Environmental scanning is the monitoring, evaluating, and also disseminating of details from the external setting to an essential people in ~ the corporation.
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The societal environment contains the economic, technological, political-legal, and sociocultural forces.
Today"s institutions must scan the natural atmosphere for factors that can previously have actually been taken for granted.
The carrying of earnings from a foreign subsidiary to a corporation"s headquarters is recognized as repatriation of profits.
One that the breakthrough advances in modern technology is the portable information maker and electronic networking.
A multinational coporation, group is a firm with far-reaching assets and tasks in many countries.
The origin of competitive benefit lies in the ability to identify and respond come environmental readjust well in development of competition.
Booz & firm found that companies that are most successful at preventing surprises had a well-defined mechanism that incorporated planning, budgeting, and also business reviews.
According to Michael Porter, the weaker each of the compete forces, the more limited companies room in their capacity to progressive prices and earn greater profits.
According to Michael Porter, a high pressure can be related to as a threat because it is most likely to minimize profits.
The have to invest substantial financial resources in manufacturing facilities in order come produce big commercial airplanes create a far-reaching barrier to entry to any kind of competitor for Boeing and Airbus.
A fragmentised industry is dominated by a few large firms, each of which battles to identify its products from the competition.
The only element used to identify whether an industry will be mainly multidomestic or primarily worldwide is the press for regional responsiveness.
According come Miles and also Snow, reactors are carriers with a minimal product heat that focus on enhancing the effectiveness of your existing operations.
In hyper-competitive industries, competitive benefit comes from an up-to-date expertise of environmental trends and also competitive task coupled with a willingness to risk a current advantage for a possible brand-new advantage.
A.C. Nielsen is an example of an exterior organization providing a firm v competitive intelligence.
To combat the boosting theft of firm secrets, the U.S. Government passed the financial Espionage plot in 1996.
Extrapolation rests on the presumption that the civilization is fairly dynamic and also changes conveniently in the brief run.
Statistical modeling is a quantitative forecasting an approach that do the efforts to discover causal or at the very least explanatory factors that attach two or much more time series together.
An sector scenario is a forecasted description of a details industry"s most likely future. The is arisen by evaluating the probable influence of future societal pressures on vital groups in a particular industry.
The mix of the degree of complexity and also the degree of change existing in an organization"s external setting is/are called
A) strategy factors.
B) strategic issues.
C) eco-friendly uncertainty.
D) strategic fit.
According come the text, one reason ecological uncertainty is a hazard to strategic managers is because
A) that is a costly and also time-consuming process.
B) it create a brand-new playing ar in which creativity and also innovation can play a major part in strategic decisions.
C) it forces the strategy manager come be an ext stable.
D) the hampers their ability to develop long-range plans.
E) there are too countless uncontrollable variables.
Which that the following is not descriptive of external ecological scanning?
A) supplied as a tool to ensure a corporation"s permanent health
B) supplied to monitor, evaluate, and also disseminate info relevant come the organizational breakthrough of strategy
C) used to identify significant stockholders
D) offered as a tool for companies to avoid strategic surprise
E) provided to recognize a firm"s compete advantage
The corporation"s task environment
A) encompasses the physical working areas of the organization.
B) includes those aspects or teams within one organization"s industry.
C) is an advisory committee to height management.
D) is an accountancy of the numerous jobs in ~ an organization.
E) is the job requirement specification listing necessary skills and abilities.
Which of the adhering to is not an element of the organization"s task environment?
A) regional communities
B) trade associations
D) technological developments
E) distinct interest groups
Which atmosphere was generally perceived by service people to be something to exploit, not conserve until the twentieth century?
A) the job environment
B) the organic environment
C) the internal environment
D) the societal environment
E) the outside environment
Which of the following is not a significant force in the societal environment?
A) political-legal forces
B) job forces
C) economic forces
D) technological forces
E) sociocultural forces
All that the complying with are technological breakthroughs already having a far-reaching impact on many industries EXCEPT
A) farming health consciousness.
B) different energy sources.
C) genetically transformed organisms.
D) smart, cell phone robots.
E) virtual an individual assistants.
Which societal force has demographic trends?
