Busa 4980 Strategic Management - Chapter 2 Notes Updated Actual Questions And Correct Answers

BUSA 4980 STRATEGIC MANAGEMENT - CHAPTER 2
NOTES UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
1. Firm's decisions are influenced by three external
conditions:

Answer:
General Environment
Industry Environment
Competitor Environment

Question:
2. The Steps of External Analysis

Answer:
Outline the General Environment
Examine the Industry Environment
Conduct Competitive Intelligence
Summarize Industry Outlook

Question:
3. Segments of the General Environment

Answer:
Demographic
Economic
Political / Legal
Socio-cultural
Technological
Global
Physical environment

Question:
4. Demographic segment

Answer:
Population's size, age structure, geographic distribution

Question:
5. Economic segment

Answer:
Nature and direction of the general economy in which the firm competes

, Question:
6. Political / Legal segment

Answer:
Arena in which firms compete for attention to impact regulation and obtain
resources from government agencies

Question:
7. Socio-cultural

Answer:
Society's attitudes and cultural values

Question:
8. Technological

Answer:
Institutions and activities involved with creating knowledge on new products,
materials, and processes

Question:
9. Global

Answer:
Role of changing international political, cultural, and institutional events across
the global marketplace

Question:
10. Physical environment segment

Answer:
The business practices designed to respond to and deal with the physical
environment
Ex: Ecology, global warming)

Question:
11. Five Forces of Competition

Answer:
Threats of New Entrants
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitute Products or Services
Rivalry Among Existing Competitors