Chapter2exercise and test.docx

1、Chapter2 exercise and testChapter2 exercise and test一、TRUE/FALSE (T)1. The final result of successful strategic competitiveness is above-average returns.(F)2. The external environment facing business stays relatively constant over time.(F)3. Demographic, economic, political/legal, sociocultural, tec

2、hnological, and global are the six (T)4. Firms can directly control the elements of the six segments of the general environment.(T)5. An analysis of the general environment is usually focused on the future.(F)6. External environmental analysis should be conducted annually.(T)7. When firms analyze th

3、e external environment, they typically have complete and unambiguous data.(F)8. Boundary spanners are organizational employees in positions to interact with external constituents.(T)9. Monitoring involves the development of a forecast of what might happen at a future point in time.(F)10. Without mon

4、itoring, a firm is left with a mass of data of unknown relevance.(T)11. Using sophisticated mathematical models, producing accurate forecasts of demand for products is fairly straightforward.(T)12. The objective of assessing the external environment is to determine the timing and significance of the

5、 (T)13. Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment.(F)14. Because the health of a nations economy affecs the performance of individual firms and indu

6、stries,companies study the economic environment to identify changes, trends, and their strategic (T)15. The political/legal segment of the general environment is the arena in which organizations and interest groups compete for attention, resources and a voice in the laws and regulations guiding inte

7、ractions among nations.(F)16. Firms are affected only by the governmental regulations of the country in which they are headquartered.(T)17. Differences in work attitudes between French and American workers are categorized in the demographic segment of the general environment. (T)18. The importance t

8、hat a society places on universal access to healthcare would be considered part of the sociocultural aspect of the external environment.(F)19. Early adopters of new technology often achieve higher market shares and higher returns than later (F)20. It is uncommon for a large firm to receive a majorit

9、y of revenues from outside its home country.(T)21. The five forces model of competition focuses on the segments of the general environment.(F)22. In recent years, industry boundaries have become more sharply defined.(F)23. A high threat of new entrants keeps pricing pressures on existing firms, keep

10、ing consumers happy and making the industry attractive and profitable.(T)24. Switching costs, access to distribution channels, economies of scale, large numbers of competing firms, and slow industry growth are some of the entry barriers that may affect the threat of new entrants to an industry.(F)25

11、. Suppliers are powerful when no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, and switching costs are high. (F)26. The main competitive factor facing companies offering traditional telephone service is the existence of sub

12、stitute products and services.(T)27. Typically, fast industry growth increases the vigor of retaliation by existing firms against a new industry rival.(F)28. High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing may be questionable.(F)29.

13、 Generally, the stronger the competitive forces, the higher the profit potential of an industry.(T)30. An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.(T)3

14、1. Strategic groups are firms in different industries following the same or similar strategies.(F)32. The strengths of the five competitive forces are similar across strategic groups within an industry.(T)33. A firm experiencing intense rivalry with powerful competitors should energetically engage i

15、n competitor analysis.(T)34. The process of competitor analysis should examine the competitors future objectives, current strategy, assumptions, and capabilities.(F)35. Eavesdropping is an ethical way to obtain information about competitors actions(T)36. Any competitor intelligence practice that is

16、legal is also ethical.二、MULTIPLE CHOICE (C)1. According to the texts Strategic Focus on Wl-Mart, which portion of the general environment is effecting Wal-Mart the LEAST: a. Political/legal C changes in how communities view the presence of Wal-Mart.b. Global C the influence of Wal-Mart as a leading

17、importer.c. Technological CWal-Mart!s initiatives due to environmental concernsd. Supplier power C changes in the waysuppliers view Wal-Mart as a customer. (D)2. As the Strategic Focus feature in chapter 2 describes, Wal-Mart is the nation!s largest employer and second-largest company by revenue. Wh

18、at does this suggest in terms of the industry structure? a. Wal-Mart can exert considerable pressure as a buyer. b. Wal-Marts presence in a market reduces rivalry.c. Wal-Mart has no substitutes. d. Wal-Mart is immune from the threat of new entrants. (D)3. Wal-Marts strategic group includes all of th

19、e following firms EXCEPTa. Safeway, Kroger and other grocery stores. b. Target, Sears, JC Penney and other department stores. c. Costco and other warehouse clubs. d. The Gap, Abercrombie & Fitch, and other specialty retailers. (C)4. Acme Valves, Inc., has been a successful player in the oil field su

20、pply 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 should a. continue with the proven strategy because its returns over th

21、e long run are important. b. focus on improving efficiency of production and cost control. c. conduct an analysis of the external environment. d. immediately begin making incremental adjustments to the traditional business strategy in an effort to improve sales. (A)5. To be effective, when should en

22、vironmental analysis be conducted? a. on an on-going basis b. quarterly c. annually d. every 3-5 years (B)6. The _ environment is composed of elements in the broader society that can influence an industry and the firms within it. a. general b. competitor c. sociocultural d. industry (C)7. The enviro

23、nmental segments that comprise the general environment typically will NOT include a. demographic factors. b. sociocultural factors. c. substitute products or services. d. technological factors. (B)8. Aardvark Corp. has three products. Two products together make up two-thirds of revenues and constitu

24、te 50 percent of company profits. Aardvark! third product makes up one third of sales. With profitability far above the industry average, this product is responsible for one half of Aardvarksprofits. Which of the following statements regarding assessment of the general environment is accurate for Aa

25、rdvark? a. The company should monitor the general environment for changes that might effect the revenue of all products. b. The company should monitor the general environment for changes that might effect the profitability of the most profitable products. c. The company should monitor the general en

26、vironment for changes that might effect the profitability of all products. d. The company should monitor the general environment for changes that might effect the revenue and profitability of all products. (B)9. Which of the following is NOT an activity used in the external environmental analysis pr

27、ocess? a. Scanning b. Decrypting c. Monitoring d. Assessing (D)10. Environmental scanning would be most important for which of the following organizations? a. a provider of hospice services for the terminally ill b. a web design company catering to small businesses c. a neighborhood sewer and water

28、utility d. a manufacturer of household linens (B)11. The ethically questionable practice of placing !ookies! on website customers! personal hard drives is an example of using the Internet for a. assessing. b. monitoring. c. forecasting. d. scanning. (D)12. When analysts develop feasible projections

29、of future events and how quickly they will occur based on observed changes and trends, they are engaged in a. scanning. b. monitoring. c. forecasting. d. assessing. (A)13. A general environmental analysis can be expected to produce all of the following EXCEPT a. objective answers. b. recognition of

30、environmental changes. c. identification of organizational opportunities. d. identification of organizational threats. (C)14. The text details differences between U.S. and European perspectives on genetically modified foods. In which part(s) of an analysis of the general environment would this appea

31、r? a. Political/legal. b. Technological. c. Global. d. All of the above. (B)15. In analyzing the demographic segment of the general environment, one typically examines all of the following factors EXCEPT a. age structure. b. ethnic mix. c. distribution of income. d. cultural values. (C)16. Which of

32、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 service(strength, balance, and flexibility training) in a city of 100,000 people? a. the average age of the population in his community is high b. the level of unemployment in his community is high c. a chiropractor and two independent physical