A) political-legal forces
B) job forces
C) financial forces
D) technological forces
E) sociocultural forces
Which the the adhering to is NOT among the eight current sociocultural trends discussed in the text?
A) increasing eco-friendly awareness
B) growth of the seniors market
C) decrease of the massive market
D) raising food consumption
E) affect of Generation Y boomlet
Which is the largest of the current U.S. Generations?
A) infant Boomers
C) quiet Generation
D) Gen X
E) Gen Y
A company with significant assets and tasks in multiple countries is known as a(n)
A) multinational corporation.
B) repatriated corporation.
C) transferable corporation.
D) duplicate corporation.
E) emancipated corporation.
When strategy managers have a willingness to refuse unfamiliar as well as an adverse information that is referred to as
A) strategic paralysis.
B) that company inertia.
C) monitoring indifference.
D) strategy myopia.
E) corporate apathy.
The origin of competitive benefit lies in the capacity to
A) gain significant stockholders.
B) identify and also respond to environmental change well in advance of competition.
C) launch products quickly.
D) serve customers faster.
E) create surprise for others.
According come Porter, seeing clothes firms such together Under Armour go into the athletic shoe sector would reflect aA) medium bargaining strength of suppliers. B) low risk of substitutes. C) medium bargaining strength of buyers. D) high risk of potential entrants. E) low competitive intensity.
Industry analysis is primarily came to with a corporation"s
A) societal environment.
B) task environment.
C) sociocultural environment.
D) financial environment.
E) internal environment.
According to Porter, the corporation is most came to with
A) the strongness of competition within its industry.
B) the accumulation level of need for a product line.
C) a market"s place on that life cycle.
D) the amount of push from the societal environment.
E) the level that government action in an industry.
In enhancement to Porter"s five Forces, another force added in the message is
A) bargaining strength of unions.
B) various other stakeholders.
C) danger of prospects.
D) hazard of shareholders.
E) bargaining stamin of employees.
According come Porter, the collective strength that the interaction of potential entrants, buyers, substitutes, suppliers, for sure rivalry, and other stakeholders determine
A) the level that government activity in an industry.
B) the probable market attractiveness and business strength position.
C) the ultimate benefit potential in the sector measured in terms of long-run return on invest capital.
D) the accumulation level of demand for a product line.
E) the quantity of push from the societal environment.
According come Porter"s model, a strong or high pressure is most likely to mitigate profits and can be regarded as a(n)
According to Porter"s model, a low force can allow the agency to earn greater profits and also can be regarded as a(n)
Which of the adhering to is no descriptive the the "threat of brand-new entrants"?
A) relies on the presence of entry barriers
B) have a desire to get market share
C) counts on the reaction of existing competitors
D) does not influence industry attractiveness
E) brings new capacity and comprehensive resources
Which obstacle to entry execute corporations such together P&G use to force brand-new entrants come spend greatly to get rid of existing customer loyalty?
A) rivalry amongst existing firms
B) convert costs
C) funding requirements
D) product differentiation
E) accessibility to circulation channels
Which barrier to entry uses cost advantages associated with big size?
A) rivalry amongst existing firms
B) switching costs
C) price disadvantages live independence of size
D) capital requirements
E) economic situations of scale
Which obstacle to entrance is demonstrated by Microsoft"s MS-DOS operating system?
A) government policy
B) accessibility to circulation channels
C) price disadvantages live independence of size
D) funding requirements
E) economic climates of scale
Intel was able to acquire a far-reaching cost benefit over its competitors in the production and also sale that microprocessors due to the fact that of
A) capital requirements.
B) product differentiation.
C) switching costs.
D) economies of scale.
E) access to distribution.
Which that the complying with is no descriptive of intense rivalry amongst firms?
A) slow sector growth
B) high solved costs
C) high leave barriers
D) few competitors or rivals that are approximately equal in size and also power
E) product offerings that are extremely differentiated
Which that the complying with is not descriptive the the risk of substitute products or services?
A) instead of products show up to it is in different, however satisfy the same require as another product.
B) If the expense of convert is low, substitutes may have actually a strong effect on one industry.
C) identifying substitutes is reasonably easy due to the fact that they look similar.
D) possible substitute commodities or services might not show up to be quickly substitutable.
