Deck 4: The External Environment
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/83
Play
Full screen (f)
Deck 4: The External Environment
1
The factors beyond the control of the firm that influence its choice of direction and action,organizational structure and internal processes refers to
A)Directional strategies
B)External environment
C)Organizational processes
D)Internal environment
A)Directional strategies
B)External environment
C)Organizational processes
D)Internal environment
B
2
Which environment compromises factors in the immediate competitive situation that affect a firm's success in acquiring needed resources?
A)Industry
B)Remote
C)Economic
D)Operating
A)Industry
B)Remote
C)Economic
D)Operating
D
3
A firm's external environment includes a remote sector,industry sector and an operating sector.The remote sector includes which of the following categories?
A)Political,technological,economic and social
B)Political,supplier power,economic and labor
C)State government,production,social and economic
D)Mission,company profile and competition
A)Political,technological,economic and social
B)Political,supplier power,economic and labor
C)State government,production,social and economic
D)Mission,company profile and competition
A
4
The external environment can be divided into various subcategories:
A)Remote,political,social
B)Remote,social,operational
C)Remote,industry,operating
D)Technological and social
A)Remote,political,social
B)Remote,social,operational
C)Remote,industry,operating
D)Technological and social
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
5
The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organizations operation refers to
A)Technological forecasting
B)Ecology
C)Industry environment
D)Operating environment
A)Technological forecasting
B)Ecology
C)Industry environment
D)Operating environment
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
6
The remote external environment includes:
A)Creditors
B)Industry factors
C)Employee
D)Ecological factors
A)Creditors
B)Industry factors
C)Employee
D)Ecological factors
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
7
Which of these is NOT an example of a federal ecological legislation?
A)Air Quality Act
B)Refuse Act
C)Occupational Safety and Health Act
D)Resource Recovery Act
A)Air Quality Act
B)Refuse Act
C)Occupational Safety and Health Act
D)Resource Recovery Act
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
8
Political activity may have a significant impact on which of the following governmental functions?
A)Religious orientation
B)Customer function
C)Manufacturer function
D)Social changes
A)Religious orientation
B)Customer function
C)Manufacturer function
D)Social changes
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
9
The term ______ refers to the relationships among human beings and other living things and the air,soil and water that supports them.
A)Pollution
B)Ecology
C)Operating environment
D)Remote environment
A)Pollution
B)Ecology
C)Operating environment
D)Remote environment
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
10
The ______ environment compromises factors that originate beyond and usually irrespective of,any single firm's operating situation.
A)Remote
B)Industry
C)Operating
D)Internal
A)Remote
B)Industry
C)Operating
D)Internal
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
11
One of the most profound social changes in recent years is:
A)The decreased population
B)An increasing number of women in the workforce
C)The heavy reliability of children in the workforce
D)Increased education of U.S.citizens
A)The decreased population
B)An increasing number of women in the workforce
C)The heavy reliability of children in the workforce
D)Increased education of U.S.citizens
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
12
Supplier power is an example of a factor that falls within the _________ environment.
A)Economic
B)Operating
C)Industry
D)Remote
A)Economic
B)Operating
C)Industry
D)Remote
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
13
Awareness of technological changes in its industry helps the firm to:
A)Interpret new regulations
B)Act slowly and carefully
C)Exploit new markets
D)Forecast social change
A)Interpret new regulations
B)Act slowly and carefully
C)Exploit new markets
D)Forecast social change
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
14
Threats to life-supporting ecology caused principally by human activities is an industrial society are commonly referred to as
A)Technology
B)Co-efficiency
C)Pollution
D)Product differentiation
A)Technology
B)Co-efficiency
C)Pollution
D)Product differentiation
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
15
The considerations involving the beliefs,values,attitudes and opinions of those in a firm's environment represent the ______.
A)Social factors
B)Personal factors
C)Economic factors
D)Political factors
A)Social factors
B)Personal factors
C)Economic factors
D)Political factors
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
16
Political factors define the ______ parameters within which firms must operate.
A)Economic
B)Legal and regulatory
C)Global
D)Social and cultural
A)Economic
B)Legal and regulatory
C)Global
D)Social and cultural
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
17
A profound social change in the recent years has been
A)The accelerating interest of consumers and employers in quality of life issue
B)The decelerating interest of foreigners seeking jobs and immigrant status in the U.S.
