Question 1

In the EFAS Table,the indicator of how well a particular company is responding to current and expected factors in its external environment is characterized by the

Accepted Answer

The total weighted score in the EFAS (External Factor Analysis Summary) table indicates how well a company is responding to current and expected factors in its external environment.

Question 2

An industry scenario is a forecasted description of a particular industry's likely future.It is developed by analyzing the probable impact of future societal forces on key groups in a particular industry.

Accepted Answer

An industry scenario is a forecast of a particular industry's likely future based on the analysis of future societal forces and their probable impact on key groups in the industry.

Question 3

Regression analysis is an example of which quantitative forecasting technique?

Accepted Answer

Regression analysis involves using statistical modeling to analyze variables and their relationships to make predictions.

Question 4

Extrapolation rests on the assumption that the world is relatively dynamic and changes quickly in the short run.

Accepted Answer

Extrapolation actually assumes that current trends will continue into the future, implying a relatively stable or predictable environment, rather than a quickly changing one.

Question 5

To combat the increasing theft of company secrets,the U.S.government passed the Economic Espionage Act in 1996.

Accepted Answer

The Economic Espionage Act was indeed passed by the U.S. government in 1996 to address the theft of trade secrets and proprietary information.

Question 6

Discuss the most commonly practiced form of forecasting.

Accepted Answer

The answer of Discuss the most commonly practiced form of...

Question 7

The most widely used forecasting technique used after trend extrapolation is

Accepted Answer

The answer of The most widely used forecasting technique used...

Question 8

Statistical modeling is a quantitative forecasting technique that attempts to discover causal or at least explanatory factors that link two or more time series together.

Accepted Answer

Statistical modeling is a technique used to find relationships between variables, specifically to predict one variable based on one or more other variables. This is usually done using mathematical equations, models, or algorithms, and it helps researchers to understand the underlying mechanisms that relate the variables in question. Therefore, this technique attempts to discover causal or at least explanatory factors that link two or more time series together.

Question 9

________ rests on the assumption that the world is reasonably consistent and changes slowly in the short run.

Accepted Answer

The statement describes the concept of extrapolation. Extrapolation assumes that past patterns will continue into the future, which requires the assumption of a consistent world that changes slowly in the short run. Statistical modeling, scenario-writing, the Delphi technique, and brainstorming do not necessarily rely on this assumption.

Question 10

Trend extrapolation is

Accepted Answer

Trend extrapolation involves extending present trends into the future. It is a quantitative forecasting method where historical data is analyzed to identify patterns and trends, which are then projected into the future.

Question 11

The technique recommended by the text to organize an analysis of external strategic factors is called

Accepted Answer

The text recommends the use of EFAS, or External Factor Analysis Summary, to organize an analysis of external strategic factors. This tool helps to identify and prioritize key external factors that impact a company's performance and competitiveness, and is often used in conjunction with an internal analysis using the IFAS tool. The SFAS tool is used to analyze strategic factors related to a specific issue or decision, and SWOT is a broader framework that considers both internal and external factors. The issues priority matrix is a tool used to prioritize issues or initiatives based on their importance and urgency.

Question 12

Define competitive intelligence.

Accepted Answer

The answer of Define competitive intelligence....

Question 13

Faulty underlying assumptions are the most frequent cause of forecasting errors.

Accepted Answer

Faulty underlying assumptions can lead to inaccurate predictions and are a common source of forecasting errors. Factors such as changes in market conditions, unexpected events, and errors in data analysis can also contribute to forecasting errors, but faulty assumptions are often the root cause. Therefore, it is essential to identify and challenge any assumptions made during the forecasting process to improve the accuracy of predictions.

Question 14

Which one of the following is not part of the process of developing industry scenarios?

Accepted Answer

Creating at least 15 scenarios is not a part of the process of developing industry scenarios. However, generating a range of plausible assumptions, examining possible shifts in societal variables, identifying uncertainties in each of the six forces in the task environment, and analyzing the industry situation that would prevail under each scenario are all steps involved in developing industry scenarios.

Question 15

A non-quantitative approach to forecasting that requires simply the presence of people with some knowledge of the situation to be predicted to propose ideas without first mentally screening them is called

Accepted Answer

The non-quantitative approach to forecasting that requires the presence of people with some knowledge of the situation to propose ideas without first mentally screening them is called brainstorming. This technique allows for the generation of a wide variety of ideas and encourages creativity and collaboration among participants. The other options listed, such as simulations, the Delphi technique, signal monitoring, and scenarios, involve more structured or quantitative approaches to forecasting.

Question 16

Over ________ of large companies use trend extrapolation for forecasting.

Accepted Answer

According to various sources and studies, around 70% of large companies use trend extrapolation as a method for forecasting future trends and patterns in business.

Question 17

One ground rule necessary for effective brainstorming is

Accepted Answer

The ground rule necessary for effective brainstorming is to propose ideas without mentally screening them. This encourages the free flow of ideas without judgment or criticism, which can stifle creativity and hinder the generation of more unique and innovative ideas.

Question 18

A study of nearly 500 of the world's largest corporations indicated which of the following to be the most widely practiced form of forecasting?

Accepted Answer

The most widely practiced form of forecasting among the world's largest corporations is trend extrapolation, which involves using historical data to identify and project future trends. This method is often used for short- to medium-term forecasting and can be relatively easy to implement. Statistical modeling and scenario-writing are also commonly used, but trend extrapolation is the most prevalent. The Delphi technique and brainstorming are less frequently used for forecasting in large corporations.

Question 19

A.C.Nielsen is an example of an outside organization providing a firm with competitive intelligence.

Accepted Answer

AC Nielsen is a well-known market research company that provides external competitive intelligence to firms.

Quiz 4: Environmental Scanning and Industry Analysis