Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not an input to develop forecasts?

Accepted Answer

A)   environmental scanning
B)   competitor intelligence
C)   environmental monitoring
D)   stakeholder managementE) B) and C)
F) A) and D)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In most industries,new entrants will not be a threat because the Internet lowers entry barriers.

Accepted Answer

A) True 
 B)False

Question 5

Research shows that many immigrants to the United States are prodigious job creators.This supports legislative battles to increase the number of H-1B visas for foreign workers.

Accepted Answer

A) True 
 B)False

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) B) and D)
F) C) and D)

Question 7

In some industries,high switching costs can act as an important barrier to entry.

Accepted Answer

A) True 
 B)False

Question 8

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT)inventory systems,which let it manage inventories better and respond quickly to market demands.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Strategic groups are helpful in thinking through the implications of each industry trend for the strategic group as a whole.

Accepted Answer

A) True 
 B)False

Question 11

SWOT analysis is useful in part because it obliges the firm to act proactively by putting an emphasis on identifying opportunities and threats that constrain the action choices a firm might make as a result of its internal and external environmental scan.

Accepted Answer

A) True 
 B)False

Question 12

Scenario analysis relies on the extrapolation of historical trends.

Accepted Answer

A) True 
 B)False

Question 13

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the smallest in terms of breadth of product line?

Accepted Answer

A)   Ferrari, Lamborghini, Porsche
B)   Toyota, Ford, General Motors, Chrysler, Honda, Nissan
C)   Chery, Geely, Tata Motors
D)   Mercedes, BMWE) All of the above
F) C) and D)

Question 14

_____________ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Accepted Answer

A)   Environmental scanning
B)   Environmental monitoring
C)   Environmental surveying
D)   Competitive intelligenceE) B) and C)
F) A) and D)

Question 15

Strategic groups are clusters of firms that share __________ strategies.

Accepted Answer

A)   differing
B)   the same
C)   similar
D)   newE) A) and D)
F) All of the above

Question 16

Perceptual acuity,according to Ram Charan,is the ability to know for certain what will happen in the future.

Accepted Answer

A) True 
 B)False

Question 17

Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

Accepted Answer

A) True 
 B)False

Question 18

The impact of a demographic trend varies across industries.

Accepted Answer

A) True 
 B)False

Question 19

In the value net analysis,complementors are

Accepted Answer

A)   firms that produce substitute products.
B)   firms that produce products that have a positive impact on company product value.
C)   customers who compliment the company for their good products and services.
D)   firms that supply critical inputs to a company.E) C) and D)
F) B) and D)

Question 20

Perceptual acuity requires all of the following except

Accepted Answer

A)   an ability to sense what is coming.
B)   the ability to detect early warning signals of environmental changes.
C)   a compulsive fixation on external environmental monitoring.
D)   a refusal to consult with others.E) C) and D)
F) A) and D)

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

Establishing long-term mutually beneficial relationships with suppliers improves the company ability to implement just-in-time (JIT)inventory systems,which let it manage inventories better and respond quickly to market demands.

Correct AnswerverifiedShow Answer

Strategic groups are clusters of firms that share __________ strategies.

Correct AnswerverifiedShow Answer

Which of the following is not an input to develop forecasts?

Correct AnswerverifiedShow Answer

Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

Correct AnswerverifiedShow Answer

In most industries,new entrants will not be a threat because the Internet lowers entry barriers.

Correct AnswerverifiedShow Answer

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the smallest in terms of breadth of product line?

Correct AnswerverifiedShow Answer

Scenario analysis relies on the extrapolation of historical trends.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Research shows that many immigrants to the United States are prodigious job creators.This supports legislative battles to increase the number of H-1B visas for foreign workers.

Correct AnswerverifiedShow Answer

_____________ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Correct AnswerverifiedShow Answer

SWOT analysis is useful in part because it obliges the firm to act proactively by putting an emphasis on identifying opportunities and threats that constrain the action choices a firm might make as a result of its internal and external environmental scan.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the value net analysis,complementors are

Correct AnswerverifiedShow Answer

Perceptual acuity requires all of the following except

Correct AnswerverifiedShow Answer

Perceptual acuity,according to Ram Charan,is the ability to know for certain what will happen in the future.

Correct AnswerverifiedShow Answer

Buyer power will be greater when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strategic groups are helpful in thinking through the implications of each industry trend for the strategic group as a whole.

Correct AnswerverifiedShow Answer

In some industries,high switching costs can act as an important barrier to entry.

Correct AnswerverifiedShow Answer

The impact of a demographic trend varies across industries.

Correct AnswerverifiedShow Answer

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