Question 1

Without reasonable assumptions,the strategy- formulation process could not proceed effectively.

Accepted Answer

Reasonable assumptions are necessary for the strategy-formulation process to proceed effectively as they provide a basis for decision-making and help in developing relevant goals and objectives. Without assumptions, the process would lack direction and clarity, making it difficult to come up with a viable strategy.

Question 2

Linear regression is a popular technique for qualitative forecasts.

Accepted Answer

Linear regression is a technique for quantitative forecasts, which involves predicting a continuous numerical value based on a set of independent variables. It is not suitable for qualitative forecasting, which involves predicting categorical or non-numerical outcomes.

Question 3

The first step for using Porter's Five- Forces Model is to evaluate the relative strength of each competitive force.

Accepted Answer

The answer of The first step for using Porter's Five-...

Question 4

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher- quality products,lower prices and substantial marketing resources.

Accepted Answer

Significant barriers to entry may deter some new firms from entering an industry, but it does not guarantee that no new firms will enter the industry. Some new firms may still enter the industry with higher quality products, lower prices, and substantial marketing resources, which can be very attractive to consumers. However, these new firms may face challenges in overcoming the existing barriers to entry and competing with established firms.

Question 5

Five major categories of external variables are: 1)economic forces; 2)social and cultural forces; 3)political,governmental and legal forces; 4)technological forces; and 5)demographic forces.

Accepted Answer

The answer of Five major categories of external variables are:...

Question 6

Because companies are fearful of corporate espionage,cooperative agreements between competitors are becoming less popular.

Accepted Answer

The answer of Because companies are fearful of corporate espionage,cooperative...

Question 7

Forecasts are educated assumptions about future trends and events.

Accepted Answer

Forecasts use available data and analysis to make informed guesses about what may happen in the future. While not guaranteed to be accurate, they are based on evidence and are meant to give insight into potential outcomes.

Question 8

Learning from the partner is a major reason why Asian and European firms enter into cooperative agreements.

Accepted Answer

Learning from the partner is one of the main reasons why firms from different countries enter into cooperative agreements. This allows them to gain new knowledge, skills, and capabilities that can enhance their existing capabilities and help them compete more effectively in their respective markets. Expanding into new markets, accessing new technology or resources, and sharing risks and costs are other potential benefits of such agreements.

Question 9

With about 60 percent of its population under 25 years of age,the Arab world is one of the most youthful regions in the world.

Accepted Answer

The statement is true according to United Nations data.

Question 10

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix,the highest possible total weighted score for an organization is 4.0,and the lowest possible total weighted score is 0.0.

Accepted Answer

The answer of Regardless of the number of key opportunities...

Question 11

Internal opportunities can be represented by major competitors' weaknesses.

Accepted Answer

The answer of Internal opportunities can be represented by major...

Question 12

Globalization is a process of worldwide integration of strategy formulation,implementation and evaluation activities.

Accepted Answer

Globalization refers to the integration of economies, societies, and cultures of countries around the world, and it affects strategy formulation, implementation, and evaluation activities on a global scale. Therefore, the statement is true.

Question 13

In 2050,approximately a quarter of the populations are expected to be aged 60 years and older in five Arab countries.

Accepted Answer

According to the United Nations, by 2050, approximately a quarter of the populations in Bahrain, Oman, Saudi Arabia, Tunisia, and the United Arab Emirates are expected to be aged 60 years and older.

Question 14

Economic factors do not have much impact on the attractiveness of strategies.

Accepted Answer

Economic factors have a significant impact on the attractiveness of strategies. Factors such as inflation, interest rates, labor costs, and consumer spending can all influence the success or failure of a strategy. Companies need to consider these economic factors when developing and implementing their strategies.

Question 15

In Arab countries that are oil producers,government expenditures increase and jobs become more readily available when oil revenues increase.

Accepted Answer

Arab countries that are oil producers heavily rely on oil revenues to fund their government expenditures, including infrastructure and public service programs, and to provide jobs through state-run companies. When oil revenues increase, the government has more money to spend and is able to create more jobs.

Question 16

The Arab world,in general,has a high rate of birth; and the youth demographic group is one of the largest in the population.

Accepted Answer

According to data from the United Nations, the Arab world has a high fertility rate and a high proportion of the population under the age of 25.

Question 17

An external audit focuses on identifying and evaluating trends and events within the control of management.

Accepted Answer

An external audit focuses on evaluating the financial statements and internal controls of a company, and is conducted by an independent third party outside of the organization. It is not within the control of management.

Question 18

It is clear that different industries become domestic for different reasons.

Accepted Answer

The answer of It is clear that different industries become...

Question 19

Competition in virtually all industries can be described as intense,and sometimes as cutthroat in the Arab world.

Accepted Answer

Intense competition is a characteristic of most industries in the Arab world, as businesses compete for market share and economic growth.

Question 20

Quantitative forecasts become less accurate as historical relationships become less stable.

Accepted Answer

Quantitative forecasts rely on historical relationships and patterns to make predictions. If these relationships and patterns change, the forecasts become less accurate. Therefore, as historical relationships become less stable, quantitative forecasts become less accurate.

Quiz 3: The External Assessment