C)The remarkably high placement of U.S.high school education in math and science in the world
D)The global warming effect
A)The accelerating interest of consumers and employers in quality of life issue
B)The decelerating interest of foreigners seeking jobs and immigrant status in the U.S.
C)The remarkably high placement of U.S.high school education in math and science in the world
D)The global warming effect
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
18
Encompassed in political considerations is/are:
A)Social values
B)Disposable income
C)Anti-trust laws
D)Age distribution
A)Social values
B)Disposable income
C)Anti-trust laws
D)Age distribution
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
19
When we consider the level of disposable income,we are normally considering:
A)Technological factors
B)Economic factors
C)Political factors
D)Social factors
A)Technological factors
B)Economic factors
C)Political factors
D)Social factors
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
20
Business is now being held responsible for:
A)Using only underground dumping sites
B)Cleaning up its previous environmental damage
C)Municipal sewer systems
D)Ensuring that a "thermal blanket" is created
A)Using only underground dumping sites
B)Cleaning up its previous environmental damage
C)Municipal sewer systems
D)Ensuring that a "thermal blanket" is created
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
21
All of these are key characteristics of eco-efficient corporations EXCEPT
A)Eco-efficiency is insular
B)Eco-efficient firms are proactive
C)Eco-efficiency is designed in
D)Flexibility is imperative for eco-efficient strategy implementation
A)Eco-efficiency is insular
B)Eco-efficient firms are proactive
C)Eco-efficiency is designed in
D)Flexibility is imperative for eco-efficient strategy implementation
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
22
Which of these represent a key characteristic of eco-efficient corporations?
A)Eco-efficient firms are reactive
B)Eco-efficiency is added on
C)Flexibility is imperative for eco-efficient strategy implementation
D)Eco-efficiency is insular
A)Eco-efficient firms are reactive
B)Eco-efficiency is added on
C)Flexibility is imperative for eco-efficient strategy implementation
D)Eco-efficiency is insular
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
23
Differentiation of inputs represents a determinant of
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
24
The state of competition is an industry,according to Porter,depends on ______ basic forces.
A)3
B)5
C)8
D)2
A)3
B)5
C)8
D)2
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
25
Which of the following factors is NOT commonly seen as fostering brand identification?
A)Being first in the industry
B)Product differences
C)Customer service
D)Customer credit
A)Being first in the industry
B)Product differences
C)Customer service
D)Customer credit
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
26
New entrants to an industry bring:
A)New capacity
B)New customers
C)Few resources
D)Bigger margins
A)New capacity
B)New customers
C)Few resources
D)Bigger margins
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
27
When aspirants are forced to accept either a large scale disadvantage of a cost disadvantage,they are face with problems of:
A)Product differentiation
B)Cost disadvantage and economies of scale
C)Capital requirements
D)Distribution
A)Product differentiation
B)Cost disadvantage and economies of scale
C)Capital requirements
D)Distribution
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
28
Brand identity is a determinant of which of these forces driving industry competition?
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
29
Access to distribution channels is a major source of which competitive force?
A)Bargaining power of buyers
B)Threat of entry
C)Threat of substitute products
D)Bargaining power of suppliers
A)Bargaining power of buyers
B)Threat of entry
C)Threat of substitute products
D)Bargaining power of suppliers
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
30
Collectively,competitive forces determine the ultimate:
A)Growth of a firm
B)Survival of a firm
C)Profitability of a firm
D)Viability of a firm
A)Growth of a firm
B)Survival of a firm
C)Profitability of a firm
D)Viability of a firm
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
31
Company actions that produce more useful goods and services while continuously reducing recourse consumption and pollution refers to
A)Product differentiation
B)Economics of scale
C)Barriers to entry
D)Eco-efficiency
A)Product differentiation
B)Economics of scale
C)Barriers to entry
D)Eco-efficiency
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
32
Which of the following is a factor that does NOT foster brand identification?
