Sevi Final Exam 3013 UARK Questions and Answers
Four components of the external environmental analysis - AnswerScanning, Monitoring,
Forecasting, Assessing
/.Scanning - AnswerIdentifying early signals of environmental changes and trends
/.Monitoring - AnswerDetecting meaning through ongoing observations of environmental
changes and trends
/.Forecasting - AnswerDeveloping projections of anticipated outcomes based on
monitored changes and trends
/.Assessing - AnswerDetermining the timing and importance of environmental changes
and trends for a firm's strategies and management
/.Segments of the General Environment - AnswerDemographic, Economic,
Political/Legal, Sociocultural, Technological, Global, Sustainable Physical Environment
/.Examples of Demographic - Answerpopulation size, age structure, occupation, gender
/.Examples of Economic - Answerinflation rates, interest rates, trade deficits, surpluses
/.Examples of Political/Legal - Answerantitrust laws, taxation laws
/.Examples of Sociocultural - Answerwomen in the workforce, workforce diversity
/.Examples of Technological - Answerproduct innovations, applications of knowledge
/.Examples of Global - Answerimportant political events, critical global markets
/.Examples of Sustainable Physical Environment - Answerenergy consumption,
renewable energy efforts
/.Industry - Answera group of firms producing products that are close substitutes
/.Industry Environment - AnswerThe nature and direction of the economy in which a firm
competes or may compete
/.Porter's 5 Force Model - Answer- Threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitute Products
- Rivalry Among Competing Firms
, /.Strategic Groups - AnswerA set of firms emphasizing similar strategic dimensions and
using similar strategies
/.How are Strategic Groups helpful? - Answer- For analyzing an industry's competitive
structure
- Can be helpful in diagnosing competition, positioning, and the profitability of firms
competing within an industry.
/.Resources - AnswerA source of supply or support
/.Tangible Resources - Answerassets that can be observed and quantified (Financial,
Physical, Technological, Organizational)
/.Intangible Resources - Answerassets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to analyze and imitate
(Human, Innovation, Reputation)
/.Capabilities - Answerrepresent the capacity to deploy resources that have been
purposely integrated to achieve a desired end state
/.Core Competencies - AnswerResources and capabilities that are the source of a firm's
competitive advantage that distinguish a firm competitively and reflect its personality
/.VRIO Framework - AnswerValuable
Rare
Costly to Imitate
Organized to capture value
/.Valuable capabilities - AnswerHelp a firm neutralize threats or exploit opportunities
/.Rare capabilities - AnswerAre not possessed by many others
/.Costly to Imitate - Answercapabilities that other firms cannot easily develop
/.Organized to capture value - AnswerRecognize the value of their resource/capabilities
Ability to implement capabilities
/.Direct Imitation - AnswerMakes the exact same product
/.Bells & Whistles - AnswerAdd additional features to make a product more attractive
/.Stripping - AnswerMaking something less fancy/complicated
/.Substitution - AnswerOffer the same general product but through a different means
Four components of the external environmental analysis - AnswerScanning, Monitoring,
Forecasting, Assessing
/.Scanning - AnswerIdentifying early signals of environmental changes and trends
/.Monitoring - AnswerDetecting meaning through ongoing observations of environmental
changes and trends
/.Forecasting - AnswerDeveloping projections of anticipated outcomes based on
monitored changes and trends
/.Assessing - AnswerDetermining the timing and importance of environmental changes
and trends for a firm's strategies and management
/.Segments of the General Environment - AnswerDemographic, Economic,
Political/Legal, Sociocultural, Technological, Global, Sustainable Physical Environment
/.Examples of Demographic - Answerpopulation size, age structure, occupation, gender
/.Examples of Economic - Answerinflation rates, interest rates, trade deficits, surpluses
/.Examples of Political/Legal - Answerantitrust laws, taxation laws
/.Examples of Sociocultural - Answerwomen in the workforce, workforce diversity
/.Examples of Technological - Answerproduct innovations, applications of knowledge
/.Examples of Global - Answerimportant political events, critical global markets
/.Examples of Sustainable Physical Environment - Answerenergy consumption,
renewable energy efforts
/.Industry - Answera group of firms producing products that are close substitutes
/.Industry Environment - AnswerThe nature and direction of the economy in which a firm
competes or may compete
/.Porter's 5 Force Model - Answer- Threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitute Products
- Rivalry Among Competing Firms
, /.Strategic Groups - AnswerA set of firms emphasizing similar strategic dimensions and
using similar strategies
/.How are Strategic Groups helpful? - Answer- For analyzing an industry's competitive
structure
- Can be helpful in diagnosing competition, positioning, and the profitability of firms
competing within an industry.
/.Resources - AnswerA source of supply or support
/.Tangible Resources - Answerassets that can be observed and quantified (Financial,
Physical, Technological, Organizational)
/.Intangible Resources - Answerassets that are rooted deeply in the firm's history,
accumulate over time, and are relatively difficult for competitors to analyze and imitate
(Human, Innovation, Reputation)
/.Capabilities - Answerrepresent the capacity to deploy resources that have been
purposely integrated to achieve a desired end state
/.Core Competencies - AnswerResources and capabilities that are the source of a firm's
competitive advantage that distinguish a firm competitively and reflect its personality
/.VRIO Framework - AnswerValuable
Rare
Costly to Imitate
Organized to capture value
/.Valuable capabilities - AnswerHelp a firm neutralize threats or exploit opportunities
/.Rare capabilities - AnswerAre not possessed by many others
/.Costly to Imitate - Answercapabilities that other firms cannot easily develop
/.Organized to capture value - AnswerRecognize the value of their resource/capabilities
Ability to implement capabilities
/.Direct Imitation - AnswerMakes the exact same product
/.Bells & Whistles - AnswerAdd additional features to make a product more attractive
/.Stripping - AnswerMaking something less fancy/complicated
/.Substitution - AnswerOffer the same general product but through a different means
