QUIZ 2

Question 1

Forces that are outside the traditional boundaries of the firm are called

Answer 1

The external environment

Question 2

The external environment can be divided into which two smaller categories. They are the

Answer 2

Broad environment and the operating environment

Question 3

The context in which the firm exists is called the

Answer 3

Broad environment

Question 4

Sociocultural environments have meaning because

Answer 4

They influence trends in a particular region

Question 5

Influences and trends associated who domestic or global economies are called the

Answer 5

Economic environment

Question 6

Organizations should consider forecasts of economic growth in deterring when to

Answer 6

Make critical resource allocation decisions

Question 7

A major source of economic uncertainty for global organizations is

Answer 7

Foreign exchange rates

Question 8

The ____ in among the most significant determinant of organizational success, both at home and abroad

Answer 8

Political environment

Question 9

When an innovation has an impact on more than one industry it is referred to as a

Answer 9

Basic innovation

Question 10

Major innovations that influence more than one business or industry are referred to as a

Answer 10

Radical innovation

Question 11

Which environment consists of stakeholders with whom organizations interact on a regular basis

Answer 11

The operating environment

Question 12

Economic power that allows a firm or group of firms to influence the nature of business arrangements is commonly referred to as

Answer 12

Bargaining power

Question 13

All of the following characteristics make “customers” in the Five Forces model strong except when

Answer 13

The products they are buying are differentiated

Question 14

A firm that is involved in more than one stage of the industry supply chain in considered to be

Answer 14

Vertically integrated

Question 15

Suppliers in the Five Forces model are powerful when the following characteristics are present except when they are ____

Answer 15

Sell products and services that can be substituted with other products and services

Question 16

Costs associated with learning a business or industries are commonly referred to as

Answer 16

Exit barriers

Question 17

Which of the following industry characteristics leads to greater rivalry

Answer 17

A slow growth industry

Question 18

An industry in which one firm is the only significant providers of a good or service is called an

Answer 18

Monopoly

Question 19

An industry characterized by the existence of a few very large firms is called an

Answer 19

Oligopoly

Question 20

Forces that keep new competitors out and provide a level of protection for existing competitors are called

Answer 20

Entry barriers

Question 21

Cost savings that occur when it is more efficient to produce a product in a large facility at a higher volume are

Answer 21

Economies of scale

Question 22

Costs associated with starting a business are

Answer 22

Capital requirements

Question 23

Attributes associated with a product or service that cause customers to prefer it rather than competing products or services are

Answer 23

Product/service differentiation

Question 24

Entry barriers are caused by all of the following, except

Answer 24

Low switching costs

Question 25

Resources that are possessed by industry participants but are difficult or impossible to completely duplicate are

Answer 25

Inimitable resources

Question 26

Substitute products form a

Answer 26

Ceiling on prices

Question 27

The interest that a group takes in assuring that an organization behaves in a manner that is socially responsible is referred to as a

Answer 27

Social stake

Question 28

Having a legal right to make decisions for some part of the company referred to as a

Answer 28

Formal power

Question 29

Techniques that firms use to win market share and increase revenues and profits are

Answer 29

Competitive tactics

Question 30

The best example which illustrates the competitive force of substitute products is

Answer 30

Kroger Grocery Store for Dairy Queen

Question 31

A group of firms oriented towards problem solving and technology development is referred to as a

Answer 31

Consortia

Question 32

What is the primary advantage of interlocking directorates

Answer 32

The potential to draw resources from other firms to achieve stability

Question 33

The bargaining power of suppliers is great when

Answer 33

One or more suppliers pose a credible threat of moving into the business of the buyer