TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITIONDESS
v v v v v v v v v v
TESTBANK v
TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
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,TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
StrategicvManagement:vTextvandvCases,v9ev(Dess)
Chapterv2
AnalyzingvthevExternalvEnvironmentvofvthevFirm:vCreatingvCompetitivev
Advantages
1) Environmentalvscanningvandvcompetitorvintelligencevprovidevimportantvinputsvforvforecastingv
activities.
2) Perceptualvacuity,vaccordingvtovRamvCharan,visvthevabilityvtovknowvforvcertainvwhatvwillvhappenvi
nvthevfuture.
3) TedvTurnervsawvthevpotentialvofv24-
hourvnewsvbeforevanyonevelse.vThisvisvanvexamplevofvperceptualvacuity.
4) Environmentalvmonitoringvdealsvwithvtrackingvchangesvinvenvironmentalvtrendsvthatvarevoftenvu
ncoveredvduringvthevenvironmentalvscanningvprocess.
5) CompetitivevIntelligencev(CI)visvavtoolvthatvcanvprovidevmanagementvwithvearlyvwarningsvaboutvb
othvthreatsvandvopportunities.
6) Competitivevintelligencevgenerallyvdoesvnotvbenefitvveryvmuchvfromvgatheringvinformationvonvc
ompetitorsvfromvsourcesvinvthevpublicvdomain.
7) Evenvwithvallvthevadvancesvinvrecentvyears,vforecastingvisvtypicallyvconsideredvmorevofvanvartvt
hanvavsciencevandvitvisvofvlittlevusevinvgeneratingvaccuratevpredictions.
8) Scenariovanalysisvisvavsuperficialvapproachvtovforecastingvthatvseeksvtovexplorevpossiblevd
evelopmentsvthatvmanyvonlyvbevconnectedvtovthevpast.
9) SWOTvanalysisvisvusefulvinvpartvbecausevitvobligesvthevfirmvtovactvproactivelyvbyvputtingvanve
mphasisvonvidentifyingvopportunitiesvandvthreatsvthatvconstrainvthevactionvchoicesvavfirmvmightvm
akevbecausevofvitsvinternalvandvexternalvenvironmentalvscan.
10) InvthevSWOTvframework,vthevStrengthsvandvWeaknessesvarevexternalvenvironmentalvfactorsvtovc
onsider.
11) InvthevSWOTvframework,vOpportunitiesvandvThreatsvarevenvironmentalvconditionsvinternalvtovt
hevfirm.
12) Althoughvchangesvinvthevgeneralvenvironmentvmayvoftenvadverselyvorvfavorablyvimpactvavfirm,vt
heyvseldomvaltervanventirevindustry.
13) AvmajorvsocioculturalvtrendvinvthevUnitedvStatesvisvthevincreasedvnumbervofvwomenvinvthevwor
kforcevthatvhasvincreasedvthevneedvforvbusinessvclothingvbutvdecreasedvthevdemandvforvbakingvprod
uctvstaples.
14) Technologicalvinnovationsvcanvcreateventirelyvnewvindustriesvandvaltervthevboundariesvofvi
1
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
,TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
ndustries.
2
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
, TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
15) ThevPortervfive-
forcesvmodelvisvdesignedvtovhelpvusvunderstandvhowvsocialvattitudesvandvculturalvvaluesvimpa
ctvU.S.vbusinesses.
16) Thevfive-
forcesvmodelvhelpsvtovdeterminevbothvthevnaturevofvcompetitionvinvanvindustryvandvthevprofitvpotentia
lvforvthevindustry.
17) Invsomevindustries,vlowvswitchingvcostsvcanvactvasvanvimportantvbarriervtoventry.
18) Invmostvindustries,vnewventrantsvwillvnotvbevavthreatvbecausevthevInternetvlowersventryvbarriers.
