Chapter 5 – Environmental Analysis and Strategic Uncertainty
5.1
One of the three components of environmental analysis is internal analysis.
5.2
The goals of environmental analysis are to identify fads, trends and events that will only affect strategy in a
direct way.
5.3
The three forms of innovation are ___________, ___________ and ___________.
5.4
Innovations that are transformational or substantial tend to be employed by new participants in an industry
rather than established players.
5.5
A company who wants to gain credit for “green” programs can effectively ensure the ability to do so with
_______________.
5.6
A reason to incorporate green programs into strategy or business models is cost savings.
5.7
Demographic trends can be a strong indicator of the growth of a market and it can be predictable.
5.8
It has been shown that, on average, increasing marketing budgets in recessions pays off during the
recession and after as well.
5.9
The key to understanding trends is to interact with people of all types.
5.10
The ideal number of scenarios to work with is three to five.
5.11
A strategic uncertainty should be evaluated with respect to its impact and relevance to future strategy.
5.12
Scenario analysis provides an alternative to investing in information to reduce uncertainty that is often an
expensive and futile process.
5.13
There are two types of scenario analyses: strategy-developing scenarios and decision-driven scenarios.
5.14
In California, one-half of the state’s voters in a 2005 poll supported an aggressive attack on global warming.
5.15
A new generation of products such as the Boeing 747 would be considered a transformation innovation.