Full file at
True/False
1.Theexternalenvironmentfacingbusinessstaysrelativelyconstantovertime. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:40
LEARNINGOBJECTIVES: STMA.HITT.15.02.01-02.01
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
2.Demographic,economic,political/legal,sociocultural,technological,global,andphysicalarethesevenelements comprisingtheindustryenvironment.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Hard
REFERENCES:40 (Table2.1)
LEARNINGOBJECTIVES: STMA.HITT.15.02.02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
3.Firmscandirectlycontroltheelementsofthesevensegmentsofthegeneralenvironment. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:39
LEARNINGOBJECTIVES: STMA.HITT.15.02.02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
Full file at
4.TherecentbankruptcyfilingsbyGeneralMotorsandChryslerCorporationillustratethatfirmscannotdirectly controlthegeneralenvironment'ssegments.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:39
LEARNINGOBJECTIVES: STMA.HITT.15.2-02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthetaskenvironment|Bloom:Application
5.Theindustryenvironmentdirectlyinfluencesthe firmanditscompetitiveactionsandresponses. a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Easy
REFERENCES:39
LEARNINGOBJECTIVES: STMA.HITT.15.2-02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Knowledge
6.Competitoranalysisis focusedonthefactorsandconditionsinfluencinganindustry'sprofitabilitypotential. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:39
LEARNINGOBJECTIVES: STMA.HITT.15.2-02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom:
Full file at
7.Whenfirmsanalyzethe externalenvironment,theytypicallyhavecompleteandunambiguousdata. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:40
LEARNINGOBJECTIVES: STMA.HITT.15.02.02-02.02
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Comprehension
8.Monitoringinvolvesthe developmentofa forecastofwhatmighthappenata futurepointintime. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:42
LEARNINGOBJECTIVES: STMA.HITT.15.02.03-02.03
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills| Management:Strategy|Dierdorff
Rubin:Managingdecision-makingprocesses|Bloom:Knowledge
9.Scanninginvolvesdetectingmeaningthroughearlysignalsofenvironmentaltrends. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:41–42
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Knowledge
Full file at
10.WhenPhilipMorrisInternationalstudiesthe cigarettetax policiesofvariousnations,it isengagedinthe forecasting componentof theenvironmentalanalysisprocess.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Hard
REFERENCES:42–43
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NATIONALSTANDARDS: UnitedStates- BUSPROG:Analytic
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|DierdorffRubin:Managingdecision-makingprocesses|Bloom: Application
11.Theobjectiveof assessingtheexternalenvironmentistodeterminethetimingandimportanceof theeffectsof environmentalchangesandtrendsonthestrategicmanagementofthefirm.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:43
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
12.Agestructure,geographicdistribution,incomedistribution,interestrates,andprocessinnovationsare allelementsof concernwhenstudyingthedemographicsegmentof thegeneralenvironment.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:43–46
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom:
Full file at
13.Inrecenttimes,businesspeoplehavebecomemoreconfidentinthe abilityofeconomiststoprovidevalidand reliablepredictionsabouttheworld'seconomicenvironment.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:46
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Comprehension
14.Thelegislationintroducedinthe U.S.Congressduringthe earlytenureofthe Obamaadministrationintendedto reducetheamountofworkU.S.companiesoutsourceandis anexampleofapotentialchangein thesociocultural segmentof thegeneralenvironment.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:47
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Legal Responsibilities|Dierdorff Rubin:Managingthetask environment|Bloom: Application
15.TheEuropeansovereign-debtcrisisand politicalupheavalsinEgypt,Tunisia,Libya,and Syriaillustrateuncertainties inthepolitical/legalsegmentof thegeneralenvironmentthatcouldaffecttheperformanceof businessfirms.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:46–47
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Legal Responsibilities|Dierdorff Rubin:Managingthetask environment|Bloom: Application
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16.Developinga politicalstrategybythe newlyformedGeneralMotorswouldlikelybeineffectiveasfirmsare generallyunabletoinfluencethepolitical/legalenvironment.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:46–47
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills| Management:Legal Responsibilities|Dierdorff Rubin:Managingthetask environment|Bloom: Application
17.Althoughhealthcarereformlegislationwaspassedintheearlypartof theObamaadministration,itcontinuestobe a boneof contentionforemployers,employees,andpoliticiansbecauseof its delaysandincreasedexpenses.
