Essentials Of Strategic Management - Evaluating A Company's External Environment- CH3

Essentials of Strategic Management

Evaluating a Company's External Environment- CH3

Your Results:

The answer for each question is indicated by a .

1

Which of the following is not one of the questions that needs to be answered in thinking strategically about a company's external environment?

    A)

What kinds of competitive forces are industry members facing, and how strong is each force?

    B)

What market positions do industry rivals occupy—who is strongly/weakly positioned and who is not?

    C)

What are the strategically relevant factors in the company's macro-environment?

    D)

What are the company's competitively valuable resources and capabilities that can be used to form the foundation of its competitive approach?

    E)

What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?

2

In identifying a company's broader macro-environment, the following have strategic significance _______________

    A)

market size and growth rate, the number of buyers, the scope of competitive rivalry, the number of rivals, demand-supply conditions, product innovation, the presence of scale economies and/or learning or experience curve effects, and the pace of technological change.

    B)

the threat of additional entry into the industry and what the industry's key success factors are.

    C)

the strength of competitive pressures from producers of substitute products and which competitors are in which strategic groups.

    D)

the extent and importance of seller-supplier collaborative partnerships, the extent and importance of seller-buyer collaborative partnerships, and the bargaining leverage of sellers and buyers.

    E)

general economic conditions, societal values and cultural norms, political and legal/regulatory factors, technological factors, and ecological considerations.

3

Which of the following is not a relevant factor in conducting a PESTEL analysis?

    A)

how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

    B)

interest rates, exchange rates, unemployment rates, inflation rates, and economic growth.

    C)

cultural, lifestyle, and demographic changes.

    D)

the birth of new industries, new knowledge, and disruptive technologies.

    E)

weather, climate change, and water shortages.