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

TRUE/FALSE

1.The health-related concerns in the general environment facing Philip Morris International are part of the physical segment.

ANS:FPTS:1DIF:MediumREF:36
OBJ:02-01 TYPE: comprehension
NOT:AACSB: Ethical & Legal understanding | Management: Ethical Responsibilities | Dierdorff & Rubin: Managing the task environment

2.The external environment facing business stays relatively constant over time.

ANS:FPTS:1DIF:EasyREF:34-35
OBJ:02-01 TYPE: comprehension
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment

3.Demographic, economic, political/legal, sociocultural, technological, global, and physical are the seven elements comprising the industry environment.

ANS:FPTS:1DIF:HardREF:38 (Table 2.1)
OBJ:02-02 TYPE: knowledge
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment

4.Firms can directly control the elements of the seven segments of the general environment.

ANS:FPTS:1DIF:EasyREF:37
OBJ:02-01 TYPE: comprehension
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment

5.To successfully deal with today’s external environment and to achieve strategic competitiveness, firms must be aware and fully understand the different segments of that environment.

ANS:TPTS:1DIF:EasyREF:36
OBJ:02-01 TYPE: comprehension
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment

6.The recent bankruptcy filings by General Motors and Chrysler Corporation illustrate that firms cannot directly control the general environment’s segments.

ANS:TPTS:1DIF:MediumREF:37
OBJ:02-02 TYPE: application
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment

7.The industry environment directly influences the firm and its competitive actions and responses.

ANS:TPTS:1DIF:EasyREF:37
OBJ:02-01 TYPE: knowledge
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing decision-making processes

8.Competitor analysis is focused on the factors and conditions influencing an industry’s profitability potential.

ANS:FPTS:1DIF:MediumREF:39
OBJ:02-01 TYPE: comprehension
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing decision-making processes

9.When firms analyze the external environment, they typically have complete and unambiguous data.

ANS:FPTS:1DIF:MediumREF:39
OBJ:02-03 TYPE: comprehension
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing decision-making processes

10.Monitoring involves the development of a forecast of what might happen at a future point in time.

ANS:FPTS:1DIF:EasyREF:40
OBJ:02-03 TYPE: knowledge
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing decision-making processes

11.Scanning involves detecting meaning through early signals of environmental trends.

ANS:FPTS:1DIF:MediumREF:39
OBJ:02-03 TYPE: knowledge
NOT:AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing decision-making processes

12.When Philip Morris International studies the cigarette tax policies of various nations, it is engaged in the forecasting component of the environmental analysis process.

ANS:FPTS:1DIF:HardREF:40
OBJ:... Show More

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