Crafting & Executing
Strategy The Quest For
Competitive Advantage
Concepts And Cases 21st
Edition By Arthur A.
Thompson Jr -Test Bank
,Crafting & Executing Strategy The Quest for
Competitive Advantage Concepts and Cases 21st
Edition By Arthur A. Thompson Jr -Test Bank
Sample Test
Chapter 03 Evaluating a Company’s External Environment Answer Key
Multiple Choice Questions
1 The strategically relevant factors outside a company’s industry boundaries—
. economic conditions, political factors, sociocultural forces, technological factors,
environmental factors, and legal/regulatory conditions—are known as
the industry and the competitive arena in which the company operates.
, general economic conditions plus the factors driving change in the markets where a company
operates.
a company’s “macro-environment.”
the competitive market environment that exists between a company and its competitors.
the dominant economic features of a company’s industry.
Six principal components—political factors, economic conditions in the firm’s
general environment (local, country, regional, worldwide), sociocultural forces,
technological factors, environmental factors (concerning the natural environment),
and legal/regulatory conditions— constitute a company’s “macro-environment.”
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 How to recognize the factors in a company’s broad macro-
environment that may have strategic significance.
Topic: Environmental Scanning
2 Managers must chart a company’s strategic course by
.
focusing on the local environment in which they are operating.
ensuring excess production capacity and/or inventory.
competing fiercely for a share in the market.
building a bigger dealer network.
developing a thorough understanding of the company’s external and internal environment.
, In order to chart a company’s strategic course wisely, managers must first develop
a deep understanding of the company’s present situation. Two facets of a
company’s situation are especially pertinent: (1) its external environment—most
notably, the competitive conditions of the industry in which the company operates;
and (2) its internal environment—particularly the company’s resources and
organizational capabilities.
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 How to recognize the factors in a company’s broad macro-
environment that may have strategic significance.
Topic: Environmental Scanning
3 Which of the following is NOT part of a company’s macro-environment?
.
legal and regulatory conditions
European culture, values, and lifestyles
the pace of technological change
the natural environment
sociocultural forces
Every company operates in a broad “macro-environment” that comprises six
principal components: political factors, economic conditions in the firm’s general
environment (local, country, regional, worldwide), sociocultural forces, technological
factors, environmental factors (concerning the natural environment), and
legal/regulatory conditions.
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Strategy The Quest For
Competitive Advantage
Concepts And Cases 21st
Edition By Arthur A.
Thompson Jr -Test Bank
,Crafting & Executing Strategy The Quest for
Competitive Advantage Concepts and Cases 21st
Edition By Arthur A. Thompson Jr -Test Bank
Sample Test
Chapter 03 Evaluating a Company’s External Environment Answer Key
Multiple Choice Questions
1 The strategically relevant factors outside a company’s industry boundaries—
. economic conditions, political factors, sociocultural forces, technological factors,
environmental factors, and legal/regulatory conditions—are known as
the industry and the competitive arena in which the company operates.
, general economic conditions plus the factors driving change in the markets where a company
operates.
a company’s “macro-environment.”
the competitive market environment that exists between a company and its competitors.
the dominant economic features of a company’s industry.
Six principal components—political factors, economic conditions in the firm’s
general environment (local, country, regional, worldwide), sociocultural forces,
technological factors, environmental factors (concerning the natural environment),
and legal/regulatory conditions— constitute a company’s “macro-environment.”
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-01 How to recognize the factors in a company’s broad macro-
environment that may have strategic significance.
Topic: Environmental Scanning
2 Managers must chart a company’s strategic course by
.
focusing on the local environment in which they are operating.
ensuring excess production capacity and/or inventory.
competing fiercely for a share in the market.
building a bigger dealer network.
developing a thorough understanding of the company’s external and internal environment.
, In order to chart a company’s strategic course wisely, managers must first develop
a deep understanding of the company’s present situation. Two facets of a
company’s situation are especially pertinent: (1) its external environment—most
notably, the competitive conditions of the industry in which the company operates;
and (2) its internal environment—particularly the company’s resources and
organizational capabilities.
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 03-01 How to recognize the factors in a company’s broad macro-
environment that may have strategic significance.
Topic: Environmental Scanning
3 Which of the following is NOT part of a company’s macro-environment?
.
legal and regulatory conditions
European culture, values, and lifestyles
the pace of technological change
the natural environment
sociocultural forces
Every company operates in a broad “macro-environment” that comprises six
principal components: political factors, economic conditions in the firm’s general
environment (local, country, regional, worldwide), sociocultural forces, technological
factors, environmental factors (concerning the natural environment), and
legal/regulatory conditions.
AACSB: Diversity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
