Question 1

Technology is human knowledge about products and services and the ways they are made and delivered.

Accepted Answer

Technology is indeed human knowledge about products and services, including their production and delivery methods.

Question 2

The broad environment consists of all of the following except:
A)Technological trends
B)Political and legal forces
C)Competitors
D)Economic forces
E)Sociocultural forces

Accepted Answer

The broad environment includes technological trends, political and legal forces, economic forces, and sociocultural forces. However, competitors are part of the industry environment, which focuses on the specific industry in which a company operates.

Question 3

What is a primary reason that an organization should monitor the broad environment?
A)To anticipate concerns and trends
B)To determine the firm's internal strengths
C)To determine the firm's internal weaknesses
D)To identify key employees within the firm
E)To determine the firm's focus on manufacturing and materials management

Accepted Answer

Monitoring the broad environment can help an organization anticipate concerns and trends, which can inform strategic decision-making and help the organization adapt to changes in the marketplace.

Question 4

Organizations that are in a weak position relative to their suppliers can attempt to balance power through vertical integration.

Accepted Answer

Vertical integration involves acquiring or controlling the suppliers or distributors of a company. By doing so, the company reduces its dependence on external parties and gains more control over its supply chain. This can help balance power with suppliers who may have been in a stronger bargaining position before.

Question 5

Discriminating and demanding buyers in the home country of a firm can help the firm to succeed as it competes in foreign markets.

Accepted Answer

Discriminating and demanding buyers in the home country of a firm push the firm to produce high-quality products and services, making it more competitive in foreign markets where quality is often highly valued.

Question 6

Which of the following is part of the broad environment?
A)Competitors
B)Suppliers
C)Technological forces
D)Government agencies
E)Unions

Accepted Answer

Technological forces are considered part of the broad environment because they encompass the wider technological trends and developments that affect industries and markets on a large scale, beyond the immediate and direct interactions of a company.

Question 7

The three major forces that drive industry competition and profitability are government regulators,direct competitors and social forces.

Accepted Answer

The three major forces that drive industry competition and profitability, as identified by Michael Porter, are direct competitors, potential new entrants, and substitute products or services.

Question 8

Low levels of competition may be caused by high fixed costs.

Accepted Answer

The answer of Low levels of competition may be caused...

Question 9

Individual organizations typically have only a marginal impact on the broad environment.

Accepted Answer

Individual organizations usually have limited influence on the broader environment due to the scale and complexity of environmental systems, which are affected by numerous factors and actors globally.

Question 10

Analysis of society is important for all of the following reasons except:
A)Awareness of what is happening in society virtually guarantees that an organization will be able to successfully compete in its own industry
B)Most of the other stakeholder groups are also members of society
C)Awareness of and compliance with the attitudes of society can help an organization avoid problems associated with being a bad corporate citizen
D)Changes in society can provide opportunities for organizations
E)Correct assessment of social trends can help businesses avoid restrictive legislation

Accepted Answer

While analysis of society can certainly provide benefits such as avoiding problems associated with bad corporate citizenship, identifying opportunities for growth, and avoiding restrictive legislation, it does not guarantee success in an organization's industry. Success in the industry depends on a variety of factors such as competition, market demand, and innovation.

Question 11

The task environment consists of stakeholders with whom organizations interact on a fairly regular basis.

Accepted Answer

The task environment includes stakeholders such as customers, suppliers, competitors, and regulatory bodies with whom organizations interact frequently.

Question 12

An organization can typically have:
A)Little influence over events in its task environment
B)Little influence over major occurrences and patterns in the broad environment
C)Significant influence over major occurrences and patterns in the remote environment
D)Significant influence over major social trends
E)Significant influence on government policy in a nation as a whole

Accepted Answer

While an organization may have some influence over its task environment and may be able to adapt to changes in its remote environment, it generally has little influence over major occurrences and patterns in the broad environment. Factors such as economic conditions, technological advancements, and societal trends are often beyond an organization's control.

Question 13

Awareness of and compliance with the attitudes of society can help an organization avoid problems associated with a bad ethical reputation.

Accepted Answer

This is true because society's attitudes towards ethics and social responsibility can affect how stakeholders perceive an organization. If an organization behaves unethically or irresponsibly, it can harm its reputation, and result in negative consequences such as loss of customers, legal action, and public outcry. By being aware of and complying with societal norms and expectations, organizations can avoid these problems and maintain a good ethical reputation.

Question 14

The power of a single customer is greater when there are many customers than when there are few.

Accepted Answer

When there are few customers, each customer represents a larger percentage of the business's total sales, giving them more leverage and power over the business.

Question 15

A strategic group map involves plotting industry rivals based on two or more strategic dimensions that are important to the industry.

Accepted Answer

This is the correct definition of a strategic group map.

Question 16

The broad environment consists of sociocultural forces,competitive forces,technological trends,and political/legal forces.

Accepted Answer

The broad environment consists of sociocultural forces, technological trends, political/legal forces, and economic forces, not competitive forces. Competitive forces are part of the task environment.

Question 17

Exchange rates can influence the ability of a firm profitably to remove profits from foreign countries.

Accepted Answer

Exchange rates can directly impact the profitability of a firm operating in foreign countries. If the exchange rate of a foreign currency increases, it becomes more expensive for the firm to remove profits from that country. Conversely, if the exchange rate decreases, it becomes easier and more profitable for the firm to repatriate profits. Therefore, exchange rates can have a significant impact on a firm's bottom line.

Question 18

Government intervention in business is increasing worldwide.

Accepted Answer

This statement is true as many governments are enacting policies and regulations that affect businesses in different ways, such as setting minimum wage laws, imposing environmental regulations, and providing subsidies or tax incentives.

Question 19

The higher the entry barriers,the more intense is competition in an industry.

Accepted Answer

The higher the entry barriers, the more difficult it is for new competitors to enter the industry, which reduces competition.

Question 20

Industries may be defined as a group of organizations that compete directly with one another to win orders or sales in the marketplace.

Accepted Answer

This statement is true. Industries are made up of organizations that offer similar products or services and compete with each other in the marketplace.

Quiz 2: The External Environment