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1 | |
Developing forecasts, as discussed in the text, include two key inputs, which are |
| | A) | environmental scanning and stakeholder identification. |
| | B) | environmental scanning and competitor intelligence. |
| | C) | assessing internal strengths and environmental scanning. |
| | D) | environmental scanning and a SWOT analysis. |
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2 | |
A risk of forecasting discussed in the text is that |
| | A) | in most cases, the expense of collecting the necessary data exceeds the benefit. |
| | B) | forecasting's retrospective nature provides little information about the future. |
| | C) | managers may view uncertainty as black and white while ignoring important gray areas. |
| | D) | it can create legal problems for the firm if regulators discover the company is making forecasts. |
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3 | |
Which of the following would be thought of as part of a firm's general environment? |
| | A) | increased trade deficit |
| | B) | decreased entry barriers |
| | C) | increased bargaining power of the firm's suppliers |
| | D) | increased competitive intensity |
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4 | |
Interest rate increases have a ________ impact on the residential home construction industry and a ___ effect on industries that produce consumer necessities, such as prescription drugs or basic grocery items. |
| | A) | positive; negligible |
| | B) | positive; negative |
| | C) | negative; positive |
| | D) | negative; negligible |
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5 | |
An independent group of suppliers, such as farmers, gather to form a cooperative in order to sell their products to buyers directly, replacing their previous distributor. This is an example of |
| | A) | forward integration. |
| | B) | backward integration. |
| | C) | threat of substitute products. |
| | D) | threat of entry. |
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6 | |
The bargaining power of the supplier is less than that of the buyer when |
| | A) | volume of purchase is low. |
| | B) | the buyer's profit margin is low. |
| | C) | cost savings from the supplier's product are minimal. |
| | D) | threat of backward integration by buyers is low. |
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7 | |
As seen in Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except |
| | A) | lack of importance of the buyer to the supplier group. |
| | B) | high differentiation by the supplier. |
| | C) | readily available substitute products. |
| | D) | dominance by a few suppliers. |
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8 | |
The most extreme rivalry results from |
| | A) | a high level of differentiation. |
| | B) | few competitors, slow industry growth, lack of differentiation, high fixed or storage costs. |
| | C) | numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers. |
| | D) | numerous equally balanced competitors, slow industry growth, high fixed or storage costs. |
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9 | |
Which of the following is an example of the interrelationship between the competitive and general environments? |
| | A) | A decline in a nation's educational standards results in a decline in the nation's productivity. |
| | B) | Increased awareness of personal health leads to lower demand, and greater rivalry in the alcoholic beverages industry. |
| | C) | A country's technological inferiority results in its enactment of strong trade barriers against importation. |
| | D) | Greater awareness of the environment results in environmental legislation. |
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2002 A McGraw-Hill Online Learning Centre