chapter 3

Sociocultural factors are constantly in flux and also differ across groups.

True

When managers understand the forces in the external environment, they are better able to.

mitigate threats and leverage opportunities

An industry analysis provides which of the following?

-A rigorous way of identifying the industry's profit potential -The level of profitability that can be expected for the average firm in the industry -Insight into a firm's strategic position within an industry

Which of the following statements about Airbnb is correct?

It handles more accommodations than the three biggest hotel chains combined.

The most rigorous means of investigating the profit potential within a specific industry is to conduct ______.

an industry analysis

In the PESTEL model, political factors are those that relate to _____.

government bodies

Which of the following are examples of economic factors in the firm's general environment?

growth rates price stability interest rates

Which factors result from the processes and actions of government bodies that influence the decisions and behavior of firms?

political

Which of the following are examples of sociocultural factors?

-growth of the Hispanic population -increased number of health-conscious consumers

power of buyers affects producers in which ways

-obtaining price discounts -demanding higher quality -requesting more service

Managers are able to influence which of the following types of external forces?

-the structure of their industry -strategic group composition

Growth rates, interest rates, and levels of employment would be considered ______ factors in a firm's general environment.

economic

Which of the following is an example of a recent innovation in process technology?

lean manufacturing

Managers have ____ direct influence over external forces in the firm's general environment than those in the firm's task environment.

less

Global warming would be an example of a Blank______ factor in a firm's external environment.

ecological

A rise in economic growth is reflected by ______.

businesses expanding operations to satisfy demand

Which of the following statements about legal factors as an external force is true?

Regulatory changes tend to affect entire industries at once.