MGMT 478 Ch. 3 Exam Questions With
Correct Answers
What is the most important part of an external audit? - ANSWER To develop a
finite list of opportunities that could benefit a firm as well as threats that should
be avoided or mitigated
When identifying and prioritizing key external factors in strategic planning, four
criteria should be met to the extent possible. What are these four criteria? -
ANSWER actionable, quantitative, comparative, and divisional
For industries and firms that depend heavily on government contracts or
subsidies, which forecasts can be the most important part of an external audit? -
ANSWER Political
As common positions in firms today, chief information officers (CIOs) reflect the
growing importance of the impact of which external force? - ANSWER
Technological
Which of the following is NOT one of Porters five forces? - ANSWER Barriers to
entry
Under which condition can consumers gain increasing bargaining power? -
ANSWER If they can inexpensively switch to a substitute
Which of the following is considered an unpublished source of external
information - ANSWER customer surveys
which of the following is considered a published source for external
information? - ANSWER Directories
which of the following is NOT true concerning forecasts? - ANSWER sometimes,
wild guesses are acceptable as forecasts
in forecasting, strategists identify future occurrences that could have a major
effect on the firm, and, based on that make - ANSWER reasonable assumptions
the EFE Matriz provides an empirical assessment of how well a firm is handling -
ANSWER external factors overall
Which of the following EFE scores indicates that a firm is weak at responding to
external factors - ANSWER 1.2
, One difference between a Competitive Profile Matrix and an EFE is that critical
success factors - ANSWER in a CPM include both internal and external issues
in generating the list of critical success factors in a CPM, a firm should strive to
include factors that - ANSWER differentiate firms within the industry
How many factors should be included in an External Factor Evaluation Matrix -
ANSWER 20
The video emphasizes that strategic planning is all about what concept -
ANSWER Prioritization
Factors are organized in an EFE Matrix into what two categories? - ANSWER
Opportunities and threats
Which two matrices require strategists to assign weights and ratings - ANSWER
EFE Matrix and Competitive Profile Matrix
Who says, "In God we trust; all others bring the data" - ANSWER Edward Deming
What do the letters CPM stands for - ANSWER Competitive Profile Matrix
An EFEM matrix should always include what element? - ANSWER A 1, 2, 3, 4
rating scale. 1 being bad 4 being good
Opportunities are best described in what way - ANSWER External in nature
In using the strategic planning Excel template, how many critical success
factors should be included in a CPM - ANSWER 12
When using a CPM, rival companies should be assigned ratings in what manner -
ANSWER Different ratings
which of the following economic forces might be monitored by an international
firm entering a new market in Germany? - ANSWER European Economic
Community EEC policies
A firm making a decision concerning the location of a manufacturing facility
would monitor which of the following political, governmental, and legal
variables? - ANSWER unionization trends
Which of the following is similar about the chief information officer (CIO) and
chief technology officer (CTO) position? - ANSWER both are involved with
information technology
Correct Answers
What is the most important part of an external audit? - ANSWER To develop a
finite list of opportunities that could benefit a firm as well as threats that should
be avoided or mitigated
When identifying and prioritizing key external factors in strategic planning, four
criteria should be met to the extent possible. What are these four criteria? -
ANSWER actionable, quantitative, comparative, and divisional
For industries and firms that depend heavily on government contracts or
subsidies, which forecasts can be the most important part of an external audit? -
ANSWER Political
As common positions in firms today, chief information officers (CIOs) reflect the
growing importance of the impact of which external force? - ANSWER
Technological
Which of the following is NOT one of Porters five forces? - ANSWER Barriers to
entry
Under which condition can consumers gain increasing bargaining power? -
ANSWER If they can inexpensively switch to a substitute
Which of the following is considered an unpublished source of external
information - ANSWER customer surveys
which of the following is considered a published source for external
information? - ANSWER Directories
which of the following is NOT true concerning forecasts? - ANSWER sometimes,
wild guesses are acceptable as forecasts
in forecasting, strategists identify future occurrences that could have a major
effect on the firm, and, based on that make - ANSWER reasonable assumptions
the EFE Matriz provides an empirical assessment of how well a firm is handling -
ANSWER external factors overall
Which of the following EFE scores indicates that a firm is weak at responding to
external factors - ANSWER 1.2
, One difference between a Competitive Profile Matrix and an EFE is that critical
success factors - ANSWER in a CPM include both internal and external issues
in generating the list of critical success factors in a CPM, a firm should strive to
include factors that - ANSWER differentiate firms within the industry
How many factors should be included in an External Factor Evaluation Matrix -
ANSWER 20
The video emphasizes that strategic planning is all about what concept -
ANSWER Prioritization
Factors are organized in an EFE Matrix into what two categories? - ANSWER
Opportunities and threats
Which two matrices require strategists to assign weights and ratings - ANSWER
EFE Matrix and Competitive Profile Matrix
Who says, "In God we trust; all others bring the data" - ANSWER Edward Deming
What do the letters CPM stands for - ANSWER Competitive Profile Matrix
An EFEM matrix should always include what element? - ANSWER A 1, 2, 3, 4
rating scale. 1 being bad 4 being good
Opportunities are best described in what way - ANSWER External in nature
In using the strategic planning Excel template, how many critical success
factors should be included in a CPM - ANSWER 12
When using a CPM, rival companies should be assigned ratings in what manner -
ANSWER Different ratings
which of the following economic forces might be monitored by an international
firm entering a new market in Germany? - ANSWER European Economic
Community EEC policies
A firm making a decision concerning the location of a manufacturing facility
would monitor which of the following political, governmental, and legal
variables? - ANSWER unionization trends
Which of the following is similar about the chief information officer (CIO) and
chief technology officer (CTO) position? - ANSWER both are involved with
information technology
