Chapter 2 Flashcards
What does the term “general environment” refer to in the context of business strategy? A) Internal company policies
B) Factors within the industry
C) External factors beyond a firm’s control
D) Specific marketing strategies
C
What is a key characteristic of the factors in the general environment? A) They are easy to control.
B) They are hard to predict.
C) They always benefit the firm.
D) They are completely predictable.
B
Which of the following would be considered part of a firm’s general environment?
A. Decreased entry barriers.
B. Higher unemployment rates.
C. Increased bargaining power of the firm’s suppliers.
D. Increased competitive intensity.
B
Which of the following would be considered part of a firm’s general environment?
A. Decreased entry barriers.
B. Higher unemployment rates.
C. Increased bargaining power of the firm’s suppliers.
D. Increased competitive intensity.
B
The aging of the population, changes in ethnic composition, and effects of the baby
boom are
A. macroeconomic changes.
B. demographic changes.
C. global changes.
D. sociocultural changes.
B
Although changes in the general environment may often adversely or favorably impact
a firm, they seldom alter an entire industry.
F. The general environment is composed of factors that can have dramatic effects on firm
strategy. Typically, a firm has little ability to predict trends and events in the general
environment and even less ability to control them. When listening to CNBC, for example, you
can hear many experts espouse different perspectives on what action the Federal Reserve
Board may take on short-term interest rates—an action that can have huge effects on the
valuation of entire economic sectors.
The same environmental trend can often have very different effects on firms within
the same industry.
T. An example would be the rising levels of affluence in many developed countries. This bodes
well for brokerage services as well as for upscale pets and supplies. However, this trend may
adversely affect fast-food restaurants because people can afford to dine at higher-priced
restaurants.
Which of the following is NOT a characteristic typically analyzed in the demographic segment? A) Age distribution
B) Income levels
C) Market share
D) Geographic region
c
What is a key demographic element that refers to an increasing number of individuals aged 65 and older? A) Affluence Levels
B) Aging Population
C) Geographic Distribution
D) Income Disparities
B
How does rising affluence levels affect certain industries? A) It benefits low-cost retailers.
B) It increases demand for brokerage services and upscale pet supplies.
C) It has no significant impact on any industry.
D) It reduces the market for luxury goods.
B
why this question “What demographic trend can adversely affect fast-food restaurants? A) Rising affluence levels
B) Increasing aging population
C) Geographic distribution
D) Income disparities
A
Which statement about the aging population is true? A) The majority of workers aged 65 and older are retiring early.
B) More older workers are staying in the workforce full-time.
C) Younger workers are increasingly replacing older employees.
D) There is no change in the employment status of older workers.
B
Which demographic element refers to variations in income levels across different groups? A) Aging Population
B) Geographic Distribution
C) Income Disparities
D) Ethnic Composition
C
What demographic trend involves the movement of populations within and between regions? A) Aging Population
B) Geographic Distribution
C) Affluence Levels
D) Ethnic Composition
B
What does the sociocultural segment of the general environment encompass? A) Economic policies and regulations
B) Values, beliefs, and lifestyles of a society
C) Technological innovations and advancements
D) Competitive dynamics within an industry
A
A major sociocultural trend in the United States is the increased educational attainment
by women.
T
Increasingly larger numbers of women entering the work force since the early 1970s
is an example of
A. demographic changes.
B. political and legal environmental changes.
C. sociocultural changes.
D. technological developments
C
Emerging sociocultural changes in the environment include
A. changes in the ethnic composition.
B. the increasing educational attainment of women in the past decade.
C. progressively less disposable income by consumers.
D. changes in the geographic distribution of the population
B
What is a key trend related to the increased presence of women in the workforce? A) Decreased demand for business attire
B) Increased demand for cooking staples
C) Increased demand for business attire
D) No change in consumer behavior
C
How has the trend of dual-income families impacted consumer behavior? A) No significant impact on spending patterns
B) It leads to higher savings rates
C) It alters spending patterns and consumer needs
D) It decreases demand for luxury items
c
What effect do concerns for healthy diets and fitness have on the market? A) Increased demand for unhealthful foods
B) Boosts sales of exercise equipment and healthful foods
C) Decreased interest in fitness activities
D) No impact on consumer preferences
B
Which sociocultural trend has driven the demand for eco-friendly products? A) Postponement of having children
B) Increased educational attainment
C) Interest in the environment
D) Dual-income families
C
What impact does the postponement of having children have on the market? A) Increases demand for baby products
B) Affects products and services targeted at families and children
C) No impact on consumer behavior
D) Reduces the market for educational products
B
What is one significant outcome of increased educational attainment among women? A) Decreased participation in the workforce
B) Fewer women in leadership roles
C) More women in upper management positions
D) No impact on the economy
C