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(T)12.Theobjectiveofassessingtheexternalenvironmentistodeterminethetimingandsignificanceofthe
(T)13.Agestructure,geographicdistribution,incomedistribution,interestrates,andprocessinnovationsareallelementsofconcernwhenstudyingthedemographicsegmentofthegeneralenvironment.
(F)14.Becausethehealthofanation`seconomyaffecstheperformanceofindividualfirmsandindustries,companiesstudytheeconomicenvironmenttoidentifychanges,trends,andtheirstrategic
(T)15.Thepolitical/legalsegmentofthegeneralenvironmentisthearenainwhichorganizationsandinterestgroupscompeteforattention,resourcesandavoiceinthelawsandregulationsguidinginteractionsamongnations.
(F)16.Firmsareaffectedonlybythegovernmentalregulationsofthecountryinwhichtheyare
headquartered.
(T)17.DifferencesinworkattitudesbetweenFrenchandAmericanworkersarecategorizedinthedemographicsegmentofthegeneralenvironment.
(T)18.Theimportancethatasocietyplacesonuniversalaccesstohealthcarewouldbeconsideredpartofthesocioculturalaspectoftheexternalenvironment.
(F)19.Earlyadoptersofnewtechnologyoftenachievehighermarketsharesandhigherreturnsthanlater
(F)20.Itisuncommonforalargefirmtoreceiveamajorityofrevenuesfromoutsideitshomecountry.
(T)21.Thefiveforcesmodelofcompetitionfocusesonthesegmentsofthegeneralenvironment.
(F)22.Inrecentyears,industryboundarieshavebecomemoresharplydefined.
(F)23.Ahighthreatofnewentrantskeepspricingpressuresonexistingfirms,keepingconsumershappyandmakingtheindustryattractiveandprofitable.
(T)24.Switchingcosts,accesstodistributionchannels,economiesofscale,largenumbersofcompetingfirms,andslowindustrygrowtharesomeoftheentrybarriersthatmayaffectthethreatofnewentrantstoanindustry.
(F)25.Suppliersarepowerfulwhennosatisfactorysubstitutesareavailable,thesellingindustryisrelativelymoreconcentratedthanthepurchasingindustry,andswitchingcostsarehigh.
(F)26.Themaincompetitivefactorfacingcompaniesofferingtraditionaltelephoneserviceistheexistenceofsubstituteproductsandservices.
(T)27.Typically,fastindustrygrowthincreasesthevigorofretaliationbyexistingfirmsagainstanewindustryrival.
(F)28.Highexitbarriersarefactorsthatcauseacompanytoremaininanindustryeventhoughtheprofitabilityofdoingmaybequestionable.
(F)29.Generally,thestrongerthecompetitiveforces,thehighertheprofitpotentialofanindustry.
(T)30.Anattractiveindustryisonethatischaracterizedbyhighentrybarriers,suppliersandbuyerswithstrongbargainingpower,lowthreatsfromsubstituteproducts,andlowrivalryamongfirms.
(T)31.Strategicgroupsarefirmsindifferentindustriesfollowingthesameorsimilarstrategies.
(F)32.Thestrengthsofthefivecompetitiveforcesaresimilaracrossstrategicgroupswithinanindustry.
(T)33.Afirmexperiencingintenserivalrywithpowerfulcompetitorsshouldenergeticallyengageincompetitoranalysis.
(T)34.Theprocessofcompetitoranalysisshouldexaminethecompetitor`sfutureobjectives,currentstrategy,assumptions,andcapabilities.
(F)35.Eavesdroppingisanethicalwaytoobtaininformationaboutcompetitors`actions
(T)36.Anycompetitorintelligencepracticethatislegalisalsoethical.
二、MULTIPLECHOICE
(C)1.Accordingtothetext`sStrategicFocusonWl-Mart,whichportionofthegeneralenvironmentiseffectingWal-MarttheLEAST:
a.Political/legal¨
CchangesinhowcommunitiesviewthepresenceofWal-Mart.
b.Global¨
CtheinfluenceofWal-Martasaleadingimporter.
c.Technological¨
CWal-Mart!
ˉsinitiativesduetoenvironmentalconcerns
d.Supplierpower¨
CchangesinthewaysuppliersviewWal-Martasacustomer.
(D)2.AstheStrategicFocusfeatureinchapter2describes,Wal-Martisthenation!
ˉslargestemployerandsecond-largestcompanybyrevenue.Whatdoesthissuggestintermsoftheindustrystructure?
a.Wal-Martcanexertconsiderablepressureasabuyer.
b.Wal-Mart’spresenceinamarketreducesrivalry.
c.Wal-Marthasnosubstitutes.
d.Wal-Martisimmunefromthethreatofnewentrants.
