Question 1

Applications developed for iPhones make the phone more valuable to iPhone users.  App developers are ______ to Apple.

Accepted Answer

A)   suppliers
B)   customers
C)   competitors
D)   complementorsE) B) and D)
F) B) and C)

Question 2

Which of the following would NOT be identified in an analysis of the economic portion of the general environment?

Accepted Answer

A)   The willingness of Chrysler's buyers to purchase large vehicles in light of an increase in oil prices
B)   The ability of Ford to issue new debt in light of its recent financial performance
C)   The ability of BMW's buyers to finance car purchases in light of a change in interest rates
D)   The willingness of GM buyers to purchase new vehicles in light of the threat of recessionE) All of the above
F) A) and B)

Question 3

The objective of assessing the external environment is to determine the timing and importance of the effects of environmental changes and trends on the strategic management of the firm.

Accepted Answer

A) True 
 B)False

Question 4

Environmental scanning would be most important for which of the following organizations?

Accepted Answer

A)   A provider of hospice services for the terminally ill
B)   A web design company catering to small businesses
C)   A neighborhood sewer and water utility
D)   A manufacturer of household linensE) A) and B)
F) None of the above

Question 5

The use of the Internet by Netflix to collect data on customer preferences is an example of:

Accepted Answer

A)   assessing.
B)   monitoring.
C)   forecasting.
D)   scanning.E) C) and D)
F) B) and C)

Question 6

Firms can directly control the elements of the seven segments of the general environment.

Accepted Answer

A) True 
 B)False

Question 7

After Amazon lowered the price on its tablets, Samsung eventually lowered the price on its tablets.  Samsung needed to do this because:

Accepted Answer

A)   it is in the same strategic group.
B)   it is outside the strategic group.
C)   of inter-strategic group competition.
D)   of strategic distinctiveness.E) A) and B)
F) A) and C)

Question 8

An example of a government policy barrier to entry would be a scenario in which the Antitrust Division of the Department of Justice disallows a merger because it creates a firm that is too dominant and would thus create unfair competition.

Accepted Answer

A) True 
 B)False

Question 9

The recent joint ventures formed by BP with Russian and Indian partners show the importance of the ______ segment of the general environment in those countries that BP and other oil firms have to manage when contending with scarce resources.

Accepted Answer

A)   technological
B)   physical
C)   demographic
D)   globalE) C) and D)
F) B) and D)

Question 10

Which of the following represents a competitive intelligence practice that is both legal and ethical?

Accepted Answer

A)   A firm hires a competitor's employees and asks them to share the names and addresses of business contacts from their previous company.
B)   An executive attends a trade show solely to obtain a competitor's brochures, listen to sales pitches, and ask questions about the competitor's products.
C)   A city council member shares information about the decision process for selecting a contractor to build a new city council building with his wife, an executive with a construction firm bidding on the contract.
D)   A marketing manager sells confidential plans for a company's expansion into the Far East to a firm that is not a direct competitor.E) None of the above
F) A) and C)

Question 11

The environmental segments that make up the general environment typically will NOT include:

Accepted Answer

A)   demographic factors.
B)   sociocultural factors.
C)   substitute products or services.
D)   technological factors.E) B) and C)
F) None of the above

Question 12

All of the following are aspects of the political/legal segment of the general environment EXCEPT:

Accepted Answer

A)   lobby groups.
B)   attitudes and values.
C)   taxation laws.
D)   industries chosen for deregulation.E) A) and B)
F) A) and C)

Question 13

When consumers change mobile phone and data service providers, they may be required to maintain service with the provider for a specified time period.  This is an example of a:

Accepted Answer

A)   cost to a producer to exchange equipment in a facility when new technologies emerge.
B)   cost of changing the firm's strategic group.
C)   one-time cost suppliers incur when selling to a different customer.
D)   one-time cost customers incur when buying from a different supplier.E) B) and C)
F) A) and B)

Question 14

Because of threats and risks in the global environment, some firms choose to take a more cautious approach by:

Accepted Answer

A)   avoiding global markets altogether.
B)   expanding only to developed countries.
C)   focusing on global niche markets.
D)   acquiring already established firms in foreign markets.E) A) and B)
F) A) and C)

Question 15

Media content has moved from paper, tape, and film to a digital world based on Internet technology. From the perspective of the five forces model, which force is most relevant here?

