Question 1

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends.This is an example of how to improve

Accepted Answer

A)  stakeholder management.
B)  perceptual acuity.
C)  internal scanning.
D)  financial returns.E) A) and C)
F) B) and D)

Question 2

Scanning the general environment would identify information on

Accepted Answer

A)  substitute goods.
B)  customer and firm bargaining power.
C)  the aging population and ethnic shifts.
D)  competitive rivalry.E) A) and C)
F) None of the above

Question 3

Gathering competitive intelligence

Accepted Answer

A)  is illegal.
B)  is good business practice.
C)  is considered unethical.
D)  minimizes the need to obtain information in the public domain.E) All of the above
F) C) and D)

Question 4

Which of the following firms would likely pose the least competitive threat?

Accepted Answer

A)  a firm in the same industry and in the same strategic group
B)  a competitor to your product where a high switching cost exists
C)  a firm that produces substitute goods to your product line
D)  a firm in the same industry and in the nearest strategic group looking to join your groupE) A) and D)
F) A) and C)

Question 5

An automobile manufacturer acquires a rental car company.This is an example of

Accepted Answer

A)  backward integration.
B)  forward integration.
C)  economies of scale.
D)  product differentiation.E) A) and B)
F) A) and C)

Question 6

Buyer power will be greater when

Accepted Answer

A)  the products purchased are highly differentiated.
B)  it is concentrated or when a buyer group purchases large volumes relative to seller sales.
C)  the industry product is very important to the quality of the buyer end products or services.
D)  there are high switching costs.E) A) and D)
F) None of the above

Question 7

Strategic groups consist of firms that are more ________ to each other than firms that are not.

Accepted Answer

A)  familiar
B)  similar
C)  friendly
D)  usefulE) B) and C)
F) A) and C)

Question 8

Why must successful managers recognize opportunities and threats in their company external environment?

Accepted Answer

A)  If they miscalculate the market,opportunities will be lost.
B)  If they misread the market,they are likely to become rich.
C)  If they identify all of the environmental threats,they are guaranteed to acquire large market share.
D)  If they identify all of the environmental opportunities,they are guaranteed to acquire large market share.E) B) and C)
F) A) and B)

Question 9

Data Analytics are being used by corporations to understand their customer purchasing patterns.This is an example of which segment of the general environment?

Accepted Answer

A)  economic
B)  demographic
C)  technological
D)  political and legalE) C) and D)
F) A) and C)

Question 10

By emphasizing the importance of identifying opportunities and threats,the SWOT framework makes firms act ________ rather than ________.

Accepted Answer

A)  quickly;slowly
B)  immediately;eventually
C)  proactively;reactively
D)  intelligently;uninformedE) C) and D)
F) A) and D)

Question 11

In the SWOT framework,the Strengths and Weaknesses are external environmental factors to consider.

Accepted Answer

A) True 
 B)False

Question 12

Strategic groups consist of a group of

Accepted Answer

A)  top executives that makes strategies for a company.
B)  executives drawn from different companies within an industry that makes decisions on industry standards.
C)  firms within an industry that decides to collude rather than compete with each other so that they can increase their profits.
D)  firms within an industry that follows similar strategies.E) A) and B)
F) A) and C)

Question 13

A major sociocultural trend in the United States is the increased number of women in the workforce that has increased the need for business clothing but decreased the demand for baking product staples.

Accepted Answer

A) True 
 B)False

Question 14

In the five-forces model,conditions under which a supplier group can be powerful include all of the following except

Accepted Answer

A)  lack of importance of the buyer to the supplier group.
B)  high differentiation by the supplier.
C)  readily available substitute products.
D)  dominance by a few suppliers.E) A) and B)
F) B) and C)

Question 15

The bargaining power of suppliers is enhanced under which following market condition?

Accepted Answer

A)  no threat of forward integration
B)  low differentiation of the supplier products
C)  greater availability of substitute products
D)  dominance by a few suppliersE) A) and B)
F) A) and C)

Question 16

In the SWOT framework,Opportunities and Threats are environmental conditions internal to the firm.

Accepted Answer

A) True 
 B)False

Question 17

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 18

Using the five-forces model,explain how the threat of new entrants might affect a U.S.-based manufacturer of lead acid batteries used for industrial storage.

Accepted Answer

The threat of new entrants in the lead a...

Question 19

Genetic engineering has had a positive impact on the pharmaceutical industry.This is an example of which type of general environmental trend?

Accepted Answer

A)  economic
B)  demographic
C)  technological
D)  political and legalE) A) and B)
F) None of the above

Question 20

In the SWOT framework,________ are the same for all firms in the same competitive environment.

Accepted Answer

A)  strengths and weaknesses
B)  strengths and opportunities
C)  weaknesses and threats
D)  opportunities and threatsE) A) and D)
F) C) and D)

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

An automobile manufacturer acquires a rental car company.This is an example of

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In the SWOT framework,Opportunities and Threats are environmental conditions internal to the firm.

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In the SWOT framework,the Strengths and Weaknesses are external environmental factors to consider.

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Using the five-forces model,explain how the threat of new entrants might affect a U.S.-based manufacturer of lead acid batteries used for industrial storage.

Correct AnswerAnswered by ExamLex AIThe threat of new entrants in the lead a...View AnswerShow Answer

Strategic groups consist of a group of

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Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends.This is an example of how to improve

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Scanning the general environment would identify information on

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In the SWOT framework,________ are the same for all firms in the same competitive environment.

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In the five-forces model,conditions under which a supplier group can be powerful include all of the following except

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By emphasizing the importance of identifying opportunities and threats,the SWOT framework makes firms act ________ rather than ________.

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Strategic groups consist of firms that are more ________ to each other than firms that are not.

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Why must successful managers recognize opportunities and threats in their company external environment?

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Buyer power will be greater when

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The bargaining power of suppliers is enhanced under which following market condition?

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Genetic engineering has had a positive impact on the pharmaceutical industry.This is an example of which type of general environmental trend?

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Data Analytics are being used by corporations to understand their customer purchasing patterns.This is an example of which segment of the general environment?

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Technological innovations can create entirely new industries and alter the boundaries of industries.

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A major sociocultural trend in the United States is the increased number of women in the workforce that has increased the need for business clothing but decreased the demand for baking product staples.

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Gathering competitive intelligence

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Which of the following firms would likely pose the least competitive threat?

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The threat of new entrants in the lead a...
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By emphasizing the importance of identifying opportunities and threats,the SWOT framework makes firms act rather than .

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