According to I/O theorists, which of the following contributes least to firm performance?

Internal resources

Economies of scale
Barriers to market entry
Product differentiation
 
The external audit is aimed at:
taking advantage of potential threats and minimizing external opportunities
developing an exhaustive list of factors that could influence the business.
identifying key variables that offer actionable responses.
developing an infinite list of opportunities that could benefit a firm.
 
Good _______ in business, as in the military, is one of the keys to success.
short-term plan focus
competitive intelligence
divisions
conflict encouraging scenarios
 
__________ are the results of a low value of the dollar.
Lower imports and higher exports
Lower imports and lower exports
Higher imports and higher exports
Higher imports and lower exports
 
Which of the following is NOT a key economic variable to be monitored?
Availability of credit
Price fluctuations
Stock market trends
Voter participation rates
 
_______________ and ______________ are creating similar patterns of consumption in diverse cultures worldwide.
Tax harmonization; legal factors
Distinct domestic markets; the climate for international business
Mass communication; high technology
Corporate tax breaks; mass communication
 
The idea of joining forces with a competitor is not easily accepted by ___________, who often view cooperation and partnerships with skepticism and suspicion.
Japanese
Americans
Chinese
Europeans
 
All of these, except __________, are part of Porter's competitive forces in industry analysis.
potential entry of new competitors
bargaining power of suppliers
development of substitute products
bargaining power of unions
 
In its simplest sense, the international challenge faced by U.S. business is twofold:
how to increase exports to other countries and how to increase imports from other countries.
how to defend domestic markets against imported goods while minimizing exports.
how to maximize exports to other nations and how to defend domestic markets against imported goods.
how to minimize imports and exports in domestic markets and slowly decrease globalization.
 
_______________ are most appropriate when historical data are available and when the relationships among key variables are expected to remain the same in the future.
Qualitative forecasts
Econometric model analyses
Quantitative forecasts
A scenario forecast
 
Five major categories of external variables are: (1) economic forces, (2) social and cultural forces, (3) political, governmental and legal forces, (4) technological forces and (5) demographic forces.
True
False
 
Significant and unequal effects on companies in different industries and in different locations come from trends in the dollar's value.
True
False
 
Competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumers' switching costs decrease.
True
False
 
Research findings suggest that approximately 36 percent of a firm's profitability can be explained by the industry, whereas 20 percent is attributed to the firm's internal factors.
True
False
           
Nine out of 10 large companies have employees dedicated solely to gathering competitive intelligence.
Question 15.True
False
 
Suppliers can increase their bargaining power if they can inexpensively switch to competing brands or substitutes.
True
False
 
Bargaining power of consumers is usually the most powerful of Porter's five competitive forces.
True
False
 
Many large multinational firms are moving out of EU member-countries into Switzerland and Ireland to avoid costs associated with tax harmonization.
True
False
 
Shifts in the nature and location of production systems, especially to China and India, are reducing the response time to changing market conditions.
True
False
 
Based on the best information at the time, assumptions serve as checkpoints on the validity of strategies.
True
False
1. In which of the following industry environments are franchising and horizontal mergers commonly used strategies?
a. Emerging industries.
b. Declining industries.
c. Fragmented industries.
d. Mature industries.
 
c. Correct. Strategies such as chaining, franchising, and horizontal mergers are commonly used in fragmented industries, because there are low barriers to entry. Companies in fragmented industries face many opportunities for differentiation but each opportunity for competitive advantage is small.
 
2. Which of the following costs does management need to consider when introducing a new product or substituting a new product for an existing one?
I. Costs of retraining employees.
II. Costs of acquiring new ancillary equipment.
III. Write-offs due to undepreciated investment in old technology.
IV. Capital requirements for changeover.
a. I and III only.
b. I, II, and IV only.
c. II, III, and IV only.
d. I, II, III, and IV.
Solution: d (I, II, III, and IV)
I, II, III, IV. Correct. Costs that management should consider would include costs of retraining employees; costs of acquiring new ancillary equipment; writeoffs of undepreciated investments in the old technology; capital requirements and research and development costs of the changeover; and costs of modifying interrelated stages of production or related aspects of the business.
 
3. Which of the following theories includes the assertion that employees may be motivated by achievement of acceptance or esteem in the workplace?
a. Equity theory.
b. Expectancy theory.
d. Goal-setting theory.
 The need theory suggests that employees have needs that they are motivated to satisfy in the workplace.