Understanding Business Strategy Concepts Plus 3rd Edition by R. Duane Ireland – Test Bank
The Test Bank for Understanding Business Strategy Concepts Plus 3rd Edition by R. Duane Ireland is a valuable resource designed to assist instructors in assessing their students’ knowledge and understanding of the fundamental concepts and principles of business strategy. The textbook, Understanding Business Strategy, provides a comprehensive overview of the various theories and concepts related to business strategy, including strategic planning, competitive advantage, and business-level strategies.
The Test Bank includes a variety of question types, including multiple-choice, true/false, and short answer questions, organized by chapter to correspond with the material covered in the textbook. The questions are designed to test students’ knowledge of key business strategy concepts and their ability to apply that knowledge to real-world scenarios.
Chapter 3 – Analyzing the External Environment
TRUE/FALSE
1.Between 2000-2020 the percentage of Americans over age 65 will decrease by approximately seven percent.
ANS: F PTS: 1 REF: Page 49 OBJ: Learning Objective 2
KEY:Knowledge
MSC: AACSB: Diversity | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
2.Home Depot and Lowes’ installation service businesses are expected to grow as the population ages.
ANS: T PTS: 1 REF: Page 49 OBJ: Learning Objective 2
KEY:Application
MSC: AACSB: Analytic | Management: Analytic | Dierdorff & Rubin: Strategic & Systems Skills
3.When companies like Home Depot and Lowes analyze the external environment they are trying to understand how demographic trends might impact future profitability.
ANS: T PTS: 1 REF: Page 49 OBJ: Learning Objective 1
KEY:Application
MSC:AACSB: Reflective Thinking | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
4.Personal opinions and casual observations about the external environment provide exactly the kind of information that managers should use when formulating strategies.
ANS: F PTS: 1 REF: Page 51 OBJ: Learning Objective 1
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
5.Firms can exercise a moderate amount of direct control over the demographic and economic trends in the general environment.
ANS: F PTS: 1 REF: Page 49 OBJ: Learning Objective 2
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
6.Changes in lifestyles, population size, society’s attitudes, educational status and marital status are all examples of demographic trends in the general environment.
ANS: F PTS: 1 REF: Page 49 OBJ: Learning Objective 2
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
7.IN the United States there has been a geographic shift in the population as people have migrated from the south and west to the northern and eastern parts of the country.
ANS: F PTS: 1 REF: Page 49 OBJ: Learning Objective 2
KEY:Knowledge
MSC: AACSB: Diversity | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
8.Income growth or decline, savings rates, and currency exchange rates are examples of economic trends.
ANS: T PTS: 1 REF: Page 50 OBJ: Learning Objective 2
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
9.Economic trends affect customers’ purchasing decisions and how firm’s allocate their resources.
ANS: T PTS: 1 REF: Page 50 OBJ: Learning Objective 2
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
10.The process of transforming state-owned firms to privately owned companies is known as deregulation.
ANS: F PTS: 1 REF: Page 50 OBJ: Learning Objective 2
KEY:Knowledge
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
11.One reason that managers analyze conditions in the external environment is to help them select a strategy to implement.
ANS: T PTS: 1 REF: Page 48 OBJ: Learning Objective 1
KEY:Knowledge
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
12.Changes in a society’s attitudes and cultural values reflect demographic trends.
ANS: F PTS: 1 REF: Page 51 OBJ: Learning Objective 2
KEY:Comprehension
MSC: AACSB: Analytic | Management: Environmental Influence | Dierdorff & Rubin: Strategic & Systems Skills
13.By keeping up with technological trends a company may be able to identify and incorporate cutting edge technology developed in other industries into its own products.
ANS: T PTS: 1 REF: Page 51 OBJ: Learning Objective 2
KEY:Comprehension
MSC:AACSB: Technology | Management: Environmental Influence | Dierdorff & Rubin: Knowledge of Technology, Design, & Production
14.Economies of scale and capital requirements are two of the barriers to entry that companies might try to establish in order to reduce the chances that a new competitor might enter the industry.
ANS: T PTS: 1 REF: Page 56 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
15.Imagine that you are in your final semester of college and you decide to transfer to a different school. This decision probably involves few, if any switching costs.
ANS: F PTS: 1 REF: Page 57 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
16.Licensing and permit requirements in liquor retailing and banking are examples of barriers to entry that are based on government policy.
ANS: T PTS: 1 REF: Page 57 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
17.Substitute products pose a strong threat when they are more effective and priced lower than your existing products.
ANS: T PTS: 1 REF: Page 58 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
18.Powerful suppliers can either increase the price of their product or reduce the quality while selling it at the same price.
ANS: T PTS: 1 REF: Page 58 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
19.Electronic Arts (EA) is a powerful supplier in the electronic game industry. As a result, EA’s actions can reduce the profit potential of companies that make electronic game boxes, such as Sony, Microsoft and Nintendo.
ANS: T PTS: 1 REF: Page 47 OBJ: Learning Objective 3
KEY:Application
MSC: AACSB: Reflective Thinking | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
20.Subprime mortgages are the leading cause of the 2007-2008 financial crisis in the US.
ANS: T PTS: 1 REF: Page 52 OBJ: Learning Objective 2
KEY:Knowledge
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
21.As switching costs and the industry growth rate decline, competitive rivalry will also decline.
ANS: F PTS: 1 REF: Page 57 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
22.In the airline industry, specialized assets create significant exit barriers and intensify the rivalry among competitors.
ANS: T PTS: 1 REF: Page 61 OBJ: Learning Objective 3
KEY:Application
MSC: AACSB: Reflective Thinking | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
23.A company’s motivation to leverage its resources and capabilities to reach its vision is known as market dependence.
ANS: F PTS: 1 REF: Page 62 OBJ: Learning Objective 4
KEY:Comprehension
MSC: AACSB: Analytic | Management: Creation of Value | Dierdorff & Rubin: Strategic & Systems Skills
24.A high degree of differentiation between competitors’ products decreases competitive rivalry.
ANS: T PTS: 1 REF: Page 54 OBJ: Learning Objective 3
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
25.Companies with high market dependence are likely to respond strongly when competitors attack their market position.
ANS: T PTS: 1 REF: Page 64 OBJ: Learning Objective 5
KEY:Comprehension
MSC: AACSB: Analytic | Management: Strategy | Dierdorff & Rubin: Strategic & Systems Skills
Reviews
There are no reviews yet.