Chapter 3 - SB

Factors that make it difficult and costly for an organization to enter a particular task environment or industry are called ______.

barriers to entry

If you were to prepare a forecast of future profits that discusses events favorable to your firm, you would be creating a ______ scenario.

base-case

Collecting information about your company's operations and those of your competitors in order to determine gaps is called ______.

benchmarking

Identifying the best-in-class performance by a company and then comparing your processes to theirs is called __________.

benchmarking

Creating a supply of excess resources to help an organization prepare for unpredictable needs is called ______.

buffering

When a company uses an employment agency to hire part-time workers during periods of unpredictable needs, the company is ______.

buffering

A barrier to entry a company might encounter is ______.

capital requirements

Better supply ___________ management helps businesses avoid holding large inventories while waiting for orders to come in.

chain

Exploiting a distinctive competence or improving internal efficiency for marketplace advantage is called ______.

competitive aggression

The information necessary to decide how best to manage in the competitive environment is called ______.

competitive intelligence

When managers secure answers to questions posed during environmental scanning, they develop ______.

competitive intelligence

Organizations that produce goods and services that are similar to another organization's goods and services are known as ______.

competitors

In a competitive market, a ______ is a potential opportunity because customers buy more of a given product if they also demand more of the product that goes with it.

complement

The ink cartridges that are used with printers are an example of a(n) ______.

complement

Niche services or products developed to go with an existing product would be called ______.

complements

A consumer who buys a good or service from a retailer is a(n) ______ consumer.

final

Firms that allow for adaptation in their technical core are establishing __________ processes.

flexible

Methods that permit the technical core to adapt to changes in the environment are called ______ processes.

flexible

Guessing future changes in some variable(s) is called ___________.

forecasting

Predicting exactly how some variable or variables will change in the future is called ______.

forecasting

A scenario is a narrative that describes a particular set of ______ conditions.

future

The ______ is characterized by the most general elements in the external environment, such as governments and economic conditions, that can influence strategic decisions.

macroenvironment

The specific government organizations in a firm's more immediate task environment are known as ______.

regulators

Competitors may include many types of companies. Which of the following would NOT be considered a competitor of yours?

A regional company that sells to a different customer group or industry.

What is the National Labor Relations Board?

A regulatory agency

__________ organizations function well in stable environments but have difficulty adjusting to circumstances that "don't fit the rules."

Bureaucratic

Which of the following explains why choosing the right supplier has become more important than ever?

Close relationships with suppliers have become the new model for many businesses.

Which of the following is an independent strategy a company can use to influence its environment?

Competitive pacification

Which one of the following is NOT a component of the competitive environment?

Demographic groups

Select all that apply Which of the following are major barriers to entry? (Choose every correct answer.) Multiple select question. Distribution channels Cost disadvantages Capital requirements Creative alternatives

Distribution channels Cost disadvantages Capital requirements

Select all that apply Which of the following help companies to develop substitutes for existing products? (Choose every correct answer.) Multiple select question. Economic efficiencies Lack of business competition Niche services Technological advances

Economic efficiencies Technological advances

Select all that apply Which of the following help companies to develop substitutes for existing products? (Choose every correct answer.) Multiple select question. Lack of business competition Niche services Economic efficiencies Technological advances

Economic efficiencies Technological advances

Which of the following describes the situation in which a manager does not have enough information about the environment to understand or predict the future?

Environmental uncertainty

True or False Direct competition is the only strategy to compete with another company's offerings.

False

True or False Forecasts are most useful when the future is predicted to look quite similar to the past.

False

Select all that apply Which of the following are social issues that shape people's attitudes about an organization? Multiple select question. Flexible working hours Economic policies Natural resource use Family leave policies

Flexible working hours Natural resource use Family leave policies

Select all that apply Which of the following statements regarding customers and the use of the Internet are correct? (Choose every correct answer.) Multiple select question. Internet users can create and share messages about products. The Internet decreases competitiveness. The Internet has provided an easy source of information for customers seeking product information. Companies can prevent customers from posting erroneous information about their services on the Internet.

Internet users can create and share messages about products. The Internet has provided an easy source of information for customers seeking product information.

Select all that apply How does the stock market affect the behavior of individual managers? Multiple select question. It causes them to focus more on short-term results rather than long-term strategies. It forces them to respond proactively to environmental uncertainty. It affects their compensation. It puts pressure on them to improve their budgets or sales.

It causes them to focus more on short-term results rather than long-term strategies. It affects their compensation. It puts pressure on them to improve their budgets or sales.

Which of the following is an advantage of technology?

It provides more efficient ways to manage and communicate.

