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.

Question 2

A demographic trend in the United States, the aging of the population, has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

Accepted Answer

A) True 
 B)False

Question 3

PPG Industries has developed four alternative futures based on differing assumptions about two key variables: the cost of energy and the extent of opportunity for growth in emerging markets. This is called demand monitoring.

Accepted Answer

A) True 
 B)False

Question 4

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Question 5

A major sociocultural trend in the United States is the increased educational attainment by women.

Accepted Answer

A) True 
 B)False

Question 6

Because the Internet lowers barriers to entry in most industries, it

Accepted Answer

A) decreases the threat of new entrants. 
B) increases supplier power. 
C) makes it easier to build customer loyalty. 
D) increases the threat of new entrants. 
A) decreases the threat of new entrants. 
B) increases supplier power. 
C) makes it easier to build customer loyalty. 
D) increases the threat of new entrants.

Question 7

Scenario planning is usually concerned with short-term forecasts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be considered part of the general environment of a firm?

Accepted Answer

A) decreased entry barriers 
B) higher unemployment rates 
C) increased bargaining power of the firm's suppliers 
D) increased competitive intensity 
A) decreased entry barriers 
B) higher unemployment rates 
C) increased bargaining power of the firm's suppliers 
D) increased competitive intensity

Question 9

The bargaining power of suppliers is enhanced under the following market condition:

Accepted Answer

A) no threat of forward integration. 
B) low differentiation of the supplier products. 
C) greater availability of substitute products. 
D) dominance by a few suppliers. 
A) no threat of forward integration. 
B) low differentiation of the supplier products. 
C) greater availability of substitute products. 
D) dominance by a few suppliers.

Question 10

One CEO gets together with his critical people for half a day every eight weeks to discuss what's new and what's going on in the world. The setting is informal, and outsiders often attend. This is an example of how not to improve perceptual acuity.

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

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

Question 13

The strategic groups concept is valuable for charting the ______ directions of firm strategies.

Accepted Answer

A) historical 
B) past 
C) present 
D) future 
A) historical 
B) past 
C) present 
D) future

Question 14

The concept of strategic groups is also important to the external environment of a firm.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are important elements of the political and legal segment of the general environment except

Accepted Answer

A) the deregulation of utilities. 
B) the Americans with Disabilities Act (AD
A) . 
C) the increased use of Internet technology. 
D) increases in the federally mandated minimum wage. 
A) the deregulation of utilities. 
B) the Americans with Disabilities Act (AD
A) . 
C) the increased use of Internet technology. 
D) increases in the federally mandated minimum wage.

Question 16

Two companies ask outsiders to critique strategy during their board's strategy sessions. Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration. This is an example of how to improve perceptual acuity.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) marginal 
B) exceptional 
C) healthy 
D) poor 
A) marginal 
B) exceptional 
C) healthy 
D) poor

Question 18

Perceptual acuity, according to Ram Charan, is the ability to know for certain what will happen in the future.

Accepted Answer

A) True 
 B)False

Question 19

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Accepted Answer

A) trends 
B) positions 
C) experience 
D) wealth 
A) trends 
B) positions 
C) experience 
D) wealth

Question 20

Supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

Accepted Answer

A) True 
 B)False

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

A demographic trend in the United States, the aging of the population, has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

PPG Industries has developed four alternative futures based on differing assumptions about two key variables: the cost of energy and the extent of opportunity for growth in emerging markets. This is called demand monitoring.

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

A major sociocultural trend in the United States is the increased educational attainment by women.

Because the Internet lowers barriers to entry in most industries, it

Scenario planning is usually concerned with short-term forecasts.

Which of the following would be considered part of the general environment of a firm?

The bargaining power of suppliers is enhanced under the following market condition:

One CEO gets together with his critical people for half a day every eight weeks to discuss what's new and what's going on in the world. The setting is informal, and outsiders often attend. This is an example of how not to improve perceptual acuity.

Emerging sociocultural changes in the environment include

The strategic groups concept is valuable for charting the ______ directions of firm strategies.

The concept of strategic groups is also important to the external environment of a firm.

All of the following are important elements of the political and legal segment of the general environment except

Two companies ask outsiders to critique strategy during their board's strategy sessions. Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration. This is an example of how to improve perceptual acuity.

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

Perceptual acuity, according to Ram Charan, is the ability to know for certain what will happen in the future.

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

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

A demographic trend in the United States, the aging of the population, has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

PPG Industries has developed four alternative futures based on differing assumptions about two key variables: the cost of energy and the extent of opportunity for growth in emerging markets. This is called demand monitoring.

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

A major sociocultural trend in the United States is the increased educational attainment by women.

Because the Internet lowers barriers to entry in most industries, it

Scenario planning is usually concerned with short-term forecasts.

Which of the following would be considered part of the general environment of a firm?

The bargaining power of suppliers is enhanced under the following market condition:

One CEO gets together with his critical people for half a day every eight weeks to discuss what's new and what's going on in the world. The setting is informal, and outsiders often attend. This is an example of how not to improve perceptual acuity.

Emerging sociocultural changes in the environment include

The strategic groups concept is valuable for charting the ______ directions of firm strategies.

The concept of strategic groups is also important to the external environment of a firm.

All of the following are important elements of the political and legal segment of the general environment except

Two companies ask outsiders to critique strategy during their board's strategy sessions. Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration. This is an example of how to improve perceptual acuity.

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

Perceptual acuity, according to Ram Charan, is the ability to know for certain what will happen in the future.

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

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