Environmental scanning is the monitoring, evaluating, and disseminating of details from the external setting to crucial people in ~ the corporation.

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The societal environment contains the economic, technological, political-legal, and also sociocultural forces.

Today"s organizations must scan the natural setting for components that can previously have been taken because that granted.

The transferring of earnings from a foreign subsidiary to a corporation"s headquarters is well-known as repatriation the profits.

One the the breakthrough advances in modern technology is the portable information maker and electronic networking.

A multinational corporation is a company with far-ranging assets and activities in multiple countries.

The beginning of competitive advantage lies in the capacity to identify and respond come environmental adjust well in development of competition.

Booz & agency found that providers that are many successful at staying clear of surprises had a well-defined device that integrated planning, budgeting, and business reviews.

According to Michael Porter, the weaker every of the compete forces, the more restricted companies room in their ability to raise prices and also earn better profits.

According come Michael Porter, a high force can be related to as a threat since it is most likely to minimize profits.

The should invest substantial financial sources in manufacturing framework in order come produce huge commercial airplanes creates a far-reaching barrier come entry to any competitor for Boeing and also Airbus.

A fragmentised industry is conquered by a couple of large firms, each of which struggles to differentiate its commodities from the competition.

The only element used to determine whether an market will be mainly multidomestic or primarily an international is the press for regional responsiveness.

According to Miles and also Snow, reactors are service providers with a restricted product line that emphasis on boosting the performance of your existing operations.

In hyper-competitive industries, competitive benefit comes from an up-to-date knowledge of eco-friendly trends and also competitive activity coupled with a willingness to hazard a current benefit for a possible new advantage.

A.C. Nielsen is an instance of an outside organization giving a firm v competitive intelligence.

To combat the raising theft of company secrets, the U.S. Federal government passed the economic Espionage plot in 1996.

Extrapolation rests on the assumption that the people is relatively dynamic and changes conveniently in the brief run.

Statistical modeling is a quantitative forecasting technique that attempts to find causal or at the very least explanatory factors that attach two or an ext time series together.

An industry scenario is a forecasted summary of a details industry"s likely future. It is developed by examining the probable influence of future societal forces on vital groups in a certain industry.

The combination of the degree of complexity and the degree of adjust existing in one organization"s external atmosphere is/are called

A) strategy factors.

B) strategy issues.

C) ecological uncertainty.

D) strategic fit.

E) scenarios.

According come the text, one reason eco-friendly uncertainty is a hazard to strategic supervisors is because

A) the is a costly and also time-consuming process.

B) it create a brand-new playing ar in which creativity and also innovation have the right to play a significant part in strategy decisions.

C) it forces the strategy manager come be much more stable.

D) that hampers their ability to develop long-range plans.

E) there room too plenty of uncontrollable variables.

Which of the adhering to is no descriptive the external eco-friendly scanning?

A) offered as a device to for sure a corporation"s permanent health

B) provided to monitor, evaluate, and disseminate info relevant come the organizational advance of strategy

C) provided to identify major stockholders

D) offered as a device for companies to prevent strategic surprise

E) offered to identify a firm"s vain advantage

The corporation"s job environment

A) encompasses the physics working locations of the organization.

B) has those aspects or teams within one organization"s industry.

C) is an advisory committee to peak management.

D) is an audit of the many jobs in ~ an organization.

E) is the job need specification listing necessary an abilities and abilities.

Which the the adhering to is no an aspect of the organization"s job environment?

A) regional communities

B) trade associations

C) governments

D) technical developments

E) one-of-a-kind interest groups

Which setting was typically perceived by company people to it is in something come exploit, not conserve till the twenty century?

A) the job environment

B) the herbal environment

C) the interior environment

D) the societal environment

E) the outside environment

Which the the adhering to is not a major force in the societal environment?

A) political-legal forces

B) job forces

C) financial forces

D) technological forces

E) sociocultural forces

All that the adhering to are technological breakthroughs currently having a significant impact on many industries EXCEPT

A) cultivation health consciousness.

B) different energy sources.

C) genetically transformed organisms.

D) smart, cell phone robots.

E) virtual personal assistants.

Which societal force includes demographic trends?

A) political-legal forces

B) job forces

C) financial forces

D) technological forces

E) sociocultural forces

Which the the following is NOT one of the eight current sociocultural trends pointed out in the text?

A) increasing eco-friendly awareness

B) development of the seniors market

C) decline of the fixed market

D) enhancing food consumption

E) impact of Generation Y boomlet

Which is the largest of the current U.S. Generations?

A) baby Boomers

B) Woofies

C) silent Generation

D) Gen X

E) Gen Y

A agency with far-ranging assets and activities in multiple nations is known as a(n)

A) multinational corporation.

B) repatriated corporation.

C) transferable corporation.

D) duplicate corporation.

E) emancipated corporation.

When strategy managers have actually a willingness to disapprove unfamiliar as well as negative information the is referred to as

A) strategy paralysis.

B) this firm inertia.

C) management indifference.

D) strategic myopia.

E) corporate apathy.

The origin of competitive benefit lies in the capability to

A) gain significant stockholders.

B) identify and respond to environmental readjust well in advancement of competition.

C) launch assets quickly.

D) offer customers faster.

E) produce surprise because that others.

According come Porter, seeing garments firms such as Under Armour get in the strong shoe market would reflect a

A) medium bargaining strength of suppliers. B) low threat of substitutes. C) tool bargaining power of buyers. D) high threat of potential entrants. E) low competitive intensity.

Industry analysis is primarily involved with a corporation"s

A) societal environment.

B) task environment.

C) sociocultural environment.

D) economic environment.

E) internal environment.

According to Porter, the coporation, group is most pertained to with

A) the strongness of competition within its industry.

B) the aggregate level of demand for a product line.

C) a market"s position on that life cycle.

D) the quantity of press from the societal environment.

E) the level that government activity in an industry.

In addition to Porter"s 5 Forces, one more force included in the message is

A) bargaining strength of unions.

B) various other stakeholders.

C) threat of prospects.

D) risk of shareholders.

E) bargaining strength of employees.

According to Porter, the collective strength the the interaction of potential entrants, buyers, substitutes, suppliers, for sure rivalry, and also other stakeholders determine

A) the level the government action in an industry.

B) the probable market attractiveness and business toughness position.

C) the ultimate benefit potential in the industry measured in terms of long-run return on invested capital.

D) the accumulation level of demand for a product line.

E) the lot of press from the societal environment.

Answer: C


According to Porter"s model, a strong or high pressure is likely to minimize profits and can be regarded as a(n)

A) benefit.

B) opportunity.

C) advantage.

D) threat.

E) risk.

Answer: D


According to Porter"s model, a low pressure can enable the agency to earn better profits and also can be regarded as a(n)

A) benefit.

B) opportunity.

C) advantage.

D) threat.

E) risk.

Answer: B


Which the the adhering to is no descriptive that the "threat of brand-new entrants"?

A) depends on the visibility of entry barriers

B) have a desire to gain market share

C) relies on the reaction of present competitors

D) walk not affect industry attractiveness

E) brings new capacity and substantial resources

Answer: D


Which obstacle to entry carry out corporations such as P&G usage to force new entrants to spend greatly to conquer existing customer loyalty?

A) rivalry amongst existing firms

B) switching costs

C) capital requirements

D) product differentiation

E) accessibility to distribution channels

Answer: D


Which barrier to entry provides cost advantages associated with big size?

A) rivalry among existing firms

B) switching costs

C) price disadvantages elevation of size

D) resources requirements

E) economic climates of scale

Answer: E


Which barrier to entrance is prove by Microsoft"s MS-DOS operation system?

A) federal government policy

B) access to circulation channels

C) expense disadvantages elevation of size

D) capital requirements

E) economies of scale

Answer: C


Intel was able to get a far-reaching cost benefit over its competitors in the production and also sale the microprocessors since of

A) resources requirements.

B) product differentiation.

C) switching costs.

D) economic situations of scale.

E) accessibility to distribution.

Answer: D


Which the the complying with is no descriptive of intense rivalry among firms?

A) slow sector growth

B) high solved costs

C) high leave barriers

D) few competitors or rivals that are roughly equal in size and power

E) product offerings that are extremely differentiated

Answer: E


Which that the adhering to is no descriptive the the hazard of substitute assets or services?

A) substitute products show up to be different, however satisfy the same need as an additional product.

B) If the cost of switching is low, substitutes may have a solid effect on one industry.

C) identify substitutes is fairly easy because they watch similar.

D) feasible substitute commodities or services might not show up to be conveniently substitutable.

E) Substitutes border the potential returns of one industry.

Answer: C


A sugar agency that is worried that consumers may buy man-made sweetener rather of street is concerned around the

A) threat of new entrants.

B) rivalry amongst existing firms.

C) hazard of instead of products.

D) bargaining power of suppliers.

E) bargaining strength of buyers.

Answer: C


Which of the complying with is no descriptive the a high level that bargaining powers of buyers?

A) changing suppliers costs very little.

B) alternate suppliers room plentiful since of standardization that the product.

C) The to buy product represents a high percent of buyer"s costs.

D) The buyer buys a huge proportion the the seller"s product or service.

E) A the person who lives earns high profits and is an extremely insensitive to costs and service differences.

Answer: E


When general Motors considers making its own automotive parts, Delphi Automotive Supply firm would be involved with the

A) bargaining power of suppliers.

B) bargaining power of buyers.

C) rivalry among existing competitors.

D) risk of substitutes.

E) danger of new entrants.

Answer: B


Which of the complying with is no descriptive that a high level the bargaining strength of suppliers?

A) Substitutes are readily available.

B) The product or service is unique.

C) The supplier industry is conquered by a couple of companies, however sells too many.

D) The purchasing industry buys just a small section of the caterer group"s goods and also services.

E) carriers are able to combine forward and compete directly with their present customers.

Answer: A


Other software companies might not compete with Microsoft based upon the hesitation of consumer to shot a new software. I m sorry of Porter"s pressures does this reflect?

A) leave barriers

B) bargaining power of buyers

C) risk of substitutes

D) bargaining power of suppliers

E) rivalry amongst existing firms

Answer: D


A company or an industry whose product functions well v a firm"s product and without which the product would lose much of its worth is thought about to it is in a(n)

A) complementor.

B) oligopoly.

C) strategic group.

D) market leader.

E) staggered company.

Answer: A


A connection that illustrates the term "complementor" is

A) Microsoft and Intel.

B) general Motors and Ford.

C) Hewlett Packard and also Compaq.

D) Gateway and Dell.

E) America Online and CompuServe.

Answer: A


The stamin of each of the six driving pressures of market competition varies according come the

A) performance of the strategy planning.

B) phase of industry evolution.

C) funding requirements.

D) changes in the politics environment.

E) amount of government regulation.

Answer: B


In a fragmentised industry

A) no certain has huge market share.

B) price drop as new competitors enter the market.

C) economic climates of range are offered to reduce costs.

D) companies combine to additional reduce costs.

E) all of the above

Answer: E


The U.S. Significant home appliance industry is an instance of one industry

A) that has evolved from an oligopoly to a monopoly.

B) in which each agency maintained a unique product line.

C) that was once fragmented, but now is consolidated.

D) that has experienced consistent, raising sales.

E) experiencing a effective strategy the product specialization because of product differentiation.

Answer: C


An industry overcame by a couple of large firms, all of which struggle with product differentiation, is well-known as

A) multidomestic.

B) consolidated.

C) global.

D) indigenous.

E) worldwide.

Answer: B


In which kind of international market do corporations continue their assets to the certain needs of consumer in a specific country?

A) consortium industry

B) worldwide industry

C) native industry

D) multidomestic industry

E) worldwide industry

Answer: D


Which type of international sector manufactures and sells the same products with just minor adjustments created individual countries about the world?

A) consortium industry

B) worldwide industry

C) native industry

D) multidomestic industry

E) worldwide industry

Answer: B


Which the the complying with is an example of a global industry?

A) retailing

B) banking

C) tires

D) insurance

E) wellness care

Answer: C


The two components that tend to determine whether an market will be mostly multidomestic or primarily an international are (1) the press for coordination in ~ the MNCs operation in that industry and (2)

A) the pressure for local responsiveness ~ above the part of individual nation markets.

B) the strength of the local nation governments to restrict MNC actions.

C) the need for brand administration in the various MNCs operation within that industry.

D) the prominence of differentiating with integrating mechanisms in regional cooperatives.

E) the likelihood that terrorist activity impacting the industry.

Answer: A


When the press for coordination is solid and the pressure for neighborhood responsiveness is weak because that multinational corporations within a particular industry, the industry will tend to become

A) global.

B) consolidated.

C) multidomestic.

D) risky.

E) indigenous.

Answer: A


When the push for regional responsiveness is solid and the press for coordination is weak for multinational enterprise in one industry, the market will tend to become

A) global.

B) consolidated.

C) multidomestic.

D) risky.

E) indigenous.

Answer: C


What is a set of organization units or firms the "pursue comparable strategies with similar resources"?

A) strategy group

B) cumulative collaboration

C) cooperative

D) integral association

E) strategic assembly

Answer: A


Which that the complying with is NOT one of the general strategic species according to Miles and Snow?

A) initiators

B) reactors

C) analyzers

D) prospectors

E) defenders

Answer: A


According come Miles and Snow, which strategy orientation is prove by providers that have actually a restricted product line and focuses on boosting the efficiency of your existing operations?

A) initiators

B) reactors

C) analyzers

D) prospectors

E) defenders

Answer: E


According come Miles and Snow, a company that operates in at the very least two different product-market locations in i m sorry one product is stable and the other one is variable, shows which strategic orientation?

A) initiators

B) reactors

C) analyzers

D) prospectors

E) defenders

Answer: C


According come Miles and Snow, companies with relatively broad product lines that emphasis on product innovations and market avenues such together Frito-Lay, reflect which strategic orientation?

A) initiators

B) reactors

C) analyzers

D) prospectors

E) defenders

Answer: D


According to Miles and also Snow, most significant U.S. Airlines have reflected which strategic orientation?

A) initiators

B) reactors

C) analyzers

D) prospectors

E) defenders

Answer: B


To succeed in a hypercompetitive industry, companies need to be ready to

A) reduced prices below marginal costs.

B) pursue market share rather of profits.

C) run in the ethical gray zone.

D) cannibalize their own successful product lines.

E) reduce spending on research and development.

Answer: D


A table i beg your pardon summarizes the key success determinants within a certain industry is referred to as a(n)

A) EFAS Table.

B) IFAS Table.

C) SFAS Table.

D) TOWS Matrix.

E) market matrix.

Answer: E


Those variables the can influence significantly the overall competitive positions of carriers within any particular industry are well-known as

A) outside strategic factors.

B) internal strategic factors.

C) matrix factors.

D) an essential success factors.

E) sector scenario.

Answer: D


A formal regimen of gathering details on a company"s competitors is described as

A) statistical modeling.

B) vain intelligence.

C) compete strategy.

D) quantitative forecasting.

E) qualitative matrix.

Answer: B


Which of the complying with is true in regards come competitive intelligence?

A) The financial Espionage Act provides it illegal to steal any kind of material that a organization has bring away "reasonable efforts" to keep secret.

B) The society of competitive Intelligence experts urges strategists to remain within the law and also to act ethically when trying to find information.

C) The culture of vain Intelligence specialists states the illegal tasks are foolish because the vast bulk of worthwhile competitive knowledge is available publicly via yearly reports, websites, and libraries.

D) A number of firms hire consultants through questionable reputations who execute what is vital to get information as soon as the selected techniques do not satisfy SPIC moral standards or room illegal.

E) all of the above

Answer: E


The primary task of a competitive knowledge unit is to

A) monitor competitors.

B) communicate in that company espionage.

C) survey stakeholders.

D) determine industry R&D statistics.

E) reverse engineer competitors" products.

Answer: A


A research of almost 500 that the world"s biggest corporations shown which that the complying with to it is in the most widely practiced kind of forecasting?

A) statistical modeling

B) scenario-writing

C) delphi technique

D) brainstorming

E) tendency extrapolation

Answer: E


Over ________ of huge companies use trend extrapolation because that forecasting.

A) 20%

B) 30%

C) 40%

D) 50%

E) 70%

Answer: E


Trend extrapolation is

A) the procedure of convert intuition and also hunches right into reality.

B) the extension of current trends into the future.

C) the process of asking part authorities in the area to make an "informed guess" around the future.

D) offered a huge amount of historical data on particular interrelated factors, one attempts to conceptualize alternate futures.

E) detecting faulty underlying assumptions before forecasting errors have the right to occur.

Answer: B


A non-quantitative approach to forecasting the requires merely the existence of human being with some knowledge of the case to it is in predicted to propose principles without first mentally screening them is called

A) simulations.

B) the delphi technique.

C) brainstorming.

D) signal monitoring.

E) scenarios.

Answer: C


One ground dominion necessary for efficient brainstorming is

A) scrutinize every idea generated.

B) propose ideas without holy spirit screening them.

C) calculating future earnings of each idea.

D) critique every idea for rationality.

E) estimate the success of every idea.

Answer: B


Regression analysis is an example of i m sorry quantitative forecasting technique?

A) the delphi technique

B) statistical modeling

C) brainstorming

D) trend-impact analysis

E) morphological analysis

Answer: B


The many widely supplied forecasting an approach used after trend extrapolation is

A) statistical modeling.

B) simulations.

C) scenario-writing.

D) skilled opinion.

E) brainstorming.

Answer: C


Which among the complying with is NOT part of the process of market scenarios?

A) Examine feasible shifts in societal variables.

B) recognize uncertainties in every of the six pressures in the job environment.

C) generate at the very least 15 scenarios.

D) do a selection of plausible assumptions around future trends.

E) analyze the industry case that would prevail under every scenario.

Answer: C


The an approach recommended by the text to organize an analysis of exterior strategic factors is called





E) the problems priority matrix.

