Question 1

In general,the threat of substitutes is heightened because the Internet

Accepted Answer

A) lowers switching costs. 
B) lowers barriers to entry. 
C) introduces new ways to accomplish the same task. 
D) increases output per unit of cost. 
A) lowers switching costs. 
B) lowers barriers to entry. 
C) introduces new ways to accomplish the same task. 
D) increases output per unit of cost. C

Question 2

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Accepted Answer

A) True 
 B)False  True

Question 3

The threat of new entrants is high when there are

Accepted Answer

A) high capital requirements. 
B) low economies of scale. 
C) high switching costs. 
D) high differentiation among competitor products and services. 
A) high capital requirements. 
B) low economies of scale. 
C) high switching costs. 
D) high differentiation among competitor products and services. B

Question 4

Executives must be careful to avoid spending so much time and effort tracking the actions of ________ that they ignore ________.

Accepted Answer

A) competitors;customers 
B) customers;competitors 
C) traditional competitors;new competitors 
D) existing customers;existing competitors 
A) competitors;customers 
B) customers;competitors 
C) traditional competitors;new competitors 
D) existing customers;existing competitors

Question 5

In the value net analysis,complementors are

Accepted Answer

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

Question 6

Airbnb,a room-sharing site,offers more rooms than Marriott.Goldman Sachs suggests that the supply of new rooms over the next two years will outpace the previous five even though the growth of American occupancy rates has begun to slow.Which competitive force is involved in this situation?

Accepted Answer

A) the threat of favorable government policies 
B) the threat of new buyers 
C) the threat of new entrants 
D) the threat of proprietary products 
A) the threat of favorable government policies 
B) the threat of new buyers 
C) the threat of new entrants 
D) the threat of proprietary products

Question 7

A danger of forecasting discussed in the text is that

Accepted Answer

A) in most cases,the expense of collecting the necessary data exceeds the benefit. 
B) the retrospective nature of forecasting provides little information about the future. 
C) it can create legal problems for the firm if regulators discover the company is making forecasts. 
D) managers may view uncertainty as black and white while ignoring important gray areas. 
A) in most cases,the expense of collecting the necessary data exceeds the benefit. 
B) the retrospective nature of forecasting provides little information about the future. 
C) it can create legal problems for the firm if regulators discover the company is making forecasts. 
D) managers may view uncertainty as black and white while ignoring important gray areas.

Question 8

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 9

The aging of the population,changes in ethnic composition,and effects of the millennial generation are ________ changes.

Accepted Answer

A) macroeconomic 
B) global 
C) sociocultural 
D) demographic 
A) macroeconomic 
B) global 
C) sociocultural 
D) demographic

Question 10

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Accepted Answer

A) True 
 B)False

Question 11

What is the difference between the demographic segment and the sociocultural segment in the list of general environment factors that impact the strategy and performance of a firm? Provide specific examples to support your discussion.

Accepted Answer

The demographic segment and the sociocul

Question 12

Boards of directors use outsiders to critique their strategy.This is necessary mostly to improve

Accepted Answer

A) financial returns. 
B) organizational hierarchy. 
C) perceptual acuity. 
D) employee relations. 
A) financial returns. 
B) organizational hierarchy. 
C) perceptual acuity. 
D) employee relations.

Question 13

Corporate retreats do not

Accepted Answer

A) permit companies to discuss larger marketplace trends. 
B) guarantee positive consumer response to new products. 
C) give companies an opportunity to look beyond their own industries. 
D) oblige management to automatically change strategy. 
A) permit companies to discuss larger marketplace trends. 
B) guarantee positive consumer response to new products. 
C) give companies an opportunity to look beyond their own industries. 
D) oblige management to automatically change strategy.

Question 14

The bargaining power of the buyer is greater than that of the supplier when

Accepted Answer

A) volume of purchase is low. 
B) the buyer profit margin is low. 
C) cost savings from the supplier's product are minimal. 
D) threat of backward integration by buyers is low. 
A) volume of purchase is low. 
B) the buyer profit margin is low. 
C) cost savings from the supplier's product are minimal. 
D) threat of backward integration by buyers is low.

