Question 1

In the SWOT framework, the Strengths and Weaknesses are external environmental factors to consider.

Accepted Answer

A) True 
 B)False

Question 2

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 3

It is important to question the reliability of forecasts because

Accepted Answer

A)  if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity. 
B)  uncertainty is black and white, and therefore the gray areas are unimportant. 
C)  underestimating uncertainty can lead to good competitive strategies. 
D)  the growth new industries, such as that of telecommunications, cannot be predicted. 
A)  if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity. 
B)  uncertainty is black and white, and therefore the gray areas are unimportant. 
C)  underestimating uncertainty can lead to good competitive strategies. 
D)  the growth new industries, such as that of telecommunications, cannot be predicted.

Question 4

By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act ________ rather than ________.

Accepted Answer

A)  quickly; slowly 
B)  immediately; eventually 
C)  proactively; reactively 
D)  intelligently; uninformed 
A)  quickly; slowly 
B)  immediately; eventually 
C)  proactively; reactively 
D)  intelligently; uninformed

Question 5

The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

Accepted Answer

A) True 
 B)False

Question 6

PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it?

Accepted Answer

A)  crowdsourcing 
B)  competitive intelligence 
C)  scenario analysis 
D)  monitoring 
A)  crowdsourcing 
B)  competitive intelligence 
C)  scenario analysis 
D)  monitoring

Question 7

Perceptual acuity requires all the following except

Accepted Answer

A)  an ability to sense what is coming. 
B)  the ability to detect early warning signals of environmental changes. 
C)  a refusal to consult with others. 
D)  a strong commitment to external environmental monitoring. 
A)  an ability to sense what is coming. 
B)  the ability to detect early warning signals of environmental changes. 
C)  a refusal to consult with others. 
D)  a strong commitment to external environmental monitoring.

Question 8

Product differentiation by incumbents act as an entry barrier because

Accepted Answer

A)  new entrants cannot differentiate their products. 
B)  incumbents will take legal action if new entrants do not differentiate their products. 
C)  it helps a firm to derive greater economies of scale. 
D)  new entrants will have to spend heavily to overcome existing customer loyalties. 
A)  new entrants cannot differentiate their products. 
B)  incumbents will take legal action if new entrants do not differentiate their products. 
C)  it helps a firm to derive greater economies of scale. 
D)  new entrants will have to spend heavily to overcome existing customer loyalties.

Question 9

Which is considered a force in the five-forces model?

Accepted Answer

A)  increased deregulation in an industry 
B)  the threat of government intervention 
C)  recent technological innovation 
D)  rivalry among competing firms 
A)  increased deregulation in an industry 
B)  the threat of government intervention 
C)  recent technological innovation 
D)  rivalry among competing firms

Question 10

The value net is a game-theoretic approach that

Accepted Answer

A)  extends the value chain analysis. 
B)  uses network analysis to understand the relationships among different companies. 
C)  helps us to understand the evolution of the five forces over time. 
D)  is a way to analyze how the interactions of all the players in a game affect the firm. 
A)  extends the value chain analysis. 
B)  uses network analysis to understand the relationships among different companies. 
C)  helps us to understand the evolution of the five forces over time. 
D)  is a way to analyze how the interactions of all the players in a game affect the firm.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve

Accepted Answer

A)  stakeholder management. 
B)  perceptual acuity. 
C)  internal scanning. 
D)  financial returns. 
A)  stakeholder management. 
B)  perceptual acuity. 
C)  internal scanning. 
D)  financial returns.

Question 13

End users are not

Accepted Answer

A)  the final consumers in a distribution channel. 
B)  the first customers in a distribution channel. 
C)  likely to have greater bargaining power because of the Internet. 
D)  usually the C in B2C. 
A)  the final consumers in a distribution channel. 
B)  the first customers in a distribution channel. 
C)  likely to have greater bargaining power because of the Internet. 
D)  usually the C in B2C.

