Module 2

Question 1

involves surveillance of a firm’s external environment

Answer 1

Environmental scanning

Question 2

Predicts environmental changes to come

Answer 2

Environmental scanning

Question 3

• Detects changes already under way

Answer 3

Environmental scanning

Question 4

Allows firm to be proactive

Answer 4

Environmental scanning

Question 5

tracks.evolution of environmental trends

Answer 5

Environmental monitoring

Question 6

Sequences of measurable facts/events

Answer 6

Environmental monitoring

Question 7

Streams of activities or trends from outside the organization

Answer 7

Environmental monitoring

Question 8

Helps firms define and understand their industry

Answer 8

Competitive intelligence

Question 9

involves detailed assessments of the ways trends may affect an issue & development of alternative futures based on these assessments

Answer 9

Scenario analysis

Question 10

Is a basic techniques for analysing firm amd industry conditions

Answer 10

Swot analysis

Question 11

composed of factors that are both hard to predict and difficult to control:

Answer 11

General environment

Question 12

Are easily understandable and quantifiable

Answer 12

Demographic segment

Question 13

Influence the values beliefs and lifestyle of a society

Answer 13

Sociocultural segment

Question 14

Processes and legislation influence environmental regulations with which industries must comply

Answer 14

Political/legal segment

Question 15

Developments lead to new products and services; can create new industries and alter existing ones

Answer 15

Technological segment

Question 16

Forces affect all industries

Answer 16

Economic segment

Question 17

Forces after both opportunities and risk

Answer 17

Global segment

Question 18

consists of factors in the task or Industry environment particularly relevant to a firm’s strategy:

Answer 18

The competitive environment

Question 19

Porter’s five competitive forces

Answer 19

Threats of new entrants
Bargaining power of buyer
Bargaining power of supplier
Threats of substitute
Intense rivalry

Question 20

possibility that the profits of established firms in the industry may be eroded by new competitors.

Answer 20

Threats of new entrants

Question 21

can force down prices, bargain for higher quality or more services, play competitors against each other

Answer 21

Bargaining power of buyer

Question 22

By threatening to raise proces or reduce the quality of purchased goods and services

Answer 22

Bargaining power of supplier

Question 23

Limit the potential returns of an industry

Answer 23

Substitutes

Question 24

tactics include price competition, advertising battles, new product introductions, increased customer service or warranties

Answer 24

Rivalry