7/4/25, 9:57
PM
MBA 705: Exam 2 Questions and answers with complete
solutions verified latest release 2025
Terms in this set (177)
-Societal values
-Trends
Social Forces -Traditions
-Religious practices
-Concern for the environment
-Consumers "super size" at record rates while
demanding healthier foods.
Social Forces Case #1
Eating Habits -Many fast food restaurants have been "supersizing"
their meal combinations by
adding extra fries and larger drinks, while at the
same time expanding alternatives for items
such as grilled chicken sandwiches and
salads
Social Forces Case #2 Contrary to demand patterns in other parts of
Automobiles the world, demand for large vehicles remains
strong in the U.S. amidst cries for greater fuel
1/31
,7/4/25, 9:57
PM
economy.
-Firms operating in multiple countries must address
multiple sets of social forces.
-Social forces are influenced by national culture,
the generally accepted values, traditions, and
Social Forces: Global patterns of behavior in a society. Firms should
Concerns recognize these
cultural differences.
-Some firms struggle because their managers
consciously refer to their own cultural values as
a standard of judgment, a phenomenon known
as the self-reference
criterion.
-Scientific improvements & innovations
Technological Forces -The Internet is arguably the most pervasive
technological force affecting most industries.
During the dot-com bubble of the late 1990s,
telecommunications firms laid fiber optic
cables across the oceans to connect the
2/31
,7/4/25, 9:57
PM
U.S. with China and India.
The World is Flat (Thomas Since the dot-com bust, these cables have
Friedman, 2005) provided high quality, low cost contact with
developing nations, "leveling the playing
field."
"Any activity that can be digitized and moved around
will get moved around."
-Has the Internet created new business models or just
altered the old ones?
Strategy and The Internet -Although the Internet plays a substantial role,
critics challenge the notion that "new business
models" are needed to compete in the "new
economy." Michael Porter and others argue
that the market forces that governed the
traditional economy have not disappeared in
the Internet economy.
-Large firms exist because they can perform
most tasks—raw material procurement,
production, human resource management,
3/31
, 7/4/25, 9:57
PM
sales, and so forth—more efficiently than they
would otherwise be performed if they were
Disaggregation & "outsourced" to the open market.
Reaggregation
-Today, many progressive firms have
"disaggregated" by no longer perform all of
their functional activities, but instead
"reaggregate" by searching for partners who
can perform some of the activities more
efficiently.
-The Internet has influenced strategic management in
very specific ways.
Strategic Dimensions of -Contrary to early expectations, the Internet
the Internet has not always generated greater profits for
businesses. Consumers have benefitted
immensely.
-Five Strategic Dimension of the Internet are addressed
in the following slides.
Dimension #1: Typical markets are characterized by
Movement toward information asymmetry, whereby sellers control
4/31
PM
MBA 705: Exam 2 Questions and answers with complete
solutions verified latest release 2025
Terms in this set (177)
-Societal values
-Trends
Social Forces -Traditions
-Religious practices
-Concern for the environment
-Consumers "super size" at record rates while
demanding healthier foods.
Social Forces Case #1
Eating Habits -Many fast food restaurants have been "supersizing"
their meal combinations by
adding extra fries and larger drinks, while at the
same time expanding alternatives for items
such as grilled chicken sandwiches and
salads
Social Forces Case #2 Contrary to demand patterns in other parts of
Automobiles the world, demand for large vehicles remains
strong in the U.S. amidst cries for greater fuel
1/31
,7/4/25, 9:57
PM
economy.
-Firms operating in multiple countries must address
multiple sets of social forces.
-Social forces are influenced by national culture,
the generally accepted values, traditions, and
Social Forces: Global patterns of behavior in a society. Firms should
Concerns recognize these
cultural differences.
-Some firms struggle because their managers
consciously refer to their own cultural values as
a standard of judgment, a phenomenon known
as the self-reference
criterion.
-Scientific improvements & innovations
Technological Forces -The Internet is arguably the most pervasive
technological force affecting most industries.
During the dot-com bubble of the late 1990s,
telecommunications firms laid fiber optic
cables across the oceans to connect the
2/31
,7/4/25, 9:57
PM
U.S. with China and India.
The World is Flat (Thomas Since the dot-com bust, these cables have
Friedman, 2005) provided high quality, low cost contact with
developing nations, "leveling the playing
field."
"Any activity that can be digitized and moved around
will get moved around."
-Has the Internet created new business models or just
altered the old ones?
Strategy and The Internet -Although the Internet plays a substantial role,
critics challenge the notion that "new business
models" are needed to compete in the "new
economy." Michael Porter and others argue
that the market forces that governed the
traditional economy have not disappeared in
the Internet economy.
-Large firms exist because they can perform
most tasks—raw material procurement,
production, human resource management,
3/31
, 7/4/25, 9:57
PM
sales, and so forth—more efficiently than they
would otherwise be performed if they were
Disaggregation & "outsourced" to the open market.
Reaggregation
-Today, many progressive firms have
"disaggregated" by no longer perform all of
their functional activities, but instead
"reaggregate" by searching for partners who
can perform some of the activities more
efficiently.
-The Internet has influenced strategic management in
very specific ways.
Strategic Dimensions of -Contrary to early expectations, the Internet
the Internet has not always generated greater profits for
businesses. Consumers have benefitted
immensely.
-Five Strategic Dimension of the Internet are addressed
in the following slides.
Dimension #1: Typical markets are characterized by
Movement toward information asymmetry, whereby sellers control
4/31
