479 Chapter 3 Quiz

In an EFE​ Matrix, how much more important is a weight of 0.20 than a weight of​ 0.15? A. ​.05% B. ​25% C. ​33% D. ​50% E. ​5.0%

C. ​33%

How many key external factors should be included in an EFE​ Matrix? A. 30 B. 10 C. 15 D. 25 E. 20

E. 20

An excellent source of industry​ information, including Industry Profiles and trade statistics for many​ industries, is provided at what​ website? A. http://globaledge.msu.edu/industries/ B. www.finance.yahoo.com C. www.finance.aol.com D. www.google.industries.com E. www.hoovers.industries.com

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

Are the interpretations of the weights in a CPM and EFE Matrix the​ same? A. Never B. Yes C. No D. Sometimes E. Usually

B. Yes

The range of total weighted scores in a CPM Matrix​ is: A. 1.0 to 5.0. B. 0.0 to 4.0. C. 1.0 to 4.0. D. 0.0 to 5.0. E. 1.0 to 6.0.

C. 1.0 to 4.0.

In an EFE​ Matrix, the average total weighted score​ is: A. 3.0. B. 2.0. C. 2.5. D. 3.5. E. 4.0.

C. 2.5.

The range of total weighted scores in a CPM Matrix​ is: A. 0.0 to 4.0. B. 1.0 to 5.0. C. 1.0 to 6.0. D. 1.0 to 4.0. E. 0.0 to 5.0.

D. 1.0 to 4.0.

According to Michael​ Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following​ forces: A. Rivalry among competing firms and potential entry of new competitors. B. Potential development of substitute products and bargaining power of consumers. C. Bargaining power of suppliers and bargaining power of distributors. D. A and B E. ​A, B, and C

D. A and B

The state in the United States with highest state taxes is​ ___________ and the state with the lowest state taxes is​ ______________. A. New​ York; Alaska B. New​ York; Wyoming C. ​California; Alaska D. ​California; South Dakota E. ​California; Mississippi

B. New​ York; Wyoming

The population of the world recently surpassed​ ___ billion; the United States has slightly more than​ ___ million people. A. ​28; 910 B. ​7; 310 C. ​1; 110 D. ​14; 610 E. ​21; 910

B. ​7; 310

According to Michael​ Porter, the nature of competitiveness in a given industry can be viewed as a composite of the five forces. Which force is usually the most​ powerful? A. Potential development of substitute products B. Bargaining power of consumers C. Rivalry among competing firms D. Bargaining power of suppliers E. Potential entry of new competitors

C. Rivalry among competing firms

External forces can be divided into five broad​ categories, including the following​ category: A. Ethics B. Sustainability C. Technology D. A​ & C E. B​ & C

C. Technology

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? A. IBISWorld B. Mergent Online C. Value Line Investment Survey D. ​Lexis-Nexis Academic E. Standard​ & Poor's NetAdvantage

C. Value Line Investment Survey

Which of the following statements is​ true? A. Wild guesses should sometimes be made in formulating​ strategies, and reasonable assumptions based on available information must sometimes be made. B. Wild guesses oftentimes must be made in formulating​ strategies, but reasonable assumptions based on available information must always be made. C. Wild guesses should never be made in formulating​ strategies, but reasonable assumptions based on available information must always be made. D. Wild guesses should rarely be made in formulating​ strategies, but reasonable assumptions based on available information must usually be made. E. Wild guesses should never be made in formulating​ strategies, but reasonable assumptions based on available information must oftentimes be made.

C. Wild guesses should never be made in formulating​ strategies, but reasonable assumptions based on available information must always be made.

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 percent 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 percent 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 percent better than the​ second, but it does suggest that the first firm is much better in many areas. D. 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 percent better than the​ second, but it does suggest 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 follows that the first firm is precisely 12.5 percent better than the​ second, and 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 does not necessarily follow that the first firm is precisely 14.3 percent better than the​ second, but it does suggest that the first firm is better in some areas.

In an EFE​ Matrix, how much more important is a rating of 4 than a rating of​ 3? A. ​25% B. ​66% C. ​50% D. ​33% E. ​20%

D. ​33%

The weight column in an EFE Matrix must sum to what​ number? A. 4.0 B. 3.0 C. The sum may vary between 1.0 and 5.0. D. 2.0 E. 1.0

E. 1.0

An MIS technique that involves using software to mine huge volumes of data to help executives make decisions is​ called: A. data mining. B. business analytics. C. machine learning. D. predictive analytics. E. All of the above

E. All of the above

The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following​ circumstance(s): A. If they are particularly important to the seller B. If they are informed about​ sellers' products,​ prices, and costs C. If they can inexpensively switch to competing brands or substitutes D. If sellers are struggling in the face of falling consumer demand E. All of the above

E. All of the above

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 David and David​ agree? A. No. Internal factors​ (strengths and​ weaknesses) are more important. B. No. Matching key external opportunities and threats with key internal strengths and weaknesses provides the basis for successful strategy formulation. C. Yes. It is like an ocean tide rising or falling. No one can stop that flow. D. No. Internal factors are controllable and external factors are not. E. Yes. Michael Porter is correct.

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

Which of the following statements is​ false? A. The ratings in a CPM refer to strengths and​ weaknesses, where 4​ = major​ strength, 3​ = minor​ strength, 2​ = minor​ weakness, and 1​ = major weakness. B. 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. C. The weights and total weighted scores in both a CPM and an EFE have the same meaning. D. Avoid assigning the same rating to firms included in a CPM analysis. 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.

B. 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. 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. Statements A through D are false.

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.

An example of an economic variable is​ "value of the​ dollar" that recently hit a​ 7-year high compared with the​ yen, a​ 9-year high compared with the​ euro, a​ 5-year high compared with the Australian​ dollar, and an​ 11-year high compared with some other currencies. The high dollar results in what economic​ factor(s)? A. The high dollar worsens the U.S. trade deficit. B. The high dollar makes it expensive for foreigners to travel to the United States. C. The high dollar makes U.S. goods more expensive in overseas markets. D. The high dollar makes it cheap for Americans to travel abroad. E. All of the above

E. All of the above

Which states have zero state income​ tax? A. Texas and Florida B. ​Nevada, Alaska, and Wyoming C. South Dakota and Washington D. A and B E. ​A, B, and C

E. ​A, B, and C

An advantage of a strong dollar include which of the​ following? A. Companies with substantial outside U.S. operations see their overseas​ expenses, such as salaries paid in​ euros, become cheaper. B. It gives U.S. companies greater firepower for international acquisitions. C. Companies importing goods have greater buying power because their dollars now go further overseas. D. A​ & B above E. ​A, B, and C above

E. ​A, B, and C above