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

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There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.

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Because of the Internet and digital technologies, it is very difficult for suppliers to create purchasing techniques that lower switching costs.

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

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Scanning the general environment would identify information on

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Examples of how to improve perceptual acuity include:

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Lowes has found that women prefer to do larger home-improvement projects with a man, whether a boyfriend, husband, or neighbor. As a result, in addition to its recipe card classes (that explain various projects that take only one weekend), Lowes offers co-ed store clinics for projects like sink installation. This is an example of which segment of the general environment?

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End users are not

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The strategic groups concept is valuable for identifying groups with marginal competitive positions.

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The opportunities and threats of a SWOT analysis refer to the internal conditions of the firm.

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Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

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Which of the following would not lead a manager to believe that an ethical concern exists?

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

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Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

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The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes.

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Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

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Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

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In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability, rigorous quantification of the five forces is not necessary.

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Perceptual acuity requires all of the following except

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Environmental analysis requires continual questioning of all of these assumptions except

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Gathering competitive intelligence

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