E) Substitutes limit the potential return of one industry.
A sugar firm that is worried the consumers may buy man-made sweetener instead of street is concerned around the
A) threat of new entrants.
B) rivalry amongst existing firms.
C) risk of instead of products.
D) bargaining power of suppliers.
E) bargaining strength of buyers.
Which the the following is not descriptive of a high level of bargaining strength of buyers?
A) changing suppliers costs an extremely little.
B) alternative suppliers room plentiful due to the fact that of standardization that the product.
C) The purchased product to represent a high percent of buyer"s costs.
D) The the person who lives buys a big proportion that the seller"s product or service.
E) A the person who lives earns high profits and also is an extremely insensitive come costs and also service differences.
When general Motors considers make its very own automotive parts, Delphi Automotive Supply company would be came to with the
A) bargaining power of suppliers.
B) bargaining strength of buyers.
C) rivalry among existing competitors.
D) danger of substitutes.
E) hazard of new entrants.
Which that the adhering to is no descriptive that a high level the bargaining strength of suppliers?
A) Substitutes are conveniently available.
B) The product or service is unique.
C) The supplier sector is dominated by a few companies, but sells also many.
D) The purchasing sector buys only a small part of the providers group"s goods and services.
E) carriers are may be to incorporate forward and compete directly with their present customers.
Other software application companies could not contend with Microsoft based upon the suspicion of consumer to shot a new software. Which of Porter"s pressures does this reflect?
A) departure barriers
B) bargaining strength of buyers
C) danger of substitutes
D) bargaining strength of suppliers
E) rivalry amongst existing firms
A agency or an industry whose product works well with a firm"s product and also without i m sorry the product would lose much of its value is considered to be a(n)
C) strategic group.
D) industry leader.
E) staggered company.
A connection that illustrates the hatchet "complementor" is
A) Microsoft and Intel.
B) basic Motors and Ford.
C) Hewlett Packard and also Compaq.
D) Gateway and Dell.
E) America Online and CompuServe.
The strength of every of the six driving pressures of industry competition different according come the
A) performance of the strategic planning.
B) stage of industry evolution.
C) resources requirements.
D) changes in the politics environment.
E) lot of government regulation.
In a fragmented industry
A) no for sure has huge market share.
B) prices drop as new competitors go into the market.
C) economic situations of range are offered to reduce costs.
D) companies incorporate to additional reduce costs.
E) all of the above
The U.S. Significant home appliance industry is an example of an industry
A) that has evolved from an oligopoly to a monopoly.
B) in i beg your pardon each company maintained a distinctive product line.
C) the was when fragmented, yet now is consolidated.
D) that has experienced consistent, raising sales.
E) enduring a successful strategy of product specialization because of product differentiation.
An industry dominated by a couple of large firms, every one of which struggle with product differentiation, is known as
In which form of international market do corporations keep going their assets to the particular needs of consumer in a particular country?
A) consortium industry
B) an international industry
C) native industry
D) multidomestic industry
E) worldwide industry
Which kind of international sector manufactures and sells the same assets with just minor adjustments created individual countries about the world?
A) consortium industry
B) global industry
C) aboriginal industry
D) multidomestic industry
E) global industry
Which of the complying with is an instance of a global industry?
E) health care
The two determinants that tend to identify whether an sector will be primarily multidomestic or primarily an international are (1) the press for coordination in ~ the MNCs operation in the industry and also (2)
A) the pressure for neighborhood responsiveness top top the component of individual nation markets.
B) the power of the local country governments come restrict MNC actions.
C) the require for brand management in the miscellaneous MNCs operation within that industry.
D) the importance of separating with integrating mechanisms in local cooperatives.
E) the likelihood of terrorist activity impacting the industry.
When the pressure for coordination is solid and the pressure for neighborhood responsiveness is weak for multinational corporations within a details industry, the industry will often tend to become
When the press for neighborhood responsiveness is solid and the pressure for coordination is weak for multinational companies in one industry, the market will tend to become
What is a collection of company units or firms that "pursue similar strategies with similar resources"?
A) strategy group
B) cumulative collaboration
D) integral association
E) strategy assembly
Which the the following is NOT among the basic strategic types according come Miles and also Snow?
