Question 1

The strengths and weaknesses of a SWOT analysis refer to the external conditions of the firm.

Accepted Answer

A) True 
 B)False

Question 2

The strategic groups concept is valuable for identifying groups with marginal competitive positions.

Accepted Answer

A) True 
 B)False

Question 3

Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

Accepted Answer

A) True 
 B)False

Question 4

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Accepted Answer

A)   trends
B)   positions
C)   experience
D)   wealthE) A) and D)
F) None of the above

Question 5

Supplier power has increased because of the Internet for all of the following reasons except

Accepted Answer

A)   the growth of new Web-based businesses has created more outlets for suppliers to sell to.
B)   software that links buyers to a supplier's website has created rapid, low-cost order capabilities.
C)   the process of disintermediation makes it possible for some suppliers to reach end users directly.
D)   some suppliers have created Web-based purchasing systems that encourage switching.E) B) and D)
F) A) and C)

Question 6

The same environmental trend or event may have a very different impact on different strategic groups within the same industry.

Accepted Answer

A) True 
 B)False

Question 7

A Motel 6 executive indicates that he regularly reviews the number of rooms in the budget segment of the industry in the United States and the difference between the average daily room rate and the consumer price index (CPI).This is an example of Competitive Intelligence.

Accepted Answer

A) True 
 B)False

Question 8

Scenario analysis is a form of environmental forecasting.

Accepted Answer

A) True 
 B)False

Question 9

Strategic groups consist of a group of

Accepted Answer

A)   top executives that makes strategies for a company.
B)   firms within an industry that follows similar strategies.
C)   executives drawn from different companies within an industry that makes decisions on industry standards.
D)   firms within an industry that decides to collude rather than compete with each other so that they can increase their profits.E) All of the above
F) A) and B)

Question 10

It is not important to consider the potential impact of government regulation when developing new innovations.

Accepted Answer

A) True 
 B)False

Question 11

An automobile manufacturer acquires a rental car company.This is an example of

Accepted Answer

A)   backward integration.
B)   forward integration.
C)   economies of scale.
D)   product differentiation.E) A) and B)
F) A) and C)

Question 12

Salemi Industries launched Cell Zone unsuccessfully in 2005 because it did not understand the market demand for its new product.This is an example of

Accepted Answer

A)   vision statement evaluation.
B)   environmental scanning.
C)   assessing internal strengths.
D)   mission statement evaluation.E) None of the above
F) B) and C)

Question 13

The SWOT analysis framework leads to a conceptually simple approach to identifying the important factors that constrain strategic choices without sacrificing analytical rigor.

Accepted Answer

A) True 
 B)False

Question 14

Industries characterized by high economies of scale typically attract fewer new entrants.

Accepted Answer

A) True 
 B)False

Question 15

To understand the business environment of a particular firm,you need to analyze both the general environment and the firm industry and competitive environment.

Accepted Answer

A) True 
 B)False

Question 16

Code of Ethics guidelines can assist companies in avoiding aggressive competitive intelligence gathering that results from illegal behaviors.

Accepted Answer

A) True 
 B)False

Question 17

In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability,rigorous quantification of the five forces is not necessary.

Accepted Answer

A) True 
 B)False

Question 18

Crowdsourcing is one form of technology that affects multiple segments of the general environment.Which of the following is not an example of crowdsourcing?

Accepted Answer

A)   The Linus open-source operating system
B)   Yelp online customer comments
C)   Wikipedia
D)   The New York Times onlineE) A) and B)
F) None of the above

Question 19

Which of the following statements about strategic groups is false?

Accepted Answer

A)   Two assumptions are made: (1)  no two firms are totally different, (2)  no two firms are exactly the same.
B)   Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.
C)   Strategic groups help chart the future directions of firm strategies.
D)   Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.E) All of the above
F) A) and D)

Question 20

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Code of Ethics guidelines can assist companies in avoiding aggressive competitive intelligence gathering that results from illegal behaviors.

Correct AnswerverifiedShow Answer

Scenario analysis is a form of environmental forecasting.

Correct AnswerverifiedShow Answer

Strategic groups consist of a group of

Correct AnswerverifiedShow Answer

A Motel 6 executive indicates that he regularly reviews the number of rooms in the budget segment of the industry in the United States and the difference between the average daily room rate and the consumer price index (CPI).This is an example of Competitive Intelligence.

Correct AnswerverifiedShow Answer

In conducting a good industry analysis that will yield an improved understanding of the root causes of profitability,rigorous quantification of the five forces is not necessary.

Correct AnswerverifiedShow Answer

Industries characterized by high economies of scale typically attract fewer new entrants.

Correct AnswerverifiedShow Answer

The strategic groups concept is valuable for assessing the implications of industry ________ for the strategic group as a whole.

Correct AnswerverifiedShow Answer

The Internet heightens the threat of substitutes because it creates new ways to accomplish the same task.

Correct AnswerverifiedShow Answer

Salemi Industries launched Cell Zone unsuccessfully in 2005 because it did not understand the market demand for its new product.This is an example of

Correct AnswerverifiedShow Answer

Crowdsourcing is one form of technology that affects multiple segments of the general environment.Which of the following is not an example of crowdsourcing?

Correct AnswerverifiedShow Answer

The strengths and weaknesses of a SWOT analysis refer to the external conditions of the firm.

Correct AnswerverifiedShow Answer

The SWOT analysis framework leads to a conceptually simple approach to identifying the important factors that constrain strategic choices without sacrificing analytical rigor.

Correct AnswerverifiedShow Answer

An automobile manufacturer acquires a rental car company.This is an example of

Correct AnswerverifiedShow Answer

To understand the business environment of a particular firm,you need to analyze both the general environment and the firm industry and competitive environment.

Correct AnswerverifiedShow Answer

Supplier power has increased because of the Internet for all of the following reasons except

Correct AnswerverifiedShow Answer

Which of the following statements about strategic groups is false?

Correct AnswerverifiedShow Answer

It is not important to consider the potential impact of government regulation when developing new innovations.

Correct AnswerverifiedShow Answer

Michael Porter's five-forces Analysis is a dynamic tool for analyzing industry attractiveness.

Correct AnswerverifiedShow Answer

The same environmental trend or event may have a very different impact on different strategic groups within the same industry.

Correct AnswerverifiedShow Answer

The strategic groups concept is valuable for identifying groups with marginal competitive positions.

Correct AnswerverifiedShow Answer

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