Affects the intensity of competition in an industry, especially when there is a large number of suppliers, when there are only a few good substitute raw materials, or when the cost of switching raw materials is especially costly?

Competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumers’ switching costs decrease?

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms increases?

Changes in strategy by one firm may be met with retaliatory countermoves, such as lowering prices, enhancing quality, adding features, providing services, extending warranties, and increasing advertising?

is a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals?

Good competitive intelligence in business, as in the military, is one of the keys to success?

The more information and knowledge a firm can obtain about its competitors, the less likely it is that it can formulate and implement effective strategies.

It identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position?

The ________and _____ scores in both a CPM and an EFE have the same meaning.

The ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness?

It allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information?

Forecasts are not educated assumptions about future trends and events?

Qualitative forecasts are most appropriate when historical data are available and when the relationships among key variables are expected to remain the same in the future?

Key internal opportunities and threats can be effectively identified only through good forecasts?

Accurate forecasts can provide major competitive advantages for organizations?

Forecasts are not vital to the strategic-management process and to the success of organizations.

The purpose of audit is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided?

A company first must gather competitive intelligence and information about economic, social, cultural, demographic, environmental, political, governmental, legal, and technological trends?

Have a direct impact on the potential attractiveness of various strategies?

When stock prices increase, the desirability of equity as a source of capital for market development increases?

Have a major impact on virtually all products, services, markets, and customers?

Are major regulators, deregulators, subsidizers, employers, and customers of organizations?

Has changed the very nature of opportunities and threats by altering the life cycles of products, increasing the speed of distribution, creating new products and services?

For industries and firms that depend slightly on government contracts or subsidies, political forecasts can be the most important part of an external audit?

Changes in patent laws, antitrust legislation, tax rates, and lobbying activities can affect firms significantly?

The increasing global interdependence among economies, markets, governments, and organizations makes it operative that firms consider the possible impact of political variables on the formulation and implementation of competitive strategies?

The Internet is altering economies of scale, changing entry barriers, and redefining the relationship between international and various suppliers, creditors, customers, and competitors?

Airlines—Many airlines now offer wireless technology in flight?

Banking—Visa sends text message alerts after usual transactions?

Education—Many secondary (and even college) students may use smart phones for math because research shows this to be greatly not helpful.

Collecting and evaluating information on competitors is essential for successful strategy formulation?

Each report is authored by a Standard & Poor’s industry research analyst and includes the following sections EXCEPT:

http://moneycentral.msrn.com is one of the excellent Web sites for gathering strategic information?

https://us.etrade.com/e/tt/invest/markets is one of the excellent Web sites for gathering strategic information?

http://marketwatch.multexinvestor.com is one of the excellent Web sites for gathering strategic information?

Managers often must rely on published forecasts to effectively identify key internal opportunities and threats?

As historical relationships become less stable, quantitative forecasts become less accurate?

Linear regression, for example, is based on the assumption that the future will be just like the present—which, of course, it never is?

Published sources of strategic information include periodicals, journals, reports, government documents, abstracts, books, directories, newspapers, and manuals?