Ultimate Study Set MGMT 4500 Exam 1
Regiocentric Orientation
When a parent company blends its own predisposition with those of its international units to develop region-sensitive strategies.
Geocentric Orientation
When an international firm adopts a systems approach to strategic decision making that emphasizes global integration.
Polycentric Orientation
When the culture of the country in which the strategy is to be implemented is allowed to dominate a company's international decision making process
Ethnocentric Orientation
When the values and priorities of the parent organization guide the strategic decision making of all its international operations
product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
Agency Theory
a set of ideas on organizational control based on the belief that the separation of the ownership from management creates the potential for the wishes of owners to be ignored
Remote Environment
economic, social, political, technological, and ecological factors that originate beyond, and usually irrespective of, any single firm's operating situation
Operating Environment
factors in the immediate competitive situation that affect a firm's success in acquiring needed resources
Economies of Scale
factors that cause a producer's average cost per unit to fall as output rises
At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?
how to best enhance the firm's image and fulfill its social responsibilities
When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are designed to achieve its objectives, it is most likely engaging in _________.
strategic management
The We Have It Your Way Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated this organization has an established _________.
strategy
The decision making hierarchy of a firm typically contains _______ levels.
3
A corporation with a/an ________ is likely to adopt a global systems approach to its strategic decision making that empathizes global integration. A) geocentric orientation B) ethnocentric orientation. C) regiocentric orientation D) polycentric orientation
A
A/An ______ is one in which competition crosses national borders on a worldwide basis. A) global industry B) domestic industry C) international industry D) multidomestic industry
A
Defining the boundaries of an industry can be a very difficult task. This difficulty stems from all of the following except which one? A) Industries are very static in nature. B) Industrial evolution creates industries within industries. C) Industries are becoming more global in scope. D) The evolution of industries over time creates new threats and opportunities.
A
Of the following statements, which one would not fit well in the segment of a corporate mission statement expressing the corporation's concern for public image? A) Our organization is dedicated to the total success of our business as a worldwide competitor. B) We have a strong responsibility to the communities in which we work. C) Our organization must be responsive to the public's desire for improvement in the quality of life. D) We shall adhere to the philosophy of equal opportunity for all.
A
Of the following, which trend is least likely to be considered a driving force for businesses to adopt CSR frameworks? A) The ready adoption of diversity within organizations B) The globalization of business C) The increasing buying power of society D) The resurgence of environmentalism
A
Responsibilities voluntarily assumed by a business such as public relations, good citizenship, and full corporate responsibility is best identified as which one of the following? A) Discretionary responsibilities. B) Corporate social responsibilities C) Ethical responsibilities D) Economic responsibilities
A
The social factors that affect a firm involve all of the following except _______. A) the propensity of people to spend B) lifestyles of people C) attitudes of people in the external environment D) values and beliefs of persons outside the firm
A
Which of the following is a false statement regarding the fourth set of factors - technological changes- in a firm's remote environment? A) Technological changes rarely influence or promote innovation within firms. B) A technological breakthrough can have a sudden and dramatic effect on a firm's environment. C) To avoid obsolescence, a firm must be aware of technological changes that might influence its industry. D) Creative technological adaptations can suggest possibilities for new products.
A
25.) Which of the following is usually an assumed goal of a corporation? A) growth B) variety of product C) short-term profits D) asset proliferation E) growth through acquisition
A) growth
38.) a buyer group is powerful if: A) it earns low profits, which create great incentive to lower its purchasing costs B) the industry's product is important to the quality of the buyers' products or services C) the industry's product saves the buyer money D) it is not concentrated or does not purchase in large volumes E) the products it purchases from the industry are unique or differentiated
A) it earns low profits, which create great incentive to lower its purchasing costs
42.) New entrants to an industry bring: A) new capacity B) new customers C) few resources D) bigger margins E) government intervention
A) new capacity
24.) No matter how profit is measured of defined, is the clearest indication of a firm's ability to satisfy the principle claims and desires of employees and stockholders A) profit over the long term B) profit over the short term C) return on investment D) the number of lawsuits brought against the firm E) the price to earnings ration of the firm's common stock
A) profit over the long term
27.) According to the text, the mission attempts to: A) provide a unifying purpose for the company B) set policy C) create a board of directors D) identify stakeholders E) None of the above
A) provide a unifying purpose for the company
17.) An implication of viewing strategic management as a process is that strategy formulation and implementation are: A) sequential B) simultaneous C) random D) partial E) reversible
A) sequential
11.) The results that an organization seeks over a multiyear period are its . A) grand strategies B) long-term objectives C) long-term strategies D) short term goals E) functional tactics
B) long-term objectives
28.) Which of the following is not an area covered by the Sarbanes-Oxley Act of 2002? A) corporate responsibility B) mission statement C) increased disclosure D) audit committees E) auditor independence
B) mission statement
21.) Competitors are an example of A) inside stakeholders B) outside stakeholders C) inside stockholders D) outside stockholders E) none of the above
B) outside stakeholders
23.) As a business grows or is forced by competitive pressures to alter its product-market-technology. A) the mission statement should remain unchanged B) redefining the mission statement may be necessary C) redefining the mission statement is mandatory D) the mission statement remains unaffected
B) redefining the mission statement may be necessary
10.) is are concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments. A) postaction control B) strategic control C) internal analysis D) functional tactics E) strategy formulation
B) strategic control
The decision making hierarchy of a firm typically contains _______ levels.
Business level
13.) are detailed statements of the "means" of activities that will be used to achieve short-term objectives and establish competitive advantage. A) generic strategies B) policies C) functional tactics D) grand strategies E) mission statements
C) functional tactics
12.) The general plan of major actions through which a firm intends to achieve its long-term objectives is called its: A) corporate plan B) action plan C) grand strategy D) mission statement E) functional tactic
C) grand strategy
43.) As an industry matures, A) its growth rate is unchanged B) profits are higher C) its growth rate changes D) new products emerge E) new firms enter
C) its growth rate changes
34.) The external environment can be divided into three interrelated subcategories: A) remote, operating, and task B) remote, competitive, and task C) remote, industry, and operating D) remote, competitive, and operating E) remote, intermediate, and industry.
C) remote, industry, and operating
15.) is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives. A) strategic policy B) business policy C) strategic management D) a functional tactic E) none of the above
C) strategic management
33.) Which of the following is not a variable that comprises industry structure? A) concentration B) economics of scale C) suppliers' bargaining power D) barriers to entry E) product differentiation
C) suppliers' bargaining power
Adverse Selection
Caused by the limited ability of stockholders to determine the competencies and priorities of executives at hire.
According to the _________, individuals should not be treated differently on the basis of arbitrary characteristics such as race, sex, religion, or national origin. A) social justice approach B) difference principle C) Sarbanes-Oxley Act of 2003 D) distributive-justice principle
D
As a corporation grows into that of being a global operation, it can expect to undergo the need for various progressively involved strategy levels. At which level should a corporation most likely expect to face the challenge of foreign licensing and technology transfer? A) First level B) Final level C) Third level D) Second level
D
As a stakeholder the local communities associated with an organization have distinct views of the responsibility an organization has to them. The views of local communities would include likely all but which one of the following? A) Participation of company officials in community affairs B) Providing a place of productive and healthful employment C) Interest in and support of local government D) Adherence to the letter and intent of public policy dealing with the requirements of fair and free competition
D
29.) Harvard professor Michael E. Porter - in his seminal article on the industry environment and its impact of strategic management - argues that: A) the state of competition in an industry depends on four basic forces B) the strongest competitive force or forces determine the profitability of an industry and so are of the greatest importance in strategy formulation C) the weaker the forces collectively, the greater the opportunity for superior performance D) A and B E) B and C
E) B and C
41.) A supplier group is powerful if: A) its product is unique or at least differentiated, or if it has built-up switching costs B) it is not obliged to contend with other products for sale to the industry C) it poses a credible threat of integrating forward into the industry's business D) the industry is not an important customer of the supplier group E) all of the above
E) all of the above
7.) Strategic issues: A) require large amounts of the firm's resources B) often affect the firm's long-term prosperity C) usually have multifunctional or multibusiness consequences D) are future oriented E) all of the above
E) all of the above
48.) Which of the following statements is false? A) a multidomestic industry is one in which competition is essentially segmented from country to country B) the technological advantage once enjoyed by the United States has declined dramatically during the past 30 years C) in a global industry, a firm's strategic moves in one country can be significantly affected by its competitive position in another country D) a company with a geocentric orientation adopts a global systems approach to strategic decision making, thereby emphasizing global integration E) many authorities are convinced that almost all product-oriented industries soon will be multidomestic
E) many authorities are convinced that almost all product-oriented industries soon will be multidomestic
