General environment correct answers factors external to an industry, and usually beyond a firm's control, that affect a firm's strategy.
Demographic segment of the general environment correct answers genetic and observable characteristics of a population, including the levels and growth of age, ...
MGMT 449 Ch.2 || with 100% Accurate Solutions.
General environment correct answers factors external to an industry, and usually beyond a firm's
control, that affect a firm's strategy.
Demographic segment of the general environment correct answers genetic and observable
characteristics of a population, including the levels and growth of age, density, sex, race,
ethnicity, education, geographic region, and income.
Sociocultural segment of the general environment correct answers the values, beliefs, and
lifestyles of a society. These forces might enhance the sales of products and services in many
industries but depress sales in others.
Political/legal segment of the general environment correct answers how a society creates and
exercises power, including rules, laws, and taxation policies.
The following represent which segment of the general environment:
- Tort reform
- Americans with Disabilities Act (ADA)
- Deregulation of utilities and other industries
- Increases in minimum wage
- Taxation at local, state and federal levels
- Legislation on corporate governance reforms
- Affordable Health Care Act correct answers The Political/Legal Segment
Technological segment of the general environment correct answers innovation and state of
knowledge in industrial arts, engineering, applied sciences, and pure science; and their
interaction with society.
The following represent which segment of the general environment:
- Genetic engineering
- Computer-aided design/computer aided manufacturing
- Research in synthetic and exotic materials
- Pollution/ Global Warming
- Wireless communication
- Nanotechnology correct answers The technological segment
Economic segment of the general environment correct answers characteristics of the economy,
including national income and monetary conditions.
The following represent which segment of the general environment:
- Interest rates
- Unemployment
- Consumer Price Index
- Trends in GDP & net disposable income
, - Changes in stock market valuations correct answers The economic segment
Global segment of the general environment correct answers influences from foreign countries,
including foreign market opportunities, foreign-based competition, and expanded capital
markets.
Competitive environment correct answers factors that pertain to an industry and affect a firm's
strategies
T/F: Globalization provides both opportunities to access larger potential markets and a broad
base of production factors such as raw materials, labor, skilled managers and technical
professionals. However, such endeavors can also carry many political, social, and economic
risks. correct answers True
Industry correct answers a group of firms that produce similar goods or services.
Porter's five-forces model of industry competition correct answers a tool for examining the
industry-level competitive environment, especially the ability of firms in that industry to set
prices and minimize costs. Includes the threat of new entrants; the bargaining power of buyers;
the bargaining power of suppliers; the threat of substitute products and services; the intensity of
rivalry among competitors in an industry. Each of these forces affects a firm's ability to compete
in a given market. Together they determine the profit potential for a particular industry.
Threat of new entrants correct answers the possibility that the profits of established firms in the
industry may be eroded by new competitors.
Economies of scale correct answers decreases in cost per unit as absolute output per period
increases. Forces the new entrant to come in at a large scale and risk strong reaction from
existing firms, or come in at a small scale and accept a cost disadvantage.
Product differentiation correct answers the degree that a product has strong brand loyalty or
customer loyalty. New entrants must spend heavily to overcome existing customer loyalties.
Switching cost correct answers one-time costs that a buyer/supplier faces when switching from
one supplier/buyer to another. In some industries, large financial resources or access to
distribution channels are required in order to set up operations.
Bargaining power of buyers correct answers the threat that buyers may force down prices,
bargain for higher quality or more services, and play competitors against each other.
Backward integration correct answers A form of vertical integration that involves the purchase of
suppliers.
Bargaining power of suppliers correct answers the threat that suppliers may raise prices or reduce
the quality of purchased goods and services. See Case 16, the Movie Exhibition Industry.
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