QUIZ 2 Flashcards
(33 cards)
Forces that are outside the traditional boundaries of the firm are called
The external environment
The external environment can be divided into which two smaller categories. They are the
Broad environment and the operating environment
The context in which the firm exists is called the
Broad environment
Sociocultural environments have meaning because
They influence trends in a particular region
Influences and trends associated who domestic or global economies are called the
Economic environment
Organizations should consider forecasts of economic growth in deterring when to
Make critical resource allocation decisions
A major source of economic uncertainty for global organizations is
Foreign exchange rates
The ____ in among the most significant determinant of organizational success, both at home and abroad
Political environment
When an innovation has an impact on more than one industry it is referred to as a
Basic innovation
Major innovations that influence more than one business or industry are referred to as a
Radical innovation
Which environment consists of stakeholders with whom organizations interact on a regular basis
The operating environment
Economic power that allows a firm or group of firms to influence the nature of business arrangements is commonly referred to as
Bargaining power
All of the following characteristics make “customers” in the Five Forces model strong except when
The products they are buying are differentiated
A firm that is involved in more than one stage of the industry supply chain in considered to be
Vertically integrated
Suppliers in the Five Forces model are powerful when the following characteristics are present except when they are ____
Sell products and services that can be substituted with other products and services
Costs associated with learning a business or industries are commonly referred to as
Exit barriers
Which of the following industry characteristics leads to greater rivalry
A slow growth industry
An industry in which one firm is the only significant providers of a good or service is called an
Monopoly
An industry characterized by the existence of a few very large firms is called an
Oligopoly
Forces that keep new competitors out and provide a level of protection for existing competitors are called
Entry barriers
Cost savings that occur when it is more efficient to produce a product in a large facility at a higher volume are
Economies of scale
Costs associated with starting a business are
Capital requirements
Attributes associated with a product or service that cause customers to prefer it rather than competing products or services are
Product/service differentiation
Entry barriers are caused by all of the following, except
Low switching costs
