Deck 5: Environment Analysis

Question 1

Strategic proposals requiring significant up-front investment would benefit from

A) a lengthy implementation period
B) worst case scenario planning
C) strong leadership
D) price stability in the marketplace

Answer 1

B

Question 2

One of the considerations when testing the strategic proposal competition link is

A) break-even point
B) technology
C) bargaining power of suppliers
D) industry attractiveness

Answer 2

D

Question 3

Strategic goals establish

A) managerial preferences
B) performance expectations
C) operation efficiency targets
D) organizational boundaries

Answer 3

B

Question 4

The relevant environment for strategic analysis is the organization's

A) competitive sphere
B) political jurisdiction
C) boundaries
D) industry or market segment

Question 5

Key questions that help define an organization's relevant environment include

A) managerial preferences and stakeholder interests
B) market forces of supply and demand
C) goals and objectives of the organization
D) mission and organizational capabilities

Question 6

One of the considerations when evaluating the fit between a strategic proposal and demand is the

A) preferences of the management team
B) likelihood of competitive reaction
C) response of the regulators
D) bargaining power of the buyers

Question 7

An organization's value proposition is based on

A) managerial preferences and organizational capabilities
B) competitive pressures and organizational response
C) customer appeal and competitive differentiation
D) consumer demand and technological solutions

Question 8

Variable costs are tied to

A) exchange rate fluctuations
B) the price of raw materials
C) supplier margins
D) changes in volume

Question 9

Market intruders have the potential to

A) create barriers to exit
B) increase competition
C) reduce profitability for marginal firms
D) change the industry

Question 10

Organization's that are outperforming their industry have aligned

A) operations with efficiency
B) strategy with environment
C) managerial preferences with mission
D) strategy with competitors

Question 11

If an organization's variable costs are relatively high then the strategic focus is on

A) input costs
B) interest rates
C) contribution
D) technology

Question 12

Product market focus is important for evaluating

A) demographic forces
B) economic conditions
C) consumer demand
D) government regulation

Question 13

Elements of the profit model used to evaluate strategic proposals include

A) projected revenues, estimated costs, and time line for implementation
B) sales target, projected revenues, and potential profits
C) investment, projected revenues, and estimated costs
D) gross margin, net earnings, and debt/equity ratio

Question 14

If a firm's value proposition is based on price then

A) consumer price sensitivity is of interest
B) cost cutting is a priority
C) long term supply agreements are common
D) operational efficiency is a key goal

Question 15

If an organization's fixed costs are relatively high, then the strategic focus is on

A) minimizing variable costs
B) maximizing through-put
C) reducing fixed costs
D) increasing leverage

Question 16

One of the considerations when evaluating the fit between a strategic proposal and supply is

A) competition for raw materials
B) customer bargaining power
C) threat of new entrants
D) likelihood of competitive response

Question 17

One of the factors that influences the scale and timing of market development is the

A) priorities of the Board of Directors
B) likelihood of competitive reaction
C) product market life cycle
D) threat of new entrants

Question 18

Environmental forces can be classified as

A) market structure, consumer preferences, technology, and supplier base
B) supply, demand, competition, and governmental
C) time horizon, break-even point, barriers to entry, pace of change
D) product market focus, governmental, organizational boundaries, and demand

Question 19

A macro-environment scan is a search for

A) short-term changes in the external environment
B) economic forces with competitive implications
C) long-term social, economic, and technical trends
D) alignment of strategy with environment

Question 20

The critical issue with technology is often

A) timing
B) volume
C) ratio of fixed to variable costs
D) break-even point

Question 21

If the strategic goal is revenue growth, then the focus of the environmental analysis should be on testing customer appeal.

Question 22

The impact of shortening the product life cycle is to compress the time horizon for planning purposes.