A)Advertising
B)Customer service
C)Product differences
D)Price
A)Advertising
B)Customer service
C)Product differences
D)Price
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
33
Economies of scale in an industry refers to:
A)Savings that companies within the industry achieve due to increased volume
B)Declining average short run costs per unit
C)Improved contractual agreements with suppliers in the near term
D)Decreased barriers to entry to new firms attempting to enter the industry
A)Savings that companies within the industry achieve due to increased volume
B)Declining average short run costs per unit
C)Improved contractual agreements with suppliers in the near term
D)Decreased barriers to entry to new firms attempting to enter the industry
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
34
One of the most important steps a firm can take in achieving a competitive position with regard to the eco-efficiency strategy is to
A)Outsource the operations to a developing country
B)Fully capitalize on technological developments
C)Shift from service to manufacturing operations
D)Mandate that all suppliers,distributors and customers reduce their resource consumption
A)Outsource the operations to a developing country
B)Fully capitalize on technological developments
C)Shift from service to manufacturing operations
D)Mandate that all suppliers,distributors and customers reduce their resource consumption
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
35
Which of these,according to Porter is NOT a force driving industry competition?
A)Threat of new entrants
B)Bargaining power of buyers
C)Bargaining power of distributors
D)Threat of substitutes
A)Threat of new entrants
B)Bargaining power of buyers
C)Bargaining power of distributors
D)Threat of substitutes
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
36
Which of these is a determinant of entry,according to Porter?
A)Presence of substitute input
B)Ability to backward integrate
C)Exit barriers
D)Economies of scale
A)Presence of substitute input
B)Ability to backward integrate
C)Exit barriers
D)Economies of scale
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
37
Which of the following is NOT a major barrier to entry?
A)Economies of scale
B)Product differentiation
C)Market breadth
D)Cost disadvantages independent of size
A)Economies of scale
B)Product differentiation
C)Market breadth
D)Cost disadvantages independent of size
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
38
Barriers to entry:
A)Can be cyclical
B)Can involve the legal constraints leveling the playing field
C)Can include customer loyalty
D)Are not important to small firms
A)Can be cyclical
B)Can involve the legal constraints leveling the playing field
C)Can include customer loyalty
D)Are not important to small firms
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
39
Which is perhaps the most important entry barrier in the soft drink,over-the-counter drugs,cosmetics,investment banking and public account industries?
A)Capital requirements
B)Market differentiation
C)Economies of scale
D)Product differentiation
A)Capital requirements
B)Market differentiation
C)Economies of scale
D)Product differentiation
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
40
In the economists' "perfectly competitive" industry jockeying for position is unbridled and entry to the industry is
A)Very easy
B)Prohibited by regulations
C)Moderated due to national security concerns
D)Very hard
A)Very easy
B)Prohibited by regulations
C)Moderated due to national security concerns
D)Very hard
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
41
A buyer group is powerful if:
A)It earns low profits
B)The industry's product is important to the quality of the buyer's products or services
C)The industry's product saves the buyer money
D)It is not concentrated
A)It earns low profits
B)The industry's product is important to the quality of the buyer's products or services
C)The industry's product saves the buyer money
D)It is not concentrated
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
42
Substitute products that deserve the most attention strategically are those that are:
A)Subject to trends
B)Produced by industries earning low profits
C)Most expensive to produce
D)Slow coming into play
A)Subject to trends
B)Produced by industries earning low profits
C)Most expensive to produce
D)Slow coming into play
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
43
Highly profitable buyers are usually:
A)Less price sensitive
B)More price sensitive
C)Very quantity oriented
D)Not very quantity oriented
A)Less price sensitive
B)More price sensitive
C)Very quantity oriented
D)Not very quantity oriented
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
44
The learning curve effect is an example of which barrier to entry?
A)Cost disadvantages independent of size
B)Product differentiation
C)Economies of scale
D)Government policy
A)Cost disadvantages independent of size
B)Product differentiation
C)Economies of scale
D)Government policy
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
45
Entrenched companies may have cost advantages not available to potential rivals.This is an example of:
A)Capital requirements
B)Cost disadvantage independent of size
C)Economies of scale
D)Government policy
A)Capital requirements
B)Cost disadvantage independent of size
C)Economies of scale
D)Government policy
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
46
Exit barriers represent a determinant of
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
A)Entry
B)Rivalry
C)Buyer power
D)Supplier power
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
47
A supplier group is powerful if:
A)Its product is undifferentiated
B)Its product is unique
C)Its market is unique
D)It must contend with other products
A)Its product is undifferentiated
B)Its product is unique
C)Its market is unique
D)It must contend with other products
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
48
The power of each supplier depends on:
A)Low concentration
B)Its commodity-like product
C)Relative importance of purchases
D)Its inability to integrate forward
A)Low concentration
B)Its commodity-like product
C)Relative importance of purchases
D)Its inability to integrate forward
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
49
Suppliers can exert bargaining power on participants in an industry by:
A)Stabilizing their cost bas
B)Lowering prices
C)Raising prices
D)Increasing the quality of services
A)Stabilizing their cost bas
B)Lowering prices
C)Raising prices
D)Increasing the quality of services
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
50
Which of the following are considered competitors?