Theseattitudesabouthealthcarereformmakeupthesocioculturalsegmentofthegeneralenvironment. a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:47-48
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthetaskenvironment|Bloom:Application
18.Earlyadoptersofnewtechnologyoftenachievehighermarketsharesandhigherreturnsthanlateradoptersofthe technology.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:48–49
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills| Management:Creationof Value| Dierdorff Rubin:Knowledgeoftechnology,design, production|Bloom: Knowledge
Full file at
19.Contraryto popularbelief,theglobalsegmentoftheexternalenvironmentdoesnot providemanyopportunitiesfor firmssuchasH.J.Heinz,SABMiller,andCitigroup,allofwhichrecentlyexperiencedlowgrowthandprofits comingfromemergingmarkets.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:49
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:MulticulturalDiversity|Management:IndividualDynamics|DierdorffRubin:Managingdecision-makingprocesses|Bloom:Application
20.Globalfocusingis oftenusedbyfirmswithhighlevelsofinternationaloperationswhofurtherincreasetheir internationalizationbyfocusingonglobalnichemarkets.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Hard
REFERENCES:50
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:MulticulturalDiversity|Management:IndividualDynamics|DierdorffRubin:Managingdecision-makingprocesses|Bloom:Comprehension
21.Globalwarmingandenergyconsumptionare aspectsofthe technologicalenvironmentsegmentthatfirmsshould monitor.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:48–49
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
Full file at
22.PepsiCo'sstrategycalled"capitalperformancewithapurpose"linksgreeneffortsinllbusinessestothebottomline.
Thisisan exampleof addressingconcernsinthephysicalsegmentof thegeneralenvironment. a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Easy
REFERENCES:50
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthetaskenvironment|Bloom:Application
23.Thefiveforcesmodelexpandsthearenaof competitiveanalysisbeyonddirectcompetitors(i.e.,rivals)toinclude buyersandsupplierswhomayalsobe asourceof competition.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Hard
REFERENCES:52
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
24.Switchingcosts,accesstodistributionchannels,economiesofscale,largenumbersofcompetingfirms,andslow industrygrowtharesomeoftheentrybarriersthatmayaffectthethreatofnewentrantstoanindustry.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Hard
REFERENCES:53-56
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
Full file at
25.An exampleofa governmentpolicybarriertoentrywouldbea situationinwhichthe AntitrustDivisionofthe DepartmentofJusticedisallowsa mergerbecauseit createsa firmthatistoodominantandwouldthuscreate unfaircompetition.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Easy
REFERENCES:55
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
26.Suppliersarepowerfulwhentheindustryis dominatedbyafewlargecompanies,nosatisfactorysubstitutesare available,the sellingindustryisrelativelymoreconcentratedthanthe purchasingindustry,andswitchingcostsare high.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Hard
REFERENCES:56
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
27.TabletssuchastheiPadhavehadlittleeffectonthesaleofPCsintheUnitedStates,andPCproducerssuchas
Taiwan'sAcerComputershaveexperiencedsignificantgrowth. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:57
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|DierdorffRubin:Managingthetaskenvironment|Bloom:Application| Bloom:Application
Full file at
28.Exitbarriersareespeciallylowintheairlineindustryas aircraftarenotparticularlyspecializedandcaneasilybe soldtootherairlines,air cargocompanies,the military,oreventowealthyindividualswhowanttoowna privatejet. a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Medium
REFERENCES:59
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
29.Generally,the strongerthe competitiveforces,the higherthe profitpotentialofanindustry. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:60,62–63
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|DierdorffRubin:Managingthetaskenvironment|Bloom: Comprehension
30.Anattractiveindustryisonethatischaracterizedby highentrybarriers,suppliersandbuyerswithstrongbargaining power,lowthreatsfromsubstituteproducts,andlowrivalryamongfirms.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Hard
REFERENCES:52,59
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
Full file at
31.Strategicgroupsare firmsindifferentindustriesfollowingthe sameorsimilarstrategies. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:60
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
32.Thestrengthsofthefivecompetitiveforcesaresimilaracrossstrategicgroupswithinanindustry. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:60
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
33.Themoredistantstrategicgroupsarein termsoftheirstrategies,thegreaterthelikelihoodofrivalrybetweenthe groups.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:60
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
Full file at
34.Thecompetitoranalysisisthefinalpartof theexternalenvironmentanalysisandfocuseson eachcompanyagainst whichafirmdirectlycompetes(forexample,Coca-ColaandPepsiCo,HomeDepotandLowe's,andAirbusand Boeing).
