Question 1

_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Accepted Answer

A) Environmental scanning 
B) Environmental monitoring 
C) Environmental surveying 
D) Competitive intelligence 
A) Environmental scanning 
B) Environmental monitoring 
C) Environmental surveying 
D) Competitive intelligence

Question 2

Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?

Accepted Answer

A) the percentage of the buyer total cost accounted for by the industry product 
B) the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale 
C) the buyer switching cost 
D) the governmental regulatory policy 
A) the percentage of the buyer total cost accounted for by the industry product 
B) the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale 
C) the buyer switching cost 
D) the governmental regulatory policy

Question 3

Underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

Accepted Answer

A) True 
 B)False

Question 4

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Accepted Answer

A) True 
 B)False

Question 5

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 8

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

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 9

Larger numbers of women entering the work force since the early 1970s is an example of

Accepted Answer

A) demographic changes. 
B) political and legal environmental changes. 
C) sociocultural changes. 
D) technological developments. 
A) demographic changes. 
B) political and legal environmental changes. 
C) sociocultural changes. 
D) technological developments.

Question 10

Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________.

Accepted Answer

A) predictability; stability 
B) low profit margins; stability 
C) unpredictability; change 
D) high profit margins; stability 
A) predictability; stability 
B) low profit margins; stability 
C) unpredictability; change 
D) high profit margins; stability

Question 11

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 12

Incumbent firms may enjoy increased bargaining power because the Internet

Accepted Answer

A) focuses marketing efforts on end users. 
B) has reduced the number of wholesalers and distributors. 
C) increases channel conflict. 
D) diminishes the power of many distribution channel intermediaries. 
A) focuses marketing efforts on end users. 
B) has reduced the number of wholesalers and distributors. 
C) increases channel conflict. 
D) diminishes the power of many distribution channel intermediaries.

Question 13

Competition tends to be more intense among firms within a strategic group than between strategic groups.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Two of the key inputs to developing forecasts discussed in the text are

Accepted Answer

A) environmental scanning and stakeholder identification. 
B) assessing internal strengths and environmental scanning. 
C) environmental scanning and competitive intelligence. 
D) environmental scanning and a SWOT analysis. 
A) environmental scanning and stakeholder identification. 
B) assessing internal strengths and environmental scanning. 
C) environmental scanning and competitive intelligence. 
D) environmental scanning and a SWOT analysis.

Question 16

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 17

Five-forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted.

Accepted Answer

A) True 
 B)False

Question 18

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Accepted Answer

A) Ferrari, Lamborghini, Porsche 
B) Toyota, Ford, General Motors, Chrysler, Honda, Nissan 
C) Chery, Geely, Tata Motors 
D) Mercedes, BMW 
A) Ferrari, Lamborghini, Porsche 
B) Toyota, Ford, General Motors, Chrysler, Honda, Nissan 
C) Chery, Geely, Tata Motors 
D) Mercedes, BMW

Question 19

Which of the following is not a correct usage of the SWOT framework?

Accepted Answer

A) build on its strengths 
B) remedy the weaknesses or work around them 
C) take advantage of the opportunities presented by the environment 
D) protect the firm from environmental weaknesses 
A) build on its strengths 
B) remedy the weaknesses or work around them 
C) take advantage of the opportunities presented by the environment 
D) protect the firm from environmental weaknesses

Question 20

Which of the following statements about strategic groups is false?

Accepted Answer

A) Two assumptions are made: (1) no two firms are totally different, (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, (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.

_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?

Underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Rivalry will be most intense when there is a lack of differentiation or switching costs.

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

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

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

Larger numbers of women entering the work force since the early 1970s is an example of

Scenario planning is a useful technique for firms competing in industries characterized by and __.

Product differentiation by incumbents act as an entry barrier because

Incumbent firms may enjoy increased bargaining power because the Internet

Competition tends to be more intense among firms within a strategic group than between strategic groups.

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

Two of the key inputs to developing forecasts discussed in the text are

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

Five-forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted.

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Which of the following is not a correct usage of the SWOT framework?

Which of the following statements about strategic groups is false?

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

_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities.

Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?

Underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Rivalry will be most intense when there is a lack of differentiation or switching costs.

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

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

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

Larger numbers of women entering the work force since the early 1970s is an example of

Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________.

Product differentiation by incumbents act as an entry barrier because

Incumbent firms may enjoy increased bargaining power because the Internet

Competition tends to be more intense among firms within a strategic group than between strategic groups.

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

Two of the key inputs to developing forecasts discussed in the text are

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

Five-forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted.

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups, which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Which of the following is not a correct usage of the SWOT framework?

Which of the following statements about strategic groups is false?

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

Scenario planning is a useful technique for firms competing in industries characterized by and __.

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