Accepted Answer

A)   Buyers
B)   Substitutes
C)   Entry barriers
D)   SuppliersE) All of the above
F) C) and D)

Question 16

The more distant strategic groups are in terms of their strategies, the greater the likelihood of rivalry between the groups.

Accepted Answer

A) True 
 B)False

Question 17

Strategic groups are firms in different industries following the same or similar strategies.

Accepted Answer

A) True 
 B)False

Question 18

When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are: engaged in

Accepted Answer

A)   scanning.
B)   monitoring.
C)   forecasting.
D)   assessing.E) All of the above
F) A) and B)

Question 19

Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company?

Accepted Answer

A)   The sociocultural environment
B)   The demographics of the environment
C)   The economy of the local area
D)   The power of the customers/buyersE) None of the above
F) All of the above

Question 20

New Jersey and New York have the highest state taxes in the United States.  They also have high ratios of people moving out compared to people moving into the state.  This impacts the ______ aspect of demographic analysis.

Accepted Answer

A)   age structure
B)   geographic distribution
C)   income distribution
D)   ethnic mixE) All of the above
F) None of the above

Exam 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are: engaged in

Correct AnswerverifiedShow Answer

After Amazon lowered the price on its tablets, Samsung eventually lowered the price on its tablets. Samsung needed to do this because:

Correct AnswerverifiedShow Answer

The environmental segments that make up the general environment typically will NOT include:

Correct AnswerverifiedShow Answer

When consumers change mobile phone and data service providers, they may be required to maintain service with the provider for a specified time period. This is an example of a:

Correct AnswerverifiedShow Answer

Because of threats and risks in the global environment, some firms choose to take a more cautious approach by:

Correct AnswerverifiedShow Answer

All of the following are aspects of the political/legal segment of the general environment EXCEPT:

Correct AnswerverifiedShow Answer

The more distant strategic groups are in terms of their strategies, the greater the likelihood of rivalry between the groups.

Correct AnswerverifiedShow Answer

An example of a government policy barrier to entry would be a scenario in which the Antitrust Division of the Department of Justice disallows a merger because it creates a firm that is too dominant and would thus create unfair competition.

Correct AnswerverifiedShow Answer

Environmental scanning would be most important for which of the following organizations?

Correct AnswerverifiedShow Answer

Strategic groups are firms in different industries following the same or similar strategies.

Correct AnswerverifiedShow Answer

The recent joint ventures formed by BP with Russian and Indian partners show the importance of the ______ segment of the general environment in those countries that BP and other oil firms have to manage when contending with scarce resources.

Correct AnswerverifiedShow Answer

The use of the Internet by Netflix to collect data on customer preferences is an example of:

Correct AnswerverifiedShow Answer

The objective of assessing the external environment is to determine the timing and importance of the effects of environmental changes and trends on the strategic management of the firm.

Correct AnswerverifiedShow Answer

Media content has moved from paper, tape, and film to a digital world based on Internet technology. From the perspective of the five forces model, which force is most relevant here?

Correct AnswerverifiedShow Answer

Which of the following would NOT be identified in an analysis of the economic portion of the general environment?

Correct AnswerverifiedShow Answer

Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company?

Correct AnswerverifiedShow Answer

Applications developed for iPhones make the phone more valuable to iPhone users. App developers are ______ to Apple.

Correct AnswerverifiedShow Answer

Which of the following represents a competitive intelligence practice that is both legal and ethical?

Correct AnswerverifiedShow Answer

New Jersey and New York have the highest state taxes in the United States. They also have high ratios of people moving out compared to people moving into the state. This impacts the ______ aspect of demographic analysis.

Correct AnswerverifiedShow Answer

Firms can directly control the elements of the seven segments of the general environment.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified