Business management-Chapter 8

A firms _________ environment includes component inside the firm and outside the firm.

Competitive

ABC products is described as having a _________ when its success fully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do.

Competitive advantage

In the retail industry, ABC tries to add value to their products and service so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy?

Differation strategy

Interest rates and exchange rates are part of which element of PESTEL?

Economic

A firms internal environment contains elements that can impacts the firm but are generally beyond its direct control.

False

In PESTEL, factors are characterized as opportunities or threats.

False

In the context of Porters model, a substitute is the similar products like rivals.

False

Rivalry is weakest within a strategic group, and the actions of one firms in a group generally does not elicit responses from other group members, as market share in the industry is rarely affected.

False

Strong rivalry in an industry increases the profit potentially for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices.

False

Support activities, according to the value chain, are the actions a firm takes to directly provide or product or service to customers.

False

Threats offer positive potential, however sometimes a firm is not equipped to take advantage of them which is why considering the entire SWOT is important before deciding what to do.

False

"I" in VIRO refers to which of these?

Imitation

Which term best describes a group of firms all making similar products or similar services?

Industry

__________ factors are characteristics of the firm itself.

Internal

Intellectual property rights are part of which element of PESTEL?

Legal

A firms _________ environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are.

Macro

"O" in the SWOT Analysis stands for __________.

Opportunities

Which of the following SWOT factors are external to the firm?

Opportunities and threats

"O" in VRIO refers to which of these?

Organization

Tariffs and trade agreement are part of which elements of PESTEL?

Political*

From a value chain perspective, _______ are the actions a firm takes to directly provide a product or service to customers, whereas, _________ are actions required to sustain the firm that are not directly part of product or service creation.

Primary activities; support activities

"R" in VRIO refers to which of these?

Rarity

A firms decision on how to serve customers and compete against rivals is called a ________.

Strategic positioning

Which of these is the process of planning and implementing actions that will lead to success in competition?

Strategy

"S" in the SWOT Analysis stands for ________.

Strengths

ABC products is good at marketing its sports products. This describes ABC's ________.

Strengths

Which of the following SWOT factors are internal to the firm?

Strengths and Weaknesses.

When Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firms to be successful as a ______?

Threat

"T" in the SWOT Analysis stands for?

Threats

A firms resources and capacities are the unique skills and assets it possesses.

True

A firms strategic position should try to be unique in some way that competitions cannot imitate or easily.

True

A firms weaknesses are simply gaps in capabilities, and those gaps do not always have to be filled within the firm.

True

To achieve a competitive advantage over rivals in the industry, the successful cost leader tightly controls costs throughout its value chain activities.

True

To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning.

True

A firms __________ is the progression of activities it undertakes to create a product or service that consumers will pay for.

Value chain

"W" in the SWOT Analysis stands for _______.

Weaknesses

________ factors are things in the global environment that may impact a firms operations or success, examples are a rise in interest rates, or a natural disaster.

external*

A _________ is a potential situation that a firm is equipped to take advantage of.

oppurtunities

While ___________ are things a firm has to work with, such as equipment facilities, raw materials, employees, and cash, ________ are things a firms can do, such as good customer service or develop innovative products to create value.

resources; capabilities

A firms _______ are what it is not good at things that it does not have the capabilities to perform well.

weaknesses