Example of Global company
Ferrari, Rolex
________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making are specified.
Formality
Which level of the decision making hierarchy is best identified as being composed principally of business and corporate mangers who must translate the statements of direction and intent into concrete objectives and strategies for the individual business units?
Functional
Generic Strategies
Fundamental philosophical options for the design of strategies.
Which one of the following statements is least likely to represent a fundamental belief an organization would have to guide it in creating its mission statement? A) The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share. B) The management philosophy of the business will result in a favorable public image. C) The products or services offered can satisfy the customers within a specific market segment. D) The business will provide financial rewards for those who are willing to invest in helping the company succeed.
A
Which one of the following statements would be considered false when discussing the value a company places on its public image? A) The chance of gaining negative public image does not inspire organizations into action. B) Public agitation stimulates organizations into taking corrective actions. C) Essentially, it is the public's opinion of an organization and its actions that count in the long run. D) Firms rarely address the issue of public image in an intermittent manner.
A
Which one of the following would not be considered a factor that contributes to the increase in the complexity found within today's global environment? A) Global organizations are able to fully utilize differences in industry structures that are encountered. B) Global organizations face multiple legal, social, and cultural environments that change at different rates. C) Global organizations face extreme competition. D) Global organizations are restricted in their selection of competing strategies by various regional and economic constraints.
A
Which one of the following would not be considered a method a firm can engage in to enhance an eco-efficient strategy? A) Reducing waste while enlarging product packaging size B) Controlling property acquisitions and use to preserve habitats C) Implementing energy-conserving activities D) Developing corporate standards
A
Industry
A collection of businesses with a common line of products or services
6.) A strategy is a company's: A) "game plan" B) pricing policy C) net income D) long-term objective E) short-term objective
A) "game plan"
37.) Which of the following is not a major source of barriers to entry in an industry? A) Market differentiation B) access to distribution channels C) economics of scale D) cost disadvantages independent of size E) product differentiation
A) Market differentiation
3.) The ideal strategic management team includes decision makers from: A) all three company levels (the corporate, business, and functional) B) just the corporate level C) just the corporate and business level D) just the functional and corporate level E) just the top management
A) all three company levels (the corporate, business, and functional)
1.) According to J.C Collins and J.L. Porras, a well conceived vision consists of two major components: A) core ideology and envisioned future B) core values and core purpose C) a 10-30 year BHAG and vivid descriptions D) core purpose and vivid descriptions E) core values and vivid descriptions
A) core ideology and envisioned future
30.) The learning curve effect is an example of which barrier to entry? A) cost disadvantages independent of size B) product differentiation C) economics of scale D) government policy E) market differentiation
A) cost disadvantages independent of size
14.) A manager's principal responsibility is to implement or execute the firm's strategic plans. A) functional level B) corporate level C) business level D) organizational level E) SBU level
A) functional level
26.) According to the text, which of the following is not an indispensable component of the mission statement? A) specification of a profile of the firm's present and prospective customers B) specification of the basic product or service C) specification of the primary market D) specification of the principal technology for production of delivery E) None of the above
A) specification of a profile of the firm's present and prospective customers
49.) Strategic management planning must be global for at least six reasons. One of them is: A) the increased scope of the global management task B) the decreased globalization of firms C) the increase in global monopolies D) the slowing of technology E) none of the above
A) the increased scope of the global management task
46.) Perceived differentiation results from: A) the way in which firms position their products in the market B) a firm's success in persuading customers that their products differ slightly from competing products C) production and financial strategies D) a lessening of competition E) a competitive advantage new firms have as they attempt to enter the market
A) the way in which firms position their products in the market
16.) All business firms exist in an open system. They affect and are affected by external conditions that are largely beyond their control. This statement is: A) true B) false
A) true
8.) An accurate assessment of the impact of strategy formulation on organizational performance requires not only financial evaluation criteria bu also nonfinancial evaluation criteria. This statement is: A) true B) false
A) true
5.) Market development is an example of a: A) generic strategy B) grand strategy C) functional level strategy D) SBU strategy E) BHAG
B) grand strategy
All of the following except ________ provide rationales for why the process of conducting a cost-benefit analysis of CSR is difficult. A) philanthropic activities of a corporation are usually undertaken at a discounted cost to the business B) the needs and preferences of society change rapidly and often C) many of the advantages gained such as goodwill are intangible in nature D) sometimes there are no actual dollar costs involved
B
All of the following except _________ would be considered rationales for why an organization may wish to globalize its operations in the international marketplace. A) to gain a competitive weapon B) realization of domination of the domestic market C) acquiring opportunities to expand into new industries D) gaining advantage in technology
B
All of the following would be considered true about a firm at the start of its globalization process except which one? A) External assessments must be conducted before a firm enters global markets. B) Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace. C) The firm must pay particular attention to the host nation's political control and economic progress. D) Internal assessments must be conducted prior to the firm attempting to enter the global arena.
B
Managers who adopt the _______ to ethics judge the effects of a particular action on the people who are directly involved. A) social justice approach B) utilitarian approach C) principal-agent approach D) moral rights approach
B
Outside stakeholders of an organization would include all of the following groups except _________. A) the general public B) the board of directors C) local and federal governments D) unions and their representatives
B
The XYZ Organization's mission statement is focused around three indispensable components. Of the following, which one would not be considered one of these components? A) The markets served by XYZ shall include oil and gas producers as well as producers of chemicals. B) XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders. C) The customers of XYZ shall include global consumers of gas and oil products and domestic users of nontoxic chemicals. D) The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so as to remain competitive within the industry.
B
The construction company owned by Tom and Adam Smith - T & A Contracting- faces many challenges posed by its external environment. Of the following, which factor is most likely to be classed as belonging in the remote environment of T & A Contracting? A) Competitors B) Ecological C) Labor D) Suppliers
B
The most prominent factor found in the remote environment of businesses is most often that of the reciprocal relationship between those businesses and the ecology. Specific ecological concerns focus on all but which one of the following? A) Global warming B) Fair labor standards C) Loss of habitat D) Air and water pollution
B
When an organization makes a statement such as "We believe that meeting the needs of customers, suppliers, and neighbors is instrumental to fulfilling our mission" the organization is most likely identifying its _________. A) vision statement B) company creed C) mission statement D) agency theory
B
Which type of social responsibility is best identified as being the firm's obligations to comply with the rules and statutes that regulate business activities? A) Economic responsibility B) Legal responsibility C) Discretionary responsibility D) Ethical responsibility
B
22.) In combination, the cost of agency problems and the cost of actions taken to minimize agency problems, are called: A) corporate and social responsibility costs B) agency costs C) organizational costs D) moral hazard problem costs E) adverse selection costs
B) agency costs
19.) level decisions involve action-oriented operational issues and are relatively short range and low risk A) corporate B) functional C) business D) board E) stockholder
B) functional
For the past two years the Broken Arrow Corporation has been planning to expand its operations in order to reach out to the market arenas of the world. Its future plans include continuation of its standardized product line to be offered within the new marketplaces. Essentially, the Broken Arrow Corporation desires to _____________. A) become a multidomestic industry B) develop a polycentric orientation C) embrace globalization D) engage stakeholder activism
C
Political constraints are placed on firms through a variety of avenues except which one of the following? A) Antitrust laws B) Fair trade decisions C) Discretionary responsibility D) Administrative jawboning
C
Purportedly, there are three economic goals that serve to guide the strategic direction of almost every business organization. ________ is least likely to be considered one of these goals? A) Survival B) Profitability C) Sustained absolute advantage D) Growth
C
The board of directors of the TMJ Company takes great pride in the operations of this very successful company. Which of the following statements would most likely be considered false about TMJ's board of directors? A) The board is comprised of strategic managers and stockholder representatives. B) The board is responsible for the creation of the company mission. C) The board rarely has to deal with potentially unethical business issues. D) The board establishes the compensation level of top officers and executives.