Select all that apply What tactics do competitors use to gain advantage over a rival? (Choose every correct answer.) Multiple select question. New-product introductions Eliminating sales pricing Advertising campaigns Price reductions

New-product introductions Advertising campaigns Price reductions

Select all that apply What happens to competition when an industry's growth slows and matures? (Choose every correct answer.) Multiple select question. Profits usually drop. Intense competition causes weaker companies to fail. Opportunities for new customers increase. Profits tend to be at their highest.

Profits usually drop. Intense competition causes weaker companies to fail.

Select all that apply What happens to competition when an industry's growth slows and matures? (Choose every correct answer.) Multiple select question. Profits usually drop. Profits tend to be at their highest. Opportunities for new customers increase. Intense competition causes weaker companies to fail.

Profits usually drop. Intense competition causes weaker companies to fail.

Select all that apply The actions and attitudes that provide excellent customer service include which of the following? (Choose every correct answer.) Multiple select question. Attending to complaints only from influential customers. Undefined service charges. Readiness to take back defective goods and resupply quickly. Availability of installation and repair services and parts.

Readiness to take back defective goods and resupply quickly. Availability of installation and repair services and parts.

Select all that apply How does immigration affect the U.S. workforce? (Choose every correct answer.) Multiple select question. It is the primary reason why the number of educated knowledge workers in the United States has declined. It accounts for approximately 10% of U.S. population growth. Some immigrants have different educational and occupational backgrounds from the rest of the labor force. It will make the labor force more ethnically diverse in the future.

Some immigrants have different educational and occupational backgrounds from the rest of the labor force. It will make the labor force more ethnically diverse in the future.

Which of the following people is an example of a final customer?

Someone who buys a lamp at Target

Select all that apply Which of the following are alternatives to direct competition with a company's offerings? (Choose every correct answer.) Multiple select question. Substitutes for offerings Replacing the offerings Complements of offerings Competing with offerings

Substitutes for offerings Complements of offerings

Select all that apply What is the importance of choosing the right supplier? (Choose every correct answer.) Multiple select question. Choosing the right supplier is important for only a few key processes. Suppliers can affect inventory levels. Suppliers can affect manufacturing time. Suppliers can affect product quality.

Suppliers can affect inventory levels. Suppliers can affect manufacturing time. Suppliers can affect product quality.

______ management is the managing of the entire network of facilities and people that obtains raw materials from outside the organization, transforms them into products, and distributes them to customers.

Supply chain

Select all that apply Which of the following are part of the macroenvironment of an organization? (Choose every correct answer.) Multiple select question. Technology The economy Competitors Demographics Suppliers

Technology The economy Demographics

Which of the following is NOT an accurate statement about the effect of the Internet in business?

The Internet decreases competitiveness.

What is the role of suppliers in an organization?

They provide resources needed for production.

Select all that apply A company might decide to develop scenarios for which of the following purposes? (Choose every correct answer.) Multiple select question. To create a narrative that describes how the company was founded. To list initiatives it can eliminate if necessary in an economic downturn. To have contingency plans in the case of a serious accident. To identify possible new investments in an economic upturn.

To list initiatives it can eliminate if necessary in an economic downturn. To have contingency plans in the case of a serious accident. To identify possible new investments in an economic upturn.

True or False An example of forecasting is when a company tries to predict future demand for goods and services to help decide whether or not to expand a business.

True

True or False In a slow-growing, mature industry, competition intensifies, and profits fall.

True

Which of the following is NOT a regulatory agency with the power to investigate company practices and take legal action to ensure compliance with laws? Multiple choice question. U.S. Chamber of Commerce (USCC) Occupational Safety and Health Administration (OSHA) Food and Drug Administration (FDA) Federal Communications Commission (FCC)

U.S. Chamber of Commerce (USCC)

Select all that apply Which of the following techniques will make forecasting more accurate? (Choose every correct answer.) Multiple select question. Using complicated forecasts Making forecasts far into the future Using forecasts that have accurate data Using multiple forecasts and averaging their predictions Using simple forecasts where possible

Using forecasts that have accurate data Using multiple forecasts and averaging their predictions Using simple forecasts where possible

Select all that apply Which of the following techniques will make forecasting more accurate? (Choose every correct answer.) Multiple select question. Using forecasts that have accurate data Using multiple forecasts and averaging their predictions Making forecasts far into the future Using simple forecasts where possible Using complicated forecasts

Using forecasts that have accurate data Using multiple forecasts and averaging their predictions Using simple forecasts where possible

Select all that apply Which of the following are questions managers can ask to help assess an organization's environment? (Choose every correct answer.) Multiple select question. What substitutes exist for our product or service? Are there few or many entry barriers to our industry? Is the company too dependent on powerful customers? Who are our current competitors? What are the differences between new and old products?