According to Miles and also Snow, which strategic orientation is demonstrated by service providers that have actually a limited product line and also focuses on improving the performance of their existing operations?
According to Miles and Snow, a firm that operates in at the very least two different product-market areas in which one product is stable and also the various other one is variable, mirrors which strategy orientation?
According come Miles and also Snow, providers with reasonably broad product present that emphasis on product innovations and also market avenues such as Frito-Lay, reflect which strategic orientation?
According come Miles and Snow, most significant U.S. Airlines have reflected which strategic orientation?
To success in a hypercompetitive industry, companies should be willing to
A) cut prices listed below marginal costs.
B) pursue sector share rather of profits.
C) run in the honest gray zone.
D) cannibalize their own successful product lines.
E) mitigate spending on research and also development.
A table i beg your pardon summarizes the crucial success determinants within a specific industry is called a(n)
A) EFAS Table.
B) IFAS Table.
C) SFAS Table.
D) TOWS Matrix.
E) market matrix.
Those variables the can influence significantly the as whole competitive location of companies within any certain industry are known as
A) external strategic factors.
B) internal strategic factors.
C) procession factors.
D) key success factors.
E) sector scenario.
A formal regime of gathering info on a company"s competitors is described as
A) statistical modeling.
B) competitive intelligence.
C) vain strategy.
D) quantitative forecasting.
E) qualitative matrix.
Which the the adhering to is true in regards come competitive intelligence?
A) The financial Espionage Act renders it illegal to steal any type of material the a business has bring away "reasonable efforts" to save secret.
B) The society of vain Intelligence experts urges strategists to continue to be within the law and also to action ethically when searching for information.
C) The society of competitive Intelligence specialists states the illegal activities are foolish because the vast majority of worthwhile competitive knowledge is available publicly via annual reports, websites, and also libraries.
D) A variety of firms rental consultants through questionable reputations who perform what is important to get information once the selected techniques do not satisfy SPIC honest standards or space illegal.
E) every one of the above
The primary activity of a competitive intelligence unit is to
A) monitor competitors.
B) communicate in this firm espionage.
C) inspection stakeholders.
D) recognize industry R&D statistics.
E) turning back engineer competitors" products.
A research of nearly 500 that the world"s biggest corporations suggested which the the complying with to it is in the many widely practiced form of forecasting?
A) statistics modeling
C) delphi technique
E) tendency extrapolation
Over ________ of huge companies use trend extrapolation because that forecasting.
Trend extrapolation is
A) the process of converting intuition and also hunches 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) given a large amount of historic data on specific interrelated factors, one attempts to conceptualize alternate futures.
E) detecting faulty underlying presumptions before forecasting errors deserve to occur.
A non-quantitative strategy to forecasting that requires just the existence of world with some expertise of the situation to be predicted to propose ideas without an initial mentally screening lock is called
B) the delphi technique.
D) signal monitoring.
One ground dominion necessary for efficient brainstorming is
A) scrutinize every idea generated.
B) propose concepts without holy spirit screening them.
C) calculating future revenue of each idea.
D) critique every idea because that rationality.
E) forecast the success of each idea.
Regression evaluation is an instance of i m sorry quantitative forecasting technique?
A) the delphi technique
B) statistics modeling
D) trend-impact analysis
E) morphological analysis
The most widely used forecasting method used after trend extrapolation is
A) statistics modeling.
D) expert opinion.
Which among the following is NOT part of the process of industry scenarios?
A) Examine feasible shifts in societal variables.
B) recognize uncertainties in every of the six pressures in the task environment.
C) generate at least 15 scenarios.
D) make a variety of plausible assumptions around future trends.
E) analyze the industry case that would certainly prevail under every scenario.
The an approach recommended by the text to to organize an evaluation of outside strategic factors is called
E) the problems priority matrix.
In the EFAS Table, the indicator of exactly how well a details company is responding to current and also expected components in that is external setting is characterized by the
A) IFAS score.
B) market matrix.
C) total weighted score.
D) SWOT score.
E) SFAS score.
Describe the four general pressures in the societal environment.
