Which of the following is NOT an activity used in the external environmental Show
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This preview shows page 17 - 19 out of 52 pages. According to the Chapter 2 Opening Case on BP, in response to the Deepwater Horozon oil spill, the company should expect increased scrutiny coming from which of the following segments of the general environment?As noted in the Chapter 2 Opening Case, gas drilling and fracturing have dramatically increased gas reserves and may provide a substitute for other carbon dioxide producing products such as coal. This change illustrates the effect of the _____________segment of the general environment.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).Acme Valves, Inc., has been a successful player in the oil field supply industry in the last 15 years. Acme maintained its traditional strategy and product characteristics over this time period. But, Acme has experienced declines in sales and profits over the last four quarters. The CEO of Acme shouldconduct an analysis of the external environment.The three parts of the external environment which affect a firms strategic actions aregeneral, industry, and competitorThe ____ environment is composed of dimensions in the broader society that can influence an industry and the firms within it.The environmental segments that comprise the general environment typically will NOT includesubstitute products or servicesAardvark Corp. has three products. Two products together make up two-thirds of revenues and constitute 50 percent of company profits. Aardvark’s third product makes up one third of sales. With profitability far above the industry average, this product is responsible for one half of Aardvark’s profits. Which of the following statements regarding assessment of the general environment is accurate for Aardvark?The company should monitor the general environment for changes that might effect the revenue and profitability of all products.Which of the following is NOT an activity used in the external environmental analysis process?Environmental scanning would be most important for which of the following organizations?a web design company catering to small businessesThe use of the Internet by Netflix to collect data on customer preferences is an example ofWhen analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged inA general environmental analysis can be expected to produce all of the following EXCEPTIn analyzing the demographic segment of the general environment, one typically examines all of the following factors EXCEPTWhich 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?the average age of the population in his community is highAnalyzing income distribution would include all of the following EXCEPTwage differentials between male and female employees working for a large manufacturer.Demographic changes include variations in income distribution. Which of the following statements is true?The general loss in real income has been somewhat offset by the increase in dual-career couples.In the chapter discussion of the political legal segment of the general environment, it was noted that President Obama’s administration has sought to pursue policies that wouldreduce the amount of work U.S. companies outsource to firms in other nations.An analysis of the economic segment of the external environment would include all of the following EXCEPTthe move toward a contingent workforce.Characteristics of the current economic segment include all of the following EXCEPTa clear understanding of future economic opportunities and threats.The economic environment refers tothe nature and direction of the economy in which a firm competes or may compete.Which of the following would NOT be identified in an analysis of the economic portion of the general environment?The ability of Ford to issue new debt due to their recent financial performance.All of the following are aspects of the political/legal segment of the general environment EXCEPTAn analysis of society’s attitudes and values would be conducted when studying the ____ segment of the general environment.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 owner fail to take into account when she began selling the lingerie?The technological segment of environmental analysis includesinstitutions and activities involved with creating new knowledge and translating that knowledge into new outputs.Understanding how new knowledge can develop new products, processes, or materials is a result of analyzing the ____ segment of the general environment.The next critical technological opportunity for organizations is predicted to beWhich of the following would be an example of the application of next major technological opportunity for organizations?The observation that in China, even though car sales surged 37% in 2010, it is expected that by 2015 they will reach production overcapacity and have a glut of extra cars is an aspect of the ____ segment of the general environment.Because of threats and risks in the global environment, some firms choose to take a more cautious approach byfocusing on global niche marketsThe concepts of Guanxi, Wa, and Inhwa all convey the general idea ofinterpersonal relationshipsGlobal warming and energy consumption trends are aspects of the _____________ segment of the general environment that firms should monitor.Green restaurant design, sustainable packaging, waste management, and energy efficiency are aspects of the ______________ segment of the general environment that McDonald’s has sought to address (Chapter 2 Strategic Focus).All of the following are examples of efforts by firms to address the physical segment of the general environment in the Chapter 2 Strategic Focus case EXCEPTHiring more women and minorities at Microsoft.An industry is defined asa group of firms producing products that are close substitutes.The likelihood of entry of new competitors is affected by ____ and ____.barriers to entry, expected retaliation of current industry organizationsWhich of the following is NOT an entry barrier to an industry?bargaining power of suppliersNew entrants to an industry are more likely whenproduct differentiation in the industry is low.Economies of scale refer to the fact that as thequantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.The large expenditures on advertising by firms such as Procter & Gamble and Colgate-Palmolive is an example of what kind of barrier to entry?Product differentiation refers to thebelief by customers that a product is unique.Switching costs refer to theone-time costs customers incur when buying from a different supplier.Customer loyalty programs such as airline frequent flyer miles are an attempt toincrease customers’ switching costs.As customers come to believe that a