Deck 3: Assessing Opportunities and Threats: Doing an External Analysis

Question 1

Opportunities are positive external environmental trends or changes that may help the organization improve its performance.

Answer 1

True

Question 2

Industry sales forecasts and trends are part of the general economic sector.

Answer 2

False

Question 3

If an organization does business globally, its economic analysis changes significantly.

Answer 3

False

Question 4

A key element of the environment as a source of resources perspective is the idea of environmental uncertainty.

Question 5

An external analysis enables the organization to examine

A) opportunities and threats.
B) strengths and weaknesses.
C) product substitution and durability.
D) manufacturing and operations.
E) None of the answer choices is correct.

Question 6

As an open system, an organization ________ and ________ its external environment.

A) reacts to; controls
B) interacts with; responds to
C) interacts with; controls
D) reacts to; responds to
E) None of the answer choices is correct.

Question 7

Buyers have bargaining power if the industry's product is not important to the quality of the buyers' products or services.

Question 8

Front-line employees or operational level employees are viewed as being on the "firing line" and are often the last to hear comments from people outside the organization.

Question 9

An open system is one that interacts with and responds to its external environment.

Question 10

Threats are positive external environmental trends or changes that will help the organization improve its performance.

Question 11

An element of the environment as information perspective is

A) environmental relevancy.
B) environmental uncertainty.
C) environmental currency.
D) environmental texture.
E) None of the answer choices is correct.

Question 12

The various studies of organizational environments can be summarized from the following perspective(s):

A) environment as a source of information.
B) environment as a source of resources.
C) environment as a source of power.
D) environment as a source of information and of resources.
E) None of the answer choices is correct.

Question 13

Which of the following are parts of an open system?

A) Inputs
B) Outputs
C) Processes
D) The environment
E) All of the above are parts of an open system.

Question 14

Substitute products can be found in the same industry.

Question 15

The specific environment includes such sectors as demographics, economics, and political/legal factors.

Question 16

Max Weber viewed organizations as open systems.

Question 17

Switching costs can be both psychological and financial.

Question 18

An external information system is an information system that provides managers with needed internal information on an annual basis.

Question 19

As an open system, an organization is affected by the environment and can also impact that environment.

Question 20

An external analysis is the process of scanning and evaluating an organization's various external environmental sectors to determine positive and negative trends that could impact on organizational performance.

Question 21

A supplier will have more bargaining power

A) if it is able to provide the products that the industry is currently providing.
B) if the supplier's product is an important input to the industry.
C) if the supplier's products are differentiated or there are customer switching costs.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 22

________ refers to cost savings that you get as volume increases.

A) Switching costs
B) Economic costs
C) Economies of scale
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 23

Which of the following does not usually function as an entry barrier?

A) Economies of scale
B) High strategic stakes
C) Product differentiation
D) Switching costs
E) Access to distribution channels

Question 24

Recent census data showed that for the first time in the history of the United States there were more Americans over age ________ than under.

A) 25
B) 30
C) 21
D) 19
E) 35

Question 25

A buyer will have less bargaining power if all of the following factors apply except

A) buyers have limited information.
B) buyers face few switching costs.
C) the products purchased are highly differentiated and unique.
D) buyers do not have the ability to manufacture the products.
E) buyers purchase small volumes of the products.

Question 26

An example of a strategic group would be all of the following except

A) Mercedes Benz versus General Motors' Saturn.
B) Toyota Camry versus Honda Accord.
C) Mercedes Benz versus BMW.
D) All of the above are strategic group examples.
E) None of the above is an example of a strategic group.

Question 27

The one-time costs facing the buyer who switches from one supplier's product to another's is

A) product differentiation.
B) capital requirements.
C) switching costs.
D) access to distribution channels.
E) government policy.

Question 28

According to Michael Porter, major potential barriers to entry include

A) economies of scale.
B) product differentiation.
C) switching costs.
D) capital requirements.
E) All of the answer choices are correct.

Question 29

Which of the following is not one of the five competitive forces?

A) Competition forms substitute products
B) The threat of potential entry
C) The strength of industry forces
D) The bargaining power of buyers
E) None of the answer choices is correct.

Question 30

One of the factors that shapes the definition of exit barriers as factor(s)that keep companies competing in businesses, even when those businesses are failing, is

A) economic factors.
B) strategic factors.
C) emotional factors.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 31

Which of the following would be examples of sectors that could be found in the specific environment?

A) Demographics
B) Competitors
C) Economics
D) Political/legal
E) All of the answer choices are correct.

Question 32

The Porter five forces model includes all of the following factors except

A) bargaining power of suppliers.
B) threat of new entrants.
C) threat of a decrease in research and development.
D) threat of substitute products.
E) bargaining power of buyers.

Question 33

Which of the general environmental sectors is affected when minimum wage laws are changed?

A) Economics
B) Demographics
C) Sociocultural
D) Political/legal
E) Technological

Question 34

One of the significant legislative acts affecting organizations is

A) Equal Employment Opportunity Act of 1972.
B) Family and Medical Leave Act of 1993.
C) North American Free Trade Agreement of 1993.
D) Consumer Product Safety Act of 1972.
E) All of the answer choices are correct.

