WEEK 6 external audit

Question 1

focuses on identifying and evaluating trends and events beyond the control of a single firm.

Answer 1

EXTERNAL AUDIT

Question 2

It reveals key opportunities and threats confronting an organization so that managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact of threats.

Answer 2

EXTERNAL AUDIT

Question 3

aimed at identifying key variables that offer actionable responses.

Answer 3

EXTERNAL AUDIT

Question 4

Key External Forces

Answer 4

Economic Forces
Social, Cultural, Demographic and Natural Environment Forces
Political, Governmental and Legal Forces
Technological Forces
Competitive Forces

Question 5

approach to competitive advantage advocates that external (industry) factors are more important than internal factors in a firm achieving competitive advantage.

Answer 5

Industrial Organization (I/O) View

Question 6

entails firms striving to compete in attractive industries, avoiding weak or faltering industries, and gaining a full understanding of key external factor relationships within that attractive industry.

Answer 6

Industrial Organization (I/O) View

Question 7

allows strategists to summarize and evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information.

Answer 7

External Factor Evaluation (EFE) Matrix

Question 8

identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position

Answer 8

Competitive Profile Matrix (CPM)