firm’s product is unique, this allows the firm toDWK 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. The main barrier to entry DWK is likely to encounter here isaccess to distribution channels.In the case of a retail business dependent on drive-in customers, the major cost disadvantage independent of scale would befavorable locations are not available.A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for this project. Which of the following statements is most likely to be true?The cost of the marble will be expensive because of the bargaining power of the supplier.suppliers are powerful whenthey offer a credible threat of forward integration.In the airline industry, consolidation among fuel providers serving airport facilities would be considered as ____ factor in the five forces model of competition.an increase in the bargaining power of suppliers of a critical inputBlood banks are highly dependent on donors. In the terminology of industry analysis, which statement of donors is accurate?Blood donors are suppliers and are powerful due to the critical nature of what they provide to the blood bank.The aircraft industry has long been dominated by two large aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry?It will make the airline industry more attractive because of decreased supplier power.Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company?the power of the customers/buyersThe highest amount a firm can charge for its products is most directly affected bycost of substitute productsThe threat from substitutes is high whenthe substitute product’s price is lower than the industry product’s price.The Chapter 2 Strategic Focus discussed the movement of media content from paper, tape, and film to a digital world based on Internet technology. From the perspective of the five forces model, which force is most relevant here?All of the following are forces that create high rivalry within an industry EXCEPTThe existence of high exit barriers such as ownership of specialized assets (e.g., large aircraft) in the airline industry indicates thatthe competitive rivalry in the industry is severe.A manufacturer of washing machines has expanded its plant and has created excess capacity, just as the general economy has taken a downturn. The company is likely tooffer rebates and incentives for customers who purchase washing machines.When rival firms compete aggressively by trying to attract competitors’ customers, this might be an indication ofis likely to raise the level of competitive rivalry in the industry.Rivalry between Dell, Hewlett-Packard, and other computer manufacturers is intense in part becausethese companies are trying to find ways to differentiate their products.Circuit Corp. is a manufacturer of a broad range of consumer electronics products. These consumer products are all highly profitable. The firm also manufactures a low-cost component which is an essential differentiating feature for most of their consumer products. The costs to manufacture this component have risen sharply in recent months. Internal cost accounting estimates now indicate the company is breaking even on the manufacture of this component. Which of the following is most likely?Circuit will likely continue to manufacture the component, even at a loss, due to high strategic stakes.Exit barriers to a firm include all of the following EXCEPT`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 ofAccording to the five forces model, an attractive industry would have all of the following characteristics EXCEPTAccording to the five forces model, an unattractive industry would include all of the following characteristics EXCEPTlow supplier power due to commodity inputs.The competition within each strategic group ismore intense than is the competition between strategic groups.Firms within strategic groupsfollow similar strategies across certain dimensions.All of the following are implications of strategic groups EXCEPTthe strength of the five forces is the same across strategic groups.Competitor analysis focuses onfirms with which the company competes directly.Which of the following pairs of companies would be least likely to be examined together as part of competitive analysis?Competitor intelligence isthe data that the firm gathers to understand competitors’ objectives, strategies, assumptions, and capabilities.Once a firm has determined its competitor’s future objectives, current strategy, assumptions, and strengths and weaknesses, its next step is to developA competitor analysis includes all of the following about competitors EXCEPTClarissa is a sales representative for a large pharmaceutical firm. While calling on one of her major clients, the purchasing director of a hospital, the client told her confidential information that a sales representative from a competing firm had passed on to him. The information completely contradicts Clarissa’s firm’s understanding of the competitor’s business strategy, and would allow Clarissa’s employer to gain many of the competitor’s clients.The ethical dilemma here is the right of competitors not to reveal certain information.All the following are ethical sources of data for external analysis EXCEPTa competitor’s confidential memos.Competitor intelligence could ethically come from all the following EXCEPTWhich of the following represents a competitive intelligence practice that is both legal and ethical?An executive attends a trade show solely to obtain a competitor’s brochures, listen to sales pitches, and ask questions about the competitor’s products.Which of the following intelligence gathering techniques is most likely to be legal and ethical?attending trade show presentations given by a competitor’s employeesWhat are the four parts of the external environmental analysis process?The external environmental analysis process includes four steps: scanning, monitoring, forecasting and assessing.
What are the main elements of the external environmental analysis?Elements of an external analysis. Supply chain.. Industry.. Economic trends.. Competitors.. Market demographics.. PEST analysis.. Which of the following is not an ethical source of data for external analysis?All of the following are ethical sources of data for external analysis EXCEPT: a competitor's confidential memos. Competitor intelligence could ethically come from all of the following EXCEPT: eavesdropping.
What are the techniques of external environment analysis?In the process of doing business there, both threats and opportunities arise for the development of the organization. To detect them, the following methods of analysis are widely used: SWOT analysis, PEST analysis, GRID analysis, SCAN analysis, STEP analysis, ETOM analysis, EFAS analysis, SNW analysis.
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