Question 1

How does industry analysis affect strategy formulation?

Accepted Answer

A good industry analysis will enable an

Question 2

Two trends that resulted in changes to the bottling industry were building large plants to serve multiple markets and beverage producers entering the bottling industry.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Age and lifespan demographics may be critical sociocultural factors in a successful business.

Accepted Answer

A) True 
 B)False

Question 5

The five-forces model identifies the basic structure of an industry and is used to study its characteristics. One of the elements in the component, called "threat of new entrants," contains ________.

Accepted Answer

A)  industry concentration 
B)  proprietary products 
C)  buyer volume 
D)  differentiation of inputs 
A)  industry concentration 
B)  proprietary products 
C)  buyer volume 
D)  differentiation of inputs

Question 6

Managers analyze strategic groups in order to ________.

Accepted Answer

A)  get a more detailed look at the competitive environment 
B)  identify growth opportunities 
C)  identify future competition 
D)  all of the above 
A)  get a more detailed look at the competitive environment 
B)  identify growth opportunities 
C)  identify future competition 
D)  all of the above

Question 7

Stakeholder analysis will fill in the gaps left by industry analysis.

Accepted Answer

A) True 
 B)False

Question 8

Political, technical, and environmental issues are elements of the macro environment.

Accepted Answer

A) True 
 B)False

Question 9

List several examples of sociocultural factors.

Accepted Answer

Possible answers include local

Question 10

The external environment provides business opportunities to the firm.

Accepted Answer

A) True 
 B)False

Question 11

Goals can be achieved by analyzing a firm's closest competitors. These goals include all but which of the following?

Accepted Answer

A)  influence competitors' behavior in a favorable way 
B)  gain an understanding of what competitors' future strategies might be 
C)  gain a better appreciation for how competitors will respond to a firm's strategic initiatives 
D)  share findings with competitors so that all firms benefit 
A)  influence competitors' behavior in a favorable way 
B)  gain an understanding of what competitors' future strategies might be 
C)  gain a better appreciation for how competitors will respond to a firm's strategic initiatives 
D)  share findings with competitors so that all firms benefit

Question 12

Consumers affect industry profits indirectly when they exercise power as the last link of an industry value chain.

Accepted Answer

A) True 
 B)False

Question 13

What are the four questions managers should ask when analyzing the firm's external environment?

Accepted Answer

Managers should ask the following questi

Question 14

When a market is dominated by only two or a few large firms, the industry is said to be a duopoly or oligopoly.

Accepted Answer

A) True 
 B)False

Question 15

Sometimes, how easily laws may change can affect a firm's strategy.

Accepted Answer

A) True 
 B)False

Question 16

The degree of rivalry is influenced by both complement exclusivity and price sensitivity.

Accepted Answer

A) True 
 B)False

Question 17

Political factors must be considered when performing PESTEL analysis. The factors include ________.

Accepted Answer

A)  contributions to the candidate in a new market who will be most helpful 
B)  the stability of the political environment in new markets 
C)  past incumbents' views on business expansion in their cities 
D)  the number of members on the city council in a new market area 
A)  contributions to the candidate in a new market who will be most helpful 
B)  the stability of the political environment in new markets 
C)  past incumbents' views on business expansion in their cities 
D)  the number of members on the city council in a new market area

Question 18

The requisite skills that all firms in an industry must possess in order to be viable competitors are called ________.

Accepted Answer

A)  strengths 
B)  rare resources 
C)  key success factors 
D)  dynamic capabilities 
A)  strengths 
B)  rare resources 
C)  key success factors 
D)  dynamic capabilities

Question 19

Globalization is the evolution of distinct geographic product markets into a state of globally interdependent product markets.

Accepted Answer

A) True 
 B)False

Question 20

In market economies where monopolies are allowed, firms should be able to earn only "normal" profits.

Accepted Answer

A) True 
 B)False

How does industry analysis affect strategy formulation?

Two trends that resulted in changes to the bottling industry were building large plants to serve multiple markets and beverage producers entering the bottling industry.

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

Age and lifespan demographics may be critical sociocultural factors in a successful business.

The five-forces model identifies the basic structure of an industry and is used to study its characteristics. One of the elements in the component, called "threat of new entrants," contains ________.

Managers analyze strategic groups in order to ________.

Stakeholder analysis will fill in the gaps left by industry analysis.

Political, technical, and environmental issues are elements of the macro environment.

List several examples of sociocultural factors.

The external environment provides business opportunities to the firm.

Goals can be achieved by analyzing a firm's closest competitors. These goals include all but which of the following?

Consumers affect industry profits indirectly when they exercise power as the last link of an industry value chain.

What are the four questions managers should ask when analyzing the firm's external environment?

When a market is dominated by only two or a few large firms, the industry is said to be a duopoly or oligopoly.

Sometimes, how easily laws may change can affect a firm's strategy.

The degree of rivalry is influenced by both complement exclusivity and price sensitivity.

Political factors must be considered when performing PESTEL analysis. The factors include ________.

The requisite skills that all firms in an industry must possess in order to be viable competitors are called ________.

Globalization is the evolution of distinct geographic product markets into a state of globally interdependent product markets.

In market economies where monopolies are allowed, firms should be able to earn only "normal" profits.

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

How does industry analysis affect strategy formulation?

Two trends that resulted in changes to the bottling industry were building large plants to serve multiple markets and beverage producers entering the bottling industry.

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

Age and lifespan demographics may be critical sociocultural factors in a successful business.

The five-forces model identifies the basic structure of an industry and is used to study its characteristics. One of the elements in the component, called "threat of new entrants," contains ________.

Managers analyze strategic groups in order to ________.

Stakeholder analysis will fill in the gaps left by industry analysis.

Political, technical, and environmental issues are elements of the macro environment.

List several examples of sociocultural factors.

The external environment provides business opportunities to the firm.

Goals can be achieved by analyzing a firm's closest competitors. These goals include all but which of the following?

Consumers affect industry profits indirectly when they exercise power as the last link of an industry value chain.

What are the four questions managers should ask when analyzing the firm's external environment?

When a market is dominated by only two or a few large firms, the industry is said to be a duopoly or oligopoly.

Sometimes, how easily laws may change can affect a firm's strategy.

The degree of rivalry is influenced by both complement exclusivity and price sensitivity.

Political factors must be considered when performing PESTEL analysis. The factors include ________.

The requisite skills that all firms in an industry must possess in order to be viable competitors are called ________.

Globalization is the evolution of distinct geographic product markets into a state of globally interdependent product markets.

In market economies where monopolies are allowed, firms should be able to earn only "normal" profits.

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