A)Low substitutability products
B)Firms with dissimilar scope
C)Substitute products
D)Uncommitted firms
A)Low substitutability products
B)Firms with dissimilar scope
C)Substitute products
D)Uncommitted firms
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
51
The need to invest large financial resources in order to compete creates
A)Increased supplier power
B)Increased buyer power
C)Increased jockeying for position
D)A barrier to entry
A)Increased supplier power
B)Increased buyer power
C)Increased jockeying for position
D)A barrier to entry
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
52
Which of the following can limit or even foreclose entry to industries with such controls as license requirements?
A)Equal opportunity employer
B)Federal trade commission
C)Government policy
D)Securities and exchange commission
A)Equal opportunity employer
B)Federal trade commission
C)Government policy
D)Securities and exchange commission
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
53
A supplier group is powerful if:
A)It is not concentrated
B)It is not obligated to contend with other products for sale to the industry
C)Raw materials are the major input cost
D)Its product is not unique
A)It is not concentrated
B)It is not obligated to contend with other products for sale to the industry
C)Raw materials are the major input cost
D)Its product is not unique
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
54
As an industry matures,its:
A)Growth rate is unchanged
B)Profits are higher
C)Growth rate changes
D)New firms enter
A)Growth rate is unchanged
B)Profits are higher
C)Growth rate changes
D)New firms enter
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
55
Rivalry among existing competitors takes the familiar form of:
A)Substitute products
B)Jockeying for position
C)Positioning the company
D)Influencing the balance
A)Substitute products
B)Jockeying for position
C)Positioning the company
D)Influencing the balance
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
56
In intense competitive rivalry,barriers to exit are:
A)High
B)Low
C)Medium
D)Changing
A)High
B)Low
C)Medium
D)Changing
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
57
Customers have the power to:
A)Raise prices
B)Demand higher quality
C)Lower service quality
D)Coordinate competitors
A)Raise prices
B)Demand higher quality
C)Lower service quality
D)Coordinate competitors
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
58
If price ceilings exist,substitute products are limited,unless:
A)The quality of the product can be reduced
B)The quality of the product can be upgraded
C)The quantities of the product available can be increased
D)The product can not be differentiated
A)The quality of the product can be reduced
B)The quality of the product can be upgraded
C)The quantities of the product available can be increased
D)The product can not be differentiated
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
59
Cost disadvantages independent of size is a factor relevant to
A)Threat of new entrants
B)Powerful suppliers
C)Jockeying for position
D)Powerful buyers
A)Threat of new entrants
B)Powerful suppliers
C)Jockeying for position
D)Powerful buyers
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
60
A buyer group is powerful if:
A)The buyers pose a credible threat to make the industry's product
B)The industry product saves the buyer money
C)It earns high profit
D)The industry has high exit barriers
A)The buyers pose a credible threat to make the industry's product
B)The industry product saves the buyer money
C)It earns high profit
D)The industry has high exit barriers
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
61
In intense rivalry among manufacturing firms,fixed costs are:
A)High
B)Low
C)Medium
D)Less critical than variable costs
A)High
B)Low
C)Medium
D)Less critical than variable costs
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
62
The environment that is typically subject to much influence by the firm is:
A)External
B)Ecological
C)Remote
D)Operating
A)External
B)Ecological
C)Remote
D)Operating
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
63
Which one of the following is a tactic typically used by firms to jockey for position?
A)Economies of scale
B)Advertising slugfests
C)Access to distribution
D)Product withdrawal
A)Economies of scale
B)Advertising slugfests
C)Access to distribution
D)Product withdrawal
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
64
The operating environment:
A)Also called the remote environment
B)Also called the social environment
C)Affects the firm's success in resource acquisition
D)Does not include competitive position
A)Also called the remote environment
B)Also called the social environment
C)Affects the firm's success in resource acquisition
D)Does not include competitive position
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
65
In intense competition,competitors are characteristically:
A)Few
B)Of unequal power
C)Equal in size
D)Not foreign
A)Few
B)Of unequal power
C)Equal in size
D)Not foreign
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
66
The starting point for industry definition is
A)The firm's mission statement
B)A focus group session with the firm's top managers
C)The federal government's definition of the industry
D)A definition of the industry in global terms
A)The firm's mission statement
B)A focus group session with the firm's top managers
C)The federal government's definition of the industry
D)A definition of the industry in global terms
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
67
Included in a competitor profile is:
A)Psychographic
B)Supplier relations
C)Experience
D)Demographic
A)Psychographic
B)Supplier relations
C)Experience
D)Demographic
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
68
Which one of the following is NOT a tactic used by competitors when they jockey for position?