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Easy
REFERENCES:60,62
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
35.Theprocessof competitoranalysisshouldexaminethecompetitor'sfutureobjectives,currentstrategy,assumptions, andcapabilities.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Hard
REFERENCES:62
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
36.WhenDeltaAir LineswantstostudyContinentalAirlines,it mustexaminebothContinentaland itscomplementor, StarAlliance.
a.True
b.False
ANSWER:True
POINTS:1
DIFFICULTY:Hard
REFERENCES:63
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
Full file at
37.Eavesdroppingisanethicalwaytoobtaininformationaboutcompetitors'actions. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Easy
REFERENCES:64
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:Ethics|Management:EthicalResponsibilities|DierdorffRubin: Foundationalskills|Bloom:Knowledge
38.Anycompetitorintelligencepracticethatislegalisalsoethical. a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES:64
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:Ethics|Management:EthicalResponsibilities|DierdorffRubin: Foundationalskills|Bloom:Comprehension
39.EavesdroppingbytheNSAonaverageAmericansis ethicalbecauseitis agovernmentalorganizationinsteadofa for-profitcompany.
a.True
b.False
ANSWER:False
POINTS:1
DIFFICULTY:Medium
REFERENCES: 64
Full file at
MultipleChoice
40.BP,inresponsetothe DeepwaterHorizonoil spill,expectedincreasedscrutinycomingfromwhichofthe following segmentsofthegeneralenvironment?
a.political/legal b.global
c.technological d.sociocultural
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 46–47
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:ReflectiveThinkingSkills|Management:EnvironmentalInfluence| Dierdorff Rubin:Managingthetask environment|Bloom:Application
41.Coca-ColaandPepsiCohavebeenaccusedofcontributingto theobesityproblemin theUnitedStates. This accusationcomesfromthe segmentofthegeneralenvironment.
a.economic
b. political/legal c. technological d.sociocultural
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 47–48
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:ReflectiveThinkingSkills|Management:Strategy|DierdorffRubin: Managingthetaskenvironment|Bloom:Application
42.TherecentjointventuresformedbyBPwithRussianandIndianpartnersshowtheimportanceofthe
segmentof thegeneralenvironmentthatBPandotherintegratedoilfirmshavetomanagewhencontendingwith scarceresources.
a.political/legal b.physical
c.demographic d.global
ANSWER: d
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 49–50
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES: AACSB:BusinessKnowledgeAnalyticalSkills| Management:Strategy|Dierdorff
Rubin:Managingthetaskenvironment|Bloom:Application
Full file at
43.AcmeValves,Inc.,hasbeenasuccessfulplayerin theoilfieldsupplyindustryin thelast15years.Acme maintainedits traditionalstrategyandproductcharacteristicsoverthistimeperiod.However,Acmehas experienceddeclinesinsalesandprofitsoverthelastfourquarters.TheCEOofAcmeshould
a.continuewiththeprovenstrategybecauseitsreturnsoverthelongrunareimportant. b.focusonimprovingefficiencyofproductionand costcontrol.
c.conductan analysisof theexternalenvironment.
d.immediatelybeginmakingincrementaladjustmentstothetraditionalbusinessstrategyinanefforttoimprove sales.
ANSWER:c
POINTS:1
DIFFICULTY:Hard
REFERENCES:51
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:ReflectiveThinkingSkills|Management:Strategy|DierdorffRubin: Managingstrategy innovation|Bloom:Application
44.Thethreepartsoftheexternalenvironmentwhichaffectafirm'sstrategicactionsare a.economic,political,andlegal.
b.general,industry,and competitor. c.industry,business,and product.
d.local, national,andglobal.
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:38
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Knowledge
Full file at
45.The
environmentis composedofdimensionsin thebroadersocietythatcaninfluenceanindustryandthe
Full file at
firmswithinit. a.general
b.competitor
c.sociocultural d.industry
ANSWER:a
POINTS:1
DIFFICULTY:Medium
REFERENCES:38
Full file at
46.TheenvironmentalsegmentsthatmakeupthegeneralenvironmenttypicallywillNOTinclude a.demographicfactors.
b.socioculturalfactors.
c.substituteproductsorservices. d.technologicalfactors.
