Strategic Management Chapter
2 Multiple Choice 2026 Exam All
Answers and Illustrations Given
According to the Chapter 2 Opening Case on BP, in response to the
Deepwater Horozon oil spill, the company should expect increased scrutiny
coming from which of the following segments of the general environment?
a. Political/legal.
b. Global.
c. Technological.
,d. Sociocultural. - 🧠 ANSWER ✔✔Political/legal
As noted in the Chapter 2 Opening Case, gas drilling and fracturing have
dramatically increased gas reserves and may provide a substitute for other
carbon dioxide producing products such as coal. This change illustrates the
effect of the _____________segment of the general environment.
a. economic
b. political/legal
c. technological
d. industry - 🧠 ANSWER ✔✔technological
The recent joint ventures formed by BP with Russian and Indian partners
show the importance of the ___________segment of the general
environment that BP and other integrated oil firms have to deal when
contending with scarce resources (Chapter 2 Opening Case).
a. political/legal
b. physical
c. demographic
d. global - 🧠 ANSWER ✔✔global
,Acme Valves, Inc., has been a successful player in the oil field supply
industry in the last 15 years. Acme maintained its traditional strategy and
product characteristics over this time period. But, Acme has experienced
declines in sales and profits over the last four quarters. The CEO of Acme
should
a. continue with the proven strategy because its returns over the long run
are important.
b. focus on improving efficiency of production and cost control.
c. conduct an analysis of the external environment.
d. immediately begin making incremental adjustments to the traditional
business strategy in an effort to improve sales. - 🧠 ANSWER ✔✔conduct
an analysis of the external environment.
The three parts of the external environment which affect a firms strategic
actions are
a. economic, political, and legal
b. general, industry, and competitor
c. industry, business, and product
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STATEMENT. ALL RIGHTS RESERVED
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, d. local, national, and global - 🧠 ANSWER ✔✔general, industry, and
competitor
The ____ environment is composed of dimensions in the broader society
that can influence an industry and the firms within it.
a. general
b. competitor
c. sociocultural
d. industry - 🧠 ANSWER ✔✔general
The environmental segments that comprise the general environment
typically will NOT include
a. demographic factors.
b. sociocultural factors.
c. substitute products or services.
d. technological factors. - 🧠 ANSWER ✔✔substitute products or services.
Aardvark Corp. has three products. Two products together make up two-
thirds of revenues and constitute 50 percent of company profits. Aardvark's
third product makes up one third of sales. With profitability far above the
2 Multiple Choice 2026 Exam All
Answers and Illustrations Given
According to the Chapter 2 Opening Case on BP, in response to the
Deepwater Horozon oil spill, the company should expect increased scrutiny
coming from which of the following segments of the general environment?
a. Political/legal.
b. Global.
c. Technological.
,d. Sociocultural. - 🧠 ANSWER ✔✔Political/legal
As noted in the Chapter 2 Opening Case, gas drilling and fracturing have
dramatically increased gas reserves and may provide a substitute for other
carbon dioxide producing products such as coal. This change illustrates the
effect of the _____________segment of the general environment.
a. economic
b. political/legal
c. technological
d. industry - 🧠 ANSWER ✔✔technological
The recent joint ventures formed by BP with Russian and Indian partners
show the importance of the ___________segment of the general
environment that BP and other integrated oil firms have to deal when
contending with scarce resources (Chapter 2 Opening Case).
a. political/legal
b. physical
c. demographic
d. global - 🧠 ANSWER ✔✔global
,Acme Valves, Inc., has been a successful player in the oil field supply
industry in the last 15 years. Acme maintained its traditional strategy and
product characteristics over this time period. But, Acme has experienced
declines in sales and profits over the last four quarters. The CEO of Acme
should
a. continue with the proven strategy because its returns over the long run
are important.
b. focus on improving efficiency of production and cost control.
c. conduct an analysis of the external environment.
d. immediately begin making incremental adjustments to the traditional
business strategy in an effort to improve sales. - 🧠 ANSWER ✔✔conduct
an analysis of the external environment.
The three parts of the external environment which affect a firms strategic
actions are
a. economic, political, and legal
b. general, industry, and competitor
c. industry, business, and product
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, d. local, national, and global - 🧠 ANSWER ✔✔general, industry, and
competitor
The ____ environment is composed of dimensions in the broader society
that can influence an industry and the firms within it.
a. general
b. competitor
c. sociocultural
d. industry - 🧠 ANSWER ✔✔general
The environmental segments that comprise the general environment
typically will NOT include
a. demographic factors.
b. sociocultural factors.
c. substitute products or services.
d. technological factors. - 🧠 ANSWER ✔✔substitute products or services.
Aardvark Corp. has three products. Two products together make up two-
thirds of revenues and constitute 50 percent of company profits. Aardvark's
third product makes up one third of sales. With profitability far above the
