholder identification. 
B)  environmental scanning and competitor intelligence. 
C)  assessing internal strengths and environmental scanning. 
D)  environmental scanning and a SWOT analysis.

Question 10

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

Accepted Answer

A)  threat of entry. 
B)  backward integration. 
C)  forward integration. 
D)  threat of substitute products. 
A)  threat of entry. 
B)  backward integration. 
C)  forward integration. 
D)  threat of substitute products.

Question 11

The same environmental trend can often have very different effects on firms within the same industry.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Explain how the value net analysis adds to the five forces analysis. Be sure to include examples from at least two industries.

Accepted Answer

The five forces analysis has also been c

Question 14

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Accepted Answer

A) True 
 B)False

Question 15

Buyer power will be greater when

Accepted Answer

A)  the products purchased are highly differentiated. 
B)  there are high switching costs. 
C)  the industry's product is very important to the quality of the buyer's end products or services. 
D)  it is concentrated on purchasing large volumes relative to seller sales. 
A)  the products purchased are highly differentiated. 
B)  there are high switching costs. 
C)  the industry's product is very important to the quality of the buyer's end products or services. 
D)  it is concentrated on purchasing large volumes relative to seller sales.

Question 16

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

Accepted Answer

Suppliers may become powerful when the s

Question 17

In the value-net analysis, complementors are

Accepted Answer

A)  firms that produce substitute products. 
B)  customers who compliment the company for their good products and services. 
C)  firms that produce products or services that have a positive impact on the value of a firm's products or services. 
D)  firms that supply critical inputs to a company. 
A)  firms that produce substitute products. 
B)  customers who compliment the company for their good products and services. 
C)  firms that produce products or services that have a positive impact on the value of a firm's products or services. 
D)  firms that supply critical inputs to a company.

Question 18

Gathering "competitive intelligence"

Accepted Answer

A)  is a good business practise. 
B)  is illegal. 
C)  is considered unethical. 
D)  minimizes the need to obtain information in the public domain. 
A)  is a good business practise. 
B)  is illegal. 
C)  is considered unethical. 
D)  minimizes the need to obtain information in the public domain.

Question 19

The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry's ability to charge high prices.

Accepted Answer

A) True 
 B)False

Question 20

_____ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Accepted Answer

A)  Environmental scanning 
B)  Environmental monitoring 
C)  Environmental surveying 
D)  Competitive intelligence 
A)  Environmental scanning 
B)  Environmental monitoring 
C)  Environmental surveying 
D)  Competitive intelligence

Examples of important elements in the economic segment include exchange rates and global trade.

Which of the following is considered an entry barrier?

Porter's five forces model is designed to help us understand how social attitudes and cultural values impact Canadian businesses.

The most watched economic indicator is the is the Toronto Stock Exchange (TSE), which is composed of 30 large industrial firms.

In some industries, high switching costs can act as an important barrier to entry.

Rivalry is most intense when there are high exit barriers and high industry growth.

The general and competitive environments

Although changes in the general environment may often adversely or favourably impact a firm, they seldom alter an entire industry.

Two key inputs to developing forecasts discussed in the text are

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

The same environmental trend can often have very different effects on firms within the same industry.

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

Explain how the value net analysis adds to the five forces analysis. Be sure to include examples from at least two industries.

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Buyer power will be greater when

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

In the value-net analysis, complementors are

Gathering "competitive intelligence"

The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry's ability to charge high prices.

_____ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters

Exam 2: Analyzing the External Environment of the Firm

Examples of important elements in the economic segment include exchange rates and global trade.

Which of the following is considered an entry barrier?

Porter's five forces model is designed to help us understand how social attitudes and cultural values impact Canadian businesses.

The most watched economic indicator is the is the Toronto Stock Exchange (TSE), which is composed of 30 large industrial firms.

In some industries, high switching costs can act as an important barrier to entry.

Rivalry is most intense when there are high exit barriers and high industry growth.

The general and competitive environments

Although changes in the general environment may often adversely or favourably impact a firm, they seldom alter an entire industry.

Two key inputs to developing forecasts discussed in the text are

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

The same environmental trend can often have very different effects on firms within the same industry.

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

Explain how the value net analysis adds to the five forces analysis. Be sure to include examples from at least two industries.

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Buyer power will be greater when

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

In the value-net analysis, complementors are

Gathering "competitive intelligence"

The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry's ability to charge high prices.

_____ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Strategic Management: Creating Competitive Advantages: an Overview

Analyzing the Internal Environment of the Firm

Assessing the Intellectual Assets of the Firm

Business-Level Strategy: Creating and Sustaining Competitive Advanta

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Industry Change and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning, Ethical, and Socially Res

Managing Innovation and Fostering Entrepreneurship

Filters