What substitutes exist for our product or service? Are there few or many entry barriers to our industry? Is the company too dependent on powerful customers? Who are our current competitors?

Which of the following is an example of forecasting?

When firms make capital investments, they may try to forecast future interest rate changes.

Select all that apply When will competition be more intense within an industry? (Choose every correct answer.) Multiple select question. When the product or service cannot be differentiated. When there are many direct competitors. When the industry's growth is rapid. When there are few global contenders.

When the product or service cannot be differentiated. When there are many direct competitors.

Select all that apply When will competition be more intense within an industry? (Choose every correct answer.) Multiple select question. When there are many direct competitors. When the product or service cannot be differentiated. When there are few global contenders. When the industry's growth is rapid.

When there are many direct competitors. When the product or service cannot be differentiated.

Conditions that prevent new companies from entering an industry are known as __________ to entry. (Enter one word in the blank.)

barriers

A complement to a DVD player would be ______.

a DVD

A new smartphone that provides a 3-D display without the need for special glasses would be attractive to a certain segment of the smartphone market. Such a smartphone would be ______ existing smartphones.

a substitute for

In terms of business competition, a substitute is a(n) ______.

alternative to a product

If Nike launched a new advertising campaign with celebrity endorsements after determining that its rival, Reebok, had success with such an ad campaign, Nike's move would be an example of ______.

analyzing how a competitor competes

The components of the competitive environment include rivalry among current competitors and the affect of new entrants, substitute and complementary products, suppliers, and ______.

customers

In order to cope with environmental uncertainty, organizations may adapt by ______ decision making and empowering their lower-level employees.

decentralizing

Age, gender, occupation, and income are all considered ______ characteristics.

demographic

The education and skills of the workforce are examples of __________ factors that businesses consider when formulating human resource strategies.

demographic

Statistical characteristics of a group or population are called ______.

demographics

Companies that invest heavily in training and often develop their own corporate universities are concerned with the demographic factor of ______.

education

The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization, is called ______.

empowerment

Asking questions about current competitors, barriers to entry, and substitute products is part of ______.

environmental scanning

Monitoring events in the environment to understand opportunities and threats is called ______.

environmental scanning

Searching for and sorting through information about the environment is called ______.

environmental scanning

Regulators are specific ______ organizations that have the power to investigate company practices to ensure compliance with the law.

government

The goal of supply chain management is to ______.

have the right product in the right quantity available at the right place at the right cost

A demographic factor that influences the labor force and creates a more ethnically diverse population is ______.

immigration

When a company acts on its own to change some aspect of its current environment, it is using __________ strategies.

independent

Two types of general proactive responses aimed at changing the environment are __________ action and __________ action.

independent and cooperative

Strategies used by an organization acting on its own to change some aspect of its current environment are called ______.

independent strategies

A consumer who buys raw materials or wholesale products is called a(n) ______ consumer.

intermediate

Retailers and industrial buyers are examples of __________ consumers.

intermediate

Competition is most intense when there are ______.

many direct competitors, growth in the industry is slow, and the product cannot be differentiated

Organization structures that work best in conditions of high uncertainty are ______ structures.

organic

Resources generally provided by suppliers include information, raw materials, financial capital, and ______.

people

Independent action and cooperative action are two general types of ______ responses for the purpose of changing the environment.

proactive

Speed of filling and delivering orders, willingness to meet emergency needs, and delivering merchandise in good condition are some of the actions and attitudes of ______.

providing excellent customer service

The leveling of normal fluctuations at the boundaries of the environment is called ______.

smoothing

When a retailer discounts its merchandise at the end of a season to make room for new merchandise, the retailer is _____ fluctuations in its environment.

smoothing

When companies introduce family-supportive policies, including family leave, flexible working hours, and child care assistance, they are responding to ______.

social values

To have the right product in the right quantity available at the right place and the right cost is the goal of ______ management.

supply chain

The fixed costs that buyers face when they change suppliers are called ______ costs.

switching

Luis trained all his employees in WritePro software four years ago. Now, the best software for the department is WordME. The economic and psychological costs of changing from WritePro to WordME are called ______.

switching costs

In a competitive market, a substitute for coffee would be ______.

tea

As ______ evolves, new industries, markets, and competitive niches develop.

technology

An important economic influence is ______.

the stock market

When managers do not have enough information about the environment to understand or predict the future, it is called environmental __________.

uncertainty

In scenario development, the possible occurrence of unfavorable events is called the ______.

worst-case scenario