Question 1

Conditions in a company's general, industry and competitor environments that "enable the firm to use its core competencies to achieve its vision" are known as

Accepted Answer

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

Question 2

As industry growth slows

Accepted Answer

A)   competitive rivalry increases.
B)   supplier bargaining power increases.
C)   competitive rivalry decreases.
D)   bargaining power decreases. A

Question 3

Which of the following products would be considered the BEST complementor to a personal computer?

Accepted Answer

A)   ink cartridges
B)   software and games
C)   premium photo paper
D)   miniature black and white television B

Question 4

In eastern Europe many state or government-owned enterprises have been transformed into private companies in a process known as

Accepted Answer

A)   deregulation
B)   privatization
C)   expatriation
D)   repatriation

Question 5

Changes in a society's attitudes and cultural values reflect demographic trends.

Accepted Answer

A) True 
 B)False

Question 6

Conditions in a firm's general, industry and competitor environments with the potential to "prevent the firm from successfully using its core competencies" are known as

Accepted Answer

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

Question 7

The substantial growth of the customer installation service businesses of Home Depot and Lowe's is primarily due to which of these demographic trends?

Accepted Answer

A)   migration of people from the northern and eastern regions of the United States to the west and south
B)   increased low price competition from companies in India and China
C)   increasing affluence of the Hispanic customer base
D)   increasing age of baby boomers

Question 8

The increasing Hispanic population in the United States is a example of a(n)

Accepted Answer

A)   demographic trend.
B)   sociocultural trend.
C)   global trend.
D)   economic trend.

Question 9

The primary purpose of applying Michael Porter's five forces model is to

Accepted Answer

A)   waste time and resources.
B)   determine the profit potential of an industry.
C)   maximize opportunities and threats in the external environment.
D)   increase uncertainty regarding environmental characteristics.

Question 10

Substitute products pose a strong threat when they are more effective and priced lower than your existing products.

Accepted Answer

A) True 
 B)False

Question 11

According to the text, the external environment is comprised of which segments or parts?

Accepted Answer

A)   company history, governance mechanisms and environmental threats
B)   boards of directors, consumer advocacy groups and news media
C)   general, industry and competitor environments
D)   none of these

Question 12

Competition in the airline industry in the United States has intensified by the entry of a small, nimble competitor known as

Accepted Answer

A)   American Airlines
B)   Jet Blue
C)   United Airlines
D)   Northwest Airlines

Question 13

A group of firms that produce similar products is BEST known as

Accepted Answer

A)   an industry
B)   a coalition
C)   a joint venture
D)   a merger

Question 14

Economic trends affect customers' purchasing decisions and how firm's allocate their resources.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following IS NOT one of the five important global trends discussed in chapter three?

Accepted Answer

A)   advent of nanotechnology
B)   global warming
C)   water shortages
D)   increase in trade barriers

Question 16

"Changes in organizations and interest groups that compete for a voice in developing and overseeing the body of laws and regulations that guide interactions among firms and nations" are known as

Accepted Answer

A)   political/legal trends
B)   economic trends
C)   demographic trends
D)   socio-cultural trends

Question 17

Companies that develop policies to reduce waste going to landfills are addressing which of the following?

Accepted Answer

A)   sociocultural environment
B)   political/legal environment
C)   physical environment
D)   global environment

Question 18

Which of the following technological trends has played a significant role in the global economy?

Accepted Answer

A)   emphasis on saving the environment
B)   increased health consciousness
C)   emergence of the Internet
D)   employment power shift

Question 19

The "one-time costs that customers incur when they decide to buy a product from a different supplier" are known as

Accepted Answer

A)   switching costs
B)   economies of scale
C)   economies of scope
D)   capital requirements

Question 20

A company's choice of which strategies to implement is a function of

Accepted Answer

A)   conditions in the firm's external and internal environments
B)   government policy
C)   managerial risk taking
D)   competitor imitation

Exam 3: Analyzing the External Environment

Conditions in a company's general, industry and competitor environments that "enable the firm to use its core competencies to achieve its vision" are known as

As industry growth slows

Which of the following products would be considered the BEST complementor to a personal computer?

In eastern Europe many state or government-owned enterprises have been transformed into private companies in a process known as

Changes in a society's attitudes and cultural values reflect demographic trends.

Conditions in a firm's general, industry and competitor environments with the potential to "prevent the firm from successfully using its core competencies" are known as

The substantial growth of the customer installation service businesses of Home Depot and Lowe's is primarily due to which of these demographic trends?

The increasing Hispanic population in the United States is a example of a(n)

The primary purpose of applying Michael Porter's five forces model is to

Substitute products pose a strong threat when they are more effective and priced lower than your existing products.

According to the text, the external environment is comprised of which segments or parts?

Competition in the airline industry in the United States has intensified by the entry of a small, nimble competitor known as

A group of firms that produce similar products is BEST known as

Economic trends affect customers' purchasing decisions and how firm's allocate their resources.

Which of the following IS NOT one of the five important global trends discussed in chapter three?

"Changes in organizations and interest groups that compete for a voice in developing and overseeing the body of laws and regulations that guide interactions among firms and nations" are known as

Companies that develop policies to reduce waste going to landfills are addressing which of the following?

Which of the following technological trends has played a significant role in the global economy?

The "one-time costs that customers incur when they decide to buy a product from a different supplier" are known as

A company's choice of which strategies to implement is a function of