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

| September 28, 2018

11. The use of the Internet
by Netflix to collect data on customer preferences is an example of

a.

assessing.

b.

monitoring.

c.

forecasting.

d.

scanning.

12. When analysts develop feasible projections of future events and
how quickly they will occur based on observed changes and trends, they are
engaged in

a.

scanning.

b.

monitoring.

c.

forecasting.

d.

assessing.

13. A general environmental analysis can be expected to produce all of
the following EXCEPT

a.

objective answers.

b.

recognition of
environmental trends.

c.

identification of
organizational opportunities.

d.

identification of
organizational threats.

14. In analyzing the demographic segment of the general environment,
one typically examines all of the following factors EXCEPT

a.

age structure.

b.

ethnic mix.

c.

distribution of
income.

d.

cultural values.

15. Which of the following identified in an analysis of the general
environment is an opportunity for an entrepreneur who wishes to open a business
doing “Fitness for Life” physical conditioning services (strength, balance, and
flexibility training) in a city of 100,000 people?

a.

the average age of
the population in his community is high

b.

the level of
unemployment in his community is high

c.

a chiropractor and
two independent physical therapists are located in his community

d.

the average
education level of the population in his community is low

16. Analyzing income distribution would include all of the following
EXCEPT

a.

the purchasing
power of various age groups.

b.

the discretionary
income of various ethnic groups.

c.

wage differentials
between male and female employees working for a large manufacturer.

d.

how income is
distributed among regions of the U.S.

17. Demographic changes include variations in income distribution.
Which of the following statements is true?

a.

Firms are most
interested in the consumers comprising the top ten percent of the household
income.

b.

In general, living
standards have deteriorated over time.

c.

The general loss in
real income has been somewhat offset by the increase in dual-career couples.

d.

Workforce diversity
is making the concept of average income obsolete.

18. In the chapter discussion of the political legal segment of the
general environment, it was noted that President Obama’s administration has
sought to pursue policies that would

a.

remove the U.S.
from NAFTA.

b.

abolish antitrust
laws.

c.

increase the amount
of work U.S. companies outsource to firms in other nations.

d.

reduce the amount
of work U.S. companies outsource to firms in other nations.

19. An analysis of the economic segment of the external environment
would include all of the following EXCEPT

a.

interest rates.

b.

trade deficits or
surpluses.

c.

inflation rates.

d.

the move toward a
contingent workforce.

20. Characteristics of the current economic segment include all of the
following EXCEPT

a.

general
uncertainty.

b.

a clear
understanding of future economic opportunities and threats.

c.

inability of
economists to provide valid and reliable predictions.

d.

an expanding
economy in Vietnam.

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