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| 1 | |
The general environment includes: |
| | A) | rivals. |
| | B) | complementors. |
| | C) | economic forces. |
| | D) | buyers. |
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| 2 | |
SWOT stands for: |
| | A) | systems, weaknesses, origins, and threats. |
| | B) | strengths, weaknesses, opportunities, and threats. |
| | C) | strengths, weaknesses, origins, and threats. |
| | D) | strengths, weaknesses, opportunities, and treaties. |
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| 3 | |
Which of the following gives buyers more power according to the five forces model? |
| | A) | There are many buyers. |
| | B) | Switching costs are high. |
| | C) | They can choose between equivalent products from many firms. |
| | D) | They purchase small quantities. |
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| 4 | |
The existence of close substitutes for a product is a strong competitive threat because this limits: |
| | A) | the advertising that can occur in the industry. |
| | B) | the available locations of companies in the industry. |
| | C) | the prices that companies in one industry can charge for their goods. |
| | D) | the number of people willing to serve as employees in the industry. |
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| 5 | |
Intense rivalry between incumbents is a threat that: |
| | A) | increases sales of established enterprises. |
| | B) | reduces profits of established enterprises. |
| | C) | increases profits of established enterprises. |
| | D) | has no effect on profits of established enterprises. |
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| 6 | |
Industry changes resulting from changes in laws and regulations are called: |
| | A) | economic forces. |
| | B) | sociocultural forces. |
| | C) | international forces. |
| | D) | political and legal forces. |
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| 7 | |
When the United States steel industry persuaded the President to impose a 30 percent tariff on imports of foreign steel into the U.S., the intensity of rivalry in the U.S. steel market: |
| | A) | was increased. |
| | B) | stayed the same. |
| | C) | was reduced. |
| | D) | increased the intensity of rivalry in the foreign marketplace. |
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| 8 | |
Falling barriers to international trade __________ profitability in the domestic country. |
| | A) | increase |
| | B) | encourage the same level of |
| | C) | has no effect on |
| | D) | decrease |
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| 9 | |
Changes that do not alter the basic nature of competition in the task environment are called: |
| | A) | substantive changes. |
| | B) | continuous changes. |
| | C) | incremental changes. |
| | D) | equilibrium changes. |
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| 10 | |
The flexible work practices that are used by SW Airlines to boost productivity and reduce costs may be categorized as which part of the internal environment of SW? |
| | A) | tangible resources |
| | B) | human capital |
| | C) | internal organization |
| | D) | intangible resources. |
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