ANSWER:c
POINTS:1
DIFFICULTY:Hard
REFERENCES:38
39 (Table2.1)
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
47.AardvarkCorp.hasthreeproducts.Twoproductstogethermakeuptwo-thirdsofrevenuesandconstitute50 percentof companyprofits.Aardvark'sthirdproductmakesup one-thirdof sales.Withprofitabilityfarabovethe industryaverage,thisproductisresponsibleforone-halfof Aardvark'sprofits.Whichof thefollowingstatements regardingassessmentofthegeneralenvironmentisaccurateforAardvark?
a.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmightaffecttherevenueof all products.
b.Thecompanyshouldmonitorthe generalenvironmentfor changesthatmightaffectthe profitabilityofthe mostprofitableproducts.
c.Thecompanyshouldmonitorthe generalenvironmentfor changesthatmightaffectthe profitabilityofall products.
d.Thecompanyshouldmonitorthegeneralenvironmentforchangesthatmightaffecttherevenueand profitabilityof allproducts.
ANSWER:d
POINTS:1
DIFFICULTY:Medium
REFERENCES:40
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:ReflectiveThinkingSkills|Management:EnvironmentalInfluence| DierdorffRubin:Managingthetaskenvironment|Bloom:Comprehension
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48.Whichofthe followingisNOTanactivityusedinthe externalenvironmentalanalysisprocess?
a.scanning
b. decrypting c. monitoring d.assessing
ANSWER:b
POINTS:1
DIFFICULTY:Medium
REFERENCES:40
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Knowledge
49.Environmentalscanningwouldbemostimportantforwhichofthefollowingorganizations?
a.aproviderofhospiceservicesfortheterminallyill b.a webdesigncompanycateringtosmallbusinesses c.a neighborhoodsewerandwaterutility
d.a manufacturerofhouseholdlinens
ANSWER:b
POINTS:1
DIFFICULTY:Hard
REFERENCES:41–42
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|DierdorffRubin:Managingdecision-makingprocesses|Bloom: Application
50.TheuseoftheInternetbyNetflixtocollectdataoncustomerpreferencesisanexampleof a.assessing.
b.monitoring. c.forecasting. d.scanning.
ANSWER:d
POINTS:1
DIFFICULTY:Medium
REFERENCES:41–42
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:Ethics|Management:EthicalResponsibilities|DierdorffRubin: Managingthetaskenvironment|Bloom:Application
Full file at
51.Whenanalystsdevelopfeasibleprojectionsof futureeventsandhowquicklytheywilloccurbasedon observed changesandtrends,theyareengagedin
a.scanning.
b.monitoring. c.forecasting. d.assessing.
ANSWER:c
POINTS:1
DIFFICULTY:Medium
REFERENCES:42–43
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Knowledge
52.Ageneralenvironmentalanalysiscanbe expectedtoproduceall of thefollowingEXCEPT
a.objectiveanswers.
b.recognitionofenvironmentaltrends.
c.identificationof organizationalopportunities. d.identificationoforganizationalthreats.
ANSWER:a
POINTS:1
DIFFICULTY:Medium
REFERENCES:38-40
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingdecision-makingprocesses|Bloom: Comprehension
53.Inanalyzingthedemographicsegmentofthegeneralenvironment,one typicallyexaminesallofthefollowing factorsEXCEPT
a.agestructure. b.ethnicmix.
c.distributionofincome. d.culturalvalues.
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:40 (Table2.1)
43–46
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54.Whichofthefollowing,identifiedinananalysisofthegeneralenvironment,isanopportunityforanentrepreneur whowishestoopena businessproviding"FitnessforLife"physicalconditioningservices(strength,balance,and flexibilitytraining)inacityof100,000people?
a.Theaverageage ofthepopulationinhiscommunityishigh. b.Thelevel of unemploymentinhiscommunityishigh.
c.Achiropractorandtwoindependentphysicaltherapistsarelocatedinhis community. d.Theaverageeducationlevelofthepopulationinhiscommunityislow.
ANSWER:a
POINTS:1
DIFFICULTY:Medium
REFERENCES:40,43–44
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|Dierdorff Rubin:Managingstrategy innovation|Bloom:Application
55.AnanalysisofincomedistributionwouldincludeallofthefollowingEXCEPT
a.thepurchasingpowerofvariousagegroups.
b.the discretionaryincomeofvariousethnicgroups.
c.wagedifferentialsbetweenmaleandfemaleemployeesworkingfora largemanufacturer. d.howincomeisdistributedamongregionsofthe UnitedStates.
