Exam 3: External Analysis: The Business Environment

Many different players may influence industry structure and firm performance

Dependence on a few large customers is a good recipe for enhanced profits

It is sometimes difficult to foresee the impact of environmental changes

Investor ignorance of risk is exceedingly rare

Market segmentation scheme should reviewed and checked as needed

Parallel competitors need not concern the strategist

Demographic changes have had significant impact on some countries immigration policies

Pressure from suppliers is independent of their importance to the firm

Some investors are not interested in firms' environmental performance

All firms in an industry are similarly affected by its structure

Information technology has afforded huge productivity increases in many industries

Managers need to be open to weak signals

Regional trading blocs characterize much of the world

Market perspectives are competitor-specific

Low entry barriers typically produce high profitability

Business unit strategy requires a detailed understanding of customer needs

The ability of national governments to pursue independent economic policies has diminished

Sustaining technologies improve performance on dimensions not valued by existing customers

Technological advance and deregulation have reduced the importance of indirect competition