19) ThevInternetvandvdigitalvtechnologiesvsuppressvthevbargainingvpowervofvbuyersvbyvprovidingvt
hemvwithvmorevinformationvtovmakevbuyingvdecisions.
20) Reintermediationvisvresponsiblevforvanvoverallvreductionvinvbusinessvopportunities.
21) Twovofvthevkeyvinputsvtovdevelopingvforecastsvdiscussedvinvthevtextvare
A) environmentalvscanningvandvstakeholdervidentification.
B) assessingvinternalvstrengthsvandvenvironmentalvscanning.
C) environmentalvscanningvandvcompetitivevintelligence.
D) environmentalvscanningvandvavSWOTvanalysis.
22) SalemivIndustriesvlaunchedvCellvZonevunsuccessfullyvinv2005vbecausevitvdidvnotvunderstandvthev
marketvdemandvforvitsvnewvproduct.vThisvisvanvexamplevof
A) visionvstatementvevaluation.
B) assessingvinternalvstrengths.
C) environmentalvscanning.
D) missionvstatementvevaluation.
23) Environmentalvanalysisvrequiresvcontinualvquestioningvofvallvthesevassumptionsvexcept
A) avpriorivideasvaboutvthevstructurevofvthevrelevantvindustry.
B) continualvupdatingvofvenvironmentalvknowledge.
C) presuppositionsvaboutvwhovisvandvisvnotvavcompetitor.
D) biasesvaboutvhowvtovmakevmoneyvinvthevindustry.
24) Firmsvthatvwerevsuccessfulvinvthevpastvcanvfailvtodayvbecause
A) theyvkeepvpacevwithvchangesvinvthevnaturevofvcompetition.
B) thevcompanyvstrategyvisvoutdated.
C) theirvfinancialvsituationvisvresilient.
D) managementvmonitorsvthevrelevantvenvironmentalvfactorsvregularly.
3
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
v v v v v v v v v v
TESTBANK v
TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
,TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
StrategicvManagement:vTextvandvCases,v9ev(Dess)
Chapterv2
AnalyzingvthevExternalvEnvironmentvofvthevFirm:vCreatingvCompetitivev
Advantages
1) Environmentalvscanningvandvcompetitorvintelligencevprovidevimportantvinputsvforvforecastingv
activities.
2) Perceptualvacuity,vaccordingvtovRamvCharan,visvthevabilityvtovknowvforvcertainvwhatvwillvhappenvi
nvthevfuture.
3) TedvTurnervsawvthevpotentialvofv24-
hourvnewsvbeforevanyonevelse.vThisvisvanvexamplevofvperceptualvacuity.
4) Environmentalvmonitoringvdealsvwithvtrackingvchangesvinvenvironmentalvtrendsvthatvarevoftenvu
ncoveredvduringvthevenvironmentalvscanningvprocess.
5) CompetitivevIntelligencev(CI)visvavtoolvthatvcanvprovidevmanagementvwithvearlyvwarningsvaboutvb
othvthreatsvandvopportunities.
6) Competitivevintelligencevgenerallyvdoesvnotvbenefitvveryvmuchvfromvgatheringvinformationvonvc
ompetitorsvfromvsourcesvinvthevpublicvdomain.
7) Evenvwithvallvthevadvancesvinvrecentvyears,vforecastingvisvtypicallyvconsideredvmorevofvanvartvt
hanvavsciencevandvitvisvofvlittlevusevinvgeneratingvaccuratevpredictions.
8) Scenariovanalysisvisvavsuperficialvapproachvtovforecastingvthatvseeksvtovexplorevpossiblevd
evelopmentsvthatvmanyvonlyvbevconnectedvtovthevpast.
9) SWOTvanalysisvisvusefulvinvpartvbecausevitvobligesvthevfirmvtovactvproactivelyvbyvputtingvanve
mphasisvonvidentifyingvopportunitiesvandvthreatsvthatvconstrainvthevactionvchoicesvavfirmvmightvm
akevbecausevofvitsvinternalvandvexternalvenvironmentalvscan.
