3, 4 & 5

Question 1

Network of interconnected major groups viewed as a unit and sharing a common culture

Answer 1

Society

Question 2

Determine the strategic forces that can influence the growth and future of a company

Answer 2

Societal Environment

Question 3

Political systems, tax laws, government programs and priorities under the political or legal segment directly affect a business or the industry where it operates.

Answer 3

The Political or Legal Segment

Question 4

The growth or recession of the economy, which is manifested by key economic indicates such as interest rates, inflation rates, and unemployment levels, affect all types of business.

Answer 4

The Economic Segment

Question 5

refers to the customs, traditions, values, beliefs, and lifestyles in a society for a period of time.

Answer 5

The Sociocultural Segment -

Question 6

The accelerates pace of changes and advancements in technology and communication has tremendously affected almost all types of business across industries. This segment can make product obsolete overnight and, at the same time, provide opportunities for creating new products in a short period of time.

Answer 6

The Technological Segment

Question 7

refers to the observable characteristics of a population including age distribution, sex,race, ethnicity, religion, and income.

Answer 7

Demographic Segment

Question 8

Variables included in this segment are the global trade liberalization, trade agreements among regional blocks.

Answer 8

Global Segment

Question 9

The immediate external environment of a company. It is the environment where a company operates, which has an immediate effect on its operation, and where it interacts and faces its direct competitors. Sometimes referred to as the competitive environment of a company. To determine the level of competition and the forces that drive competition in the industry for a business to position itself accordingly.

Answer 9

INDUSTRY ENVIRONMENT

Question 10

are the buyers of goods or services produced or rendered by a company.

Answer 10

Customers

Question 11

Refer to persons or companies that provide the required materials, parts, or services to a business. Play a crucial role in production of goods and services.

Answer 11

Suppliers

Question 12

Refer to banks, financial institutions, and financial intermediaries engaged in lending money to a borrower, usually for a fee in the form of interest.

Answer 12

Creditors

Question 13

are the workers of a company who are highly responsible for the production of goods or delivery of services to the consumers. Help ensure the quality and quantity of products. The are the backbone of a business.

Answer 13

Employees

Question 14

Refers to the system or institution that handles the affairs of a particular country.

Answer 14

Government

Question 15

• are forces existing in the industry environment that produce, sell, or render products or services which are similar to those of a company

Answer 15

Competitors

Question 16

slow growth, high prices, innovative efforts and poor distribution channels.

Answer 16

Embryonic or New Industry

Question 17

haracterized by growing customer demand, falling prices because of the economies of scale, new competitors entering the market, developed infrastructure facilities, and improved distribution channels.

Answer 17

Growth Industry

Question 18

once the demand and growth begin to slow down, industry moves to _____ Where competition is intense, companies have excess production, and prices are cut down to attract customers

Answer 18

Shakeout Industry

Question 19

characterized by saturated market, slow growth, and limited demand. Companies at this stage consolidate to reduce intense rivalry.

Answer 19

Mature Industry

Question 20

Mainly Negative Growth

Answer 20

Decline Industry

Question 21

• This force is the strongest among competitive forces.

Answer 21

Rivalry among Competing Companies

Question 22

refer to the new competitors joining an industry. They will bring new products, services to an industry that can erode profits of established companies.

Answer 22

Threat of New Entrants

Question 23

A buyer has a strong and magnified bargaining power in an Industry

Answer 23

Bargaining Power of Buyers

Question 24

substitute product pose great threats in an industry environment.

Answer 24

Threats of Substitute Products

Question 25

• The intensity of the threat of the ___________ is strong if the product is unique, switching cost is very high.

Answer 25

Bargaining Power of Suppliers

Question 26

• is an unhealthy competition in which the closest competitors or rivals engage in long price wars

Answer 26

Cutthroat Rivalry

Question 27

• competitors are strongly battling for a higher market share, but they do not adopt destructive tactics.

Answer 27

Fierce or Strong Rivalry

Question 28

• industry members earn acceptable profit levels while engaging in a healthy and lively competition.

Answer 28

Moderate or Normal Rivalry

Question 29

Exists when most companies in an industry are relatively well-satisfied with their sales growth and market shares.

Answer 29

Weak Rivalry

Question 30

Identifies a company’s internal strategic factors such as its strengths, and weaknesses to enable it to exploit opportunities and avoid threats of the external environment

Answer 30

Internal Environment Analysis

Question 31

Refers to the environment within a company.

Answer 31

Internal Environment

Question 32

Refers to the beliefs, values, practices, and expectations of every member of a company on how the company conducts itself.

Answer 32

Corporate Culture

Question 33

Defines corporate identity. Source for gaining a competitive advantage. Way of doing things.

Answer 33

Corporate Culture

Question 34

Pattern of relationships among the members of the company

Answer 34

Organizational Structure

Question 35

Defines how tasks are to be performed,how resources should be utilized,and how relationships among employees should be defined.

Answer 35

Organizational Structure

Question 36

Resources are assets owned or controlled by a company. Can be tangible or intangible assets.

Answer 36

Business Resources

Question 37

Readily available from the reports and publications

Answer 37

Secondary Data

Question 38

Approach adopted by a company about the way it generates money in the current business setting.

Answer 38

Business Model

Question 39

Refers to a company’s resources and its capability to obtain benefits from them and to overcome competitive forces.

Answer 39

Competitive Advantage

Question 40

Capability to exploit its resources at different functional levels to achieve competitive advantage.

Answer 40

Core Competency

Question 41

Ability of a company to exploit its strategic resources.

Answer 41

Capability

Question 42

The integration or coordination of cross functional capabilities

Answer 42

Competency

Question 43

A company will gain ______ when its core competency is superior over that of its rival.

Answer 43

Distinctive Competency

Question 44

Analytical Tool used to evaluate a company’s resources to gain competitive advantage.

Answer 44

VRIO framework

Question 45

Assess the ability of a company to sustain profitability performance.

Answer 45

Strategic Managers

Question 46

Ability to assume the function of a distributor.

Answer 46

Forward Integration

Question 47

A group of companies offering similar or closely related products/services that satisfy the same needs of customers.

Answer 47

INDUSTRY