Chapter 3-2

If suppliers are unreliable or too costly, which of these strategies may be appropriate?

Backward integration

What is NOT one of Michael Porter's five competitive forces?Bargaining power of unions

Bargaining power of unions

Consumers in the United States now desire sedans rather than automobiles with greater space and utility.

F

Intelligence gathering is an unethical business practice.

F

It is predicted that, by 2050, over 25 percent of the population in the United States will be 65 years or older.

F

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0.

F

Political, governmental, and legal forces are always threats for both small and large organizations.

False

Standard & Poor's NetAdvantage does not provide online access to

Mergent's (formerly Moody's/FISOnline) Manuals.

________ forces are shaping the way people live, work, produce, and consume.

SCDE

An effective competitive intelligence program allows all areas of a firm to access consistent and verifiable information in making decisions.

T

Forecasts are educated assumptions about future trends and events.

T

Hiring top executives from rival firms is a way companies obtain competitive intelligence.

T

The United States (and the world) is becoming older.

T

The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural, demographic, and natural environment forces, 3) political, governmental, and legal forces, 4) technological forces, and 5) competitive forces.

T

A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called

competitive intelligence.

Collecting and evaluating information on competitors is essential for successful

strategy formulation.