Chapter II: The External Environment

When a firm evaluates the impact of new technologies on its operations, it is focusing on which segment of the general environment?

• Sociocultural

• Technological

• Economic

• Global

What is the primary focus of the economic segment in the external environment?

• Technological advancements

• Regulatory changes

• Global population shifts

• Economic cycles and shifts to a service economy

Which segment of the general environment includes regulatory changes and political instability?

• Political/Legal

• Sociocultural

• Economic

• Technological

A company that adjusts its marketing strategy to reflect changing cultural norms is addressing which segment of the general environment?

• Economic

• Sociocultural

• Political/Legal

• Technological

Which segment of the general environment deals with changes in population size, age structure, and ethnic mix?

• Economic

• Demographic

• Technological

• Sociocultural

A firm facing high rivalry in its industry should focus on what type of strategy to maintain profitability?

• Increase prices

• Cost leadership or differentiation

• Ignore market competition

• Focus on a single product line

What are the six segments of the general environment in strategic management?

• Demographic, Economic, Political/Legal, Sociocultural, Technological, Global

• Demographic, Economic, Financial, Cultural, Technological, Global

• Geographic, Economic, Political/Legal, Cultural, Technological, Local

• Demographic, Economic, Political/Legal, Cultural, Technological, Local

Which of the following forces is NOT part of Porter’s Five Forces model?

• Threat of new entrants

• Bargaining power of suppliers

• Competitive advantage

• Rivalry among existing competitors

Which force in the Five Forces model is concerned with the threat posed by products or services from outside the industry?

• Bargaining power of buyers

• Threat of substitute products or services

• Bargaining power of suppliers

• Threat of new entrants

If a company is analyzing the impact of aging population on its business, which segment of the general environment is it focusing on?

• Economic

• Technological

• Demographic

• Global