SH Ch 8&9 - External Env - Environmental and Competitive factors

An organisation has decided to make a public statement about the measures is it taking to improve its environmental sustainability.

How are its stakeholders likely to react to the statement -

The shareholders will be looking for long-term improvements in efficiency and profits due to reductions in waste

• True

• False

An organisation has decided to make a public statement about the measures is it taking to improve its environmental sustainability.

How are its stakeholders likely to react to the statement -

The workers will not benefit from the reductions in pollution levels

• True

• False

An organisation has decided to make a public statement about the measures is it taking to improve its environmental sustainability.

How are its stakeholders likely to react to the statement -

Customers will not be affected by the organisation’s decision to reduce pollution

• True

• False

An organisation has decided to make a public statement about the measures is it taking to improve its environmental sustainability.

How are its stakeholders likely to react to the statement -

The public will have a improved impression of the organization

• True

• False

Environmental sustainability should be a factor that a business considers when planning its activities.

Which of the following should be taken into account when trying to reduce the business’s impact on the environment:

                           i. Reduction in the use of packaging

                          ii. Redesign of products

                         iii. Production planning

• i, ii and iii

• i and ii

• ii and iii

• i only

A manufacturing company wants to reduce the environmental impact of its production process, by reducing the quantity of resources which that process uses.

Which TWO of the following will help the company achieve this aim?

• Changing its energy supplier

• Investing in new, more efficient machinery

• Recycling the water used as a coolant in the process

• Installing new filters to prevent emissions of toxic gases into the air

The concept of economic sustainability is becoming increasingly important to businesses.

Which TWO of the following are areas in which a business needs to be sustainable in order to achieve economic sustainability in the long term?

• Financial sustainability

• Brand sustainability

• Social sustainability

• Resource sustainability

SWOT analysis is used by management as a tool primarily to identify external factors that may impact the strategic plans of an organisation.

Is this statement true or false?

• True

• False

Porter’s five forces collectively determine, for a single company, which of the following?

• The degree of competition new entrants will face

• The profitability of existing firms in the industry

• The overall growth of the industry

• The overall profit potential of the industry

An international quality car manufacturer that prides itself on innovative design offers each of its customers the opportunity for a custom fit car seat (referred to by the company as a “glove seat”) which they believe makes them “stand out from the crowd”. This entails the customer visiting a show room and sitting in a design module of their car’s interior. Sensors measure the driver’s body and best driving position. The same process can be applied for up to three other drivers (e.g. wife, husband, children, dog). When delivered, the car’s seat “fits like a glove” and can be re-engineered at any time to take into account changes in the driver’s body. By entering a PIN, the car seat will automatically adjust to fit the posture of the new driver.

What form of technological competitive strategic advantage is the car manufacturer aiming to achieve?

• Cost leadership

• Innovation

• Growth

• Differentiation