Chapter 2—The External Environment: Opportunities, Threats, Competition, and Competitor Analysis

| September 29, 2018

31. The observation that in China, even though car sales surged 37% in
2010, it is expected that by 2015 they will reach production overcapacity and
have a glut of extra cars is an aspect of the
____ segment of the general environment.

a.

demographic

b.

global

c.

physical

d.

technological

32. Because of threats and risks in the global environment, some firms
choose to take a more cautious approach
by

a.

avoiding global
markets altogether.

b.

expanding only to
developed countries.

c.

focusing on global
niche markets.

d.

acquiring already
established firms in foreign markets.

33. The concepts of Guanxi, Wa, and Inhwa all convey the
general idea of

a.

entrepreneurial
risk-taking.

b.

interpersonal
relationships.

c.

the value of hard
work.

d.

personal
achievement.

34. Global warming and energy consumption trends are aspects of the
_____________ segment of the general environment that firms should monitor.

a.

technological

b.

physical

c.

sociocultural

d.

economic

35. Green restaurant design, sustainable packaging, waste management,
and energy efficiency are aspects of the ______________ segment of the general
environment that McDonald’s has sought to address (Chapter 2 Strategic Focus).

a.

technological

b.

political/legal

c.

global

d.

physical

36. All of the following are examples of efforts by firms to address
the physical segment of the general environment in the Chapter 2 Strategic
Focus case EXCEPT

a.

Sustainable
packaging by McDonald’s.

b.

Reduction in carbon
dioxide emissions by Procter & Gamble.

c.

Reduction in water
usage in plants by Unilever.

d.

Hiring more women
and minorities at Microsoft.

37. The Chapter 2 Strategic Focus case on firm’s efforts to take care
of the physical environment noted that one popular approach was

a.

producing and selling
additional green products.

b.

lobbying the
government to reduce environmental regulations.

c.

making donations to
the Sierra Club and other environmental organizations.

d.

increasing health
benefit for employees.

38. An industry is defined as

a.

a group of firms
producing the same products or services.

b.

firms producing
items that sell through the same distribution channels.

c.

firms that sell the
same products or services to the same customer base.

d.

a group of firms
producing products that are close substitutes.

39. The likelihood of entry of new competitors is affected by ____ and
____.

a.

barriers to entry,
expected retaliation of current industry organizations

b.

the power of
existing suppliers, buyers

c.

the profitability of
the industry, the market share of its leading firm

d.

the demand for the
product, the profitability of the competitors

40. Which of the following is NOT an entry barrier to an
industry?

a.

expected competitor
retaliation

b.

economies of scale

c.

customer product
loyalty

d.

bargaining power of
suppliers

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