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Strategic Management – Full Exam
Questions and Answers 100% Pass
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an
outstanding way to existing opportunities and threats in its industry.
Select one:
True
False - ANS F
An external audit focuses on identifying and evaluating trends and events within the control of
management.
Select one:
True
False - ANS F
Major competitors' strengths are areas of concern but do not represent key threats to a firm.
Select one:
True
False - ANS F
Protectionism is used by various countries around the world to safeguard their domestic
industries.
Select one:
True
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False - ANS T
India is increasing tariffs on foreign steel.
Select one:
True
False - ANS T
The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor
Evaluation (EFE) Matrix include both internal and external issues.
Select one:
True
False - ANS F
A forward integration strategy is used by firms to gain control or ownership of suppliers.
Select one:
True
False - ANS F
External audits attempt to identify key variables that offer highly intuitive responses.
Select one:
True
False - ANS F
Major competitors' weaknesses can represent internal opportunities.
Select one:
True
False - ANS F
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The aim of an external audit is to develop an exhaustive list of every possible factor that could
influence the business.
Select one:
True
False - ANS F
While forecasts might not be perfect, they are never wildly inaccurate.
Select one:
True
False - ANS F
An effective competitive intelligence program allows all areas of a firm to access consistent and
verifiable information in making decisions.
Select one:
True
False - ANS T
Economic factors do not have much impact on the attractiveness of strategies.
Select one:
True
False - ANS F
Political forecasts can be the most important part of an external audit for firms that depend
heavily on government contracts.
Select one:
True
False - ANS T
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Regardless of the number of key opportunities and threats included in an External Factor
Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the
lowest possible total weighted score is 0.0.
Select one:
True
False - ANS F
The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an
External Factor Evaluation (EFE) Matrix have the same meaning.
Select one:
True
False - ANS T
Organizations never develop their own projections.
Select one:
True
False - ANS F
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an
outstanding way to existing opportunities and threats in its industry.
Select one:
True
False - ANS F
Significant barriers to entry are not always sufficient to keep some new firms from entering
industries with higher-quality products, lower prices, and substantial marketing resources.
Select one:
True
False - ANS T
©FYNDLAY 4
Strategic Management – Full Exam
Questions and Answers 100% Pass
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an
outstanding way to existing opportunities and threats in its industry.
Select one:
True
False - ANS F
An external audit focuses on identifying and evaluating trends and events within the control of
management.
Select one:
True
False - ANS F
Major competitors' strengths are areas of concern but do not represent key threats to a firm.
Select one:
True
False - ANS F
Protectionism is used by various countries around the world to safeguard their domestic
industries.
Select one:
True
©FYNDLAY 1
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
False - ANS T
India is increasing tariffs on foreign steel.
Select one:
True
False - ANS T
The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor
Evaluation (EFE) Matrix include both internal and external issues.
Select one:
True
False - ANS F
A forward integration strategy is used by firms to gain control or ownership of suppliers.
Select one:
True
False - ANS F
External audits attempt to identify key variables that offer highly intuitive responses.
Select one:
True
False - ANS F
Major competitors' weaknesses can represent internal opportunities.
Select one:
True
False - ANS F
©FYNDLAY 2
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
The aim of an external audit is to develop an exhaustive list of every possible factor that could
influence the business.
Select one:
True
False - ANS F
While forecasts might not be perfect, they are never wildly inaccurate.
Select one:
True
False - ANS F
An effective competitive intelligence program allows all areas of a firm to access consistent and
verifiable information in making decisions.
Select one:
True
False - ANS T
Economic factors do not have much impact on the attractiveness of strategies.
Select one:
True
False - ANS F
Political forecasts can be the most important part of an external audit for firms that depend
heavily on government contracts.
Select one:
True
False - ANS T
©FYNDLAY 3
, ©FYNDLAY 2025 ALL RIGHTS RESERVED
Regardless of the number of key opportunities and threats included in an External Factor
Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the
lowest possible total weighted score is 0.0.
Select one:
True
False - ANS F
The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an
External Factor Evaluation (EFE) Matrix have the same meaning.
Select one:
True
False - ANS T
Organizations never develop their own projections.
Select one:
True
False - ANS F
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an
outstanding way to existing opportunities and threats in its industry.
Select one:
True
False - ANS F
Significant barriers to entry are not always sufficient to keep some new firms from entering
industries with higher-quality products, lower prices, and substantial marketing resources.
Select one:
True
False - ANS T
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