MHR 423 EXAM QUESTIONS WITH
ACCURATE ANSWERS
general environment - ANSWER composed of dimensions in the broader society that
influence an industry and the firms within it
things within general environment - ANSWER technological, demographic,
sociocultural, economic, political/legal, global, physical
industry environment - ANSWER set of factors directly influencing a firm and its
competitive actions and competitive responses
things within industry environment - ANSWER suppliers, new entrants, competitors,
customers/buyers, substitutes
demographic - ANSWER populations are changing
size, geographic distribution, age structure, income distribution, ethnic mix
economic - ANSWER nature and direction of an economy in which a firm competes or
may compete
economic uncertainty: the environment in which little or nothing is known about the
future state of the economy
- GDP Growth, unemployment, currency, interest rates, inflation, surpluses and deficits
in trade balance and budget balances
political/legal - ANSWER results from the processes and actions of government bodies
that can influence the decisions and behaviors of firms
- levels: supra nations, federal, state, county, city
country soft power - ANSWER country diplomatic ability to attract and coopt rather than
coerce and use force
firms non market stategies - ANSWER lobbying, public relations, contributions,
litigations
sociocultural - ANSWER societys culture, norms and values
can take decades or generations to be widely shared
technological - ANSWER captures the application of knowledge to create new
processes, products and services
, with a high rate of diffusion, we are in an era of perpetual innovation
information age: industries that were not historically tech-intensive are not using
advanced tech ex: mining
disruptive technologies - ANSWER they destroy the value of existing technology and
create new markets
ex iphones
global dimension - ANSWER this dimension includes relevant new global markets,
existing markets that are changing, important international political events, and critical
cultural and institutional characteristics of the global markets
global econmy - ANSWER economy in which goods, services, people, skills and idea
move freely across geographic borders
globalization - ANSWER the increasing economic interdependence among counties and
their organizations as reflected in the flow of goods and services, financial capital and
knowledge across borders
barriers to the global economy - ANSWER what are current barriers protectionism,
retaliaons, embargo
protectionism - ANSWER actions taken by a government to protect its industries by
preventing goods/services from other countries to be imported or by taxing these
goods/services
embargo - ANSWER ban of products
world trade organization - ANSWER decrease tariffs through trade agreements
promotes intellectual property protection
international monetary fund - ANSWER smoothes the flow of money and prevents
nations bankruptcy
world bank - ANSWER lends money to developing countries mainly for non-commercial
activities such as education, healthcare, transportation
physical - ANSWER natural resources
water, oil, gas, rare earth elements, land, plants
preservation of ecosystems- pollution, overexploitation of resources
Goal of Porters 5 forces - ANSWER determine how attractive and profitable an industry
is based on
new entrants
ACCURATE ANSWERS
general environment - ANSWER composed of dimensions in the broader society that
influence an industry and the firms within it
things within general environment - ANSWER technological, demographic,
sociocultural, economic, political/legal, global, physical
industry environment - ANSWER set of factors directly influencing a firm and its
competitive actions and competitive responses
things within industry environment - ANSWER suppliers, new entrants, competitors,
customers/buyers, substitutes
demographic - ANSWER populations are changing
size, geographic distribution, age structure, income distribution, ethnic mix
economic - ANSWER nature and direction of an economy in which a firm competes or
may compete
economic uncertainty: the environment in which little or nothing is known about the
future state of the economy
- GDP Growth, unemployment, currency, interest rates, inflation, surpluses and deficits
in trade balance and budget balances
political/legal - ANSWER results from the processes and actions of government bodies
that can influence the decisions and behaviors of firms
- levels: supra nations, federal, state, county, city
country soft power - ANSWER country diplomatic ability to attract and coopt rather than
coerce and use force
firms non market stategies - ANSWER lobbying, public relations, contributions,
litigations
sociocultural - ANSWER societys culture, norms and values
can take decades or generations to be widely shared
technological - ANSWER captures the application of knowledge to create new
processes, products and services
, with a high rate of diffusion, we are in an era of perpetual innovation
information age: industries that were not historically tech-intensive are not using
advanced tech ex: mining
disruptive technologies - ANSWER they destroy the value of existing technology and
create new markets
ex iphones
global dimension - ANSWER this dimension includes relevant new global markets,
existing markets that are changing, important international political events, and critical
cultural and institutional characteristics of the global markets
global econmy - ANSWER economy in which goods, services, people, skills and idea
move freely across geographic borders
globalization - ANSWER the increasing economic interdependence among counties and
their organizations as reflected in the flow of goods and services, financial capital and
knowledge across borders
barriers to the global economy - ANSWER what are current barriers protectionism,
retaliaons, embargo
protectionism - ANSWER actions taken by a government to protect its industries by
preventing goods/services from other countries to be imported or by taxing these
goods/services
embargo - ANSWER ban of products
world trade organization - ANSWER decrease tariffs through trade agreements
promotes intellectual property protection
international monetary fund - ANSWER smoothes the flow of money and prevents
nations bankruptcy
world bank - ANSWER lends money to developing countries mainly for non-commercial
activities such as education, healthcare, transportation
physical - ANSWER natural resources
water, oil, gas, rare earth elements, land, plants
preservation of ecosystems- pollution, overexploitation of resources
Goal of Porters 5 forces - ANSWER determine how attractive and profitable an industry
is based on
new entrants
