Test Bank for Strategic Management, Concepts and Cases, Competitiveness and Globalization, 11th Edition by Michael A Hitt, Duane R Ireland, Robert E Hoskisson

TEST BANK FOR STRATEGIC MANAGEMENT,
CONCEPTS AND CASES, COMPETITIVENESS
AND GLOBALIZATION, 11TH EDITION BY
MICHAEL A HITT, DUANE R IRELAND, ROBERT
E HOSKISSON

,True / False
1. The external environment facing business stays relatively constant over time.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 40
LEARNING OBJECTIVES: STMA.HITT.15.02.01 - 02.01
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing the task environment | Bloom:
Comprehension

2. Demographic, economic, political/legal, sociocultural, technological, global, and physical are the seven elements
comprising the industry environment.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 40 (Table 2.1)
LEARNING OBJECTIVES: STMA.HITT.15.02.02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Knowledge

3. Firms can directly control the elements of the seven segments of the general environment.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 39
LEARNING OBJECTIVES: STMA.HITT.15.02.02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing the task environment | Bloom:
Comprehension

,4. The recent bankruptcy filings by General Motors and Chrysler Corporation illustrate that firms cannot directly
control the general environment's segments.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 39
LEARNING OBJECTIVES: STMA.HITT.15.2-02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Application

5. The industry environment directly influences the firm and its competitive actions and responses.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 39
LEARNING OBJECTIVES: STMA.HITT.15.2-02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing decision-making processes | Bloom:
Knowledge

6. Competitor analysis is focused on the factors and conditions influencing an industry's profitability potential.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 39
LEARNING OBJECTIVES: STMA.HITT.15.2-02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing decision-making processes | Bloom:
Comprehension

, 7. When firms analyze the external environment, they typically have complete and unambiguous data.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 40
LEARNING OBJECTIVES: STMA.HITT.15.02.02 - 02.02
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing decision-making processes | Bloom:
Comprehension

8. Monitoring involves the development of a forecast of what might happen at a future point in time.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 42
LEARNING OBJECTIVES: STMA.HITT.15.02.03 - 02.03
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Managing decision-making processes | Bloom: Knowledge

9. Scanning involves detecting meaning through early signals of environmental trends.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 41–42
LEARNING OBJECTIVES: STMA.HITT.13.Knowledge - Application
NATIONAL STANDARDS: United States - BUSPROG: Analytic
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental
Influence | Dierdorff & Rubin: Managing decision-making processes | Bloom:
Knowledge