Question 1

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Accepted Answer

A)   indicators of emerging trends.
B)   accidental changes in behavior.
C)   supplier preferences.
D)   company management trends.E) A) and B)
F) All of the above

Question 2

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

Question 3

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 4

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.

Accepted Answer

A) True 
 B)False

Question 5

PPG Industries,the Pittsburgh-based manufacturer of paints,coatings,optical products,specialty materials,chemicals,glass,and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers.It used a technique to help it identify possible future strategies.What was it?

Accepted Answer

A)   crowdsourcing
B)   competitive intelligence
C)   scenario analysis
D)   monitoringE) A) and C)
F) B) and C)

Question 6

Firms that were successful in the past can fail today because

Accepted Answer

A)   they keep pace with changes in the nature of competition.
B)   the company strategy is outdated.
C)   their financial situation is resilient.
D)   management monitors the relevant environmental factors regularly.E) A) and B)
F) B) and C)

Question 7

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Accepted Answer

A)   by shifting customers away from issues of price
B)   by consolidating the marketing message that consumers use to make a purchase decision
C)   by making competitors in cyberspace seem less equally balanced
D)   by highlighting unique selling advantages of a firmE) None of the above
F) B) and C)

Question 8

Perceptual acuity requires all 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 refusal to consult with others.
D)   a strong commitment to external environmental monitoring.E) A) and B)
F) A) and C)

Question 9

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

Question 10

Which of the following is not a correct usage of the SWOT framework?

Accepted Answer

A)   build on its strengths
B)   remedy the weaknesses or work around them
C)   take advantage of the opportunities presented by the environment
D)   protect the firm from environmental weaknessesE) A) and D)
F) All of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

In general,the threat of substitutes is heightened because the Internet

Accepted Answer

A)   lowers switching costs.
B)   lowers barriers to entry.
C)   introduces new ways to accomplish the same task.
D)   increases output per unit of cost.E) B) and C)
F) C) and D)

Question 14

Supplier power has increased because of the Internet for all the following reasons except

Accepted Answer

A)   the growth of new web-based businesses has created more outlets for suppliers to sell to.
B)   software that links buyers to a supplier's website has created rapid, low-cost order capabilities.
C)   the process of disintermediation makes it possible for some suppliers to reach end users directly.
D)   some suppliers have created web-based purchasing systems that encourage switching.E) None of the above
F) B) and C)

Question 15

Which is considered a force in the five-forces model?

Accepted Answer

A)   increased deregulation in an industry
B)   the threat of government intervention
C)   recent technological innovation
D)   rivalry among competing firmsE) B) and C)
F) All of the above

Question 16

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; negligible
B)   negative; positive
C)   negative; negligible
D)   positive; negativeE) B) and C)
F) C) and D)

Question 17

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Accepted Answer

A)   Ferrari, Lamborghini, Porsche
B)   Toyota, Ford, General Motors, Chrysler, Honda, Nissan
C)   Chery, Geely, Tata Motors
D)   Mercedes, BMW, AudiE) B) and C)
F) None of the above

Question 18

Emerging sociocultural changes in the environment include

Accepted Answer

A)   changes in the ethnic composition.
B)   the increasing educational attainment of women in the past decade.
C)   progressively less disposable income by consumers.
D)   changes in the geographic distribution of the population.E) C) and D)
F) A) and D)

Question 19

A danger of forecasting discussed in the text is that

Accepted Answer

A)   in most cases, the expense of collecting the necessary data exceeds the benefit.
B)   the retrospective nature of forecasting provides little information about the future.
C)   it can create legal problems for the firm if regulators discover the company is making forecasts.
D)   managers may view uncertainty as black and white while ignoring important gray areas.E) A) and B)
F) A) and C)

Question 20

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

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

Supplier power has increased because of the Internet for all the following reasons except

Correct Answer
verified

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.

Correct Answer
verified

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
verified

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

Correct Answer
verified

Gathering competitive intelligence

Correct Answer
verified

Firms that were successful in the past can fail today because

Correct Answer
verified

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Correct Answer
verified

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is not a correct usage of the SWOT framework?

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
verified

A danger of forecasting discussed in the text is that

Correct Answer
verified

In general,the threat of substitutes is heightened because the Internet

Correct Answer
verified

Which is considered a force in the five-forces model?

Correct Answer
verified

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Correct Answer
verified

Perceptual acuity requires all the following except

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Emerging sociocultural changes in the environment include

Correct Answer
verified

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

Supplier power has increased because of the Internet for all the following reasons except

Correct AnswerverifiedShow Answer

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.

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 AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Gathering competitive intelligence

Correct AnswerverifiedShow Answer

Firms that were successful in the past can fail today because

Correct AnswerverifiedShow Answer

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Correct AnswerverifiedShow Answer

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a correct usage of the SWOT framework?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A danger of forecasting discussed in the text is that

Correct AnswerverifiedShow Answer

In general,the threat of substitutes is heightened because the Internet

Correct AnswerverifiedShow Answer

Which is considered a force in the five-forces model?

Correct AnswerverifiedShow Answer

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Correct AnswerverifiedShow Answer

Perceptual acuity requires all the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Emerging sociocultural changes in the environment include

Correct AnswerverifiedShow Answer

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Correct Answer
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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
verified

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

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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Correct Answer
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