Question 1

Which of the following is not one of the steps involved in the PESTEL analysis?

Accepted Answer

A)  Managers should think through the relevance of each of the factors in their particular context. 
B)  Managers should identify and categorize the information that applies to these factors. 
C)  Managers should conduct a thorough stakeholder analysis. 
D)  Managers should analyze the data collected on the factors and draw conclusions. 
A)  Managers should think through the relevance of each of the factors in their particular context. 
B)  Managers should identify and categorize the information that applies to these factors. 
C)  Managers should conduct a thorough stakeholder analysis. 
D)  Managers should analyze the data collected on the factors and draw conclusions.

Question 2

All of the following are elements of Porter's original five-forces model except ________.

Accepted Answer

A)  degree of rivalry 
B)  buyer power 
C)  complementors 
D)  threat of new entrants 
A)  degree of rivalry 
B)  buyer power 
C)  complementors 
D)  threat of new entrants

Question 3

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

Accepted Answer

A) True 
 B)False

Question 4

SWOT is a simple tool that can be used to develop an understanding of a firm's external environment.

Accepted Answer

A) True 
 B)False

Question 5

The five forces will impact the differing industry strategic groups in a similar way.

Accepted Answer

A) True 
 B)False

Question 6

According to Porter, the first step in predicting the behaviors of competitors is ________.

Accepted Answer

A)  to determine if the companies are publicly held 
B)  to understand the companies' current strategies 
C)  to understand the companies' objectives 
D)  to determine the companies' industry assumptions 
A)  to determine if the companies are publicly held 
B)  to understand the companies' current strategies 
C)  to understand the companies' objectives 
D)  to determine the companies' industry assumptions

Question 7

Porter's five-forces model identifies forces that determine the basic structure of an industry.

Accepted Answer

A) True 
 B)False

Question 8

The external environment provides business opportunities to the firm.

Accepted Answer

A) True 
 B)False

Question 9

When there is perfect competition, relatively heterogeneous products are offered by different firms.

Accepted Answer

A) True 
 B)False

Question 10

In a monopoly, ________.

Accepted Answer

A)  there is only one seller in the market 
B)  the industry is characterized as concentrated 
C)  firms are typically regulated 
D)  the industry is characterized as fragmented 
A)  there is only one seller in the market 
B)  the industry is characterized as concentrated 
C)  firms are typically regulated 
D)  the industry is characterized as fragmented

Question 11

The presence of strong complementors typically works to decrease industry profitability.

Accepted Answer

A) True 
 B)False

Question 12

One implication of industry analysis is that firms perform best when they select a strategy that deviates from the industry environment.

Accepted Answer

A) True 
 B)False

Question 13

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

Accepted Answer

A) True 
 B)False

Question 14

The more unique markets in similar regions are, the greater the pressure for an industry to globalize.

Accepted Answer

A) True 
 B)False

Question 15

Bottled water is on track to surpass soft drinks as the best-selling beverage in the United States.

Accepted Answer

A) True 
 B)False

Question 16

From the standpoint of access to raw materials, the environment has long been a factor in firm strategy.

Accepted Answer

A) True 
 B)False

Question 17

Two frameworks that managers find useful in gaining an understanding of their competitors are competitor analysis and ________.

Accepted Answer

A)  PESTEL analysis 
B)  stakeholder analysis 
C)  I/O analysis 
D)  strategic-group analysis 
A)  PESTEL analysis 
B)  stakeholder analysis 
C)  I/O analysis 
D)  strategic-group analysis

Question 18

Commodization occurs when sales depend less on unique product features and more on prices.

Accepted Answer

A) True 
 B)False

Question 19

An industry that is dominated by a few large firms is called a monopoly.

Accepted Answer

A) True 
 B)False

Question 20

Use the five-forces model to analyze the airline industry.

Accepted Answer

Let's apply the five-forces model to the

Which of the following is not one of the steps involved in the PESTEL analysis?

All of the following are elements of Porter's original five-forces model except ________.

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

SWOT is a simple tool that can be used to develop an understanding of a firm's external environment.

The five forces will impact the differing industry strategic groups in a similar way.

According to Porter, the first step in predicting the behaviors of competitors is ________.

Porter's five-forces model identifies forces that determine the basic structure of an industry.

The external environment provides business opportunities to the firm.

When there is perfect competition, relatively heterogeneous products are offered by different firms.

In a monopoly, ________.

The presence of strong complementors typically works to decrease industry profitability.

One implication of industry analysis is that firms perform best when they select a strategy that deviates from the industry environment.

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

The more unique markets in similar regions are, the greater the pressure for an industry to globalize.

Bottled water is on track to surpass soft drinks as the best-selling beverage in the United States.

From the standpoint of access to raw materials, the environment has long been a factor in firm strategy.

Two frameworks that managers find useful in gaining an understanding of their competitors are competitor analysis and ________.

Commodization occurs when sales depend less on unique product features and more on prices.

An industry that is dominated by a few large firms is called a monopoly.

Use the five-forces model to analyze the airline industry.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

Exam 4: Exploring the External Environment: Macro Industry and Dynamics

Which of the following is not one of the steps involved in the PESTEL analysis?

All of the following are elements of Porter's original five-forces model except ________.

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

SWOT is a simple tool that can be used to develop an understanding of a firm's external environment.

The five forces will impact the differing industry strategic groups in a similar way.

According to Porter, the first step in predicting the behaviors of competitors is ________.

Porter's five-forces model identifies forces that determine the basic structure of an industry.

The external environment provides business opportunities to the firm.

When there is perfect competition, relatively heterogeneous products are offered by different firms.

In a monopoly, ________.

The presence of strong complementors typically works to decrease industry profitability.

One implication of industry analysis is that firms perform best when they select a strategy that deviates from the industry environment.

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

The more unique markets in similar regions are, the greater the pressure for an industry to globalize.

Bottled water is on track to surpass soft drinks as the best-selling beverage in the United States.

From the standpoint of access to raw materials, the environment has long been a factor in firm strategy.

Two frameworks that managers find useful in gaining an understanding of their competitors are competitor analysis and ________.

Commodization occurs when sales depend less on unique product features and more on prices.

An industry that is dominated by a few large firms is called a monopoly.

Use the five-forces model to analyze the airline industry.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters