BUS 450 Chapter 3 Quiz

The weight column in an EFE matrix must add up to what number?

1.0

The range of total weighted scores in a CPM matrix is ________.

1.0 to 4.0

In step 1 of developing an EFE Matrix, how many opportunities and threats should be included in the full and narrow lists, respectively?

100, 20

In an EFE matrix, the average total weighted score is:

2.5

How many key external factors should be included in an EFE matrix?

20

Regarding the AQCD​ criteria, strive to include all high quality factors in an external assessment for a firm. A high quality factor will meet​ ______ of the AQCD​ criteria; a low quality factor will meet​ ______ of the AQCD criteria.

3 or 4; 2 or fewer.

In an EFE matrix, how much more important is a rating of 4 rather than a rating of 3?

33%

In an EFE matrix, how much more important is a weight of 0.20 than a weight of 0.15?

33%

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​ agree?

No. Matching key external opportunities and threats with key integral strengths and weaknesses provides the basis for successful strategy formulation.

An example of an economic variable is "value of the dollar" - which is currently high - compared with the Yen, Euro, and the Australian dollar. The high dollar results in what economic factor(s)?

The high dollar makes U.S. goods more expensive in overseas markets.

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?

Value Line Investment Survey

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) 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) The weights and total weighted scores in both a CPM and an EFE have the same meaning. d) 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. e) 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.

a) You may assign the same rating to firms included in a CPM analysis if the firms are similar on the respective factor.

In terms of growing globally by adding new customers, what company does the global capsule 3 suggest may be the fastest growing company? a) netflix b) walt disney c) amazon d) priceline e) walmart

a) netflix

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​ 12.5% better than the​ second, but it does suggest that the first firm is better in some 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% 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​ 14.3% 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% 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% better than the​ second, but it does suggest that the first firm is much better in many areas.

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​ 14.3% better than the​ second, but it does suggest that the first firm is better in some areas.

An advantage of a strong dollar includes which of the following item(s)? a) all American firms benefit from a rising value of the dollar. b) companies with substantial outside-U.S. operations see their overseas expenses, like salaries paid in Euros, become more expensive. c) companies importing goods have greater buying power because their dollars now go further overseas. d) the advantages offset the disadvantages for nonprofit firms. e) a strong dollar gives U.S. companies less firepower for international acquisitions.

c) companies importing goods have greater buying power because their dollars now go further overseas.

The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following circumstance: a) if consumer demand is rising. b) if consumers are knowledgeable of firms' strategic plans. c) if consumers are particularly important to the seller. d) if consumers are informed about products, prices, and costs across countries. e) if switching to competing brands or substitutes is expensive.

c) if consumers are particularly important to the seller

External forces can be divided into five broad categories and ten subareas EXCEPT in which of the following? a) demographic b) governmental c) marketing d) technology e) economic

c) marketing

According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of the forces. Which force is usually the most powerful? a) bargaining power of suppliers b) potential development of substitute products c) rivalry among competing firms d) potential entry of new competitors e) bargaining power of consumers

c) rivalry among competing firms

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) Opportunities and threats can be external or internal.

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.

Which of the following statements is FALSE? a) 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. 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) The weights and total weighted scores in both a CPM and an EFE have the same meaning. e) 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.

e) 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.

Which of the following statements is TRUE? a) wild guesses should rarely be made in formulating strategies, but reasonable assumptions based on available information must usually be made. b) wild guesses should sometimes be made in formulating strategies, and reasonable assumptions based on information must sometimes be made. c) wild guesses oftentimes must be made in formulating strategies, but reasonable assumptions based on available information must sometimes be made. d) wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must oftentimes be made. e) wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must always be made.

e) wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must always be made.

An excellent source of industry information, including industry profiles and trade statistics for many industries, is provided at what website?

http://globaledge.msu.edu/industries/

According to Michael Porter, the nature of competitiveness in a given industry includes what force?

potential development of substitute products and bargaining power of consumers.

The AQCD test refers to the need for key external factors to exhibit what attributes?

quantitative and divisional

Are the interpretations of the weights in a CPM and EFE matrix the same?

yes