Question 1

Barriers to entry:

Accepted Answer

A) Can be cyclical 
B) Can involve the legal constraints leveling the playing field 
C) Can include customer loyalty 
D) Are not important to small firms

Question 2

This term refers to descriptive characteristics that can be used to differentiate groups of present or potential customers.

Accepted Answer

A) Geographics 
B) Demographics 
C) Buyer behaviors 
D) Psychographics

Question 3

Cost disadvantages independent of size is a factor relevant to

Accepted Answer

A) Threat of new entrants 
B) Powerful suppliers 
C) Jockeying for position 
D) Powerful buyers

Question 4

Which of these represent a key characteristic of eco-efficient corporations?

Accepted Answer

A) Eco-efficient firms are reactive 
B) Eco-efficiency is added on 
C) Flexibility is imperative for eco-efficient strategy implementation 
D) Eco-efficiency is insular

Question 5

A profound social change in the recent years has been

Accepted Answer

A) The accelerating interest of consumers and employers in quality of life issue 
B) The decelerating interest of foreigners seeking jobs and immigrant status in the U.S. 
C) The remarkably high placement of U.S.high school education in math and science in the world 
D) The global warming effect

Question 6

All of these are key characteristics of eco-efficient corporations EXCEPT

Accepted Answer

A) Eco-efficiency is insular 
B) Eco-efficient firms are proactive 
C) Eco-efficiency is designed in 
D) Flexibility is imperative for eco-efficient strategy implementation

Question 7

The factors beyond the control of the firm that influence its choice of direction and action,organizational structure and internal processes refers to

Accepted Answer

A) Directional strategies 
B) External environment 
C) Organizational processes 
D) Internal environment

Question 8

As an industry matures,its:

Accepted Answer

A) Growth rate is unchanged 
B) Profits are higher 
C) Growth rate changes 
D) New firms enter

Question 9

Collectively,competitive forces determine the ultimate:

Accepted Answer

A) Growth of a firm 
B) Survival of a firm 
C) Profitability of a firm 
D) Viability of a firm

Question 10

Which one of the following is a tactic typically used by firms to jockey for position?

Accepted Answer

A) Economies of scale 
B) Advertising slugfests 
C) Access to distribution 
D) Product withdrawal

Question 11

In intense competition,competitors are characteristically:

Accepted Answer

A) Few 
B) Of unequal power 
C) Equal in size 
D) Not foreign

Question 12

Which of the following is NOT a reason why defining an industry's boundaries is important?

Accepted Answer

A) It helps executives determine the arena in which their firm is competing 
B) It focuses attention on the firm's competitors 
C) It helps executives determine key factors for success 
D) Stakeholders demand it

Question 13

Designing viable strategies for a firm requires a thorough understanding of the firm's:

Accepted Answer

A) Earnings 
B) Growth rate 
C) Market share 
D) Competition

Question 14

Supplier power is an example of a factor that falls within the _________ environment.

Accepted Answer

A) Economic 
B) Operating 
C) Industry 
D) Remote

Question 15

Access to distribution channels is a major source of which competitive force?

Accepted Answer

A) Bargaining power of buyers 
B) Threat of entry 
C) Threat of substitute products 
D) Bargaining power of suppliers

Question 16

Customers have the power to:

Accepted Answer

A) Raise prices 
B) Demand higher quality 
C) Lower service quality 
D) Coordinate competitors

Question 17

In the economists' "perfectly competitive" industry jockeying for position is unbridled and entry to the industry is

Accepted Answer

A) Very easy 
B) Prohibited by regulations 
C) Moderated due to national security concerns 
D) Very hard

Question 18

New entrants to an industry bring:

Accepted Answer

A) New capacity 
B) New customers 
C) Few resources 
D) Bigger margins

Question 19

A firm's external environment includes a remote sector,industry sector and an operating sector.The remote sector includes which of the following categories?

Accepted Answer

A) Political,technological,economic and social 
B) Political,supplier power,economic and labor 
C) State government,production,social and economic 
D) Mission,company profile and competition

Question 20

Which of these is NOT an example of a federal ecological legislation?

Accepted Answer

A) Air Quality Act 
B) Refuse Act 
C) Occupational Safety and Health Act 
D) Resource Recovery Act

Exam 4: The External Environment