LESSON 4 MIDTERMS Flashcards
(33 cards)
Is to develop a
finite list of opportunities that could benefit a
firm and threats that should be avoided.
external audit
The term suggests, the external audit is
not aimed at developing an exhaustive list of
every possible factor that could influence the
business; rather, it is aimed at identifying key
variables that offer actionable responses.
finite
As the term finite suggests, the external audit is
not aimed at developing an exhaustive list of
every possible factor that could influence the
business; rather, it is aimed at identifying key
variables that offer?
actionable responses.
translate into changes in consumer
demand for both industrial and consumer products and services.
Changes in external forces
affect the types of products developed, the nature of
positioning and market segmentation strategies, the type of services
offered, and the choice of businesses to acquire or sell. It also directly affect both suppliers and distributors.
External forces
approach to competitive advantage
advocates that external (industry) factors are more important than
internal factors in a firm achieving competitive advantage
The Industrial Organization (I/O) View
is determined largely by competitive
positioning within an industry, according to I/O advocates.
Competitive advantage
Increasing numbers of one-income households is an economic trend
in the United States and the whole world. T OR F?
FALSE (two-income households)
Individuals place a premium on time. T OR F
TRUE
People today are more willing than ever to pay for good service if it
limits inconvenience. T OR F
TRUE
have a direct impact on the potential
attractiveness of various strategies.
Economic factors
have a major impact on virtually all products, services, markets, and
customers.
Social, Cultural, Demographic, and Natural
Environment Forces
Older Americans are especially interested in
health care, financial services, travel, crime
prevention, and leisure. T OR F
TRUE
The world’s longest-living people are the?
JapaneseJapanese women living to
86.3 years and men living to 80.1 years on
average.
Japanese women living to
80.3 years and men living to 86.1 years on
average. T OR F
FALSE
By 2075, the United States will
have no racial or ethnic majority. T OR F
TRUE
The population of the world surpassed 8.0 billion in 2010.T OR F
FALSE (7 B)
creating a different type of consumer and,
consequently, a need for different products, different services, and
different strategies.
New trends
can represent key
opportunities or threats for both small and large organizations. These are also major regulators,
deregulators, subsidizers, employers, and customers of organizations
Political, governmental, and legal factors,
has changed the very nature of opportunities and threats
by altering the life cycles of products, increasing the speed of
distribution, creating new products and services, erasing limitations
of traditional geographic markets, and changing the historical trade-
off between production standardization and flexibility.
The Internet
represent major opportunities and threats that must be considered
in formulating strategies. It can can dramatically affect
organizations’ products, services, markets, suppliers, distributors, competitors,
customers, manufacturing processes, marketing practices, and competitive position.
Technological forces
technological changes can reduce or
eliminate cost barriers between businesses. T OR F
TRUE
No company or industry today is insulated against emerging technological developments. T OR F
TRUE
An important part of an external audit is identifying rival firms and
determining their strengths, weaknesses, capabilities, opportunities,
threats, objectives, and strategies.
Competitive Forces