(D)3.Wal-Mart’sstrategicgroupincludesallofthefollowingfirmsEXCEPT
a.Safeway,Krogerandothergrocerystores.
b.Target,Sears,JCPenneyandotherdepartmentstores.
c.Costcoandotherwarehouseclubs.
d.TheGap,Abercrombie&
Fitch,andotherspecialtyretailers.
(C)4.AcmeValves,Inc.,hasbeenasuccessfulplayerintheoilfieldsupplyindustryinthelast15years.Acmemaintaineditstraditionalstrategyandproductcharacteristicsoverthistimeperiod.But,Acmehasexperienceddeclinesinsalesandprofitsoverthelastfourquarters.TheCEOofAcmeshould
a.continuewiththeprovenstrategybecauseitsreturnsoverthelongrunareimportant.
b.focusonimprovingefficiencyofproductionandcostcontrol.
c.conductananalysisoftheexternalenvironment.
d.immediatelybeginmakingincrementaladjustmentstothetraditionalbusinessstrategyin
anefforttoimprovesales.
(A)5.Tobeeffective,whenshouldenvironmentalanalysisbeconducted?
a.onanon-goingbasis
b.quarterly
c.annually
d.every3-5years
(B)6.The____environmentiscomposedofelementsinthebroadersocietythatcaninfluenceanindustryandthefirmswithinit.
a.general
b.competitor
c.sociocultural
d.industry
(C)7.TheenvironmentalsegmentsthatcomprisethegeneralenvironmenttypicallywillNOTinclude
a.demographicfactors.
b.socioculturalfactors.
c.substituteproductsorservices.
d.technologicalfactors.
(B)8.AardvarkCorp.hasthreeproducts.Twoproductstogethermakeuptwo-thirdsofrevenuesand
constitute50percentofcompanyprofits.Aardvark!
ˉthirdproductmakesuponethirdofsales.Withprofitabilityfarabovetheindustryaverage,thisproductisresponsibleforonehalfofAardvark’sprofits.WhichofthefollowingstatementsregardingassessmentofthegeneralenvironmentisaccurateforAardvark?
a.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmighteffectthe
revenueofallproducts.
b.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmighteffectthe
profitabilityofthemostprofitableproducts.
c.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmighteffectthe
profitabilityofallproducts.
d.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmighteffectthe
revenueandprofitabilityofallproducts.
(B)9.WhichofthefollowingisNOTanactivityusedintheexternalenvironmentalanalysisprocess?
a.Scanning
b.Decrypting
c.Monitoring
d.Assessing
(D)10.Environmentalscanningwouldbemostimportantforwhichofthefollowingorganizations?
a.aproviderofhospiceservicesfortheterminallyill
b.awebdesigncompanycateringtosmallbusinesses
c.aneighborhoodsewerandwaterutility
d.amanufacturerofhouseholdlinens
(B)11.Theethicallyquestionablepracticeofplacing!
°
ookies!
±
onwebsitecustomers!
ˉpersonalharddrivesisanexampleofusingtheInternetfor
a.assessing.
b.monitoring.
c.forecasting.
d.scanning.
(D)12.Whenanalystsdevelopfeasibleprojectionsoffutureeventsandhowquicklytheywilloccurbasedonobservedchangesandtrends,theyareengagedin
a.scanning.
d.assessing.
(A)13.AgeneralenvironmentalanalysiscanbeexpectedtoproduceallofthefollowingEXCEPT
a.objectiveanswers.
b.recognitionofenvironmentalchanges.
c.identificationoforganizationalopportunities.
d.identificationoforganizationalthreats.
(C)14.ThetextdetailsdifferencesbetweenU.S.andEuropeanperspectivesongeneticallymodifiedfoods.Inwhichpart(s)ofananalysisofthegeneralenvironmentwouldthisappear?
a.Political/legal.
b.Technological.
c.Global.
d.Alloftheabove.
(B)15.Inanalyzingthedemographicsegmentofthegeneralenvironment,onetypicallyexaminesallofthefollowingfactorsEXCEPT
a.agestructure.
b.ethnicmix.
c.distributionofincome.
d.culturalvalues.
(C)16.Whichofthefollowingidentifiedinananalysisofthegeneralenvironmentisanopportunityforanentrepreneurwhowishestoopenabusinessdoing!
FitnessforLife!
physicalconditioningservice(strength,balance,andflexibilitytraining)inacityof100,000people?
a.theaverageageofthepopulationinhiscommunityishigh
b.thelevelofunemploymentinhiscommunityishigh
c.achiropractorandtwoindependentphysical