Question 1

Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Accepted Answer

A)   positive; neutral
B)   negative; neutral
C)   negative; positive
D)   positive; negative

Question 2

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Accepted Answer

A) True 
 B)False

Question 3

Many indicators of the macroeconomic environment such as GNP, interest rates, savings rates, trade and budget deficits/surplus, and so forth, are interrelated. Explain.

Accepted Answer

Due to globalization...

Question 4

In the Air Canada-WestJet conflict, the issue is

Accepted Answer

A)   Air Canada claims its employee website was hacked
B)   WestJet claims its employee website was hacked
C)   Air Canada claims its email was stolen
D)   Air Canada claims WestJet used employee access information to obtain flight info

Question 5

Increasingly 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.

Question 6

A SWOT analysis includes listing

Accepted Answer

A)   strategies, opportunities, and tactics
B)   strategies, opportunities, and threats
C)   strengths, opportunities, and tactics
D)   strengths, opportunities, and threats

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

Accepted Answer

A) True 
 B)False

Question 9

_____ 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 intelligence

Question 10

A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of

Accepted Answer

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

Question 11

Delayed marriages, fewer people in relevant age groups, and rising interest rates dampening demand for houses illustrates

Accepted Answer

A)   that more than one segment of the general environment may affect an industry.
B)   that the global environment is not as powerful an influence as thought.
C)   that macroeconomic forces dominate the general environment.
D)   that the competitive environment often has a strong influence on the general environment.

Question 12

The bargaining power of suppliers increases as

Accepted Answer

A)   more suppliers enter the market.
B)   importance of buyers to supplier group increases.
C)   switching costs for buyers decrease.
D)   threat of forward integration by suppliers increases.

Question 13

Supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

Accepted Answer

A) True 
 B)False

Question 14

Buyer power will be greater when

Accepted Answer

A)   the products purchased are highly differentiated.
B)   there are high switching costs.
C)   the industry's product is very important to the quality of the buyer's end products or services.
D)   it is concentrated on purchasing large volumes relative to seller sales.

Question 15

Exit barriers may arise from

Accepted Answer

A)   flexible assets with alternative uses.
B)   lack of governmental and social pressures.
C)   strategic competitors
D)   concerns about image.

Question 16

What value is the concept of strategicgroups as a tool in analyzing an industry?

Accepted Answer

The concept of strategic groups can be used to identify firms that are most similar within an industry. It is important because rivalry tends to be greater among firms that are alike.

Question 17

In the value-net analysis, complementors are

Accepted Answer

A)   firms that produce substitute products.
B)   customers who compliment the company for their good products and services.
C)   firms that produce products or services that have a positive impact on the value of a firm's products or services.
D)   firms that supply critical inputs to a company. C

Question 18

Competitor Intelligence (CI) is a tool that can provide management with "early warnings" about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 19

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Accepted Answer

A) True 
 B)False  True

Question 20

Porter's five forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.

Accepted Answer

A) True 
 B)False

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

Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Correct AnswerverifiedShow Answer

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Correct AnswerverifiedShow Answer

Many indicators of the macroeconomic environment such as GNP, interest rates, savings rates, trade and budget deficits/surplus, and so forth, are interrelated. Explain.

Correct AnswerverifiedDue to globalization...View AnswerShow Answer

In the Air Canada-WestJet conflict, the issue is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A SWOT analysis includes listing

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of

Correct AnswerverifiedShow Answer

Delayed marriages, fewer people in relevant age groups, and rising interest rates dampening demand for houses illustrates

Correct AnswerverifiedShow Answer

The bargaining power of suppliers increases as

Correct AnswerverifiedShow Answer

Supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

Correct AnswerverifiedShow Answer

Buyer power will be greater when

Correct AnswerverifiedShow Answer

Exit barriers may arise from

Correct AnswerverifiedShow Answer

What value is the concept of strategicgroups as a tool in analyzing an industry?

Correct AnswerverifiedThe concept of strategic groups can be used to identify firms that are most similar within an industry. It is important because rivalry tends to be greater among firms that are alike.

In the value-net analysis, complementors are

Correct AnswerverifiedC

Competitor Intelligence (CI) is a tool that can provide management with "early warnings" about both threats and opportunities.

Correct AnswerverifiedShow Answer

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Correct AnswerverifiedTrue

Porter's five forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.

Correct AnswerverifiedShow Answer

Interest rate increases have a _ impact on the residential home construction industry and a _ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Correct Answer
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Due to globalization...
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The concept of strategic groups can be used to identify firms that are most similar within an industry. It is important because rivalry tends to be greater among firms that are alike.

Correct Answer
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C

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True

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