Question 23

A small winery that intends to age all of its products is an example of an industry with

A) high fixed cost structures
B) high variable cost structures
C) high break even points structures
D) inflexible investment structures

Question 24

A focused environmental analysis will involve

A) issue-continuous informal process
B) analysis of fit with forces in defined environments
C) fundamental social economic and technical trends
D) identify events of potential impact to the business

Question 25

The firm's current performance assessment will determine the time horizon for the environment analysis.

Question 26

The firm's ability to achieve the target market share is not a consideration when evaluating the break-even point.

Question 27

In organizations with high variable costs, the assumptions associated with key input costs are of critical importance.

Question 28

In organizations with high fixed costs, operating volumes are a key consideration.

Question 29

The time horizon for strategic proposals that require significant organizational change for success is relatively short.

Question 30

Trade policy is one of the considerations associated with the linkage between strategy and

A) environment
B) import
C) government
D) export

Question 31

A key priority in the early stages of analysis of the strategy/environment linkage is

A) data collection
B) break-even analysis
C) goal setting
D) focus

Question 32

Defining the right time horizon will involve the following factors:

A) pace of external change, flexibility of commitment, implementation horizon
B) flexibility of commitment, resource capabilities and implementation horizon
C) pace of external change, resource capabilities and flexibility of commitment
D) pace of external change, implementation horizon and resource capabilities

Question 33

The timing of investment commitments creates differing levels of risk for the firm.

Question 34

When analyzing competition for raw material in the business environment analysis model (BEAM) the environmental force being considered is

A) supply
B) government
C) demand
D) competition

Question 35

The purpose of forecasting the performance of a strategic proposal is to ensure

A) management is committed to the initiative
B) sustainability of the enterprise
C) stakeholder priorities have been addressed
D) consistency with the strategic goals

Question 36

A proposal to enter a new geographic region requires the analyst to consider short-term market conditions.

Question 37

The fact that automakers buy goods in quantities that represent important volumes to their suppliers indicates a force of

A) low customer bargaining power
B) high customer bargaining power
C) low supplier power
D) high supplier power

Question 38

A strong performance record suggests the fit between strategy and the environment is marginal.

Question 39

Where the strategy/environment linkage is marginal, the proposal should be

A) reserved for scenario planning
B) retained for comparison purposes
C) re-evaluated
D) subjected to rigorous cost- benefit analysis

Question 40

Research grants are an example of

A) industrial support
B) entry barriers
C) wage subsidies
D) government support

Question 41

In retailing, the ability of suppliers to support the firm's strategic initiatives is a consideration when evaluating the strategy/demand linkage.

Question 42

New technology is often the mechanism used by outsiders to overcome barriers to entry in traditional industries.

Question 43

In evaluating the strategy/demand linkage one of the concerns for analysts is: How quickly will the market develop?

Question 44

Regulatory oversight and governmental investments have changed the business environment since 2008.

Question 45

The internet has reduced the bargaining power for both buyers and suppliers.

Question 46

Environmental scans and recycling are two mechanisms used to prevent strategic myopia in the analysis process.

Question 47

Testing the strategy-environmental linkage requires a rigorous assessment of the potential costs and benefits of each proposal.

Question 48

The consequences of not implementing the strategic proposals as planned should be considered a part of the test of strategy-environment linkages.

Question 49

In service-intensive industries, employee recruitment is a consideration when evaluating the strategy-supply linkage.

Question 50

On-going environmental scans are used to reduce the risk of missing threats arising from unconventional sources on the fringe of the business environment.

Question 51

Of the four strategic-environmental linkages that are used to evaluate strategic proposals, the strategy-competition linkage is the least important.

Question 52

If the environmental analysis is too narrow in scope, new market opportunities could be overlooked.

Question 53

Strategic goals for revenue growth need to be evaluated based on projected operating costs.

Question 54

Growth in demand should be considered when evaluating cost performance goals.

Question 55

New product failures can be viewed as an example of a strategy that was not well aligned with the demand conditions of the environment.