CHAPTER 4

Question 1

degree of complexity plus the degree of charges that exist in the organization’s external environment.

Answer 1

ENVIRONMENTAL UNCERTAINTY

Question 2

monitoring, evaluation and dissemination of info from external and internal to the key people with in the organization

Answer 2

ENVIRONMENTAL SCANNING

Question 3

includes physical resources wildlife and climate that are inherent part of existence on earth

Answer 3

NATURAL ENVIRONMENT

Question 4

is mankind’s social system that includes general forces that do not di-
rectly touch on the short-run activities of the organization that can, and often do, influence its
long-run decisions.

Answer 4

SOCIETAL ENVIRONMENT

Question 5

that regulate the exchange of materials, money, energy, and information.

Answer 5

ECONOMIC FORCES

Question 6

that generate problem-solving inventions.

Answer 6

Technological forces

Question 7

allocate power and provide constraining and protecting laws
and regulations.

Answer 7

Political–legal forces

Question 8

that regulate the values, mores, and customs of society.

Answer 8

Sociocultural forces

Question 9

includes those elements or groups that directly affect a corporation and,
in turn, are affected by it.

Answer 9

TASK ENVIRONMENT

Question 10

(popularized by Michael Porter) refers to an in-depth examination of key
factors within a corporation’s task environment.

Answer 10

INDUSTRY ANALYSIS

Question 11

side effect of pollution

Answer 11

EXTERNALITIES

Question 12

greenhouse gases

Answer 12

CARBON FOOTPRINT

Question 13

PESTEL ANALYSIS
TRENDS FROM NATURAL ENVIRONMENT SCANNING

Answer 13

STEEP ANALYSIS

Question 14

Combining the computing power of the personal computer, the networking of the Internet,

Answer 14

Portable information devices and electronic networking:

Question 15

The use of wind, geothermal, hydroelectric, solar, biomass,
and other alternative energy sources should increase considerably.

Answer 15

Alternative energy sources:

Question 16

The computerized management of crops to suit variations in land
characteristics will make farming more efficient and sustainable.

Answer 16

Precision farming

Question 17

Very smart computer programs that monitor e-mail, faxes,
and phone calls will be able to take over routine tasks, such as writing a letter, retrieving a file, making a phone call, or screening requests.

Answer 17

Virtual personal assistants:

Question 18

A convergence of biotechnology and agriculture is cre-
ating a new field of life sciences.

Answer 18

Genetically altered organisms

Question 19

Robot development has been limited by a lack of sensory devices.
and sophisticated artificial intelligence systems.

Answer 19

Smart, mobile robots

Question 20

willingness to reject unfamiliar and negative info

Answer 20

strategic myopia

Question 21

key environmental trends that are judge to have a both a meduim to high prabability

Answer 21

CORPORATION EXTERNAL STRATEGIC FACTORS

Question 22

strategic factors

Answer 22

HIGH PRIORITY

Question 23

trend/ merely scannned

Answer 23

LOW PRIORITY

Question 24

arounds of firms and producersa aimilar product or service.

Answer 24

INDUSTRY

Question 25

to an industry typically bring to it new capacity, a desire to gain market share, and substantial resources.

Answer 25

New entrants

Question 26

Scale economies in the production and sale of microprocessors, for example, gave Intel a significant cost advantage over any new rival.

Answer 26

Economies of scale

Question 27

Corporations such as Procter & Gamble and General Mills, which manufacture products such as Tide and Cheerios, create high entry barriers through their high levels of advertising and promotion.

Answer 27

Product differentiation

Question 28

The need to invest huge financial resources in manufacturing facilities in order to produce large commercial airplanes creates a significant barrier to entry to any competitor for Boeing and Airbus.

Answer 28

Capital requirements

Question 29

Once a software program such as Excel or Word becomes established in an office, office managers are very reluctant to switch to a new program because of the high training costs.

Answer 29

Switching costs

Question 30

Once a software program such as Excel or Word becomes established in an office, office managers are very reluctant to switch to a new program because of the high training costs.

Answer 30

Switching costs

Question 31

Small entrepreneurs often have difficulty obtaining su- permarket shelf space for their goods because large retailers charge for space on their shelves and give priority to the established firms who can pay for the advertising needed. to generate high customer demand.

Answer 31

Access to distribution channels

Question 32

is a product that appears to be different but can satisfy the same need as another product.

Answer 32

substitute product

Question 33

ability to force down price

Answer 33

Bargaining Power of Buyers

Question 34

is a com-pany (e.g., Microsoft) or an industry whose product works well with a firm’s (e.g., Intel’s) product and without which the product would lose much of its value.51

Answer 34

complementor

Question 35

where no firm has large market share, and each firm serves only a small piece of the total market in competition with others

Answer 35

fragmented industry

Question 36

Enter maturity products tend to become more like commodities

Answer 36

consolidated industry

Question 37

operate worldwide,

Answer 37

Global industries

Question 38

primarily coordinate their activities within regions, such

Answer 38

regional industries

Question 39

is a set of business units or firms that pursue similar strategies with simi- lar resources

Answer 39

strategic group

Question 40

is a category of firms based on a common strategic orientation and a combination of structure, culture, and processes consistent with that strategy.

Answer 40

strategic type

Question 41

are companies with a limited product line that focus on improving the effi- ciency of their existing operations.

Answer 41

Defenders

Question 42

are companies with fairly broad product lines that focus on product innova- tion and market opportunities.

Answer 42

Prospectors

Question 43

are corporations that operate in at least two different product-market areas, one stable and one variable.

Answer 43

Analyzers

Question 44

are corporations that lack a consistent strategy-structure-culture relationship.

Answer 44

Reactors

Question 45

They are becoming more complex and more dynamic.

Answer 45

HYPERCOMPETITION

Question 46

summarizes the key success factors within a particular industry.

Answer 46

industry matrix

Question 47

are vari- ables that can significantly affect the overall competitive positions of companies within any particular industry.

Answer 47

Key success factors

Question 48

is a formal program of gathering information on a company’s competitors.

Answer 48

Competitive intelligence

Question 49

is the extension of present trends into the future.

Answer 49

extrapolation

Question 50

non-quantitative approach that requires simply the presence of people with some knowledge

Answer 50

Brainstorming

Question 51

is a nonquantitative technique in which experts in a particular area attempt to forecast likely developments.

Answer 51

Expert opinion

Question 52

in which separated experts independently assess the likelihoods of specified events.

Answer 52

Delphi technique

Question 53

is a quantitative technique that attempts to discover causal or at least explanatory factors that link two or more time series together.

Answer 53

Statistical modeling

Question 54

is a recent forecasting technique enabled by easy access to the Inter- net.

Answer 54

Prediction markets

Question 55

is the most widely used forecasting technique after trend extrapolation.

Answer 55

Scenario writing

Question 56

is a forecasted description of a particular industry’s likely future.

Answer 56

industry scenario

Question 57

ais one way to organize the external factors into the generally accepted categories of opportunities and threats

Answer 57

an EFAS (Ex- ternal Factors Analysis Summary) Table