C
The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations is best identified as which one of the following? A) Ecology B) Economies of scale C) Technological forecasting D) Environmental scanning
C
The various interest groups associated with the CBC Corporation expect and demand their claims toward the organization be settled in a responsible manner. When discussing this concept, all of the following statements would be considered true of a corporation's interest groups except which one? A) Governments expect adherence to legislation. B) Stockholders desire appropriate returns on their investments. C) The general public wants products with fair pricing. D) Employees seek broadly defined job satisfaction from their jobs.
C
When the values and priorities of the parent organization guide the strategic decision making of all its international operations, it can be said there is a/an _______ present within the organization. A) polycentric orientation B) regiocentric orientation C) ethnocentric orientation D) geocentric orientation
C
Which one of the following statements would be considered false regarding the concept of corporate social responsibility (CSR)? A) Costs and benefits of CSR are both economic and social in nature. B) CSR embraces the idea that business has a duty to serve society in general as well as the financial interests of stockholders. C) CSR is focused only on responsibilities that are voluntarily assumed by a business. D) CSR should be viewed as an integral component in the decision making process.
C
4.) Which of the following is a generic strategy option? A) integration B) diversification C) differentiation D) retrenchment E) concentration
C) differentiation
47.) Factors that increase the degree to which an industry is multidomestic include: A) a need for standardized products B) fragmented industry with few competitors C) distribution channels unique to each country D) the existence of economics of scale E) high technological dependence of subsidiaries on R&D
C) distribution channels unique to each country
45.) In intense competition, competitors are characteristically: A) few B) of unequal power C) equal in size D) not foreign E) none of the above
C) equal in size
36.) Intense rivalry is most likely when: A) industry growth is fast B) the product or service has high swithching costs C) exit barriers are high D) there are few competitors E) the product or service is highly differentiated
C) exit barriers are high
Of the following statements, which one is least likely to be true regarding a company's statement of philosophy? A) A company's statement of philosophy is often called its company creed. B) It reflects the guiding values and philosophical priorities to which strategic organizational managers are committed. C) This statement reflects the basic beliefs and aspirations of the organization. D) A company's statement of philosophy rarely if ever appears within the organization's mission statement.
D
Of the following, which aspect is least likely to be a consideration addressed in an organization's mission statement? A) Who are the firm's primary customers? B) What image does the firm wish to project? C) Which areas of technology will be emphasized? D) What are the number of levels the corporate hierarchy will contain?
