Question 1

When management assumptions,premises,or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid,the strategy of the firm needs to be updated.

Accepted Answer

A) True 
 B)False

Question 2

Larger numbers of women entering the work force since the early 1970s is an example of

Accepted Answer

A)   demographic changes.
B)   political and legal environmental changes.
C)   sociocultural changes.
D)   technological developments.E) B) and C)
F) A) and D)

Question 3

The aging of the population,changes in ethnic composition,and effects of the baby boom are __________ changes.

Accepted Answer

A)   macroeconomic
B)   demographic
C)   global
D)   socioculturalE) A) and B)
F) B) and C)

Question 4

Examples of how to improve perceptual acuity include:

Accepted Answer

A)   A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team.
B)   A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company.
C)   A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.
D)   Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.E) B) and C)
F) A) and D)

Question 5

End users are not

Accepted Answer

A)   the final consumers in a distribution channel.
B)   the first customers in a distribution channel.
C)   likely to have greater bargaining power because of the Internet.
D)   usually the C in B2C.E) C) and D)
F) B) and D)

Question 6

Two companies ask outsiders to critique strategy during their board's strategy sessions.Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration.This is an example of how to improve perceptual acuity.

Accepted Answer

A) True 
 B)False

Question 7

Taking advantage of the increasing penetration of personal computers in American homes,the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise.It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the United States.

Accepted Answer

A)   soft; increase; increasing
B)   soft; decrease; decreasing
C)   hard; decrease; decreasing
D)   hard; decrease; increasingE) B) and C)
F) C) and D)

Question 8

Because the Internet lowers barriers to entry in most industries,it

Accepted Answer

A)   decreases the threat of new entrants.
B)   increases supplier power.
C)   makes it easier to build customer loyalty.
D)   increases the threat of new entrants.E) All of the above
F) A) and B)

Question 9

It is important to question the reliability of forecasts because

Accepted Answer

A)   if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.
B)   uncertainty is black and white and therefore the gray areas are unimportant.
C)   underestimating uncertainty can lead to good competitive strategies.
D)   the growth new industries, such as that of telecommunications, cannot be predicted.E) A) and C)
F) B) and C)

Question 10

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Question 11

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) None of the above
F) A) and B)

Question 12

A demographic trend in the United States,the aging of the population,has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

Accepted Answer

A) True 
 B)False

Question 13

A CEO meets four times a year with about four other CEOS of large,but noncompeting,diverse global companies.This is an example of how to improve perceptual acuity.

Accepted Answer

A) True 
 B)False

Question 14

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Accepted Answer

A) True 
 B)False

Question 15

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 D)

Question 16

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Accepted Answer

A) True 
 B)False

Question 17

Steve Jobs,former chairman of Apple,demonstrated that ___________ also are important in forecasting.

Accepted Answer

A)   character and ability
B)   intuition and judgment
C)   training and experience
D)   imagination and trainingE) B) and C)
F) A) and C)

Question 18

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

Accepted Answer

A) True 
 B)False

Question 19

Doctors and other health professionals say it is becoming harder to stay on the right side of the rules as billing requirements grow more convoluted.This is an example of which segment of the general environment?

Accepted Answer

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

Question 20

In the SWOT framework,______________ are internal factors that are specific to the company.

Accepted Answer

A)   strengths and opportunities
B)   strengths and threats
C)   threats and weaknesses
D)   strengths and weaknessesE) All of the above
F) B) and D)

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

The aging of the population,changes in ethnic composition,and effects of the baby boom are __________ changes.

Correct Answer
verified

End users are not

Correct Answer
verified

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

Correct Answer
verified

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

Correct Answer
verified

It is important to question the reliability of forecasts because

Correct Answer
verified

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Correct Answer
verified

Because the Internet lowers barriers to entry in most industries,it

Correct Answer
verified

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

Correct Answer
verified

In the SWOT framework,______________ are internal factors that are specific to the company.

Correct Answer
verified

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct Answer
verified

Examples of how to improve perceptual acuity include:

Correct Answer
verified

Steve Jobs,former chairman of Apple,demonstrated that ___________ also are important in forecasting.

Correct Answer
verified

Correct Answer
verified

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Correct Answer
verified

When management assumptions,premises,or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid,the strategy of the firm needs to be updated.

Correct Answer
verified

A demographic trend in the United States,the aging of the population,has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

Correct Answer
verified

A CEO meets four times a year with about four other CEOS of large,but noncompeting,diverse global companies.This is an example of how to improve perceptual acuity.

Correct Answer
verified

Two companies ask outsiders to critique strategy during their board's strategy sessions.Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration.This is an example of how to improve perceptual acuity.

Correct Answer
verified

Doctors and other health professionals say it is becoming harder to stay on the right side of the rules as billing requirements grow more convoluted.This is an example of which segment of the general environment?

Correct Answer
verified

Larger numbers of women entering the work force since the early 1970s is an example of

Correct Answer
verified

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

The aging of the population,changes in ethnic composition,and effects of the baby boom are __________ changes.

Correct AnswerverifiedShow Answer

End users are not

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Developments in technology and other innovations can create new industries and alter the boundaries of existing industries.

Correct AnswerverifiedShow Answer

It is important to question the reliability of forecasts because

Correct AnswerverifiedShow Answer

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Correct AnswerverifiedShow Answer

Because the Internet lowers barriers to entry in most industries,it

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the SWOT framework,______________ are internal factors that are specific to the company.

Correct AnswerverifiedShow Answer

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct AnswerverifiedShow Answer

Examples of how to improve perceptual acuity include:

Correct AnswerverifiedShow Answer

Steve Jobs,former chairman of Apple,demonstrated that ___________ also are important in forecasting.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Correct AnswerverifiedShow Answer

When management assumptions,premises,or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid,the strategy of the firm needs to be updated.

Correct AnswerverifiedShow Answer

A demographic trend in the United States,the aging of the population,has important implications for the economic segment (in terms of tax policies to provide benefits to increasing numbers of older citizens).

Correct AnswerverifiedShow Answer

A CEO meets four times a year with about four other CEOS of large,but noncompeting,diverse global companies.This is an example of how to improve perceptual acuity.

Correct AnswerverifiedShow Answer

Two companies ask outsiders to critique strategy during their board's strategy sessions.Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration.This is an example of how to improve perceptual acuity.

Correct AnswerverifiedShow Answer

Doctors and other health professionals say it is becoming harder to stay on the right side of the rules as billing requirements grow more convoluted.This is an example of which segment of the general environment?

Correct AnswerverifiedShow Answer

Larger numbers of women entering the work force since the early 1970s is an example of

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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