Strategic Management - Chapter 3

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

• To evaluate employee performance

• To identify external opportunities and threats

• To determine internal weaknesses

• To establish company policies

Which perspective argues that external factors are more important than internal factors in achieving competitive advantage?

• Resource-Based View

• Human Relations View

• Industrial Organization (I/O) View

• Stakeholder Theory

Which of the following is not considered an economic force?

• Inflation rates

• Income distribution

• Interest rates

• Brand loyalty

The aging population, shifting gender roles, and environmental activism are examples of what type of external forces?

• Economic Forces

• Technological Forces

• Social, Cultural, Demographic, and Natural Environmental Forces

• Legal Forces

Which external force includes taxation policies and environmental regulations?

• Technological

• Economic

• Political, Governmental, and Legal

• Demographic

Which external force is rapid innovation and automation associated with?

• Economic

• Technological

• Political

• Legal

Which of the following is not one of Porter’s Five Forces?

• Bargaining power of suppliers

• Threat of substitute products

• Market share leadership

• Rivalry among competing firms

The force that reflects how easy it is for new firms to enter an industry is:

• Bargaining power of customers

• Threat of new entrants

• Threat of substitutes

• Rivalry among existing competitors

Porter’s model helps firms understand the structure of an industry to:

• Reduce costs

• Improve marketing campaigns

• Develop strategies to improve competitiveness

• Increase customer satisfaction

Which of the following is a source of external information for strategic planning?

• Employee opinion survey

• Financial statements

• Market research reports

• Internal audits