Question 1

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) A) and C)
F) All of the above

Question 2

Strategic groups consist of a group of

Accepted Answer

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

Question 3

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Accepted Answer

A) True 
 B)False

Question 4

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Accepted Answer

A) True 
 B)False

Question 5

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Accepted Answer

A)  overestimation of uncertainty.
B)  excellent forecasting.
C)  underestimation of uncertainty.
D)  good prediction skills.E) A) and D)
F) A) and C)

Question 6

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Accepted Answer

A) True 
 B)False

Question 7

Strategic groupings are of no assistance in charting the future direction of company strategy.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Accepted Answer

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

Question 10

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.
E. Porter has been the most commonly used analytical tool for examining the competitive environment. It describes the competitive environment in terms of five basic competitive forces.

Accepted Answer

A) True 
 B)False

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

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

Correct Answer
verified

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 Answer
verified

Correct Answer
verified

It is important to question the reliability of forecasts because

Correct Answer
verified

Strategic groupings are of no assistance in charting the future direction of company strategy.

Correct Answer
verified

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Correct Answer
verified

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

Correct Answer
verified

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Correct Answer
verified

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

Correct Answer
verified

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Correct Answer
verified

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Correct Answer
verified

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Correct Answer
verified

Strategic groups consist of a group of

Correct Answer
verified

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It is important to question the reliability of forecasts because

Correct AnswerverifiedShow Answer

Strategic groupings are of no assistance in charting the future direction of company strategy.

Correct AnswerverifiedShow Answer

SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Environmental scanning involves surveillance of the internal environment of a firm to predict environmental changes and detect changes already under way.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Correct AnswerverifiedShow Answer

In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of

Correct AnswerverifiedShow Answer

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Correct AnswerverifiedShow Answer

Strategic groups consist of a group of

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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