10) InvthevSWOTvframework,vthevStrengthsvandvWeaknessesvarevexternalvenvironmentalvfactorsvtovc
onsider.
11) InvthevSWOTvframework,vOpportunitiesvandvThreatsvarevenvironmentalvconditionsvinternalvtovt
hevfirm.
12) Althoughvchangesvinvthevgeneralvenvironmentvmayvoftenvadverselyvorvfavorablyvimpactvavfirm,vt
heyvseldomvaltervanventirevindustry.
13) AvmajorvsocioculturalvtrendvinvthevUnitedvStatesvisvthevincreasedvnumbervofvwomenvinvthevwor
kforcevthatvhasvincreasedvthevneedvforvbusinessvclothingvbutvdecreasedvthevdemandvforvbakingvprod
uctvstaples.
14) Technologicalvinnovationsvcanvcreateventirelyvnewvindustriesvandvaltervthevboundariesvofvi
1
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
,TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
ndustries.
2
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
, TEST BANK FOR STRATEGIC MANAGEMENT TEXT AND CASES 9TH EDITION DESS
v v v v v v v v v v
15) ThevPortervfive-
forcesvmodelvisvdesignedvtovhelpvusvunderstandvhowvsocialvattitudesvandvculturalvvaluesvimpa
ctvU.S.vbusinesses.
16) Thevfive-
forcesvmodelvhelpsvtovdeterminevbothvthevnaturevofvcompetitionvinvanvindustryvandvthevprofitvpotentia
lvforvthevindustry.
17) Invsomevindustries,vlowvswitchingvcostsvcanvactvasvanvimportantvbarriervtoventry.
18) Invmostvindustries,vnewventrantsvwillvnotvbevavthreatvbecausevthevInternetvlowersventryvbarriers.
19) ThevInternetvandvdigitalvtechnologiesvsuppressvthevbargainingvpowervofvbuyersvbyvprovidingvt
hemvwithvmorevinformationvtovmakevbuyingvdecisions.
20) Reintermediationvisvresponsiblevforvanvoverallvreductionvinvbusinessvopportunities.
21) Twovofvthevkeyvinputsvtovdevelopingvforecastsvdiscussedvinvthevtextvare
A) environmentalvscanningvandvstakeholdervidentification.
B) assessingvinternalvstrengthsvandvenvironmentalvscanning.
C) environmentalvscanningvandvcompetitivevintelligence.
D) environmentalvscanningvandvavSWOTvanalysis.
22) SalemivIndustriesvlaunchedvCellvZonevunsuccessfullyvinv2005vbecausevitvdidvnotvunderstandvthev
marketvdemandvforvitsvnewvproduct.vThisvisvanvexamplevof
A) visionvstatementvevaluation.
B) assessingvinternalvstrengths.
C) environmentalvscanning.
D) missionvstatementvevaluation.
23) Environmentalvanalysisvrequiresvcontinualvquestioningvofvallvthesevassumptionsvexcept
A) avpriorivideasvaboutvthevstructurevofvthevrelevantvindustry.
B) continualvupdatingvofvenvironmentalvknowledge.
C) presuppositionsvaboutvwhovisvandvisvnotvavcompetitor.
D) biasesvaboutvhowvtovmakevmoneyvinvthevindustry.
24) Firmsvthatvwerevsuccessfulvinvthevpastvcanvfailvtodayvbecause
A) theyvkeepvpacevwithvchangesvinvthevnaturevofvcompetition.
B) thevcompanyvstrategyvisvoutdated.
C) theirvfinancialvsituationvisvresilient.
D) managementvmonitorsvthevrelevantvenvironmentalvfactorsvregularly.
3
Copyrightv2019v©vMcGraw-
HillvEducation.vAllvrightsvreserved.vNovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-
HillvEducation.
