Question 1

The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Explain the important barriers to entry in an industry. Provide examples.

Accepted Answer

Barriers to entry are factors ...

Question 4

Scenario analysis draws on a range of disciplines and interests, including economics, sociology, and demographics.

Accepted Answer

A) True 
 B)False

Question 5

When the US congress passed the Sarbanes-Oxley Act in 2002

Accepted Answer

A)   Canada deregulated the associations
B)   no similar Canadian legislation was developed
C)   Canada followed with similar provisions
D)   the provincial governments developed similar lawsE) B) and C)
F) None of the above

Question 6

A supplier group would be most powerful when there is/are

Accepted Answer

A)   many suppliers.
B)   few substitute products.
C)   low differentiation of products supplied.
D)   high threat of backward integration by the buyers.E) B) and C)
F) C) and D)

Question 7

Despite being simple, the SWOT analysis is quite popular. Explain the reasons why you think this is so.

Accepted Answer

Answers will vary.
First, it forces mana...

Question 8

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 firm that produces substitute goods to your product line
C)   A competitor to your product where a high switching cost exists
D)   A firm in the same industry and in the nearest strategic group looking to join your groupE) B) and D)
F) B) and C)

Question 9

Managers use three important processes-scanning, monitoring, and gathering competitive intelligence-to enhance their environmental awareness.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would be considered part of a firm's general environment?

Accepted Answer

A)   Decreased entry barriers
B)   Increased trade deficit
C)   Increased bargaining power of the firm's suppliers
D)   Increased competitive intensityE) B) and D)
F) B) and C)

Question 11

Strategic groups consist of

Accepted Answer

A)   a group of top executives who make strategies for a company.
B)   a group of firms within an industry that follow similar strategies.
C)   a group of executives drawn from different companies within an industry that makes decisions on industry standards.
D)   a group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits.E) None of the above
F) C) and D)

Question 12

Technological advances have affected industry forces in ways that have created many new strategic challenges.

Accepted Answer

A) True 
 B)False

Question 13

The threat of new entrants is high when there are

Accepted Answer

A)   low economies of scale.
B)   high capital requirements.
C)   high switching costs.
D)   high differentiation among competitors' products and services.E) A) and D)
F) A) and C)

Question 14

Rivalry between the firms Air Canada and WestJet

Accepted Answer

A)   is characterized as distractive.
B)   includes allegations that Air Canada set up a screen-scraper program to automatically lift data.
C)   includes allegations that WestJet sent investigators to pilfer an Air Canada Executive's garbage looking for data.
D)   is an example of an insignificant level of competitive rivalry.E) A) and B)
F) None of the above

Question 15

The aging of the population, changes in ethnic composition, and effects of the baby boom are considered:

Accepted Answer

A)   macroeconomic changes.
B)   demographic changes.
C)   global changes.
D)   sociocultural changes.E) A) and B)
F) A) and C)

Question 16

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Accepted Answer

A) True 
 B)False

Question 17

Explain why managers must recognize opportunities and threats in their firm's external environment.

Accepted Answer

It is important that managers ...

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

Question 19

Which of the following is an example of the interrelationship between the general and competitive environments?

Accepted Answer

A)   A decline in a nation's educational standards results in a decline in the nation's productivity
B)   A country's technological inferiority results in its enactment of strong trade barriers against importation
C)   Increased awareness of personal health leads to lower demand, and greater rivalry in the alcoholic beverages industry
D)   Greater awareness of the environment results in environmental legislationE) All of the above
F) B) and C)

Question 20

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing the External Environment of the Firm

Which of the following is an example of the interrelationship between the general and competitive environments?

Correct AnswerverifiedShow Answer

When the US congress passed the Sarbanes-Oxley Act in 2002

Correct AnswerverifiedShow Answer

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Correct AnswerverifiedShow Answer

Rivalry between the firms Air Canada and WestJet

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strategic groups consist of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The aging of the population, changes in ethnic composition, and effects of the baby boom are considered:

Correct AnswerverifiedShow Answer

Scenario analysis draws on a range of disciplines and interests, including economics, sociology, and demographics.

Correct AnswerverifiedShow Answer

A supplier group would be most powerful when there is/are

Correct AnswerverifiedShow Answer

Emerging sociocultural changes in the environment include

Correct AnswerverifiedShow Answer

Which of the following would be considered part of a firm's general environment?

Correct AnswerverifiedShow Answer

Technological innovations can create entirely new industries and alter the boundaries of industries.

Correct AnswerverifiedShow Answer

Despite being simple, the SWOT analysis is quite popular. Explain the reasons why you think this is so.

Correct AnswerverifiedAnswers will vary.First, it forces mana...View AnswerShow Answer

Managers use three important processes-scanning, monitoring, and gathering competitive intelligence-to enhance their environmental awareness.

Correct AnswerverifiedShow Answer

Explain why managers must recognize opportunities and threats in their firm's external environment.

Correct AnswerverifiedIt is important that managers ...View AnswerShow Answer

Technological advances have affected industry forces in ways that have created many new strategic challenges.

Correct AnswerverifiedShow Answer

The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years.

Correct AnswerverifiedShow Answer

Explain the important barriers to entry in an industry. Provide examples.

Correct AnswerverifiedBarriers to entry are factors ...View AnswerShow Answer

The threat of new entrants is high when there are

Correct AnswerverifiedShow Answer

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Answers will vary.
First, it forces mana...
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Correct Answer
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Correct Answer
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It is important that managers ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Barriers to entry are factors ...
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Correct Answer
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