Question 1

Underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

Accepted Answer

A) True 
 B)False

Question 2

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, BMWE) A) and B)
F) B) and D)

Question 3

Which of the following statements about strategic groups is false?

Accepted Answer

A)  Two assumptions are made: (1)  no two firms are totally different, (2)  no two firms are exactly the same.
B)  Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.
C)  Strategic groups help chart the future directions of firm strategies.
D)  Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.E) B) and C)
F) C) and D)

Question 4

Complements are products or services that have a potential impact on the _________ of the products or services of that company.

Accepted Answer

A)  cost
B)  availability
C)  value
D)  substitutabilityE) None of the above
F) C) and D)

Question 5

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve

Accepted Answer

A)  stakeholder management.
B)  perceptual acuity.
C)  internal scanning.
D)  financial returns.E) B) and D)
F) A) and C)

Question 6

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.E) None of the above
F) All of the above

Question 7

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Accepted Answer

A) True 
 B)False

Question 8

Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________.

Accepted Answer

A)  predictability; stability
B)  low profit margins; stability
C)  unpredictability; change
D)  high profit margins; stabilityE) A) and B)
F) A) and D)

Question 9

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

Question 10

Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?

Accepted Answer

A)  the percentage of the buyer total cost accounted for by the industry product
B)  the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale
C)  the buyer switching cost
D)  the governmental regulatory policyE) B) and D)
F) A) and C)

Question 11

Boards of directors use outsiders to critique their strategy. This is necessary to improve mostly

Accepted Answer

A)  financial returns.
B)  organizational hierarchy.
C)  perceptual acuity.
D)  employee relations.E) A) and B)
F) B) and D)

Question 12

Product differentiation by incumbents act as an entry barrier because

Accepted Answer

A)  new entrants cannot differentiate their products.
B)  incumbents will take legal action if new entrants do not differentiate their products.
C)  it helps a firm to derive greater economies of scale.
D)  new entrants will have to spend heavily to overcome existing customer loyalties.E) A) and B)
F) A) and C)

Question 13

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Accepted Answer

A) True 
 B)False

Question 14

_____________ 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 intelligenceE) B) and C)
F) B) and D)

Question 15

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Two of the key inputs to developing forecasts discussed in the text are

Accepted Answer

A)  environmental scanning and stakeholder identification.
B)  assessing internal strengths and environmental scanning.
C)  environmental scanning and competitive intelligence.
D)  environmental scanning and a SWOT analysis.E) A) and B)
F) B) and C)

Question 18

Five-forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted.

Accepted Answer

A) True 
 B)False

Question 19

Competition tends to be more intense among firms within a strategic group than between strategic groups.

Accepted Answer

A) True 
 B)False

Question 20

Incumbent firms may enjoy increased bargaining power because the Internet

Accepted Answer

A)  focuses marketing efforts on end users.
B)  has reduced the number of wholesalers and distributors.
C)  increases channel conflict.
D)  diminishes the power of many distribution channel intermediaries.E) C) and D)
F) A) and D)

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

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Correct AnswerverifiedShow Answer

Competition tends to be more intense among firms within a strategic group than between strategic groups.

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

Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________.

Correct AnswerverifiedShow Answer

Incumbent firms may enjoy increased bargaining power because the Internet

Correct AnswerverifiedShow Answer

Which of the following statements about strategic groups is false?

Correct AnswerverifiedShow Answer

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve

Correct AnswerverifiedShow Answer

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

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

Two of the key inputs to developing forecasts discussed in the text are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Five-forces analysis implicitly assumes a zero-sum game, a perspective that can be short-sighted.

Correct AnswerverifiedShow Answer

Boards of directors use outsiders to critique their strategy. This is necessary to improve mostly

Correct AnswerverifiedShow Answer

Scenario analysis is a superficial approach to forecasting that seeks to explore possible developments that many only be connected to the past.

Correct AnswerverifiedShow Answer

Elements of the five forces can be quantified. This is important for analyzing industry structure. Which of the following is not an example of an element that can be quantified?

Correct AnswerverifiedShow Answer

Product differentiation by incumbents act as an entry barrier because

Correct AnswerverifiedShow Answer

Complements are products or services that have a potential impact on the _________ of the products or services of that company.

Correct AnswerverifiedShow Answer

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Correct AnswerverifiedShow Answer

Underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Scenario planning is a useful technique for firms competing in industries characterized by and __.

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