MGT 4810 Ch 3

A ________ integration strategy is used by firms to gain control or ownership of suppliers. A) backward B) forward C) horizontal D) vertical E) vortexed

A

External audits attempt to identify key variables that offer ________ responses. A) actionable B) authoritative C) profitable D) strategic E) terminal

A

In recent times, ________ perhaps has instituted the most protectionist measures by raising tariffs on most imports and subsidizing its own exports. A) Russia B) The United States C) The European Union D) India E) Switzerland

A

One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that A) CPM includes both internal and external issues. B) the weights and total weighted scores have different meanings. C) CPM ratings range from 1 to 10. D) CPM is performed only for the company, whereas EFE is performed for both the company and its competitors. E) CPM is only used in small firms.

A

The historical trend of people moving from ________ has dramatically slowed. A) the Northeast to the Sunbelt B) the West to the Midwest C) the Northeast to the Midwest D) the Sunbelt to the West E) the West to the Northeast

A

The investor relations pages of a company website ________ information about a firm. A) is a good place to start to find B) is not a reliable source of C) is only acceptable as a last resort for D) should not be used as the first place to look for E) is a waste of time when searching for

A

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry. A) 1.0 B) 4.0 C) 5.0 D) 10.0 E) 100.0

B

Competition in virtually all industries is A) nonexistent. B) intense. C) never cutthroat. D) easily avoidable. E) insignificant.

B

If suppliers are unreliable or too costly, which of these strategies may be appropriate? A) Horizontal integration B) Backward integration C) Market penetration D) Forward integration E) Concentric diversification

B

Collecting and evaluating information on competitors is essential for successful A) internal analysis. B) strategy evaluation. C) strategy formulation. D) strategy implementation. E) strategy correction.

C

According to I/O theorists, which of the following contributes LEAST to firm's performance? A) Economies of scale B) Barriers to market entry C) Product differentiation D) Internal resources E) Level of competitiveness

D

According to Porter, what is usually the most powerful of the five competitive forces? A) Potential development of substitute products B) Bargaining power of suppliers C) Bargaining power of consumers D) Rivalry among competing firms E) Potential entry of new competitors

D

A weak dollar means A) lower exports and higher imports. B) lower exports and lower imports. C) lower exports and no effect on imports. D) higher exports and higher imports. E) higher exports and lower imports.

E

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT A) tariffs. B) environmental regulations. C) level of defense expenditures. D) legislation on equal employment. E) population changes by race, age, sex, and level of affluence.

E

Changes in which of the following can significantly affect firms? A) Patent laws B) Antitrust legislation C) Tax rates D) Lobbying activities E) All of the above

E

The process of performing an external audit should involve A) key representatives from each stakeholder group. B) as many stakeholders as possible. C) only strategists. D) primarily strategists. E) as many managers and employees as possible.

E

Who are the world's longest-living people? A) Americans B) Mexicans C) Indians D) Filipinos E) Japanese

E

Unpublished sources of external strategic information include all of the following EXCEPT A) abstracts. B) customer surveys. C) market research. D) speeches at professional and shareholders' meetings. E) conversations with stakeholders.

A

What is the first step in designing an External Factor Evaluation (EFE) Matrix? A) Identifying key external factors B) Summing the weighted score for each competitor C) Calculating the sales of each competitor D) Drawing the horizontal and vertical lines for the matrix E) Determining four competitors

A

Which of the following is NOT a characteristic that describes the most competitive companies in America? A) Divestiture is essential to growth. B) Hire and retain the best employees and managers possible. C) Continually adapt, innovate, improve—especially when the firm is successful. D) Strive to stay cost-competitive on a global basis. E) Whether it's broke or not, fix it.

A

Without assumptions, planning would be A) impossible. B) easier. C) difficult. D) inexpensive. E) intuitive.

A

In recent times, which of the following has largely refrained from protectionist measures? A) The European Union B) The United States C) India D) Russia E) India and Russia

B

Standard & Poor's NetAdvantage does not provide online access to A) Standard & Poor's Industry Surveys. B) Mergent's (formerly Moody's/FISOnline) Manuals. C) stock reports. D) The Outlook. E) mutual fund reports.

B

The process of performing an external audit needs to include A) only top level managers, as it is a planning function. B) as many managers and employees as possible. C) primarily front-line supervisors. D) between 15 to 20 managers for it to be valid. E) stockholders and external government agencies.

B

What are educated assumptions about future trends and events called? A) Wild guesses B) Forecasts C) Facts D) Statistics E) Premonitions

B

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit? A) Economic B) Political C) Technological D) Competitive E) Multinational

B

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to A) stay the same. B) increase. C) decrease. D) neutralize. E) become irrelevant.

B

Which of the following is NOT a published source of external strategic information? A) Periodicals B) Customer surveys C) Journals D) Reports E) Directories

B

A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called A) unethical business practices. B) artificial intelligence. C) competitive intelligence. D) industrial espionage. E) competitive advantage.

C

Intensity of competition ________ in lower-return industries. A) is lowest B) is nonexistent C) is highest D) is not important E) fluctuates

C

Many economists say the current rash of trade constraints will make it ________ for global economic growth. A) easier B) impossible C) harder D) more likely E) less time-consuming

C

The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage. A) less important than B) equally important as C) more important than D) more common than E) less common than

C

The United States' population is A) getting younger and less white. B) getting younger and more white. C) getting older and less white. D) getting older and more white. E) remaining stable as to age and racial make up.

C

The critical success factors in a Competitive Profile Matrix and EFE Matrix include A) internal but not external issues. B) external but not internal issues. C) both internal and external issues. D) neither internal or external issues. E) only non-quantifiable data.

C

To perform an external audit, a company first must A) get an approval from the Securities and Exchange Commission. B) perform an internal audit. C) gather competitive intelligence and information about external trends. D) hire a consultant to develop a comprehensive strategic plan. E) all of the above

C

What is NOT one of Michael Porter's five competitive forces? A) Potential entry of new competitors B) Rivalry among competing firms C) Bargaining power of unions D) Bargaining power of suppliers E) Bargaining power of consumers

C

What is the range for a firm's total weighted score in a Competitive Profile Matrix (CPM)? A) 0 to 4 B) 0 to 5 C) 1 to 4 D) 1 to 5 E) 0 to 10

C

What is the range for a firm's total weighted score in an External Factor Evaluation Matrix? A) 0 to 4 B) 0 to 5 C) 1 to 4 D) 1 to 5 E) 0 to 10

C

When the products being purchased are standard or undifferentiated, it results in ________ bargaining power of consumers. A) marginalized B) lower C) higher D) negative E) negligible

C

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?A) Identifying key external factors B) Summing the weighted score for each competitor C) Summing the weighted scores for each variable to determine the total weighted score for the organization D) Drawing the horizontal and vertical lines for the matrix E) Determining the preferred strategic factors

C

________ is NOT a basic mission of a competitive intelligence program. A) Providing a general understanding of an industry B) Providing a general understanding of a company's competitors C) Identifying industry executives who could be hired by the firm D) Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors E) Identifying potential moves a competitor might make that would endanger a firm's position in the market

C

Hawaii, California, and ________ already have no majority race or ethnic group. A) New York B) New Jersey C) New Hampshire D) New Mexico E) all of the above

D

In general, what happens to American goods in overseas markets when there is a strong dollar? A) They are less expensive. B) They are more attractive. C) They are cheaper. D) They are more expensive. E) They are desirable.

D

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning the weights and total weighted scores in a A) Comprehensive Profile Analysis (CPA). B) Dynamic Trends Analytical Framework. C) Porter's Five Forces Model. D) External Factor Evaluation (EFE). E) Evaluative Forces Matrix (EFM).

D

The world population is expected to grow to an estimated ________ billion in 2054. A) 6 B) 7 C) 8 D) 9 E) 10

D

Which state has the highest union membership rate? A) Arkansas B) Colorado C) New Hampshire D) New York E) North Carolina

D