Question 1

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

Accepted Answer

A) Suppliers to a particular industry are the very best in the world 
B) Strong industry competition 
C) Buyers are among the most demanding in the world 
D) Ability to attract the most talented managers 
E) All of the above

Question 2

The influence of potential competitors on industry competition is determined primarily by:

Accepted Answer

A) Buyer power 
B) Supplier power 
C) Strength of entry barriers 
D) Strength of exit barriers 
E) Threat of substitutes

Question 3

Organizations that are in a weak position relative to their suppliers can attempt to balance power through vertical integration.

Accepted Answer

A) True 
 B)False

Question 4

What is a firm's broad environment? To what extent can the broad environment influence a firm? To what extent can one firm influence the broad environment?

Accepted Answer

The answer of What is a firm's broad environment? To...

Question 5

Industries may be defined as a group of organizations that compete directly with one another to win orders or sales in the marketplace.

Accepted Answer

A) True 
 B)False

Question 6

The higher the entry barriers,the more intense is competition in an industry.

Accepted Answer

A) True 
 B)False

Question 7

Technology is human knowledge about products and services and the ways they are made and delivered.

Accepted Answer

A) True 
 B)False

Question 8

Analysis of society is important for all of the following reasons except:

Accepted Answer

A) Awareness of what is happening in society virtually guarantees that an organization will be able to successfully compete in its own industry 
B) Most of the other stakeholder groups are also members of society 
C) Awareness of and compliance with the attitudes of society can help an organization avoid problems associated with being a bad corporate citizen 
D) Changes in society can provide opportunities for organizations 
E) Correct assessment of social trends can help businesses avoid restrictive legislation

Question 9

What are some of the most critical economic factors for a firm to track? Why are they important?

Accepted Answer

The answer of What are some of the most critical...

Question 10

An organization can typically have:

Accepted Answer

A) Little influence over events in its task environment 
B) Little influence over major occurrences and patterns in the broad environment 
C) Significant influence over major occurrences and patterns in the remote environment 
D) Significant influence over major social trends 
E) Significant influence on government policy in a nation as a whole

Question 11

The task environment consists of stakeholders with whom organizations interact on a fairly regular basis.

Accepted Answer

A) True 
 B)False

Question 12

Among the following,the best definition of technology is:

Accepted Answer

A) Human knowledge about products and services and the ways they are made and delivered 
B) Technical equipment such as computers and electronics 
C) Knowledge about computers,electronics,and information systems 
D) Knowledge about computers,electronics,and information systems as well as the equipment and systems themselves 
E) All equipment that is used to create products and services

Question 13

Individual organizations typically have only a marginal impact on the broad environment.

Accepted Answer

A) True 
 B)False

Question 14

The three major forces that drive industry competition and profitability are government regulators,direct competitors and social forces.

Accepted Answer

A) True 
 B)False

Question 15

Among the most critical economic factors to monitor are:

Accepted Answer

A) Interest rates 
B) Economic growth 
C) Foreign trade balances 
D) Inflation rates 
E) All of these factors are important

Question 16

When do customers exhibit a powerful force on competition in an industry?

Accepted Answer

The answer of When do customers exhibit a powerful force...

Question 17

Exchange rates can influence the ability of a firm profitably to remove profits from foreign countries.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not included as a major force that drives industry competition and profitability?

Accepted Answer

A) Existing competitors 
B) Economic power of suppliers 
C) Potential competitors 
D) Unions 
E) Indirect competitors

Question 19

High levels of competition may be caused by:

Accepted Answer

A) Rapid industry growth 
B) Low fixed costs 
C) A small number of competitors 
D) A lack of product differentiation 
E) Low exit barriers

Question 20

What should organizations do with stakeholders that have a large influence on environmental uncertainty?

Accepted Answer

A) Fight against them with competitive weapons 
B) Ignore them 
C) Just monitor their activities 
D) Cooperate with them 
E) None of the above

Exam 2: The External Environment

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

The influence of potential competitors on industry competition is determined primarily by:

Organizations that are in a weak position relative to their suppliers can attempt to balance power through vertical integration.

What is a firm's broad environment? To what extent can the broad environment influence a firm? To what extent can one firm influence the broad environment?

Industries may be defined as a group of organizations that compete directly with one another to win orders or sales in the marketplace.

The higher the entry barriers,the more intense is competition in an industry.

Technology is human knowledge about products and services and the ways they are made and delivered.

Analysis of society is important for all of the following reasons except:

What are some of the most critical economic factors for a firm to track? Why are they important?

An organization can typically have:

The task environment consists of stakeholders with whom organizations interact on a fairly regular basis.

Among the following,the best definition of technology is:

Individual organizations typically have only a marginal impact on the broad environment.

The three major forces that drive industry competition and profitability are government regulators,direct competitors and social forces.

Among the most critical economic factors to monitor are:

When do customers exhibit a powerful force on competition in an industry?

Exchange rates can influence the ability of a firm profitably to remove profits from foreign countries.

Which of the following is not included as a major force that drives industry competition and profitability?

High levels of competition may be caused by:

What should organizations do with stakeholders that have a large influence on environmental uncertainty?