Strategic Management Chapter 3 – Flashcards
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A low value of the dollar means higher imports and lower exports.
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False
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Political, government, and legal factors are considered key threats or opportunities for most small and large organizations.
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True
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What is the first step in designing an EFE Matrix?
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Identifying key external factors in the industry.
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Economic factors do not have much impact on the attractiveness of strategies.
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False
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The United States is getting older and less Caucasian.
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True
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Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 1.0.
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True
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The internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility.
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True
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Changes in tax rates cannot significantly affect firms.
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False
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The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are _________ internal factors in a firm achieving competitive advantage.
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more important than
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One difference between CPM and EFE is that
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CPM includes both internal and external issues.
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When a industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?
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Political
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Americans are on the move in a population shift to
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the South and West
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Technological advancements can create new _______ advantages that are more powerful than existing advantages.
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Competitive
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Identifying and evaluating key social, political, economic, technological, and competitive trends and events compromise performing an external audit.
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True
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According to Michael Porter,the most powerful of the five competitive forces is new entrants.
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False
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________ is not part of an external audit.
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Analyzing financial ratios
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An external audit focuses on identifying and evaluating trends and events within the control of management.
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False
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________ is not a basic mission of a competitive intelligence program.
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To identify industry executives who could be hired by the firm
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Which of the following is not a characteristic that describes the most competitive companies in America?
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Divestiture is essential to growth.