Question 15

In 2014,Audi introduced the Q3 SUV at a base price of only $32,500.And BMW,with its 1-series,is another well-known example.Such cars,priced in the low $30,000s,compete more directly with products from broad-line manufacturers like Ford,General Motors,and Toyota.This suggests that members of a strategic group can overcome ________ barriers and migrate to other groups that they find attractive if they are willing to commit time and resources.

Accepted Answer

A) mobility 
B) competitive 
C) pricing 
D) cost 
A) mobility 
B) competitive 
C) pricing 
D) cost

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Environmental forecasting does not involve plausible projections about the ________ of environmental change.

Accepted Answer

A) direction 
B) scope 
C) speed 
D) lack of intensity 
A) direction 
B) scope 
C) speed 
D) lack of intensity

Question 18

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about strategic groups is false?

Accepted Answer

A) Two assumptions are made: (1)no two firms are totally different,and (2)no two firms are exactly the same. 
B) Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. 
C) Strategic groups help chart the future directions of firm strategies. 
D) Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole. 
A) Two assumptions are made: (1)no two firms are totally different,and (2)no two firms are exactly the same. 
B) Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. 
C) Strategic groups help chart the future directions of firm strategies. 
D) Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.

Question 20

Strategic groups are clusters of firms that share ________ strategies.

Accepted Answer

A) differing 
B) the same 
C) similar 
D) new 
A) differing 
B) the same 
C) similar 
D) new

In general,the threat of substitutes is heightened because the Internet

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

The threat of new entrants is high when there are

Executives must be careful to avoid spending so much time and effort tracking the actions of that they ignore .

In the value net analysis,complementors are

Airbnb,a room-sharing site,offers more rooms than Marriott.Goldman Sachs suggests that the supply of new rooms over the next two years will outpace the previous five even though the growth of American occupancy rates has begun to slow.Which competitive force is involved in this situation?

A danger of forecasting discussed in the text is that

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

The aging of the population,changes in ethnic composition,and effects of the millennial generation are ________ changes.

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

What is the difference between the demographic segment and the sociocultural segment in the list of general environment factors that impact the strategy and performance of a firm? Provide specific examples to support your discussion.

Boards of directors use outsiders to critique their strategy.This is necessary mostly to improve

Corporate retreats do not

The bargaining power of the buyer is greater than that of the supplier when

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

Environmental forecasting does not involve plausible projections about the ________ of environmental change.

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Which of the following statements about strategic groups is false?

Strategic groups are clusters of firms that share ________ strategies.

Strategic Management: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

In general,the threat of substitutes is heightened because the Internet

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

The threat of new entrants is high when there are

Executives must be careful to avoid spending so much time and effort tracking the actions of ________ that they ignore ________.

In the value net analysis,complementors are

Airbnb,a room-sharing site,offers more rooms than Marriott.Goldman Sachs suggests that the supply of new rooms over the next two years will outpace the previous five even though the growth of American occupancy rates has begun to slow.Which competitive force is involved in this situation?

A danger of forecasting discussed in the text is that

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

The aging of the population,changes in ethnic composition,and effects of the millennial generation are ________ changes.

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

What is the difference between the demographic segment and the sociocultural segment in the list of general environment factors that impact the strategy and performance of a firm? Provide specific examples to support your discussion.

Boards of directors use outsiders to critique their strategy.This is necessary mostly to improve

Corporate retreats do not

The bargaining power of the buyer is greater than that of the supplier when

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

Environmental forecasting does not involve plausible projections about the ________ of environmental change.

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Which of the following statements about strategic groups is false?

Strategic groups are clusters of firms that share ________ strategies.

Strategic Management: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Executives must be careful to avoid spending so much time and effort tracking the actions of that they ignore .