ANSWER:c
POINTS:1
DIFFICULTY:Hard
REFERENCES:45–46
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
56.Demographicchangesincludevariationsinincomedistribution.Whichofthefollowingstatementsistrue?
a.Firmsaremostinterestedintheconsumersinthetop10 percentof householdincome. b.In general,livingstandardshavedeterioratedovertime.
c.Thegenerallossinrealincomehasbeensomewhatoffsetbytheincreaseindual-careercouples. d.Workforcediversityismakingtheconceptof averageincomeobsolete.
ANSWER:c
POINTS:1
DIFFICULTY:Medium
REFERENCES:45
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
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57.TheObamaadministrationsoughttopursuepoliciesthatwould a.removetheUnitedStatesfromNAFTA.
b.abolishantitrustlaws.
c.increasetheamountofworkU.S.companiesoutsourceto firmsin othernations. d.reducetheamountofworkU.S.companiesoutsourceto firmsin othernations.
ANSWER:d
POINTS:1
DIFFICULTY:Hard
REFERENCES:46–47
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:MulticulturalDiversity|Management:EnvironmentalInfluence| DierdorffRubin:Managingthetaskenvironment|Bloom:Comprehension
58.An analysisofthe economicsegmentofthe externalenvironmentwouldincludeallofthe followingEXCEPT
a.interestrates.
b.tradedeficitsorsurpluses. c.inflationrates.
d.incomedistribution.
ANSWER:d
POINTS:1
DIFFICULTY:Medium
REFERENCES:46
40 (Table2.1)
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
59.Characteristicsof thecurrenteconomicsegmentincludeall of thefollowingEXCEPT
a.generaluncertainty.
b.a clearunderstandingof futureeconomicopportunitiesandthreats. c.theinabilityof economiststoprovidevalidandreliablepredictions. d.anexpandingeconomyinVietnam.
ANSWER:b
POINTS:1
DIFFICULTY:Medium
REFERENCES:46
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom:
Full file at
60.Theeconomicenvironmentrefersto
a.thenatureanddirectionoftheeconomyin whichafirmcompetesormaycompete. b.theeconomicoutlookoftheworldprovidedbytheWorldBank.
c.ananalysisofhowthe environmentalmovementandworldeconomyinteract.
d.an analysisof hownewenvironmentalregulationswillaffecttheU.S.economy.
ANSWER:a
POINTS:1
DIFFICULTY:Medium
REFERENCES:46
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
61.WhichofthefollowingwouldNOTbeidentifiedinananalysisoftheeconomicportionofthegeneralenvironment?
a.the willingnessofChrysler'sbuyerstopurchaselargevehiclesinlightofanincreaseinoil prices b.the abilityofFordtoissuenewdebtinlightofitsrecentfinancialperformance
c.theabilityofBMW'sbuyersto financecarpurchasesin lightofachangein interestrates d.thewillingnessof GMbuyerstopurchasenewvehiclesinlightof thethreatof recession
ANSWER:b
POINTS:1
DIFFICULTY:Hard
REFERENCES:46
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
62.Thepolitical/legalsegmentofanenvironmentrepresents
a.thepoliticalpreferencesof differentethnicgroupsinthesociety. b.thetechnologicalvaluesofdifferentpoliticalentitiesinsociety.
c.howorganizationsandgovernmentsmutuallytry toinfluenceeachother. d.thesystemof regulationsgovernmentsatall levelsplaceon businesses.
ANSWER:c
POINTS:1
DIFFICULTY:Medium
REFERENCES:46-47
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Legal
Responsibilities|Dierdorff Rubin:Managingthetask environment|Bloom:
Full file at
63.Allofthe followingare aspectsofthe political/legalsegmentofthe generalenvironmentEXCEPT
a.lobby groups.
b.attitudesandvalues. c.taxationlaws.
d.industrieschosenfor deregulation.
