External Environment

1. On both the national and international level, which factor is not mentioned that must be considered by firms?

• Availability of credit

• Disposable income

• Prime interest rates

• 1. Spending propensity

Was McDonald’s blamed for being the reason why there was an augmentation in the obesity rate?

• True

• False

The remote external environment includes

• Creditors

• Industry factors

• Employees

• Ecological factors

The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operation refers to

• Technological forecasting

• Ecology

• Industry environment

• Operating environment

Choose the correct sentence:

• Established corporations ­­­possess cost benefits that are inaccessible to prospective competitors, regardless of the latter's size, enabling them to achieve economies of scale.

• Established corporations might possess cost benefits that are inaccessible to prospective competitors, regardless of the latter's size, enabling them to achieve economies of scale.

• Established corporations might possess cost benefits that is inaccessible to prospective competitors, regardless of the latter's size, enabling them to achieve economies of scale.

• Established corporations ­­­might possess cost benefits that was inaccessible to prospective competitors, regardless of the latter's size, enabling them to achieve economies of scale.

Which of the following best defines the "threat of entry" in strategic management?

• The risk associated with internal operational inefficiencies within established firms.

• The possibility of new competitors entering the market and impacting industry dynamics.

• The challenge of managing employee turnover and retention.

• The potential for suppliers to exert significant bargaining power.

What does "similar products" mean in the context of an industry?

• Products that are identical but sold by different firms

• Products that have the same brand name but different features

• Products that customers view as capable of replacing each other

• Products that are completely different but belong to the same industry

• How is a power curve described in terms of the income distribution among companies in an industry?

• A rapid increase in the number of companies with extremely large incomes

• A steady decline in the number of companies with progressively smaller incomes

• A small group of companies with significantly smaller incomes than others

• A few companies with extremely large incomes followed by a larger group with smaller incomes that slightly differ from each other

What is the key takeaway from the example of Apple's competitive position discussed in the presentation?

• Market share is the most important factor for success.

• Innovation is not necessary if the brand is strong.

• Focusing on customers is irrelevant in a competitive market.

• To succeed, a company needs to stand out in people's minds.

Why is emphasizing environmental factors important in strategic management?

• It helps increase employee satisfaction.

• It leads to immediate profit growth.

• It enhances business sustainability and reputation.

• It only impacts regulatory compliance.