Question-1
A challenge in conducting an external analysis is that:
A. forecasts aren't facts.
B. brand loyalty is low.
C. markets may be concentrated.
D. markets may be fragmented.
Question-2
An external analysis enables the organization to examine:
A. opportunities and threats.
B. strengths and weaknesses.
C. product substitution and durability.
D. manufacturing and operations.
Question-3
Uncertainty is determined by complexity and:
A. rate of change.
B. access to information.
C. difficulty of obtaining and controlling resources.
D. competition.
Question-4
Recent census data showed that for the first time in the history of the United States there were more Americans over age __________ than under.
A. 25
B. 30
C. 21
D. 19
Question-5
The law governing safe and hazard-free work environments is the:
A. Equal Employment Opportunity Act of 1972.
B. Americans with Disabilities Act of 1990.
C. Occupational Safety and Health Act of 1970.
D. Civil Rights Act of 1991.
Question-6
A supplier will have more bargaining power:
A. if it is able to provide the products that the industry is currently providing.
B. if the supplier's product is an important input to the industry.
C. if the supplier's products are differentiated or there are customer switching costs.
D. All of the answer choices are correct.
Question-7
If organizations have __________, they will do whatever it takes to operate at capacity.
A. high fixed costs
B. high variable costs
C. numerous competitors
D. equally balanced competitors
Question-8
Which of the following would be examples of sectors that could be found in the specific environment?
A. Demographics
B. Competitors
C. Economics
D. Political/legal
Question-9
Which of the following would be considered substitute products?
A. Coke and Pepsi
B. Contacts and eyeglasses
C. The Internet and the World Wide Web
D. AT&T and Sprint
Question-10
Organizations are __________ systems, which means they interact with and respond to their environment.
A. open
B. organic
C. adaptive
D. external
Question-11
In an external analysis, the primary role of the middle manager is to:
A. use information in terms of the "big picture."
B. act as an information gatherer and disseminator.
C. encourage workers to listen to the customer.
D. All of the answer choices are correct.
Question-12
One of the biggest technological advancements to affect the organization in recent years is:
A. the ability of managers to control employees electronically.
B. the ability of consumers to buy online.
C. the introduction of hand-held personal computers.
D. continuing computerization of an organization's activities.
Question-13
As an open system, an organization __________ and __________ its external environment.
A. reacts to; controls
B. interacts with; responds to
C. interacts with; controls
D. reacts to; responds to
Question-14
Demographic information can be obtained from all of the following sources EXCEPT the:
A. Economic Statistics Briefing Room.
B. Current Population Survey.
C. Statistical Abstract of the World.
D. Statistical Yearbook.
Question-15
According to Michael Porter, major potential barriers to entry include all of the following EXCEPT:
A. economies of scale.
B. product differentiation.
C. switching costs.
D. developmental costs.
Question-16
Which of the following is NOT one of the five competitive forces?
A. Competition forms substitute products
B. The threat of potential entry
C. The strength of industry forces
D. The bargaining power of buyers
Question-17
Which of the following does NOT usually function as an entry barrier?
A. Economies of scale
B. Product differentiation
C. High strategic stakes
D. Switching costs
Question-18
An element of the environment as information perspective is:
A. environmental relevancy.
B. environmental uncertainty.
C. environmental currency.
D. environmental texture.
Question-19
A buyer will have less bargaining power if all of the following factors apply EXCEPT:
A. buyers have limited information.
B. buyers face few switching costs.
C. the products purchased are highly differentiated and unique.
D. buyers purchase small volumes of the products.
Question-20
The __________ environment focuses on substitute products, current rivalry, potential entrants, bargaining power of buyers, and bargaining power of suppliers.
A. market
B. general
C. specific
D. fragmented