Answer: The 4 general pressures in the societal atmosphere are economic, technological, political-legal, and sociocultural. Economic forces control the exchange the materials, money, energy, and information. Technical forces create problem-solving inventions. Political-legal pressures allocate strength and administer constraining and protecting laws and also regulations. Sociocultural forces regulate the values, mores, and also customs of society.
List eight present sociocultural trends in the United says that space transforming phibìc America and the world.
Answer: Eight existing sociocultural fads in the United states that are transforming phibìc America and also the human being are together follows:
Increasing ecological awareness
Growing health and wellness consciousness
Expanding seniors market
Impact of Millennials
Decline of the massive market
Changing pace and location of life
Changing household composition
Increasing diversity of workforce and markets
Describe Porter"s approach to sector analysis.
Answer: Michael Porter contends the a coporation, group is most pertained to with the soot of competition in ~ its industry. The level of this intensity is established by simple competitive forces. These are the risk of brand-new entrants, rivalry among existing firms, threat of substitute commodities or services, bargaining strength of buyers, bargaining strength of suppliers, and also relative power of various other stakeholders (added later by the authors).
New entrants to an sector typically carry to it new capacity, a desire to gain market share, and an extensive resources. The threat of entry relies on the presence of entry barriers and the reaction that deserve to be meant from existing competitors.
A competitive relocate by one firm can be expected to have actually noticeable effect on that competitors and also thus may cause retaliation or counter efforts. Extreme rivalry is regarded the presence of the number of competitors, price of market growth, product or business characteristics, the lot of resolved costs, capacity, the height of departure barriers, and also the diversity that rivals.
Substitute products are those assets that show up to it is in different but can satisfy the same need as one more product.
Buyers influence an industry through their ability to force down prices, cheap for greater quality or more services, and play competitors against each other.
Suppliers can impact an industry through their capacity to raise prices or reduce the top quality of purchased goods and services.
The 6th force includes a variety of stakeholder teams from the job environment. The prominence of these stakeholder teams varies through industry.
Answer: A fragmentised industry has no firm with a big market share and each for sure serves only a small piece that the total market in competition with others. As brand-new competitors go into the industry, prices drop as a an outcome of competition.
A consolidated industry is overcame by a couple of large firms, every of which struggles to differentiate its products from the competition. The automobile, petroleum, and major home appliance markets are instances of mature, consolidated industries each managed by a couple of large competitors.
Answer: The components that often tend to identify whether an market will be mostly multidomestic or primarily global are pressure for coordination in ~ the multinational operations operating in the industry and pressure for regional responsiveness top top the part of individual nation markets. A multidomestic sector is one in which carriers tailor their commodities to the certain needs of consumer in a certain country. A an international industry is one in which suppliers manufacture and also sell the exact same products, with only minor adjustments created individual countries about the world.
Answer: follow to Miles and Snow, over there are four general varieties of firms based upon their basic strategic orientation. Defenders are companies with a limited product line that focus on improving the effectiveness of their existing operations. Prospectors are service providers with fairly broad product currently that emphasis on product innovation and market opportunities. Analyzers room corporations that run in at the very least two different product-market areas, one stable and also one variable. Reactors space corporations that lack a continuous strategy-structure-culture relationship.
Answer: Competitive knowledge is a formal regime of gathering info on a company"s competitors. Frequently called service intelligence, it is one of the fastest farming fields in ~ strategic management. Many companies use external organizations (such together A.C. Nielsen Co.) to provide them with ecological data. The Internet gives the quickest means to obtain data. Part companies choose to use commercial espionage or other intelligence-gathering techniques to get their information straight from your competitors.
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Answer: tendency extrapolation is the most widely practiced type of forecasting through over 70% that the world"s largest firms making use of this an approach either occasionally or frequently. Extrapolation is the extension of current trends into the future. The rests ~ above the presumption that the human being is reasonably consistent and also changes slowly in the brief run. Time-series methods are ideologies of this type: they attempt to lug a series of historical occasions forward into the future. The straightforward problem with extrapolation is the a historic trend is based upon a series of patterns or relationships amongst so many different variables the a readjust in any kind of one deserve to drastically transform the future direction the the trend. As a preeminence of thumb, the further earlier into the previous you can discover relevant data supporting the trend, the more confidence you can have in the prediction.