Question 1

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 2

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Accepted Answer

A) True 
 B)False

Question 3

Strategic groups consist of a group of

Accepted Answer

A) top executives that makes strategies for a company. 
B) firms within an industry that follows similar strategies. 
C) executives drawn from different companies within an industry that makes decisions on industry standards. 
D) firms within an industry that decides to collude rather than compete with each other so that they can increase their profits. 
A) top executives that makes strategies for a company. 
B) firms within an industry that follows similar strategies. 
C) executives drawn from different companies within an industry that makes decisions on industry standards. 
D) firms within an industry that decides to collude rather than compete with each other so that they can increase their profits.

Question 4

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an input to develop forecasts?

Accepted Answer

A) environmental scanning 
B) competitor intelligence 
C) environmental monitoring 
D) stakeholder management 
A) environmental scanning 
B) competitor intelligence 
C) environmental monitoring 
D) stakeholder management

Question 6

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Accepted Answer

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

Question 7

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Accepted Answer

A) True 
 B)False

Question 8

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.
E. Porter has been the most commonly used analytical tool for examining the competitive environment. It describes the competitive environment in terms of five basic competitive forces.

Accepted Answer

A) True 
 B)False

Question 9

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Accepted Answer

A) overestimation of uncertainty. 
B) excellent forecasting. 
C) underestimation of uncertainty. 
D) good prediction skills. 
A) overestimation of uncertainty. 
B) excellent forecasting. 
C) underestimation of uncertainty. 
D) good prediction skills.

Question 12

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT) inventory systems, which let it manage inventories better and respond quickly to market demands.

Accepted Answer

A) True 
 B)False

Question 13

Strategic groupings are of no assistance in charting the future direction of company strategy.

Accepted Answer

A) True 
 B)False

It is important to question the reliability of forecasts because

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Strategic groups consist of a group of

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Which of the following is not an input to develop forecasts?

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

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

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT) inventory systems, which let it manage inventories better and respond quickly to market demands.

Strategic groupings are of no assistance in charting the future direction of company strategy.

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

It is important to question the reliability of forecasts because

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Strategic groups consist of a group of

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Which of the following is not an input to develop forecasts?

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

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

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT) inventory systems, which let it manage inventories better and respond quickly to market demands.

Strategic groupings are of no assistance in charting the future direction of company strategy.

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