Question 1

In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability, rigorous quantification of the five forces is not necessary.

Accepted Answer

A) True 
 B)False

Question 2

Gathering competitive intelligence

Accepted Answer

A)  is good business practice.
B)  is illegal.
C)  is considered unethical.
D)  minimizes the need to obtain information in the public domain.

Question 3

Because of the Internet and digital technologies, it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Accepted Answer

A) True 
 B)False

Question 4

The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes.

Accepted Answer

A)  macroeconomic
B)  demographic
C)  global
D)  sociocultural

Question 5

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; negligible
C)  negative; positive
D)  positive; negative

Question 6

Which of the following would not lead a manager to believe that an ethical concern exists?

Accepted Answer

A)  Have I done anything that coerced somebody to share this information?
B)  Is the contemplated technique for gathering information relevant?
C)  Have I done something to circumvent a system intended to secure or protect information?
D)  Have I misled anybody in order to gain access?

Question 7

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Accepted Answer

A)  threat of entry.
B)  backward integration.
C)  threat of substitute products.
D)  forward integration.

Question 8

Lowes has found that women prefer to do larger home-improvement projects with a man, whether a boyfriend, husband, or neighbor. As a result, in addition to its recipe card classes (that explain various projects that take only one weekend) , Lowes offers co-ed store clinics for projects like sink installation. This is an example of which segment of the general environment?

Accepted Answer

A)  economic
B)  sociocultural
C)  political and legal
D)  demographic

Question 9

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Accepted Answer

A) True 
 B)False

Question 10

The opportunities and threats of a SWOT analysis refer to the internal conditions of the firm.

Accepted Answer

A) True 
 B)False

Question 11

The strategic groups concept is valuable for identifying groups with marginal competitive positions.

Accepted Answer

A) True 
 B)False

Question 12

There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.

Accepted Answer

A) True 
 B)False

Question 13

Environmental analysis requires continual questioning of all of these assumptions except

Accepted Answer

A)  a priori ideas about the structure of the relevant industry.
B)  biases about how to make money in the industry.
C)  presuppositions about who is and is not a competitor.
D)  continual updating of environmental knowledge.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

End users are not

Accepted Answer

A)  the final consumers in a distribution channel.
B)  the first customers in a distribution channel.
C)  likely to have greater bargaining power because of the Internet.
D)  usually the C in B2C.

Question 16

Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

Accepted Answer

A) True 
 B)False

Question 17

Perceptual acuity requires all of 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 compulsive fixation on external environmental monitoring.
D)  a refusal to consult with others.

Question 18

Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

Accepted Answer

A) True 
 B)False

Question 19

Examples of how to improve perceptual acuity include:

Accepted Answer

A)  A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team.
B)  A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company.
C)  A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies.
D)  Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy.

Question 20

Scanning the general environment would identify information on

Accepted Answer

A)  substitute goods.
B)  the aging population and ethnic shifts.
C)  customer and firm bargaining power.
D)  competitive rivalry.

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

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Correct Answer
verified

Perceptual acuity requires all of the following except

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

End users are not

Correct Answer
verified

Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

Correct Answer
verified

Examples of how to improve perceptual acuity include:

Correct Answer
verified

Correct Answer
verified

Because of the Internet and digital technologies, it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Correct Answer
verified

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

Correct Answer
verified

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Correct Answer
verified

The strategic groups concept is valuable for identifying groups with marginal competitive positions.

Correct Answer
verified

Scanning the general environment would identify information on

Correct Answer
verified

Environmental analysis requires continual questioning of all of these assumptions except

Correct Answer
verified

There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.

Correct Answer
verified

Gathering competitive intelligence

Correct Answer
verified

Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

Correct Answer
verified

In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability, rigorous quantification of the five forces is not necessary.

Correct Answer
verified

The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes.

Correct Answer
verified

The opportunities and threats of a SWOT analysis refer to the internal conditions of the firm.

Correct Answer
verified

Which of the following would not lead a manager to believe that an ethical concern exists?

Correct Answer
verified

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

New communication technology can impact seemingly unrelated industries such as the airline industry. This would be an example of a

Correct AnswerverifiedShow Answer

Perceptual acuity requires all of the following except

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

End users are not

Correct AnswerverifiedShow Answer

Keeping track of competitors has become more difficult today with the amount of information that is available on the Internet.

Correct AnswerverifiedShow Answer

Examples of how to improve perceptual acuity include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Because of the Internet and digital technologies, it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Correct AnswerverifiedShow Answer

The strategic groups concept is valuable for identifying groups with marginal competitive positions.

Correct AnswerverifiedShow Answer

Scanning the general environment would identify information on

Correct AnswerverifiedShow Answer

Environmental analysis requires continual questioning of all of these assumptions except

Correct AnswerverifiedShow Answer

There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.

Correct AnswerverifiedShow Answer

Gathering competitive intelligence

Correct AnswerverifiedShow Answer

Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

Correct AnswerverifiedShow Answer

In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability, rigorous quantification of the five forces is not necessary.

Correct AnswerverifiedShow Answer

The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes.

Correct AnswerverifiedShow Answer

The opportunities and threats of a SWOT analysis refer to the internal conditions of the firm.

Correct AnswerverifiedShow Answer

Which of the following would not lead a manager to believe that an ethical concern exists?

Correct AnswerverifiedShow Answer

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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verified

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verified

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