Question 1

A major sociocultural trend in the United States is the increased educational attainment by women.

Accepted Answer

A) True 
 B)False

Question 2

Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________.

Accepted Answer

A)   competitors; customers
B)   customers; competitors
C)   existing customers; existing competitors
D)   traditional competitors; new competitorsE) All of the above
F) A) and D)

Question 3

The Nintendo success story in the early 1990s was a result of its ability to manage its relationship with its complementors,such as the licensee rights given to outside firms to develop games using the Nintendo game console.

Accepted Answer

A) True 
 B)False  True

Question 4

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp.,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

Accepted Answer

A)   overestimation of uncertainty.
B)   excellent forecasting.
C)   underestimation of uncertainty.
D)   good prediction skills.E) B) and C)
F) A) and B)

Question 5

Consider the example of Salemi Industries and the launch of its product,Cell Zone,in 2005.Although it tried to carefully analyze its potential market,it misread the market demand for the product and paid a steep price for its mistake.This is an example of internal forecasting.

Accepted Answer

A) True 
 B)False

Question 6

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a

Accepted Answer

A)   threat of entry.
B)   backward integration.
C)   threat of substitute products.
D)   forward integration.E) A) and B)
F) A) and C)

Question 7

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

Accepted Answer

A) True 
 B)False

Question 8

The value net is a game-theoretic approach that

Accepted Answer

A)   extends the value chain analysis.
B)   uses network analysis to understand the relationships among different companies.
C)   helps us to understand the evolution of the five forces over time.
D)   is a way to analyze how the interactions of all the players in a game affect the firm.E) B) and C)
F) C) and D)

Question 9

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Accepted Answer

A) True 
 B)False

Question 10

Globalization provides opportunities to access larger potential markets and a narrow base of production factors such as raw materials,labor,skilled managers,and technical professionals.

Accepted Answer

A) True 
 B)False  False

Question 11

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

Accepted Answer

A)   marginal
B)   exceptional
C)   healthy
D)   poorE) All of the above
F) None of the above

Question 12

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Accepted Answer

A) True 
 B)False

Question 13

Two of the key inputs to developing forecasts discussed in the text are

Accepted Answer

A)   environmental scanning and stakeholder identification.
B)   assessing internal strengths and environmental scanning.
C)   environmental scanning and competitive intelligence.
D)   environmental scanning and a SWOT analysis.E) A) and B)
F) A) and D)

Question 14

Boards of directors use outsiders to critique their strategy.This is necessary to improve mostly

Accepted Answer

A)   financial returns.
B)   organizational hierarchy.
C)   perceptual acuity.
D)   employee relations.E) A) and B)
F) A) and C)

Question 15

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Accepted Answer

A) True 
 B)False

Question 16

Competition tends to be more intense among firms within a strategic group than between strategic groups.

Accepted Answer

A) True 
 B)False

Question 17

Competitor Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 18

The Internet is a leading component in the rising emergence of digital technology.

Accepted Answer

A) True 
 B)False

Question 19

Environmental monitoring is not an input to forecasting.

Accepted Answer

A) True 
 B)False

Question 20

The bargaining power of the buyer is greater than that of the supplier when

Accepted Answer

A)   volume of purchase is low.
B)   the buyer profit margin is low.
C)   cost savings from the supplier's product are minimal.
D)   threat of backward integration by buyers is low.E) C) and D)
F) B) and C) B

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

A major sociocultural trend in the United States is the increased educational attainment by women.

Correct AnswerverifiedShow Answer

Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________.

Correct AnswerverifiedShow Answer

The Nintendo success story in the early 1990s was a result of its ability to manage its relationship with its complementors,such as the licensee rights given to outside firms to develop games using the Nintendo game console.

Correct AnswerverifiedTrue

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp.,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

Correct AnswerverifiedShow Answer

Consider the example of Salemi Industries and the launch of its product,Cell Zone,in 2005.Although it tried to carefully analyze its potential market,it misread the market demand for the product and paid a steep price for its mistake.This is an example of internal forecasting.

Correct AnswerverifiedShow Answer

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a

Correct AnswerverifiedShow Answer

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

Correct AnswerverifiedShow Answer

The value net is a game-theoretic approach that

Correct AnswerverifiedShow Answer

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Correct AnswerverifiedShow Answer

Globalization provides opportunities to access larger potential markets and a narrow base of production factors such as raw materials,labor,skilled managers,and technical professionals.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Correct AnswerverifiedShow Answer

Two of the key inputs to developing forecasts discussed in the text are

Correct AnswerverifiedShow Answer

Boards of directors use outsiders to critique their strategy.This is necessary to improve mostly

Correct AnswerverifiedShow Answer

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Correct AnswerverifiedShow Answer

Competition tends to be more intense among firms within a strategic group than between strategic groups.

Correct AnswerverifiedShow Answer

Competitor Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Correct AnswerverifiedShow Answer

The Internet is a leading component in the rising emergence of digital technology.

Correct AnswerverifiedShow Answer

Environmental monitoring is not an input to forecasting.

Correct AnswerverifiedShow Answer

The bargaining power of the buyer is greater than that of the supplier when

Correct AnswerverifiedB

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Executives must be careful to avoid spending so much time and effort tracking the actions of _ that they ignore __.

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True

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False

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B