D
Of the following, which one is least likely to be classed as creating or contributing to the control problems a global firm may face? A) Minimal attention is paid to the host country's goals B) Disposition of earnings is made more complex because of the different financial environments involved C) Various schemes are engaged to shift earnings from one country to another in avoidance of taxes D) Different financial environments simplify the various sources of finance
D
The general conditions for competition that influences businesses, which provide similar products and services is best referred to as a/an ________. A) remote environment B) international environment C) external environment D) industry environment
D
The primary niche market approach for a company that wants to export is to do which one of the following? A) Utilize only U.S. product criteria B) Modify product characteristics to reflect U.S. considerations C) Prepare to invest large sums of capital D) Modify select product performance to meet special foreign demands
D
________ factors concern the nature and direction of the economy in which a firm operates. A) Technological B) Ecological C) Social D) Economic
D
44.) Substitute products that deserve the most attention strategically are those that: A) are subject to trends improving their price-performance trade-off with the industry's product B) are produced by industries earning high profits C) are produced by industries earning low profits D) A and B E) A and C
D) A and B
50.) Which of the following is a key dimension of customer demand in foreign markets? A) Customers' acceptance of standardized products B) the rate of product innovation desired C) the number of suppliers in that foreign market D) A and B E) B and C
D) A and B
35.) How do executives draw accurate boundaries for an industry? The starting point is: A) the firm's mission statement B) a focus group session with the firm's top managers C) the federal government's definition of the industry D) a definition of the industry in global terms E) by defining its product segments
D) a definition of the industry in global terms
18.) Compared to business-level and functional-level decisions, corporate-level decisions: A) tend to be more value oriented B) tend to be more conceptual C) tend to be less concrete D) all of the above E) none of the above
D) all of the above
32.) Defining industry boundaries is a very difficult task because: A) the evolution of industries over time creates new opportunities and threats B) industrial evolution creates industries within industries C) industries are becoming global in scope D) all of the above E) A and C
D) all of the above
20.) Which of the following is not an economic goal that guides the strategic direction of almost every business organization? A) survival B) growth C) profitability D) market share E) none of the above
D) market share
40.) The environment is typically much more subject to the firm's influence or control than the environment A) task, competitive B) competitive, task C) remote, operating D) operating, remote E) operating, task
D) operating, remote
2.) According to Henry Mintzberg, very large firms typically mode of strategic management. A) adaptive B) entrepreneurial C) corporate D) planing E) business
D) planing
9.) Broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making are called: A) goals B) strategies C) objectives D) policies E) game plans
D) policies
31.) Which of the following is not a reason why defining an industry's boundaries is important? A) it helps executives determine the arena in which their firm is competing B) it enables the firm to identify its competitors and producers of substitute products C) it helps executives determine key factors for success D) stakeholders demand it E) it gives executives another basis on which to evaluate their firm's goals
D) stakeholders demand it
39.) A(n) is a collection of firms that offer similar products or services. A) substitute B) market segment C) industry D) target market E) niche
D) target market
Of the following, which one is least likely to be considered a critical task associated with an organization's strategic management process?
Decreasing the levels of hierarchy present within the company's management structure
Short-term Objectives
Desired results that provide specific guidance for action during a period of one year or less.
Moral Hazard Problem
Executives are often free to pursue their own interests because of the disproportionate access they have to company information.
Example of Multi-domestic company
Kit Kat, Coca Cola, Apple
Policies
Predetermined decisions that substitute for managerial discretion in repetitive decision making.
Functional Tactics
Short-term, narrow scoped plans that detail the "means" or activities that a company will use to achieve short-term objectives.
Of the following, which statement would most likely not be considered a dimension of strategic issues?
Strategic issues always impact the firm's long-term income.
Agency Costs
The cost of agency problems plus the cost of actions taken to minimize agency problems are collectively termed agency costs.
Formality
The degree to which participation, responsibility, authority, and discretion in decision-making are specified in strategic management
Entrepreneurial Mode
The informal, intuitive, and limited approach to strategic management associations with owner-managers of smaller firms.
Grand Strategies
The means by which objectives are achieved.
All of the following statements would be considered true of a company's mission statement except which one? A) A company's mission is an enduring statement of a firm's intent. B) A mission statement typically identifies the firm's principal products and services. C) A mission statement identifies the scope of the firm's operations. D) The mission statement staunchly presents a firm's strategic intent.
The mission statement staunchly presents a firm's strategic intent.
Long-term Objectives
The results that an organization seeks to achieve over a multi-year period.
Strategic Management
The set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives
Planning Mode
The strategic formality associated with large firms that operate under a comprehensive, formal planning system.
Adaptive Mode
The strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches.
Company Mission
The unique purpose that sets a company apart from others of its type and identifies the scope of its operations.
Barriers to Entry
business practices or conditions that make it difficult for new firms to enter the market
An organization's board of directors and administrative officers are most likely to be found at the ________ in its decision making hierarchy.
corporate level
Strategy
large-scale, future-oriented plans for interacting with the competitive environment to achieve company objectives
Sarbanes-Oxley Act of 2002
law that revised and strengthened auditing and accounting standards
Industry Environment
the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms
External Environment
the uncontrollable elements outside an organization that may affect its performance either positively or negatively