GBA Ch 3 Comprehensive Questions
(Frequently Tested) with Verified
Answers Graded A+
C - Answer: The strategically relevant factors outside a company's industry boundaries—
economic conditions,
political factors, sociocultural forces, technological factors, environmental factors, and
legal/regulatory
conditions—are known as
A. the industry and the competitive arena in which the company operates.
B. general economic conditions plus the factors driving change in the markets where a company
operates.
C. a company's "macro-environment."
D. the competitive market environment that exists between a company and its competitors.
E - Answer: Managers must chart a company's strategic course by
A. focusing on the local environment in which they are operating.
B. ensuring excess production capacity and/or inventory.
C. competing fiercely for a share in the market.
D. building a bigger dealer network.
E. developing a thorough understanding of the company's external and internal environment.
C - Answer: Which of the following is NOT part of a company's macro-environment?
A. legal and regulatory conditions
B. European culture, values, and lifestyles
C. the pace of technological change
, D. the natural environment
E. sociocultural forces
E - Answer: Which of the following is NOT one of the principal components of strategic
significance in the PESTEL
analysis?
A. political factors including the extent to which government intervenes in the economy
B. economic conditions that include the general economic climate and specific factors such as
interest
rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond
markets that
can affect consumer confidence
C. sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that
impact
business
D. technological factors that include the pace of change and technical developments that have
the
potential for impacting society
E. environmental forces that include the competitive structure, the degree of industry
fragmentation,
and the mobility barriers that inhibit business
C - Answer: Which of the following is LIKELY to have the biggest strategy-shaping impact on on-
demand
transportation providers such as Uber and Lyft?
A. Yellow Cab company launches mobile app campaigns for community-connect and awareness.
B. Amazon launches a mobile delivery service via drones.
C. Apple launches a global network of driverless cars, buses, and trucks on demand via mobile
app.
(Frequently Tested) with Verified
Answers Graded A+
C - Answer: The strategically relevant factors outside a company's industry boundaries—
economic conditions,
political factors, sociocultural forces, technological factors, environmental factors, and
legal/regulatory
conditions—are known as
A. the industry and the competitive arena in which the company operates.
B. general economic conditions plus the factors driving change in the markets where a company
operates.
C. a company's "macro-environment."
D. the competitive market environment that exists between a company and its competitors.
E - Answer: Managers must chart a company's strategic course by
A. focusing on the local environment in which they are operating.
B. ensuring excess production capacity and/or inventory.
C. competing fiercely for a share in the market.
D. building a bigger dealer network.
E. developing a thorough understanding of the company's external and internal environment.
C - Answer: Which of the following is NOT part of a company's macro-environment?
A. legal and regulatory conditions
B. European culture, values, and lifestyles
C. the pace of technological change
, D. the natural environment
E. sociocultural forces
E - Answer: Which of the following is NOT one of the principal components of strategic
significance in the PESTEL
analysis?
A. political factors including the extent to which government intervenes in the economy
B. economic conditions that include the general economic climate and specific factors such as
interest
rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond
markets that
can affect consumer confidence
C. sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that
impact
business
D. technological factors that include the pace of change and technical developments that have
the
potential for impacting society
E. environmental forces that include the competitive structure, the degree of industry
fragmentation,
and the mobility barriers that inhibit business
C - Answer: Which of the following is LIKELY to have the biggest strategy-shaping impact on on-
demand
transportation providers such as Uber and Lyft?
A. Yellow Cab company launches mobile app campaigns for community-connect and awareness.
B. Amazon launches a mobile delivery service via drones.
C. Apple launches a global network of driverless cars, buses, and trucks on demand via mobile
app.
