CS Module 2

What is the primary purpose of an external audit in strategic management?

• To analyze employee performance

• To evaluate internal financial statements

• To identify opportunities and threats in the external environment

• To design marketing campaigns
  
  

The nature of an external audit involves examining

• Only competitors' financial reports

• Factors outside the firm’s control

• Internal HR policies

• Day-to-day operational issues
  
  

Which of the following is NOT a key external force in an external audit?

• Economic trends
  
  

• Government policies
  
  

• Employee satisfaction

• Technological advancements

Industry analysis helps a company understand

• Its internal workflow processes

• The competitive landscape and market trends

• Employee training needs

• Office space utilization

Competitive forces in an industry include all EXCEPT

• Bargaining power of suppliers

• Threat of new entrants

• Employee turnover rate

• Rivalry among existing firms

Competitive analysis focuses on

• Studying competitors’ strengths and weaknesses

• Setting annual budgets
  
  

• Improving workplace culture
  
  

• Reducing production costs
  
  

Porter’s Five Forces Model does NOT include

• Threat of substitute products

• Bargaining power of customers

• Internal leadership style
  
  

• Bargaining power of suppliers

Which of Porter’s Five Forces examines how easily new competitors can enter the market?

• Threat of new entrants

• Bargaining power of buyers

• Rivalry among competitors

• Threat of substitute products

The bargaining power of suppliers is high when

• There are many alternative suppliers

• Suppliers provide unique or scarce resources

• The industry has low switching costs
  
  

• Buyers have strong negotiation power
  
  

The threat of substitute products refers to

• Competitors launching similar products

• Suppliers increasing prices

• Government regulations on pricing

• Alternative products fulfilling the same need