Question 1

Collecting and evaluating information on competitors is essential for successful

Accepted Answer

Collecting and evaluating information on competitors is crucial for strategy formulation as it helps in understanding the competitive landscape and making informed decisions to gain a competitive advantage.

Question 2

External audits attempt to identify key variables that offer highly intuitive responses.

Accepted Answer

External audits aim to provide an independent assessment of financial statements and compliance, not to identify intuitive responses.

Question 3

In performing strategic planning and case analysis, relevant SCDE factors for a particular firm must be ________ and actionable to be useful.

Accepted Answer

Quantified factors are those that can be measured and expressed in numerical terms. This makes them actionable, as they can be used to set specific goals and track progress.

Question 4

In general, what happens to American goods in overseas markets when there is a strong dollar?

Accepted Answer

When the dollar is strong, American goods become more expensive in overseas markets because foreign buyers need more of their currency to purchase the same amount of goods priced in dollars.

Question 5

External audits attempt to identify key variables that offer ________ responses.

Accepted Answer

Actionable responses are those that can be acted upon. External audits attempt to identify key variables that offer actionable responses so that management can take steps to improve the organization's performance.

Question 6

In the U.S. food industry, demand for processed packaged foods is ________.

Accepted Answer

The demand for processed packaged foods in the U.S. is declining as consumers increasingly prefer fresh, organic, and healthier food options.

Question 7

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

Accepted Answer

The aim of an external audit is to identify and assess significant external factors that could impact the business, not to list every possible factor.

Question 8

External audit is sometimes called

Accepted Answer

The answer of External audit is sometimes called
...

Question 9

To perform an external audit, a company first must

Accepted Answer

An external audit involves gathering information about external trends and competitive intelligence to understand the external environment affecting the company.

Question 10

A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called

Accepted Answer

Competitive intelligence involves the ethical collection and analysis of information about competitors and market trends to inform business strategy.

Question 11

Which of the following is NOT an external force that must be examined in formulating strategies?

Accepted Answer

Organizational forces are internal to a company, while economic, social, cultural, and environmental forces are external factors that influence strategy formulation.

Question 12

The acronym SCDE stands for social, cultural, demographic, and ________ forces.

Accepted Answer

The answer of The acronym SCDE stands for social, cultural,...

Question 13

Which of the following states has zero state income tax?

Accepted Answer

Florida is one of the states in the U.S. that does not impose a state income tax on its residents.

Question 14

Individuals age 65 and older in the United States as a percentage of the population will rise to ________ percent by 2030.

Accepted Answer

By 2030, it is projected that individuals age 65 and older will make up 19 percent of the U.S. population.

Question 15

Availability of credit falls under the ________ forces category of external forces.

Accepted Answer

The answer of Availability of credit falls under the ________...

Question 16

An external audit focuses on identifying and evaluating trends and events within the control of management.

Accepted Answer

An external audit focuses on assessing financial statements and compliance with regulations, not on trends and events within management's control.

Question 17

The United States' population is

Accepted Answer

The United States' population is getting older due to the aging baby boomer generation and is becoming less white due to increasing diversity from immigration and higher birth rates among minority populations.

Question 18

External audits attempt to identify key variables that offer actionable responses.

Accepted Answer

External audits aim to evaluate and analyze an organization's operations, identifying key variables and areas for improvement to provide actionable insights and recommendations.

Question 19

Industry analysis is also referred to as external strategic management audit.

Accepted Answer

Industry analysis is a component of the external strategic management audit, which involves examining external factors that can impact an organization's strategy, such as industry trends, competition, and market conditions.

Question 20

External audits attempt to identify key variables that offer intuitive responses.

Accepted Answer

The answer of External audits attempt to identify key variables...

Quiz 3: The External Assessment