Chap 6: Strategic Environmental Analysis Tools And Techniques

Question 1

Three major methods of gathering, reliable and relevant information

Answer 1

Environmental scanning
Environmental monitoring
Competitive intelligence

Question 2

Focuses on external events that may influence the present position of a business

Answer 2

Environmental scanning

Question 3

Primarily concerned with the trends of events

Answer 3

Environmental monitoring

Question 4

Gives preferential importance and information about competitors

Answer 4

Competitive intelligence

Question 5

Key elements of the physical environment

Answer 5

Physical resources
Climate
Wildlife

Question 6

Strategic approach that is used to analyze the physical environment

Answer 6

Environmental scanning

Question 7

Strategic factors of the societal or general environment

Answer 7

PEST:
Political or legal segment
Economic segment
Sociocultural segment
Technological segment

Question 8

Objective of conducting a societal environment analysis

Answer 8

Determine the trends of the strategic factors that are relevant to the growth of an industry

Question 9

Strategic tool used to scan the societal environment

Answer 9

PESTEL or STEEP analysis
This approach is supported by environmental monitoring

Question 10

Is not a mere identification and listing of variables, which are commonly done under a particular segment or strategic factor

Answer 10

PESTEL or STEEP analysis

Question 11

The immediate environment surrounding a business

Answer 11

Industry or test environment

Question 12

Strategic factors of the industry environment

Answer 12

Customers, suppliers, creditors, employees, the government, competitors

Question 13

Objective of the industry environment analysis

Answer 13

Determine the different forces, that drive competition

Question 14

The analysis of the industry environment is done by

Answer 14

Do use of the three methods of collecting data for strategic analyses.

Porters five forces of competition model

Question 15

Evaluate the level of competition and assesses the attractiveness of an industry itself

Answer 15

Porter’s five forces of competition model

Question 16

Porters five forces of competition model strategic factors

Answer 16

Rivalry among competing companies
Threats of new entrants
Bargaining power of buyers
Threats of substitute products
Bargaining power of suppliers

Question 17

Strategic factors of the internal environment of a company

Answer 17

Corporate culture
Organizational structure
Business resources

Question 18

To determine how culture influences strategy formulation

Answer 18

Corporate culture

Question 19

To determine what structure can effectively and efficiently achieve organizational goals

Answer 19

Organizational structure

Question 20

To determine which business resource contributes to the achievement of competitive advantage

Answer 20

Business resources

Question 21

Commonly used tools to analyze a business resource

Answer 21

SWOT analysis
VRIO framework
Value chain analysis model
BCG growth-share matrix model

Question 22

To assess a company’s strengths and weaknesses, so that opportunities are exploited, and threats are avoided or minimized

Answer 22

SWOT analysis

Question 23

To identify a company’s resource that is considered valuable, rare and difficult to imitate and assess if the company is organized to use it as a state in the competitive advantage

Answer 23

VRIO framework

Question 24

To determine which activities create value, and which create cost so that the profit margin is improved, and competitive advantage is achieved

Answer 24

Value chain analysis model

Question 25

To determine the status of a company’s unit of product portfolio in terms of market share and growth

Answer 25

BCG growth-share matrix model

Question 26

Evaluate the internal strengths and weaknesses of the company against what the external opportunities and threats offer

Answer 26

SWOT analysis model

Question 27

A strategic management tool that assesses the resources of a company to achieve competitive advantage

Answer 27

VRIO framework

Question 28

Pair up VRIO framework with

Answer 28

SWOT analysis model and value chain analysis

Question 29

A strategic management tool that evaluates the internal activities of a company when producing goods and delivering services

Answer 29

Value chain analysis model

Question 30

This model groups business activities into primary and support activities

Answer 30

Value chain analysis model

Question 31

Include inbound, logistics, operations, outbound, logistics, marketing, and service

Answer 31

Primary activities

Question 32

Include company, infrastructure, human resource management, technology development, and procurement

Answer 32

Support activities

Question 33

Represents the benefits that are derived from a product or service

Answer 33

Value

Question 34

A strategic management model that assesses a companies, business units or products in terms of market, share, and market growth

Answer 34

BCG growth-share matrix model

Question 35

Acts as the proxy for competitive advantage

Answer 35

Market share

Question 36

Serves as the proxy for industry attractiveness

Answer 36

Market growth

Question 37

Relative market share formula

Answer 37

Relative market share = company’s market share or revenue / competitors market share or revenue