SEVI 3013 EXAM #1 QUESTIONS AND
ANSWERS
Forecasting - Answer-develop feasible projections of what might happen, and how
quickly, as a result of the events and trends detected through scanning and monitoring
Assessing - Answer-determine the timing and significance of the effects of
environmental changes and trends that have been identified.
demographic segment of the general environment - Answer-concerned with a
population's size, age structure, geographic distribution, ethnic mix, and income
distribution
economic segment of the general environment - Answer-refers to the nature and
direction of the economy in which a firm competes or may compete.
how firms can earn above-average returns - Answer-through the strategic management
process
A-S-P model - Answer-A firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - Answer-individuals, groups, and organizations that can affect the firm's
vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - Answer-Because firms are not equally
dependent on all stakeholders at all times, stakeholders possess different degrees of
ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
shareholders - Answer-individuals and groups who have invested capital in a firm in the
expectation of earning a positive return on their investments.
3 Stakeholder Groups - Answer--Capital Market Stakeholders (shareholders & major
suppliers)
-Product Market Stakeholders (customers)
, -Organizational Stakeholders (employees)
General Environment - Answer-composed of dimensions in the broader society that
influence an industry and the firms within it
Seven Environmental Segments and examples - Answer-demographic - population size
economic- inflation rates
political/legal- antitrust laws
sociocultural- women in the workforce
technological- product innovation
global- important political events
sustainable physical environment - energy consumption
Industry Environment - Answer-the set of factors that directly influences a firm and its
competitive actions and responses: the threat of new entrants, the power of suppliers,
the power of buyers, the threat of product substitutes, and the intensity of rivalry among
competing firms
four parts of an external environmental analysis - Answer-1. Scanning
2. Monitoring
3. Forecasting
4. Assessing
Scanning - Answer-the study of all segments in the general environment.
Through scanning, firms: - Answer-identify early signals of potential changes in the
general environment
detect changes that are already under way
Monitoring - Answer-observe environmental changes to see if an important trend is
emerging from among those spotted through scanning
political/legal segment of the general environment - Answer-the arena in which
organizations and interest groups compete for attention, resources, and a voice in
overseeing the body of laws and regulations guiding interactions among nations as well
as between firms and various local governmental agencies.
sociocultural segment of the general environment - Answer-concerned with a society's
attitudes and cultural values
technological segment of the general environment - Answer-includes the institutions and
activities involved in creating new knowledge and translating that knowledge into new
outputs, products, processes, and materials
ANSWERS
Forecasting - Answer-develop feasible projections of what might happen, and how
quickly, as a result of the events and trends detected through scanning and monitoring
Assessing - Answer-determine the timing and significance of the effects of
environmental changes and trends that have been identified.
demographic segment of the general environment - Answer-concerned with a
population's size, age structure, geographic distribution, ethnic mix, and income
distribution
economic segment of the general environment - Answer-refers to the nature and
direction of the economy in which a firm competes or may compete.
how firms can earn above-average returns - Answer-through the strategic management
process
A-S-P model - Answer-A firm analyzes the external environment and its internal
organization, then formulates and implements strategies to achieve a desired level of
performance.
*WITHIN THE STRATEGIC MANAGEMENT PROCESS*
Stakeholders - Answer-individuals, groups, and organizations that can affect the firm's
vision and mission, are affected by the strategic outcomes achieved, and have
enforceable claims on the firm's performance
Stakeholders ability to influence organizations - Answer-Because firms are not equally
dependent on all stakeholders at all times, stakeholders possess different degrees of
ability to influence an organization.
Greater dependence gives the stakeholder more potential influence over a firm's
commitments, decisions, and actions
shareholders - Answer-individuals and groups who have invested capital in a firm in the
expectation of earning a positive return on their investments.
3 Stakeholder Groups - Answer--Capital Market Stakeholders (shareholders & major
suppliers)
-Product Market Stakeholders (customers)
, -Organizational Stakeholders (employees)
General Environment - Answer-composed of dimensions in the broader society that
influence an industry and the firms within it
Seven Environmental Segments and examples - Answer-demographic - population size
economic- inflation rates
political/legal- antitrust laws
sociocultural- women in the workforce
technological- product innovation
global- important political events
sustainable physical environment - energy consumption
Industry Environment - Answer-the set of factors that directly influences a firm and its
competitive actions and responses: the threat of new entrants, the power of suppliers,
the power of buyers, the threat of product substitutes, and the intensity of rivalry among
competing firms
four parts of an external environmental analysis - Answer-1. Scanning
2. Monitoring
3. Forecasting
4. Assessing
Scanning - Answer-the study of all segments in the general environment.
Through scanning, firms: - Answer-identify early signals of potential changes in the
general environment
detect changes that are already under way
Monitoring - Answer-observe environmental changes to see if an important trend is
emerging from among those spotted through scanning
political/legal segment of the general environment - Answer-the arena in which
organizations and interest groups compete for attention, resources, and a voice in
overseeing the body of laws and regulations guiding interactions among nations as well
as between firms and various local governmental agencies.
sociocultural segment of the general environment - Answer-concerned with a society's
attitudes and cultural values
technological segment of the general environment - Answer-includes the institutions and
activities involved in creating new knowledge and translating that knowledge into new
outputs, products, processes, and materials
