Question 1

The sign of depreciation in exchange rate will mostly affect: Please select all that apply.

Accepted Answer

A)   Manufacturing organizations.
B)   Construction industry.
C)   International trade.
D)   All industries. A, C

Question 2

The oil multinational Royal Dutch Shell uses the technique of _______________ to help it generate strategic options.

Accepted Answer

scenario planning

Question 3

Retail organizations in Europe and the US have responded to the aging society by employing older personnel. This change in businesses is due to: Please select all that apply.

Accepted Answer

A)   Legal factors.
B)   Economic factors.
C)   Political factors.
D)   Social factors. D

Question 4

Scenario planning is a useful tool for predicting the future.

Accepted Answer

A) True 
 B)False

Question 5

Scenario planning helps to overcome many of the shortcomings of traditional decision-making methods because: Please select all that apply.

Accepted Answer

A)   It is an approach to decision-making under dynamic conditions.
B)   It allows us to overcome some of the biases and imperfect reasoning of human beings.
C)   The organization is more likely to make a certain decision.
D)   The organization is more likely to be prepared for possible futures.

Question 6

Environmental analysis involves the activities of scanning, ________, and forecasting.

Accepted Answer

The answer of Environmental analysis involves the activities of scanning,...

Question 7

Van Der Heijden (1996) identifies three main types of uncertainty. The least uncertain category is:

Accepted Answer

A)   Risks
B)   Structural uncertainties
C)   Unknowables
D)   Weak signals

Question 8

Porter (1985) has argued that an analysis of the organization's competitive environment provides more useful data than an analysis of the macro-environment.

Accepted Answer

A) True 
 B)False

Question 9

SWOT analysis may be used in both the macro-environment and at the industry level

Accepted Answer

A) True 
 B)False

Question 10

Gladwell (2000) came up with the idea of the ____________________ to explain how seemingly small events can have profound impacts on the environment.

Accepted Answer

The answer of Gladwell (2000) came up with the idea...

Question 11

Consumers are less tolerant of poor quality than they used to be. This is an example of:

Accepted Answer

A)   A macro-environmental issue
B)   A value-chain issue.
C)   An economic issue.
D)   A knowledge management issue.

Question 12

Which of the following factors is the most 'knowable' in terms of predicting the future?

Accepted Answer

A)   Future oil prices
B)   Interest rates
C)   The population profile of the country
D)   Outcomes of political elections

Question 13

The competitive environment can be seen as being influenced by five major forces: potential entrants, power of buyers, power of suppliers, competitive rivalry, and:

Accepted Answer

A)   Strategic groups
B)   Substitutes
C)   Competing firms
D)   Competing brands

Question 14

It allows the company to create a new performance trajectory for consumers based on different attributes than those of the existing technology used by the incumbent firm. This business activity is known as: Please select all that apply.

Accepted Answer

A)   Disruptive innovation
B)   Sustaining innovation
C)   To enhance the performance of the existing technology
D)   Discontinuities with the existing technology

Question 15

A PESTLE analysis is used to analyse:

Accepted Answer

A)   The macro-environment.
B)   Internal resources.
C)   Industry structure.
D)   Strategic groups.

Question 16

The increasing use of the internet to buy goods is which type of PESTLE issue? Please select all that apply.

Accepted Answer

A)   Social
B)   Economic
C)   Political
D)   Technological

Question 17

The macro-environment is also referred to as the _______________ environment.

Accepted Answer

The answer of The macro-environment is also referred to as...

Question 18

Firms need to be scanning their ________ for sign of change in government policy which may impact their industry.

Accepted Answer

The answer of Firms need to be scanning their ________...

Question 19

Threats faced by an organization that have the potential to undermine the way they compete are known as _________________

Accepted Answer

The answer of Threats faced by an organization that have...

Question 20

Fahey and Narayanan (1986) suggest a number of goals for an analysis of the general environment. These include: Please select all that apply.

Accepted Answer

A)   To understand current and potential environmental changes
B)   To provide useful information for decision makers
C)   To foster a culture of strategic thinking from being aware of the environment
D)   To predict the future so that the organization can pre-empt the changes

Exam 2: Evaluating the Macro-Environment

The sign of depreciation in exchange rate will mostly affect: Please select all that apply.

The oil multinational Royal Dutch Shell uses the technique of _______________ to help it generate strategic options.

Retail organizations in Europe and the US have responded to the aging society by employing older personnel. This change in businesses is due to: Please select all that apply.

Scenario planning is a useful tool for predicting the future.

Scenario planning helps to overcome many of the shortcomings of traditional decision-making methods because: Please select all that apply.

Environmental analysis involves the activities of scanning, ________, and forecasting.

Van Der Heijden (1996) identifies three main types of uncertainty. The least uncertain category is:

Porter (1985) has argued that an analysis of the organization's competitive environment provides more useful data than an analysis of the macro-environment.

SWOT analysis may be used in both the macro-environment and at the industry level

Gladwell (2000) came up with the idea of the ____________________ to explain how seemingly small events can have profound impacts on the environment.

Consumers are less tolerant of poor quality than they used to be. This is an example of:

Which of the following factors is the most 'knowable' in terms of predicting the future?

The competitive environment can be seen as being influenced by five major forces: potential entrants, power of buyers, power of suppliers, competitive rivalry, and:

It allows the company to create a new performance trajectory for consumers based on different attributes than those of the existing technology used by the incumbent firm. This business activity is known as: Please select all that apply.

A PESTLE analysis is used to analyse:

The increasing use of the internet to buy goods is which type of PESTLE issue? Please select all that apply.

The macro-environment is also referred to as the _______________ environment.

Firms need to be scanning their ________ for sign of change in government policy which may impact their industry.

Threats faced by an organization that have the potential to undermine the way they compete are known as _________________

Fahey and Narayanan (1986) suggest a number of goals for an analysis of the general environment. These include: Please select all that apply.