SEVI 3013 Final Exam UPDATED ACTUAL
Exam Questions and CORRECT Answers
4 components of External Environmental Analysis - CORRECT ANSWER - scanning,
monitoring, forecasting, assessing
Scanning - CORRECT ANSWER - identifying early signals of environmental changes and
trends
Monitoring - CORRECT ANSWER - detecting meaning through ongoing observations of
environmental changes and trends
Forecast - 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
Porters 5 Forces Model - CORRECT ANSWER - set of factors directly influencing a firm and
its competitive actions and competitive responses, tells us how much profit potential there is
within an industry, and helps you figure out your companies relative position within the industry
Threat of new entrants - CORRECT ANSWER - how easy it is to enter the industry
-startup cost
-regulations
-how crowded is the market (number of firms)
Bargaining power of buyers - CORRECT ANSWER - how much bargaining power and
leverage do your buyers have over you
-loyalty
, -preferences
-# of buyers and how large are the order
Bargaining power of suppliers - CORRECT ANSWER - supplier leverage/control
-think of frim whom do we get our raw materials, component parts, or labor
Threat of product substitutes - CORRECT ANSWER - how easily can another product replace
yours
the intensity of rivalry among competitors - CORRECT ANSWER - affected by all other
forces, as the other forces get more intense then this will also become more intense
strategic group - CORRECT ANSWER - a set of firms emphasizing similar strategic
dimensions and using a similar strategy
Intra Strategic vs Inter Strategic Competition - CORRECT ANSWER - intra is more intense
due to similar market positions, products, and strategic actions
future objectives of strategic groups - CORRECT ANSWER - How do our goals compare
with our competitors goals?
Where will the emphasis be placed in the future?
What is the attitude towards risk?
current strategy - CORRECT ANSWER - How are we currently competing?
Does this strategy support changes in the competitive structure?
Assumptions - CORRECT ANSWER - Do we assume the future will be volatile?
Are we operating under a status quo?
What assumptions do our competitors hold about the industry?
Exam Questions and CORRECT Answers
4 components of External Environmental Analysis - CORRECT ANSWER - scanning,
monitoring, forecasting, assessing
Scanning - CORRECT ANSWER - identifying early signals of environmental changes and
trends
Monitoring - CORRECT ANSWER - detecting meaning through ongoing observations of
environmental changes and trends
Forecast - 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
Porters 5 Forces Model - CORRECT ANSWER - set of factors directly influencing a firm and
its competitive actions and competitive responses, tells us how much profit potential there is
within an industry, and helps you figure out your companies relative position within the industry
Threat of new entrants - CORRECT ANSWER - how easy it is to enter the industry
-startup cost
-regulations
-how crowded is the market (number of firms)
Bargaining power of buyers - CORRECT ANSWER - how much bargaining power and
leverage do your buyers have over you
-loyalty
, -preferences
-# of buyers and how large are the order
Bargaining power of suppliers - CORRECT ANSWER - supplier leverage/control
-think of frim whom do we get our raw materials, component parts, or labor
Threat of product substitutes - CORRECT ANSWER - how easily can another product replace
yours
the intensity of rivalry among competitors - CORRECT ANSWER - affected by all other
forces, as the other forces get more intense then this will also become more intense
strategic group - CORRECT ANSWER - a set of firms emphasizing similar strategic
dimensions and using a similar strategy
Intra Strategic vs Inter Strategic Competition - CORRECT ANSWER - intra is more intense
due to similar market positions, products, and strategic actions
future objectives of strategic groups - CORRECT ANSWER - How do our goals compare
with our competitors goals?
Where will the emphasis be placed in the future?
What is the attitude towards risk?
current strategy - CORRECT ANSWER - How are we currently competing?
Does this strategy support changes in the competitive structure?
Assumptions - CORRECT ANSWER - Do we assume the future will be volatile?
Are we operating under a status quo?
What assumptions do our competitors hold about the industry?