Question 14

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Accepted Answer

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

Question 15

Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are ________ environmental factors.

Accepted Answer

A)  internal 
B)  external 
C)  both internal and external 
D)  not relevant external 
A)  internal 
B)  external 
C)  both internal and external 
D)  not relevant external

Question 16

In the SWOT framework, ________ are internal factors that are specific to the company.

Accepted Answer

A)  strengths and opportunities 
B)  strengths and threats 
C)  threats and weaknesses 
D)  strengths and weaknesses 
A)  strengths and opportunities 
B)  strengths and threats 
C)  threats and weaknesses 
D)  strengths and weaknesses

Question 17

The tenure of Ms. Marchionni as CEO of Lands' End was largely a result of her efforts to re-invent the apparel brand,

Accepted Answer

A)  resulting in an alignment with the company culture. 
B)  resulting in an alignment with the customer base interests. 
C)  resulting in conflicts with the customer base and the corporate culture. 
D)  resulting in an alignment with the wholesome style brand of the company. 
A)  resulting in an alignment with the company culture. 
B)  resulting in an alignment with the customer base interests. 
C)  resulting in conflicts with the customer base and the corporate culture. 
D)  resulting in an alignment with the wholesome style brand of the company.

Question 18

There are many challenges to complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act to the tracking of materials from more than two million small scale or subsistenceminers in the Eastern Congo. Modern supply-chain logistics are not very relevant in these environments. This is an example of which segment of the general environment?

Accepted Answer

A)  economic 
B)  demographic 
C)  sociocultural 
D)  political and legal 
A)  economic 
B)  demographic 
C)  sociocultural 
D)  political and legal

Question 19

Complements are products or services that have a potential impact on the ________ of the products or services of that company.

Accepted Answer

A)  cost 
B)  availability 
C)  value 
D)  substitutability 
A)  cost 
B)  availability 
C)  value 
D)  substitutability

Question 20

Emerging sociocultural changes in the environment include

Accepted Answer

A)  changes in the ethnic composition. 
B)  the increasing educational attainment of women in the past decade. 
C)  progressively less disposable income by consumers. 
D)  changes in the geographic distribution of the population. 
A)  changes in the ethnic composition. 
B)  the increasing educational attainment of women in the past decade. 
C)  progressively less disposable income by consumers. 
D)  changes in the geographic distribution of the population.

In the SWOT framework, the Strengths and Weaknesses are external environmental factors to consider.

A danger of forecasting discussed in the text is that

It is important to question the reliability of forecasts because

By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act rather than .

The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

Perceptual acuity requires all the following except

Product differentiation by incumbents act as an entry barrier because

Which is considered a force in the five-forces model?

The value net is a game-theoretic approach that

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

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve

End users are not

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are ________ environmental factors.

In the SWOT framework, ________ are internal factors that are specific to the company.

The tenure of Ms. Marchionni as CEO of Lands' End was largely a result of her efforts to re-invent the apparel brand,

Complements are products or services that have a potential impact on the ________ of the products or services of that company.

Emerging sociocultural changes in the environment include

Strategic Management Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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 the SWOT framework, the Strengths and Weaknesses are external environmental factors to consider.

A danger of forecasting discussed in the text is that

It is important to question the reliability of forecasts because

By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act ________ rather than ________.

The Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

Perceptual acuity requires all the following except

Product differentiation by incumbents act as an entry barrier because

Which is considered a force in the five-forces model?

The value net is a game-theoretic approach that

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

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve

End users are not

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are ________ environmental factors.

In the SWOT framework, ________ are internal factors that are specific to the company.

The tenure of Ms. Marchionni as CEO of Lands' End was largely a result of her efforts to re-invent the apparel brand,

Complements are products or services that have a potential impact on the ________ of the products or services of that company.

Emerging sociocultural changes in the environment include

Strategic Management Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's 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

By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act rather than .