SEVI 3013 FINAL EXAM UARK
UPDATED 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
Barriers to Entry - Correct Answer- -Economies of Scale
-Product Differentiation
-Capital Requirements
-Switching Costs
-Knowledge Requirements
Bargaining Power of Suppliers - Correct Answer- Suppliers can exert power over firms
competing within an industry by
UPDATED 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
Barriers to Entry - Correct Answer- -Economies of Scale
-Product Differentiation
-Capital Requirements
-Switching Costs
-Knowledge Requirements
Bargaining Power of Suppliers - Correct Answer- Suppliers can exert power over firms
competing within an industry by
