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Chapter 04 - The External Environment
Chapter 04
The External Environment
Multiple Choice Questions
1. (p. 87) The external environment can be divided into various subcategories:
2. (p. 87) A firm's external environment includes a remote sector, industry sector and an
operating sector. The remote sector includes which of the following categories?
3. (p. 87) The remote external environment includes:
4. (p.87) The factors beyond the control of the firm that influence its choice of direction and
action, organizational structure and internal processes refers to
5. (p. 87) The ______ environment compromises factors that originate beyond and usually
irrespective of, any single firm's operating situation.
6. (p. 87) Supplier power is an example of a factor that falls within the _________ environment.
7. (p. 87) Which environment compromises factors in the immediate competitive situation that
affect a firm's success in acquiring needed resources?
8. (p. 87) When we consider the level of disposable income, we are normally considering:
9. (p. 89) The considerations involving the beliefs, values, attitudes and opinions of those in a
firm's environment represent the ______.
10. (p. 89) One of the most profound social changes in recent years is:
11. (p. 89) A profound social change in the recent years has been
12. (p. 90) Political factors define the ______ parameters within which firms must operate.
13. (p. 90) Encompassed in political considerations is/are:
14. (p. 92) Political activity may have a significant impact on which of the following
governmental functions?
15. (p. 93) Awareness of technological changes in its industry helps the firm to:
16. (p. 93) The quasi-science of anticipating environmental and competitive changes and
estimating their importance to an organizations operation refers to
17. (p. 93) The term ______ refers to the relationships among human beings and other living
things and the air, soil and water that supports them.
18. (p. 93) Threats to life-supporting ecology caused principally by human activities is an
industrial society are commonly referred to as
19. (p. 95) Business is now being held responsible for:
20. (p. 96) Which of these is NOT an example of a federal ecological legislation?
21. (p. 95) Company actions that produce more useful goods and services while continuously
reducing recourse consumption and pollution refers to
22. (p. 97) One of the most important steps a firm can take in achieving a competitive position
with regard to the eco-efficiency strategy is to
23. (p. 97) Which of these represent a key characteristic of eco-efficient corporations?
24. (p. 97) All of these are key characteristics of eco-efficient corporations EXCEPT
25. (p. 98) The state of competition is an industry, according to Porter, depends on ______ basic
forces.
26. (p. 98) Collectively, competitive forces determine the ultimate:
27. (p. 99) Which of these, according to Porter is NOT a force driving industry competition?
28. (p. 100) Which of these is a determinant of entry, according to Porter?
29. (p. 100) Brand identity is a determinant of which of these forces driving industry
competition?
31. (p. 98) In the economists' "perfectly competitive" industry jockeying for position is
unbridled and entry to the industry is
32. (p. 102) Access to distribution channels is a major source of which competitive force?
33. (p. 100) New entrants to an industry bring:
34. (p. 100) Economies of scale in an industry refers to:
35. (p. 100) Which of the following is a factor that does NOT foster brand identification?
36. (p. 100) Barriers to entry:
37. (p. 100) Which of the following factors is NOT commonly seen as fostering brand
identification?
38. (p. 100) Which is perhaps the most important entry barrier in the soft drink, over-the-counter
drugs, cosmetics, investment banking and public account industries?
39. (p. 100-102) Which of the following is NOT a major barrier to entry?
40. (p. 101) When aspirants are forced to accept either a large scale disadvantage of a cost
disadvantage, they are face with problems of:
41. (p. 102) Which of the following can limit or even foreclose entry to industries with such
controls as license requirements?
42. (p. 101) The need to invest large financial resources in order to compete creates
43. (p. 101) Cost disadvantages independent of size is a factor relevant to
44. (p. 101) The learning curve effect is an example of which barrier to entry?
45. (p. 101) Entrenched companies may have cost advantages not available to potential rivals.
This is an example of:
46. (p. 102) Suppliers can exert bargaining power on participants in an industry by:
47. (p. 102) The power of each supplier depends on:
48. (p. 102) A supplier group is powerful if:
