Question 1

Which of the following is NOT an entry barrier to an industry?

Accepted Answer

A)   expected competitor retaliation
B)   economies of scale
C)   customer product loyalty
D)   bargaining power of suppliersE) None of the above
F) A) and C)

Question 2

In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the five forces model of competition.

Accepted Answer

A)   a reduction of the airlines' abilities to enjoy economies of scale
B)   an increase in switching costs because the airlines have no choice but to use jet fuel and other oil products
C)   an increase in the bargaining power of suppliers of a critical input
D)   an increase in the intensity of rivalry among airlines for scarce resourcesE) All of the above
F) None of the above

Question 3

In recent times, businesspeople have become more confident in the ability of economists to provide valid and reliable predictions about the world's economic environment.

Accepted Answer

A) True 
 B)False

Question 4

Describe and discuss the four activities of the external environmental analysis process.

Accepted Answer

The external environmental analysis proc...

Question 5

The large expenditures on advertising by firms such as Procter & Gamble and Colgate-Palmolive is an example of what kind of barrier to entry?

Accepted Answer

A)   Access to distribution channels.
B)   Capital requirements.
C)   Economies of scale.
D)   Product differentiation.E) A) and D)
F) None of the above

Question 6

The next critical technological opportunity for organizations is predicted to be

Accepted Answer

A)   the Internet.
B)   multiphasic interventions.
C)   biological engineering.
D)   wireless communications.E) A) and D)
F) B) and D)

Question 7

When Delta airlines wants to study Continental Airlines, it must examine both Continental and its complementor, Star Alliance.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT an activity used in the external environmental analysis process?

Accepted Answer

A)   Scanning
B)   Decrypting
C)   Monitoring
D)   AssessingE) B) and D)
F) A) and B)

Question 9

Tablets such as the iPad have had little effect on the sale of PCs in the U.S. and PC producers such as Taiwan's Acer Computers have experienced significant growith.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following identified in an analysis of the general environment is an opportunity for an entrepreneur who wishes to open a business doing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training)  in a city of 100,000 people?

Accepted Answer

A)   the average age of the population in his community is high
B)   the level of unemployment in his community is high
C)   a chiropractor and two independent physical therapists are located in his community
D)   the average education level of the population in his community is lowE) A) and D)
F) B) and C)

Question 11

An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.

Accepted Answer

A) True 
 B)False

Question 12

An owner of a stable of racehorses has been earning below-average returns for over 15 years. To a colleague, he expressed his determination to stay in horse racing until he died because "racing is in my blood." This individual is probably still racing horses because of

Accepted Answer

A)   high barriers to exit.
B)   high switching costs.
C)   high fixed costs.
D)   low levels of competitive rivalry.E) None of the above
F) A) and B)

Question 13

All of the following are implications of strategic groups EXCEPT

Accepted Answer

A)   the strength of the five forces differ across strategic groups.
B)   the strength of the five forces is the same across strategic groups.
C)   competitive rivalry within strategic groups is greater than between strategic groups.
D)   the closer the strategic groups are in terms of strategies, the greater is the likelihood of rivalry.E) B) and C)
F) A) and D)

Question 14

Producing and selling "green" (environmentally friendly) products is one way that companies have responded to pressures from the physical environment (Chapter 2 Strategic Focus).

Accepted Answer

A) True 
 B)False

Question 15

Economies of scale refer to the fact that as the

Accepted Answer

A)   quantity of product produced in a given time period increases, the cost of manufacturing each unit increases.
B)   quantity of product produced in a given time period increases, the cost of manufacturing each unit remains constant.
C)   quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.
D)   quantity of product produced in a given time period decreases, the cost of manufacturing each unit decreases.E) A) and B)
F) A) and C)

Question 16

The industry environment directly influences the firm and its competitive actions and responses.

Accepted Answer

A) True 
 B)False

Question 17

Exit barriers to a firm include all of the following EXCEPT

Accepted Answer

A)   generic assets.
B)   loyalty to employees.
C)   governmental concern about job loss.
D)   restrictive labor agreements.E) All of the above
F) B) and C)

Question 18

The recent joint ventures formed by BP with Russian and Indian partners show the importance of the ___________ segment of the general environment that BP and other integrated oil firms have to deal when contending with scarce resources (Chapter 2 Opening Case) .

Accepted Answer

A)   political/legal
B)   physical
C)   demographic
D)   globalE) B) and C)
F) A) and D)

Question 19

To successfully deal with today's external environment and to achieve strategic competitiveness, firms must be aware and fully understand the different segments of that environment.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Correct AnswerverifiedShow Answer

Which of the following identified in an analysis of the general environment is an opportunity for an entrepreneur who wishes to open a business doing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people?

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 that BP and other integrated oil firms have to deal when contending with scarce resources (Chapter 2 Opening Case) .

Correct AnswerverifiedShow Answer

Economies of scale refer to the fact that as the

Correct AnswerverifiedShow Answer

An owner of a stable of racehorses has been earning below-average returns for over 15 years. To a colleague, he expressed his determination to stay in horse racing until he died because "racing is in my blood." This individual is probably still racing horses because of

Correct AnswerverifiedShow Answer

The industry environment directly influences the firm and its competitive actions and responses.

Correct AnswerverifiedShow Answer

The large expenditures on advertising by firms such as Procter & Gamble and Colgate-Palmolive is an example of what kind of barrier to entry?

Correct AnswerverifiedShow Answer

Tablets such as the iPad have had little effect on the sale of PCs in the U.S. and PC producers such as Taiwan's Acer Computers have experienced significant growith.

Correct AnswerverifiedShow Answer

Which of the following is NOT an entry barrier to an industry?

Correct AnswerverifiedShow Answer

In recent times, businesspeople have become more confident in the ability of economists to provide valid and reliable predictions about the world's economic environment.

Correct AnswerverifiedShow Answer

An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.

Correct AnswerverifiedShow Answer

All of the following are implications of strategic groups EXCEPT

Correct AnswerverifiedShow Answer

Describe and discuss the four activities of the external environmental analysis process.

Correct AnswerverifiedThe external environmental analysis proc...View AnswerShow Answer

The next critical technological opportunity for organizations is predicted to be

Correct AnswerverifiedShow Answer

Producing and selling "green" (environmentally friendly) products is one way that companies have responded to pressures from the physical environment (Chapter 2 Strategic Focus).

Correct AnswerverifiedShow Answer

To successfully deal with today's external environment and to achieve strategic competitiveness, firms must be aware and fully understand the different segments of that environment.

Correct AnswerverifiedShow Answer

Exit barriers to a firm include all of the following EXCEPT

Correct AnswerverifiedShow Answer

Which of the following is NOT an activity used in the external environmental analysis process?

Correct AnswerverifiedShow Answer

When Delta airlines wants to study Continental Airlines, it must examine both Continental and its complementor, Star Alliance.

Correct AnswerverifiedShow Answer

In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the five forces model of competition.

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
The external environmental analysis proc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified