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SEVI Chapter 2 Questions with 100%
Which of the following is an example of a CEO with perceptual acuity? - ✔✔Marga starts a ride-sharing business in a city with few parking garages. Spotting key trends requires a combination of which of the following? (Check all that apply.) - ✔✔Keeping an eye on what's happening.- big picture/small pictureUnderstanding one's customers.Knowing one's business. tracks the evolution of environmental trends, sequences of events, or streams of activities. - ✔✔Environmental monitoring Competitive intelligence Blank. - ✔✔helps companies avoid surprises by anticipating competitors' moves and response time
Which of the following statements about scenario analysis are true? (Check all that apply.) - ✔✔It draws on a range of disciplines. correct It is an in-depth approach to forecasting. correct It incorporates the ways in which societal trends may affect an issue. Which of the following statements about an industry's composition are correct? (Check all that apply.) - ✔✔It includes companies that use similar methods of production. correct It includes companies that produce similar products or services. correct It includes companies that sell to similar customers.
True or false: A key to successful strategic management is gathering industry information and understanding the competitive dynamics of the industry's companies. - ✔✔True The Blank segment of the general environment consists of the values, beliefs, and lifestyles of a society. - ✔✔sociocultural analysis is a framework for analyzing a company's internal and external environments. - ✔✔SWOT analysis The Sarbanes-Oxley Act of 2002 greatly increased the accountability of auditors, executives, and corporate lawyers. This law is an example of which segment of the general environment? - ✔✔political/legal
A technique for analyzing a basic list of internal and external conditions is called a Blank analysis. - ✔✔SWOT analysis Developments in computer software and hardware, nanotechnology, and R&D in exotic materials are examples of trends in which segment of the general environment? - ✔✔technological Which of the following are included in the six segments of the general environment? (Check all that apply.) - ✔✔economic and global correct demographic and sociocultural correct political/legal and technological
The Blank segment of the general environment consists of how a society creates and exercises power, including rules, laws, and taxation policies. - ✔✔political/legal The Blank segment of the general environment is concerned with innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science, and their interaction with society. - ✔✔technological What is the effect of the digital economy on customer expectations? - ✔✔Customers have become more knowledgeable and changeable. The Blank segment of the general environment consists of the characteristics of the economy, including national income and monetary conditions. - ✔✔economic
Which of the following statements about the competitive environment are correct? (Check all that apply.) - ✔✔The competitive environment consists of factors such as competitors, customers, and suppliers. The competitive environment often influences the nature of the competition in an industry. correct It is also referred to as the task environment. True or false: Trends in one segment of the general environment can have an effect on other segments. - ✔✔True Which of the following are effects of the digital economy? (Check all that apply.) - ✔✔increased globalization of business correct increased connection between products and the Internet correct
The six major entry barriers in Porter's five forces model include which of the following? (Check all that apply.) - ✔✔Capital requirements and switching costs. Economies of scale and product differentiation. correct Limited access to distribution channels and cost disadvantages independent of scale. Companies enter foreign market to access which of the following? (Check all that apply.) - ✔✔Factors of production, such as raw materials and labor correct Larger potential markets correct Technical professionals
Which of the following threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other? - ✔✔buyers Increases in household income due to more women entering the workforce in white collar jobs is likely to affect which two segments the most? - ✔✔sociocultural and economic A buying group is considered powerful when it Blank. - ✔✔is responsible for a large volume of a seller's sales The Blank is the possibility that the profits of established firms in the industry may be eroded by new competitors. - ✔✔threat of new entrants In which of the following ways can suppliers exert bargaining power? (Check all that apply.) - ✔✔By threatening to raise prices of raw materials
may exert bargaining power by threatening to raise prices of the materials needed by a firm or reduce the quality of goods and services. - ✔✔Suppliers Substitute products or services must be Blank the industry's offerings. - ✔✔able to perform the same function as Which of the following is an example of when the bargaining power of suppliers may be low? - ✔✔The suppliers provide an input that has many substitutes. is when competitors sense pressure from others in the same industry or act on an opportunity to improve their position. - ✔✔Rivalry products and services limit the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge. - ✔✔substitute
A buying group is considered powerful when it Blank. - ✔✔is responsible for a large volume of a seller's sales High exit barriers include which of the following? (Check all that apply.) - ✔✔High exit barriers can be economic, strategic or emotional factors. correct Government and social pressures due to concern for job loss. correct They sometimes are due to having specialized assets or strategic interrelationships. High fixed or storage costs that create strong pressures for firms to increase capacity. Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment? - ✔✔competitive
Slow industry growth. correct Lack of differentiation or switching costs. Substitute products or services must be Blank the industry's offerings. - ✔✔able to perform the same function as groups are clusters of firms that share similar strategies. - ✔✔STRATEGIC is when competitors sense pressure from others in the same industry or act on an opportunity to improve their position. - ✔✔Rivalry Managers should understand how they can create win-win relationships with their suppliers and customers so that they can overcome Blank. - ✔✔the zero-sum game issue
Which of the following pairings are examples of products that are complements? (Check all that apply. - ✔✔binders and paper correct video game consoles and games correct hot dogs and buns Michael Porter's five forces model is the most commonly used analytical tool for examining which of the following type of environment? - ✔✔competitive are products or services that have an impact on the value of a firm's products or services. - ✔✔complements Which of the following statements are correct regarding strategic groups? (Check all that apply.) - ✔✔No two firms are totally different. No two firms are exactly the same.