ANSWER:b
POINTS:1
DIFFICULTY:Medium
REFERENCES:46-47
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
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64.Ananalysisofsociety'sattitudesandvalueswouldbeconductedwhenstudyingthe generalenvironment.
a.sociocultural b.global
c.demographic
d.economic
segmentofthe
Full file at
ANSWER:a
POINTS:1
DIFFICULTY:Easy
REFERENCES:47-48
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
65.In asuburbancommunityoutsideacityinAlabama,aretailstoreopenedthatspecializedindancewearforchildren andadults.It wasmoderatelysuccessfulforfiveyearsuntilthelocalnewspaperpublishedanexposéthatscanty lingeriestockedin thebackofthestore'sshowroomwassellingbrisklyto acertainclientele.Afterward,thestore lostmostofitscustomersandnearlyclosed.Whichsegmentoftheenvironmentdidthestoreownersfailto take intoaccountwhentheybegansellingthelingerie?
a.the socioculturalsegment b.theeconomicsegment
c.thedemographicsegment d.thepolitical/legalsegment
ANSWER:a
POINTS:1
DIFFICULTY:Medium
REFERENCES:47-48
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:ReflectiveThinkingSkills|Management:EnvironmentalInfluence| Dierdorff Rubin:Managingthetask environment|Bloom:Application
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66.Thetechnologicalsegmentofenvironmentalanalysisincludes
a.institutionsand activitiesinvolvedwithcreatingnewknowledgeand translatingthatknowledgeintonew outputs.
b.the determinationofwhenmachinerywillneedtobereplacedina givenfirm.
c.theneedfornewtechnologyin orderforafirmto gainacompetitiveadvantage. d.placeswherea firm'stechnologywillallowthatfirmtodominatea givenmarket.
ANSWER: a
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 48–49
LEARNINGOBJECTIVES: STMA.HITT.13.Comprehension-Comprehension
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental Influence|Dierdorff Rubin:Managingthetaskenvironment|Bloom: Comprehension
67.Understandinghownewknowledgecandevelopnewproducts,processes,or materialsisa resultof analyzingthe
segmentofthegeneralenvironment. a.economic
b. political/legal c. technological d.global
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 48
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES: AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
68.Thenextcriticaltechnologicalopportunityfororganizationsispredictedtobe a.theInternet.
b.multiphasicinterventions. c.biologicalengineering.
d.wirelesscommunications.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 49
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES: AACSB:InformationTechnology|Management:InformationTechnology|Dierdorff
Rubin:Managingthetask environment|Bloom:Knowledge
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69.Whichofthefollowingwouldbeanexampleoftheapplicationofthenextmajortechnologicalopportunityfor organizations?
a.Boeing'sDreamliner
b.Toyota'shybridvehicles
c.PhilipMorrisInternational'ssmokelesstobacco d.Amazon'sKindle
ANSWER:d
POINTS:1
DIFFICULTY:Easy
REFERENCES:49
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:InformationTechnology|Management:InformationTechnology|Dierdorff
Rubin:Managingthetask environment|Bloom:Knowledge
70. TheobservationthatChina,despitea37percentsurgein carsalesin 2010,is expectedto reachproduction
Full file at
overcapacityby2015andhaveaglutofextracars,isanaspectofthe environment.
a.demographic b.global
c.physical
d.technological
segmentofthegeneral
Full file at
ANSWER:b
POINTS:1
DIFFICULTY:Easy
REFERENCES:49
LEARNINGOBJECTIVES: STMA.HITT.13.- 1.4
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthetaskenvironment|Bloom:Application
71.Becauseofthreatsandrisksin theglobalenvironment,somefirmschooseto takeamorecautiousapproachby a.avoidingglobalmarketsaltogether.
b.expandingonlyto developedcountries. c.focusingonglobalnichemarkets.
d.acquiringalreadyestablishedfirmsinforeignmarkets.
ANSWER:c
POINTS:1
DIFFICULTY:Hard
REFERENCES:50
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:BusinessKnowledgeAnalyticalSkills|Management:Environmental
Influence|DierdorffRubin:Managingthe taskenvironment|Bloom:Knowledge
Full file at
72.TheconceptsofGuanxi,Wa,andInhwaall conveythegeneralideaof a.entrepreneurialrisk-taking.
b.interpersonalrelationships. c.thevalueofhardwork.
d.personalachievement.
ANSWER:b
POINTS:1
DIFFICULTY:Medium
REFERENCES:48
LEARNINGOBJECTIVES: STMA.HITT.13.Knowledge-Application
NOTES:AACSB:MulticulturalDiversity|Management:GroupDynamics|DierdorffRubin:Interpersonalorientation|Bloom:Knowledge
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73.Globalwarmingandenergyconsumptiontrendsareaspectsofthe thatfirmsshouldmonitor.