Exam Questions Evaluating The Macro-Environment Chapter 2

Chapter 2: Evaluating the Macro-environment

Test Bank

Type: fill-in-blank

Title: Chapter 02 Question 01

1) The macro-environment is also referred to as the _______________ environment.

Type: multiple choice question

Title: Chapter 02 Question 02

2) The competitive environment can be seen as being influenced by five major forces: potential entrants, power of buyers, power of suppliers, competitive rivalry, and:

a. Strategic groups

b. Substitutes

c. Competing firms

d. Competing brands

Type: fill-in-blank

Title: Chapter 02 Question 03

3) Environmental analysis involves the activities of scanning, ________, and forecasting.

Type: true-false

Title: Chapter 02 Question 04

4) Porter (1985) has argued that an analysis of the organization’s competitive environment provides more useful data than an analysis of the macro-environment.

a. True

b. False

Type: fill-in-blank

Title: Chapter 02 Question 05

5) Threats faced by an organization that have the potential to undermine the way they compete are known as _________________

Type: true-false

Title: Chapter 02 Question 06

6) The aim of macro-environmental analysis is to aid the organization in discerning trends in the macro-environment which might impact upon its industry and markets.

a. False

b. True

Type: multiple response question

Title: Chapter 02 Question 07

7) It allows the company to create a new performance trajectory for consumers based on different attributes than those of the existing technology used by the incumbent firm. This business activity is known as: Please select all that apply.

Type: multiple response question

Type: true-false

Title: Chapter 02 Question 09

9) Organizations must be diligent in continually scanning the macro-environment for weak signals.

a. True

b. False

Type: true-false

Title: Chapter 02 Question 10

10) British Petroleum famously used scenario planning to predict the impact of OPEC on the oil industry.

a. True

b. False

Type: fill-in-blank

Title: Chapter 02 Question 11

11) The oil multinational Royal Dutch Shell uses the technique of _______________ to help it generate strategic options.

Type: multiple choice question

Title: Chapter 02 Question 12

12) Van Der Heijden (1996) identifies three main types of uncertainty. The least uncertain category is:

a. Risks

b. Structural uncertainties

c. Unknowables

d. Weak signals

Type: multiple response question

Title: Chapter 02 Question 13

13) Scenario planning is most effective when the imagined scenarios are: Please select all that apply.

Type: fill-in-blank

Title: Chapter 02 Question 14

14) Gladwell (2000) came up with the idea of the ____________________ to explain how seemingly small events can have profound impacts on the environment.

Type: fill-in-blank

Title: Chapter 02 Question 15

15) Barely perceptible changes in the environment whose impact has yet to be felt are known as ____________.

Type: multiple response question

Title: Chapter 02 Question 16

16) Scenario planning helps to overcome many of the shortcomings of traditional decision-making methods because: Please select all that apply.

Type: multiple choice question

Title: Chapter 02 Question 17

17) Which of the following factors is the most ‘knowable’ in terms of predicting the future?

a. Future oil prices

b. Interest rates

c. The population profile of the country

d. Outcomes of political elections

Type: multiple response question

Title: Chapter 02 Question 18

18) In a process of building scenarios, to define the scope consists of: please select all that apply

Type: true-false

Title: Chapter 02 Question 19

19) Scenario planning is a useful tool for predicting the future.

a. True

b. False

Type: true-false

Title: Chapter 02 Question 20

20) Each scenario describes an equilibrium state that can exist forever.

a. True

b. False

Type: multiple choice question

Title: Chapter 02 Question 21

21) A PESTLE analysis is used to analyse:

a. The macro-environment.

b. Internal resources.

c. Industry structure.

d. Strategic groups.

Type: multiple choice question

Title: Chapter 02 Question 22

22) Consumers are less tolerant of poor quality than they used to be. This is an example of:

a. A macro-environmental issue

b. A value-chain issue.

c. An economic issue.

d. A knowledge management issue.

Type: multiple response question

Title: Chapter 02 Question 23

23) In the PESTLE analysis, key economic indicators could include: Please select all that apply.

Type: fill-in-blank

Title: Chapter 02 Question 24

24) Firms need to be scanning their ________ for sign of change in government policy which may impact their industry.

Type: true-false

Title: Chapter 02 Question 25

25) An economic indicator can never provide an explanation for a complete economic phenomenon.

a. True

b. False

Type: multiple response question

Title: Chapter 02 Question 26

26) The changes in economic activity manifest themselves through changes in: Please select all that apply.

Type: multiple response question

Type: multiple choice question

Title: Chapter 02 Question 28

28) Retail organizations in Europe and the US have responded to the aging society by employing older personnel. This change in businesses is due to: Please select all that apply.

a. Legal factors.

b. Economic factors.

c. Political factors.

d. Social factors.

Type: multiple response question

Title: Chapter 02 Question 29

29) The increasing use of the internet to buy goods is which type of PESTLE issue? Please select all that apply.

Type: true-false

Title: Chapter 02 Question 30

30) SWOT analysis may be used in both the macro-environment and at the industry level

a. True

b. False