MADM 760 Chapter 4 Quiz

T/F In many respects, social forces are the drivers of consumer markets

True In general, social forces are very strong in consumer markets

Outsourcing efforts can fail because A. of unknown government regulations. B. of a lack of production infrastructure in the outsourcing firm. C. a firm might outsource an activity that should not be outsourced. D. All of the above.

a firm might outsource an activity that should not be outsourced

E-tailing is synonymous with __________. A. B2B B. B2C C. C2C D. C2B

B2C E-tailing refers to B2C commerce

T/F Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs.

False

T/F In The World is Flat, Thomas Friedman argued that recent global and technological changes have increased the world dominance of Western powers like the United States.

False

T/F The pace of technological change relative to an industry's development is generally easy to predict.

False

T/F Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs

False Mass customization refers to the ability to individualize product and service offerings to meet specific buyer needs

T/F The unconscious reference to one's own cultural values as a standard of judgment is known as cultural bias

False The unconscious reference to one's own cultural values as a standard of judgment is known as the self-reference criterion

T/F One of the reasons that outsourcing/offshoring debates are so difficult to resolve is that different countries have markedly different regulations.

True

T/F The same social force can affect different industries in different ways.

True

T/F Reading business publications can serve as a means of environmental scanning

True Environmental scanning is the process of staying abreast of changes in the macroenvironment, a process that can be assisted by reading business publications

T/F The expansion of a religion in an emerging country is an example of a social force

True Religious values in all countries, emerging or otherwise, constitute a key social force

T/F Environmental scanning can be difficult for large firms because of the availability of too much information

True The main problem created by environmental scanning is often one of determining which information available warrants attention

Which of the following is a means of environmental scanning? A. reading the business section in a local newspaper B. reading the Wall Street Journal C. reading trade journals D. All of the above.

all of the above

Technological forces often __________. A. decimate an entire industry B. spawn new industries C. vary substantially among industries D. all of the above

all of the above Technological forces vary across industries and can eliminate existing industries and create new ones

How has the Internet changed strategic management? A. It promotes information symmetry. B. It can often be used as a distribution channel. C. It often reduces costs. D. all of the above

all of the above The Internet promotes information symmetry, can be used as a distribution channel in some instances, and has the potential for cost shifting and cost reductions

The systematic collection and analysis of information about relevant macroenvironmental trends is known as __________. A. strategic planning B. strategic management C. environmental scanning D. none of the above

environmental scanning

The Internet A. has unleashed a number of successful business models. B. has unleashed only successful business models. C. has rendered traditional business models as invalid. D. None of the above.

has unleashed a number of successful business models

Which of the following is not an example of a social force? A. trends B. values C. industrial change D. all of the above

industrial change Social forces include such factors as societal values, trends, traditions, and religious practices

The ability to individualize product and service offerings to meet specific buyer needs is known as A. outsourcing. B. offshoring. C. mass customization. D. commoditization.

mass customization

Relocating some or all of a firm's manufacturing or other business processes to another country to reduce costs is known as A. outsourcing. B. partnering. C. mass customization. D. None of the above.

none of the above

The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as A. commoditization. B. mass customization. C. restructuring. D. None of the above.

none of the above

The unconscious reference to one's own cultural values as a standard of judgment is known as A. cultural affluence. B. cultural distinction. C. cultural awareness. D. None of the above.

none of the above

According to the notion of disaggregation and reaggregation, A. progressive firms have begun to form partnerships instead of fulfilling all of the business functions themselves. B. the Internet is not a viable means of product or service distribution. C. effective business models do not change. D. All of the above

progressive firms have begun to form partnerships instead of fulfilling all of the business functions themselves.

When a recession occurs __________. A. all industries benefit B. some industries benefit C. no industries benefit D. none of the above

some industries benefit A recession tends to help firms in most industries, but it does not benefit all industries

Scientific improvements and innovations are examples of A. social forces. B. engineering credibility. C. technological forces. D. None of the above.

technological forces.

Which of the following is not a strategic dimension of the Internet? A. focus on interactivity B. potential for cost reductions and cost shifting C. the elimination of a need for profitability D. None of the above.

the elimination of a need for profitability