A)Price competition
B)Reduced advertising
C)Advertising slugfests
D)Product introduction
A)Price competition
B)Reduced advertising
C)Advertising slugfests
D)Product introduction
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
69
Which of the following is NOT a reason why defining an industry's boundaries is important?
A)It helps executives determine the arena in which their firm is competing
B)It focuses attention on the firm's competitors
C)It helps executives determine key factors for success
D)Stakeholders demand it
A)It helps executives determine the arena in which their firm is competing
B)It focuses attention on the firm's competitors
C)It helps executives determine key factors for success
D)Stakeholders demand it
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
70
While developing the customer profile,it is important to include:
A)Psychographic information
B)Market share
C)Experience
D)Management image
A)Psychographic information
B)Market share
C)Experience
D)Management image
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
71
Defining industry boundaries is a very difficult task because
A)Industry evolution creates industries within industries
B)Industries are becoming very narrow in scope
C)Industries do not evolve over time
D)Industries remain static over time
A)Industry evolution creates industries within industries
B)Industries are becoming very narrow in scope
C)Industries do not evolve over time
D)Industries remain static over time
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
72
A valuable result of task environment analysis with respect to geographic,demographic,psychographic and buyer-behavior factors is called:
A)Market share analysis
B)Customer profile
C)Competitive edge
D)Consumer/surveys
A)Market share analysis
B)Customer profile
C)Competitive edge
D)Consumer/surveys
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
73
Designing viable strategies for a firm requires a thorough understanding of the firm's industry and competition.Which one of the following is NOT a question the firm's executives need to address?
A)Who are our customers?
B)What are the boundaries of the industry?
C)What is the structure of the industry?
D)Which firms are our competitors?
A)Who are our customers?
B)What are the boundaries of the industry?
C)What is the structure of the industry?
D)Which firms are our competitors?
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
74
Industry growth has what characteristic(s)intense competitive rivalry?
A)Fast growth
B)Moderate growth
C)Slow growth
D)Sporadic growth
A)Fast growth
B)Moderate growth
C)Slow growth
D)Sporadic growth
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
75
Designing viable strategies for a firm requires a thorough understanding of the firm's:
A)Earnings
B)Growth rate
C)Market share
D)Competition
A)Earnings
B)Growth rate
C)Market share
D)Competition
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
76
In considering the competition's profile,a firm would NOT be concerned with which of the following?
A)Market share and breadth of product line
B)Facility location and production capacity
C)Financial position and caliber of personnel
D)Salary of the chief executive and board of directors
A)Market share and breadth of product line
B)Facility location and production capacity
C)Financial position and caliber of personnel
D)Salary of the chief executive and board of directors
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
77
In intense rivalry,rivals are:
A)Similar in strategies
B)Diverse in origins
C)Similar in personality
D)Few
A)Similar in strategies
B)Diverse in origins
C)Similar in personality
D)Few
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
78
High fixed costs is a factor in which of the five forces?
A)Threat of entry
B)Substitute products
C)Jockeying for position
D)Powerful suppliers
A)Threat of entry
B)Substitute products
C)Jockeying for position
D)Powerful suppliers
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
79
A firm can more accurately forecast both its long-term and short-term growth and profit potential by developing its:
A)Competitor profile
B)Financial position
C)Technological innovation
D)Vendor profile
A)Competitor profile
B)Financial position
C)Technological innovation
D)Vendor profile
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck
80
The definition of an industry's boundaries is important because
A)It has to be included in the mission statement
B)It helps executives determine the arena in which their firm is competing
C)It has to be reported to stockholders
D)It helps set the prices for the firm's products
A)It has to be included in the mission statement
B)It helps executives determine the arena in which their firm is competing
C)It has to be reported to stockholders
D)It helps set the prices for the firm's products
Unlock Deck
Unlock for access to all 83 flashcards in this deck.
Unlock Deck
k this deck