Buad479-Ch. 3
Which of the following statements is false?
*A.Regarding weights in a CPM or EFE Matrix, be mindful that 0.08 is mathematically 25 percent higher than 0.06, so even small differences can reveal important perceptions regarding the relative importance of various factors.* B.The ratings in a CPM refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. C.Avoid assigning the same rating to firms included in a CPM analysis. D.Critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. E.The weights and total weighted scores in both a CPM and an EFE have the same meaning.
According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of the five forces. Which force is usually the most powerful?
*A.Rivalry among competing firms* B.Bargaining power of consumers C.Bargaining power of suppliers D.Potential entry of new competitors E.Potential development of substitute products
Which of the following statements is true?
*A.Wild guesses should NEVER be made in formulating strategies, but reasonable assumptions based on available information must ALWAYS be made.* B.Wild guesses oftentimes must be made in formulating strategies, but reasonable assumptions based on available information must always be made. C.Wild guesses should sometimes be made in formulating strategies, and reasonable assumptions based on available information must sometimes be made. D.Wild guesses should rarely be made in formulating strategies, but reasonable assumptions based on available information must usually be made. E.Wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must oftentimes be made.
Which of the following statements is false?
*A.You may assign the same rating to firms included in a CPM analysis if the firms are similar on the respective factor.* B.Regarding weights in a CPM or EFE Matrix, be mindful that 0.08 is mathematically 33 percent higher than 0.06, so even small differences can reveal important perceptions regarding the relative importance of various factors. C.The weights and total weighted scores in both a CPM and an EFE have the same meaning. D.Critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. E.The ratings in a CPM refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.
The range of total weighted scores in a CPM Matrix is:
A.1.0 to 5.0. *B.1.0 to 4.0.* C.1.0 to 6.0. D.0.0 to 5.0. E.0.0 to 4.0.
In an EFE Matrix, the average total weighted score is:
A.2.0 B.3.5 C.4.0 *D.2.5* E.3.0
The weight column in an EFE Matrix must sum to what number?
A.2.0 B.4.0 *C.1.0* D.The sum may vary between 1.0 and 5.0. E.3.0
The population of the world recently surpassed ___ billion; the United States has slightly more than ___ million people.
A.21; 910 *B.7; 310* C.14; 610 D.1; 110 E.28; 910
In an EFE Matrix, how much more important is a rating of 4 than a rating of 3?
A.25% B.66% C.50% D.20% *E.33%*
How many key external factors should be included in an EFE Matrix?
A.30 *B.20* C.25 D.10 E.15
In an EFE Matrix, how much more important is a weight of 0.20 than a weight of 0.15?
A.5.0% *B.33%* C.05% D.25% E.50%
An advantage of a strong dollar include which of the following?
A.Companies with substantial outside U.S. operations see their overseas expenses, such as salaries paid in euros, become cheaper. B.It gives U.S. companies greater firepower for international acquisitions. C.Companies importing goods have greater buying power because their dollars now go further overseas. D.A & B above *E.A, B, and C above*
External forces can be divided into five broad categories, including the following category:
A.Ethics B.Sustainability *C.Technology* D.A & C E.B & C
The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following circumstance(s):
A.If they are particularly important to the seller B.If they can inexpensively switch to competing brands or substitutes C.If they are informed about sellers' products, prices, and costs D.If sellers are struggling in the face of falling consumer demand *E.All of the above*
Which of the following statements is true?
A.Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is much better in many areas. B.When one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it follows that the first firm is precisely 14.3 percent better than the second. C.Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 12.5 percent better than the second, but it does suggest that the first firm is better in some areas. D.Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it follows that the first firm is precisely 12.5 percent better than the second, and that the first firm is better in some areas. *E.Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is better in some areas.*
What source provides excellent online information and advice on approximately 1,700 stocks, more than 90 industries, the stock market, and the economy, including company income statements and balance sheets?
A.Mergent Online B.IBISWorld C.Lexis-Nexis Academic D.Standard & Poor's NetAdvantage *E.Value Line Investment Survey*
The state in the United States with highest state taxes is ___________ and the state with the lowest state taxes is ______________.
A.New York; Alaska B.California; Alaska C.California; Mississippi D.California; South Dakota *E.New York; Wyoming*
The Industrial Organization view of strategic planning advocates that external (industry) factors are more important than internal ones for gaining and sustaining competitive advantage. Do the authors David and David agree?
A.No. Internal factors are controllable and external factors are not. B.No. Internal factors (strengths and weaknesses) are more important. C.Yes. It is like an ocean tide rising or falling. No one can stop that flow. *D.No. Matching key external opportunities and threats with key internal strengths and weaknesses provides the basis for successful strategy formulation.* E.Yes. Michael Porter is correct.
Which of the following statements is true?
A.Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 8.0 and the lowest possible total weighted score is 1.0. B.Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 10.0 and the lowest possible total weighted score is 0.0. C.Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 0.0. *D.Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 1.0.* E.Statements A through D are false.
According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following forces:
A.Rivalry among competing firms and potential entry of new competitors. B.Potential development of substitute products and bargaining power of consumers. C.Bargaining power of suppliers and bargaining power of distributors. *D.A and B* E.A, B, and C
Which states have zero state income tax?
A.Texas and Florida B.Nevada, Alaska, and Wyoming C.South Dakota and Washington D.A and B *E.A, B, and C*
An example of an economic variable is "value of the dollar" that recently hit a 7-year high compared with the yen, a 9-year high compared with the euro, a 5-year high compared with the Australian dollar, and an 11-year high compared with some other currencies. The high dollar results in what economic factor(s)?
A.The high dollar makes U.S. goods more expensive in overseas markets. B.The high dollar makes it expensive for foreigners to travel to the United States. C.The high dollar makes it cheap for Americans to travel abroad. D.The high dollar worsens the U.S. trade deficit. *E.All of the above*
Are the interpretations of the weights in a CPM and EFE Matrix the same?
A.Usually *B.Yes* C.Never D.No E.Sometimes
An MIS technique that involves using software to mine huge volumes of data to help executives make decisions is called:
A.predictive analytics. B.business analytics. C.data mining. D.machine learning. *E.All of the above*
An excellent source of industry information, including Industry Profiles and trade statistics for many industries, is provided at what website?
A.www.finance.aol.com B.www.hoovers.industries.com C.www.finance.yahoo.com D.www.google.industries.com *E.http://globaledge.msu.edu/industries/*
