SEVI 3013 FINAL EXAM UARK UPDATED
ACTUAL Exam Questions and CORRECT
Answers
General Environment - CORRECT ANSWER - Composed of dimensions in the broader
society that influence an industry and the firms within it
Dimensions of the General Environment - CORRECT ANSWER - 1. Demographic
2. Economic
3. Political/legal
4. Sociocultural
5. Technological
6. Global
7. Sustainable physical environment
Demographic Segment - CORRECT ANSWER - -Population size
-Age structure
-Geographic distribution
-Ethnic mix
-Income distribution
Economic Segment - CORRECT ANSWER - -Inflation rates
-Interest rates
-Trade/budget deficits or surpluses
-Personal savings rate
-Gross domestic product
Political/legal Segment - CORRECT ANSWER - -Antitrust laws
,-Taxation laws
-Deregulation philosophies
-Labor training laws
-Educational philosophies and policies
Sociocultural Segment - CORRECT ANSWER - -Women in the workforce
-Workforce diversity
-Attitudes about the quality of work life
-Shifts in work and career preferences
Technological Segment - CORRECT ANSWER - -Product innovations
-Applications of knowledge
-Focus of private and government-supported research and development expenditures
-New communication technologies
Global Segment - CORRECT ANSWER - -Important political events
-Critical global markets
-Newly industrialized countries
-Different cultural and institutional attributes
Sustainable physical environment Segment - CORRECT ANSWER - -Energy consumption
-Practices used to develop energy sources
-Renewable energy efforts
-Minimizing a firm's environmental footprint
-Reacting to natural or man-made disasters
External Environmental Analysis - CORRECT ANSWER - To cope with often ambiguous and
incomplete environmental data and to increase understanding of the general environment
, The Four Components of the External Environmental Analysis - CORRECT ANSWER - 1.
Scanning
2. Monitoring
3. Forecasting
4. Assessing
Scanning - CORRECT ANSWER - Identifying early signals of envrionmnetal changes and
trends
Monitoring - CORRECT ANSWER - Detecting meaning through ongoing observations of
environmental changes and trends
Forecasting - CORRECT ANSWER - Developing projections of anticipated outcomes based
on monitored changes and trends
Assessing - CORRECT ANSWER - Determining the timing and importance of environmental
changes and trends for firms' strategies and their management
The Five Forces of Competition Model - CORRECT ANSWER - 1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitute Products
5. Rivalry Among Competing Firms
Threat of New Entrants - CORRECT ANSWER - Identifying new entrants is important
because they can threaten the market share of existing competitors
The likelihood that firms will enter an industry is a function of two factors: barriers to entry and
the retaliation expected from current industry participants
ACTUAL Exam Questions and CORRECT
Answers
General Environment - CORRECT ANSWER - Composed of dimensions in the broader
society that influence an industry and the firms within it
Dimensions of the General Environment - CORRECT ANSWER - 1. Demographic
2. Economic
3. Political/legal
4. Sociocultural
5. Technological
6. Global
7. Sustainable physical environment
Demographic Segment - CORRECT ANSWER - -Population size
-Age structure
-Geographic distribution
-Ethnic mix
-Income distribution
Economic Segment - CORRECT ANSWER - -Inflation rates
-Interest rates
-Trade/budget deficits or surpluses
-Personal savings rate
-Gross domestic product
Political/legal Segment - CORRECT ANSWER - -Antitrust laws
,-Taxation laws
-Deregulation philosophies
-Labor training laws
-Educational philosophies and policies
Sociocultural Segment - CORRECT ANSWER - -Women in the workforce
-Workforce diversity
-Attitudes about the quality of work life
-Shifts in work and career preferences
Technological Segment - CORRECT ANSWER - -Product innovations
-Applications of knowledge
-Focus of private and government-supported research and development expenditures
-New communication technologies
Global Segment - CORRECT ANSWER - -Important political events
-Critical global markets
-Newly industrialized countries
-Different cultural and institutional attributes
Sustainable physical environment Segment - CORRECT ANSWER - -Energy consumption
-Practices used to develop energy sources
-Renewable energy efforts
-Minimizing a firm's environmental footprint
-Reacting to natural or man-made disasters
External Environmental Analysis - CORRECT ANSWER - To cope with often ambiguous and
incomplete environmental data and to increase understanding of the general environment
, The Four Components of the External Environmental Analysis - CORRECT ANSWER - 1.
Scanning
2. Monitoring
3. Forecasting
4. Assessing
Scanning - CORRECT ANSWER - Identifying early signals of envrionmnetal changes and
trends
Monitoring - CORRECT ANSWER - Detecting meaning through ongoing observations of
environmental changes and trends
Forecasting - CORRECT ANSWER - Developing projections of anticipated outcomes based
on monitored changes and trends
Assessing - CORRECT ANSWER - Determining the timing and importance of environmental
changes and trends for firms' strategies and their management
The Five Forces of Competition Model - CORRECT ANSWER - 1. Threat of New Entrants
2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitute Products
5. Rivalry Among Competing Firms
Threat of New Entrants - CORRECT ANSWER - Identifying new entrants is important
because they can threaten the market share of existing competitors
The likelihood that firms will enter an industry is a function of two factors: barriers to entry and
the retaliation expected from current industry participants