Question 35

When organizations consider whether there are upcoming price increases in the products purchased by the industry, this issue refers to the ________ of the Porter five forces model.

A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices is correct.

Question 36

When consumers consider whether they have the ability and resources themselves to manufacture the products they are purchasing from the industry, this issue refers to the ________ of the Porter five forces model.

A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices are correct.

Question 37

One of the conditions that contributes to intense competitor rivalry is

A) numerous or equally balanced competitors.
B) slow industry growth.
C) high fixed costs.
D) diverse competitors.
E) All of the answer choices are correct.

Question 38

Which of the following would be considered substitute products?

A) Coke and Pepsi
B) Contacts and eyeglasses
C) The Internet and the World Wide Web
D) AT&T and Sprint
E) None of the answer choices is correct.

Question 39

The generation of the postwar group was born between the years

A) 1912-1921.
B) 1922-1927.
C) 1928-1945.
D) 1965-1977
E) 1978-1994.

Question 40

Government policy is a potential barrier to entry because of

A) licensing requirements.
B) controlling access to raw materials.
C) product safety standards.
D) water pollution standards.
E) All of the above are issues of government policy.

Question 41

One challenge of conducting an external analysis is

A) an external analysis can be time consuming.
B) the environment might be changing more rapidly than you can keep up with.
C) the internal analysis of the organization is very important to managing strategically.
D) it is time consuming and the environment changes very rapidly.
E) None of the above represents challenges in conducting an external analysis.

Question 42

The major problem with forecasts and trend analyses is

A) the information is difficult to compile with the latest technology.
B) the information constitutes predictions of the future, not actual facts.
C) the information is built using historical trends.
D) consumers do not benefit from technological trends predicted.
E) None of the answer choices is correct.

Question 43

A challenge in conducting an external analysis is that

A) market conditions are stable.
B) brand loyalty is low.
C) markets may be concentrated.
D) markets may be fragmented.
E) forecasts aren't facts.

Question 44

As the consultant, you propose to Mr. Perry that one challenge of conducting an external analysis is

A) market conditions are stable.
B) brand loyalty is low.
C) markets may be concentrated.
D) markets may be fragmented.
E) forecasts and trend analyses are not facts.

Question 45

One of the biggest technological advancements to affect the organization in recent years is

A) the assembly line.
B) the ability of consumers to buy online.
C) the introduction of hand-held personal computers.
D) continuing computerization of an organization's activities.
E) the ability of managers to control employees electronically.

Question 46

Discuss the major barriers to entry.

Question 47

Which of the following best describes the organizational environment perspective that summarizes the various studies of organizational environments?

A) Environment as a source of information
B) Environment as a source of resources
C) Environment as a source of power
D) Environment as a source of information and resources
E) None of the answer choices is correct.

Question 48

In an external analysis, the primary role of the middle manager is to

A) use information in terms of the "big picture."
B) act as an information gatherer and disseminator.
C) encourage workers to listen to the customer.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 49

In thinking about the various laws that affect organizations, Mr. Perry should be most concerned about which of the following laws?

A) The Equal Employment Opportunity Act of 1972
B) The Americans with Disabilities Act of 1990
C) The Occupational Safety and Health Act of 1970
D) The Civil Rights Act of 1991
E) The U.S. Economic Espionage Act of 1996

Question 50

Explain the primary responsibility of managers in conducting external analysis across managerial levels.

Question 51

Managing ________ is an ongoing process.

A) emotionally
B) strategically
C) reactively
D) cooperatively
E) None of the answer choices is correct.

Question 52

Describe the benefits of conducting an external analysis.

Question 53

Explain the two perspectives on the environment.

Question 54

The law governing safe and hazard-free work environments is

A) the Equal Employment Opportunity Act of 1972.
B) the Americans with Disabilities Act of 1990.
C) the Occupational Safety and Health Act of 1970.
D) the Civil Rights Act of 1991.
E) the U.S. Economic Espionage Act of 1996.

Question 55

The key is to make the external analysis process as ________ and ________ as possible.

A) efficient; effective
B) efficient; competitive
C) turbulent; stable
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 56

Mr. Perry thinks perhaps the $30,000 price tag of each portable saw mill might discourage buyers from going to another brand portable saw mill. This is an example of

A) product differentiation.
B) capital requirements.
C) switching costs.
D) access to distribution channels.
E) government policy.

Question 57

A manager who anticipates changes and plans for those changes can be referred to as a(n)

A) reactive manager.
B) negligent manager.
C) ethical manager.
D) proactive manager.
E) socially responsible manager.

Question 58

Compare the general versus the specific environment.

Question 59

Demographic information can be obtained from all of the following sources except

A) the Economic Statistics Briefing Room.
B) the U.S. Bureau of the Census.
C) the Statistical Abstract of the World.
D) the Statistical Yearbook.
E) the Current Population Survey.