STRAT MANAGE CH 3
a rise in economic growth is reflected by __________ a. businesses expanding operations to satisfy demand b. businesses closing operations due to lack of demand c. businesses staying the same
a
the cultures, norms, and values of the society in which a firm competes are considered _________ factors
sociocultural
the external forces called technological factors ________ a. describe society's norms and values b. capture the application of knowledge to create new process and products
b
according to the five forces model, a firm seeking to compete in an established industry should seek to do which of the following? a. partner with the most established company possible b. position itself in a way that leverages weak forces c. position itself in a way that relaxes the constraints of strong forces d. ignore the strength of competitive forces and focus on functional strategy
b, c
changes in prices (a lack of price stability) is a direct function of __________ a. dividned payments by companies b. how many people live in a country c. how much money is in the economy
c
consumers tend to buy homes, automobiles, and computers when interest rates are _________ because credit is inexpensive a. high b. fluctuating c. low d. high
c
in a period of economic boom, unemployment is __________, and human resources become expensive a. variable b. fluctuating c. low d. high
c
t or f: sociocultural factors tend to be fixed
f
recessions are less likely to harm _______-cost airlines, which appeal more to budget-conscious travelers than legacy carriers
low
the stronger the five forces in porter's model, the _____ the industry's profit potential
lower
industry specific factors known as ______ separate one strategic group from another
mobility barriers
__________ factors result from the processes and actions of government bodies that influence the decisions and behavior of firms
political
what does PESTEL stand for?
political, economic, sociocultural, technological, ecological, and legal
in the group of external factors that form the PESTEL model, the "P" stands for __________ and the "L" stands for __________
political, legal
a(n) ________ group is a set of companies within a specific industry that seek to achieve competitive advantage in similar ways
strategic
t or f: according to the five forces model, competition involves not only creating economic value but also capturing a significant share of the economic value created
t
a firm's strategic position relates to its ability to create __________ for customers while containing the ________ to do so
value, cost
firms within the same strategic group are _____ competitors
direct
the economic recession that began in 2008 in the united states was the result of unwise investments in __________ a. real estate b. the online economy c. stocks d. commodities
a
an increase in the overall price level is also called a. economic growth b. inflation c. deflation d. recession
b
although the five forces model is useful in understanding an industry's profit potential, it provides only a __________ a. point-in-time snapshot of a moving target b. dynamic view of a moving target c. point-in-time snapshot of static industries
a
an example of a recent innovation in process technology is _______ a. lean manufacturing b. the microwave c. the smartphone d. the bp oil spill
a
if the us dollar depreciates compared to the euro, it will take __________ dollars to buy one euro a. more b. the same number of c. fewer
a
price __________ is the lack of change in price levels of goods and services a. stability b. power c. range
a
the NASDAQ peaked at its all-time high of 5,132 points on March 10, 2000. hundreds of dot-com businesses were found and funded during this time, but very few survived. this example show that a. economic boom periods can overheat and lead to specific bubbles b. the market was characterized by RATIONAL exuberance
a
managers are able to influence which of the following types of external forces? a. the structure of their industry b. strategic group composition c. interest rates d. currency exchange rates
a, b
according to the porter's model, which of the following should be considered when analyzing a firm's competition? a. buyers b. the threat of substitutes c. the regulations in possible host countries d. suppliers
a, b, d
which of the following are examples of demographic factors? a. age b. gender c. labor-force size d. sexual orientation
a, b, d
which of the following are employed as nonmarket strategies to influence government bodies? a. lobbying b. advertising c. public relations d. litigation
a, c, d
which of the following have helped increase the rate of convergence in the media industries a. telecommunications advances b. new kinds of delivery vans c. improved IT d. digital media
a, c, d
along which of the following dimensions do strategic groups differ from one another? a. market segments b. profit motive c. customer service d. research and development e. distribution channels
a, c, d, e
which of the following are examples of economic factors in the firm's general environment? a. growth rates b. government regulations c. price stability d. technological advancements e. interest rates
a, c, e
the most rigorous means of analyzing the profit potential within a specific industry is to conduct ________
an industry analysis