Question 1

The ______ environment is composed of dimensions in the broader society that can influence an industry and the firms within it.

Accepted Answer

A)  general 
B)  competitor 
C)  sociocultural 
D)  industry

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

All of the following are examples of efforts by firms to address the physical segment of the general:

Accepted Answer

A)  development of sustainable packaging by McDonald's. 
B)  reduction in carbon dioxide emissions by Procter & Gamble. 
C)  reduction in water usage in plants by Unilever. 
D)  increase in hiring of women and minorities at Microsoft.

Question 4

An analysis of income distribution would include all of the following EXCEPT:

Accepted Answer

A)  the purchasing power of various age groups. 
B)  the discretionary income of various ethnic groups. 
C)  wage differentials between male and female employees working for a large manufacturer. 
D)  how income is distributed among regions of the United States.

Question 5

The concepts of Guanxi, Wa, and Inhwa all convey the general idea of:

Accepted Answer

A)  entrepreneurial risk-taking. 
B)  interpersonal relationships. 
C)  the value of hard work. 
D)  personal achievement.

Question 6

The competition within each strategic group is:

Accepted Answer

A)  more intense than the competition between strategic groups. 
B)  less intense than the competition between strategic groups. 
C)  typically very low. 
D)  an unknown factor in the analysis of competitive practices within a firm's strategic group.

Question 7

What do firms need to know about their competitors? What legal and ethical intelligence-gathering techniques can be used to obtain this information?

Accepted Answer

The answer of What do firms need to know about...

Question 8

Globalfocusing is often used by firms with high levels of international operations who further increase their internationalization by focusing on global niche markets.

Accepted Answer

A) True 
 B)False

Question 9

DWK Foods has developed a line of cookies and candies sweetened exclusively with organic honey. Although DWK is selling some of the products over the Internet, in order to gain economies of scale the products must be sold in retail outlets as well. The main barrier to entry DWK is likely to encounter here is:

Accepted Answer

A)  government licensing and permits. 
B)  access to distribution channels. 
C)  consumers' switching costs. 
D)  cost disadvantages independent of scale.

Question 10

A general environmental analysis can be expected to produce all of the following EXCEPT:

Accepted Answer

A)  objective answers. 
B)  recognition of environmental trends. 
C)  identification of organizational opportunities. 
D)  identification of organizational threats.

Question 11

All of the following are implications of strategic groups EXCEPT:

Accepted Answer

A)  the strength of the five forces differs 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.

Question 12

The communications industry is broadly defined as encompassing all of the following EXCEPT:

Accepted Answer

A)  media companies. 
B)  smartphone producers. 
C)  book retailers. 
D)  entertainment companies.

Question 13

BP, in response to the Deepwater Horizon oil spill, expected increased scrutiny from which of the following segments of the general environment?

Accepted Answer

A)  political/legal 
B)  global 
C)  technological 
D)  sociocultural

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Global warming and energy consumption trends are aspects of the ______ segment of the general environment that firms should monitor.

Accepted Answer

A)  technological 
B)  physical 
C)  sociocultural 
D)  economic

Question 16

The threat from substitutes is high when:

Accepted Answer

A)  switching costs are high. 
B)  the substitute product's price is lower than the industry product's price. 
C)  the quality of the substitute product is lower than the quality of the industry's product. 
D)  the substitute product stimulates new process innovations within the industry.

Question 17

In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owners fail to take into account when they began selling the lingerie?

Accepted Answer

A)  the sociocultural segment 
B)  the economic segment 
C)  the demographic segment 
D)  the political/legal segment

Question 18

How is consolidation among fuel providers serving airport facilities viewed in the five forces model of competition?

Accepted Answer

A)  As a reduction of the airlines' ability to benefit from economies of scale. 
B)  As an increase in switching costs because the airlines have no choice but to use jet fuel and other oil products. 
C)  As an increase in the bargaining power of suppliers of a critical input. 
D)  As an increase in the intensity of rivalry among airlines for scarce resources.

Question 19

An analysis of society's attitudes and values would be conducted when studying the ______ segment of the general environment.

Accepted Answer

A)  sociocultural 
B)  global 
C)  demographic 
D)  economic

Question 20

Contrary to popular belief, the global segment of the external environment does not provide many opportunities for firms that recently experienced low growth and profits coming from emerging markets.

Accepted Answer

A) True 
 B)False

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

The ______ environment is composed of dimensions in the broader society that can influence an industry and the firms within it.

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

All of the following are examples of efforts by firms to address the physical segment of the general:

An analysis of income distribution would include all of the following EXCEPT:

The concepts of Guanxi, Wa, and Inhwa all convey the general idea of:

The competition within each strategic group is:

What do firms need to know about their competitors? What legal and ethical intelligence-gathering techniques can be used to obtain this information?

Globalfocusing is often used by firms with high levels of international operations who further increase their internationalization by focusing on global niche markets.

A general environmental analysis can be expected to produce all of the following EXCEPT:

All of the following are implications of strategic groups EXCEPT:

The communications industry is broadly defined as encompassing all of the following EXCEPT:

BP, in response to the Deepwater Horizon oil spill, expected increased scrutiny from which of the following segments of the general environment?

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

Global warming and energy consumption trends are aspects of the ______ segment of the general environment that firms should monitor.

The threat from substitutes is high when:

How is consolidation among fuel providers serving airport facilities viewed in the five forces model of competition?

An analysis of society's attitudes and values would be conducted when studying the ______ segment of the general environment.

Contrary to popular belief, the global segment of the external environment does not provide many opportunities for firms that recently experienced low growth and profits coming from emerging markets.