Chapter 3 Quiz

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

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 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

COULD BE WRONG (17.) In an EFE​ Matrix, how much more important is a weight of 0.20 than a weight of​ 0.15?

33% .2/.15=1.33 .2 is 33% higher than .15

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

33% 3/4=.75 4/4=1 1.0/.75=1.33 4 is 33% higher than 3

Which of the following statements is​ FALSE?

A. Avoid assigning the same rating to firms included in a CPM analysis. ***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. 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. D. The ratings in a CPM refer to strengths and​ weaknesses, where 4​ = major​ strength, 3​ = minor​ strength, 2​ = minor​ weakness, and 1​ = major weakness. E. The weights and total weighted scores in both a CPM and an EFE have the same meaning.

External forces can be divided into five broad categories and ten subareas EXCEPT in which of the​ following?

A. Governmental B. Marketing C. Economic D. Demographic E. Technology

Which of the following statements is​ FALSE?

A. 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. ***B. You may assign the same rating to firms included in a CPM analysis if the firms are similar on the respective factor.*** C. The weights and total weighted scores in both a CPM and an EFE have the same meaning. D. The ratings in a CPM refer to strengths and​ weaknesses, where 4​ = major​ strength, 3​ = minor​ strength, 2​ = minor​ weakness, and 1​ = major weakness. 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.

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.

Which of the following statements is​ TRUE?

A. Wild guesses oftentimes must be made in formulating​ strategies, but reasonable assumptions based on available information must always be made. B. Wild guesses should never 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 oftentimes 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 sometimes be made in formulating​ strategies, and reasonable assumptions based on available information must sometimes be made.

In terms of growing globally by adding new​ customers, what company does the global Capsule 3 suggest may be the fastest growing​ company?

Amazon

An advantage of a strong dollar includes which of the following​ item(s)?

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:

If consumers are particularly important to the seller

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 internal strengths and weaknesses provides the basis for successful strategy formulation.

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

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?

Rivalry among competing firms

An example of an economic variable is​ "value of the ​dollar"long dash—which is currently highlong dash—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

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

full 100 narrow 20

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/

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

yes