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

| September 28, 2018

21. The economic environment refers to

a.

the nature and
direction of the economy in which a firm competes or may compete.

b.

the economic
outlook of the world provided by the World Bank.

c.

an analysis of how
the environmental movement and world economy interact.

d.

an analysis of how
new environmental regulations will affect the U.S. economy.

22. Which of the following would NOT be identified in an analysis of
the economic portion of the general environment?

a.

The willingness of
Chrysler’s buyers to purchase large vehicles due to an increase in oil
prices.

b.

The ability of Ford
to issue new debt due to their recent financial performance.

c.

The ability of
BMW’s buyers to finance car purchases due to a change in interest rates.

d.

The willingness of
GM buyers to purchase new vehicles due to the threat of recession.

23. The political/legal segment of an environment represents

a.

the political
preferences of different ethnic groups in the society.

b.

the technological
values of different political entities in society.

c.

how organizations
and governments mutually try to influence each other.

d.

the system of
regulations governments at all levels place on businesses.

24. All of the following are aspects of the political/legal segment of
the general environment EXCEPT

a.

antitrust laws.

b.

attitudes and
values.

c.

taxation laws.

d.

industries chosen
for deregulation.

25. An analysis of society’s attitudes and values would be conducted
when studying the ____ segment of the general environment.

a.

sociocultural

b.

global

c.

demographic

d.

economic

26. In a suburban community outside a city in Alabama, a retail store
opened that specialized in dancewear for children and adults. It was moderately
successful for five years until the local newspaper published an exposé that
scanty lingerie stocked in the back of the store’s showroom was selling briskly
to a certain clientele. Afterward, the store lost most of its customers and
nearly closed. Which segment of the environment did the store owner fail to
take into account when she began selling the lingerie?

a.

the sociocultural
segment

b.

the economic
segment

c.

the demographic
segment

d.

the political/legal
segment

27. The technological segment of environmental analysis includes

a.

institutions and
activities involved with creating new knowledge and translating that
knowledge into new outputs.

b.

the determination
of when machinery will need to be replaced in a given firm.

c.

the need for new
technology in order for a firm to gain a competitive advantage.

d.

places where a
firm’s technology will allow that firm to dominate a given market.

28. Understanding how new knowledge can develop new products,
processes, or materials is a result of analyzing the ____ segment of the
general environment.

a.

economic

b.

political/legal

c.

technological

d.

global

29. The next critical technological opportunity for organizations is
predicted to be

a.

the Internet.

b.

multiphasic
interventions.

c.

biological
engineering.

d.

wireless
communications.

30. Which of the following would be an example of the application of
next major technological opportunity for organizations?

a.

Boeing’s
Dreamliner.

b.

Toyota’s hybrid
vehicles.

c.

Philip Morris
International’s smokeless tobacco.

d.

Amazon’s Kindle.

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