Answer: B


In the EFAS Table, the indicator of exactly how well a specific company is responding to current and also expected components in its external environment is characterized by the

A) IFAS score.

B) market matrix.

C) total weighted score.

D) SWOT score.

E) SFAS score.

Answer: C


Describe the 4 general pressures in the societal environment.

Answer: The four general pressures in the societal atmosphere are economic, technological, political-legal, and also sociocultural. Economic forces regulate the exchange of materials, money, energy, and information. Technical forces create problem-solving inventions. Political-legal forces allocate strength and provide constraining and protecting laws and also regulations. Sociocultural forces regulate the values, mores, and also customs the society.


List eight present sociocultural trends in the United says that are transforming phibìc America and the world.

Answer: Eight present sociocultural trends in the United states that are transforming north America and the world are together follows:

Increasing environmental awareness

Growing health and wellness consciousness

Expanding seniors market

Impact the Millennials

Decline that the massive market

Changing pace and location that life

Changing household composition

Increasing diversity that workforce and markets


Describe Porter"s strategy to industry analysis.

Answer: Michael Porter contends that a coporation, group is most came to with the intensity of competition in ~ its industry. The level that this strongness is figured out by simple competitive forces. These space the threat of brand-new entrants, rivalry amongst existing firms, hazard of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and relative strength of various other stakeholders (added later on by the authors).

New entrants to an market typically carry to it brand-new capacity, a desire to obtain market share, and substantial resources. The threat of entry depends on the visibility of entrance barriers and the reaction that deserve to be intended from present competitors.

A competitive relocate by one firm deserve to be intended to have noticeable effect on the competitors and also thus may reason retaliation or respond to efforts. Extreme rivalry is concerned the visibility of the number of competitors, price of market growth, product or organization characteristics, the quantity of resolved costs, capacity, the elevation of exit barriers, and the diversity of rivals.

Substitute commodities are those assets that appear to it is in different however can fulfill the same require as another product.

Buyers impact an sector through their capability to pressure down prices, bargain for higher quality or an ext services, and also play competitors versus each other.

Suppliers can affect an industry through their capacity to raise prices or reduce the high quality of purchase goods and also services.

The sixth force has a selection of stakeholder groups from the job environment. The prestige of these stakeholder groups varies by industry.

Answer: A fragmentised industry has no firm with a large market share and also each for sure serves just a little piece the the complete market in competition through others. As brand-new competitors go into the industry, price drop together a result of competition.

A consolidated industry is dominated by a couple of large firms, every of which struggles to identify its products from the competition. The automobile, petroleum, and significant home appliance markets are examples of mature, consolidated industries each managed by a couple of large competitors.

Answer: The determinants that tend to determine whether an sector will be mainly multidomestic or primarily worldwide are press for coordination within the multinational operations operating in the industry and pressure for regional responsiveness on the part of individual country markets. A multidomestic sector is one in which service providers tailor their commodities to the details needs of consumer in a details country. A global industry is one in which carriers manufacture and also sell the exact same products, with only minor adjustments created individual countries roughly the world.

Answer: according to Miles and Snow, there are four general varieties of firms based on their basic strategic orientation. Defenders are companies with a restricted product line that emphasis on improving the efficiency of their existing operations. Prospectors are providers with reasonably broad product lines that emphasis on product innovation and market opportunities. Analyzers room corporations that run in at the very least two various product-market areas, one stable and one variable. Reactors are corporations that lack a continuous strategy-structure-culture relationship.

Answer: Competitive knowledge is a formal routine of gathering information on a company"s competitors. Regularly called company intelligence, it is one of the fastest growing fields within strategic management. Most companies use exterior organizations (such as A.C. Nielsen Co.) to provide them with eco-friendly data. The Internet gives the quickest method to attain data. Part companies pick to use commercial espionage or various other intelligence-gathering techniques to obtain their information straight from your competitors.

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Answer: tendency extrapolation is the many widely practiced type of forecasting with over 70% that the world"s biggest firms making use of this method either periodically or frequently. Extrapolation is the expansion of existing trends into the future. That rests ~ above the presumption that the world is reasonably consistent and also changes gradually in the short run. Time-series techniques are viewpoints of this type: they attempt to carry a series of historical events forward into the future. The an easy problem through extrapolation is the a historical trend is based on a collection of fads or relationships amongst so countless different variables that a readjust in any type of one have the right to drastically change the future direction that the trend. Together a preeminence of thumb, the further ago into the previous you can discover relevant data supporting the trend, the much more confidence you deserve to have in the prediction.