Question 1

Over ________ of large companies use trend extrapolation for forecasting.

Accepted Answer

According to studies, over 70% of large companies use trend extrapolation for forecasting.

Question 2

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

Trend extrapolation is the most widely practiced form of forecasting by the world's largest corporations, as indicated by a study of nearly 500 of these companies. Trend extrapolation involves analyzing past trends and projecting them into the future.

Question 3

What is a set of business units or firms that "pursue similar strategies with similar resources"?

Accepted Answer

A strategic group is a set of businesses that operate in the same industry and have similar strategic approaches and resources. This grouping is important for strategic analysis because firms within the same strategic group are more likely to compete against each other than against firms in other strategic groups.

Question 4

Those variables that can affect significantly the overall competitive positions of companies within any particular industry are known as

Accepted Answer

Key success factors are those variables that can affect significantly the overall competitive positions of companies within any particular industry. They are the critical factors that lead to success in a specific market segment and are essential for companies to achieve their objectives in that industry.

Question 5

The primary activity of a competitive intelligence unit is to

Accepted Answer

The primary activity of a competitive intelligence unit is to monitor competitors, which involves gathering information on rival companies' strategies, products, pricing, and other activities in order to gain a competitive advantage. Engaging in corporate espionage, surveying stakeholders, determining industry R&D statistics, and reverse engineering competitors' products may be part of a competitive intelligence unit's activities, but they are not the primary focus.

Question 6

According to Miles and Snow, most major U.S.airlines have reflected which strategic orientation?

Accepted Answer

The answer of According to Miles and Snow, most major...

Question 7

When the pressure for coordination is strong and the pressure for local responsiveness is weak for multinational corporations within a particular industry, the industry will tend to become

Accepted Answer

When the pressure for coordination is strong and the pressure for local responsiveness is weak, multinational corporations tend to standardize their operations across the globe to achieve economies of scale and efficiencies. This leads to the creation of a global industry.

Question 8

When the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations in an industry, the industry will tend to become

Accepted Answer

When the pressure for local responsiveness is strong and the pressure for coordination is weak, the industry tends to become multidomestic. This means that firms in the industry will focus on adapting their products and services to meet the specific needs of local markets rather than trying to create a standardized product or service for all markets. This strategy allows firms to respond to local customer demands and preferences while still maintaining their competitive advantage.

Question 9

Which type of international industry manufactures and sells the same products with only minor adjustments made for individual countries around the world?

Accepted Answer

A global industry is characterized by the strategy of selling the same products or services across all markets with minimal adjustments to cater to local preferences or regulations. This approach leverages economies of scale and standardization to compete internationally.

Question 10

Which of the following is an example of a global industry?

Accepted Answer

Tires are an example of a global industry because tire manufacturers produce and sell their products globally and supply to various countries around the world. The raw materials used in tire production are often sourced from different countries, and the demand for tires is high in many parts of the world, making it a truly global industry. Retailing, banking, insurance, and healthcare may have some global players, but they are typically more domestically focused.

Question 11

To succeed in a hypercompetitive industry, companies must be willing to

Accepted Answer

To succeed in a hypercompetitive industry, companies must be willing to cannibalize their own successful product lines. This means that they must be willing to introduce new products that compete with their own existing products to maintain their market share and stay ahead of competitors. This may seem counterintuitive, but it allows companies to stay ahead of the competition and continue to innovate. Cutting prices below marginal costs, pursuing market share instead of profits, operating unethically, and reducing spending on research and development are not sustainable strategies for long-term success.

Question 12

In which type of international industry do corporations tailor their products to the specific needs of consumers in a particular country?

Accepted Answer

In a multidomestic industry, corporations tailor their products to meet the specific needs and preferences of consumers in each country they operate in. This approach allows for customization and localization of products to fit the unique cultural, economic, and social factors in each market. This is in contrast to a global industry, where corporations aim to create standardized products and marketing strategies that can be applied across multiple countries.

Question 13

A formal program of gathering information on a company's competitors is referred to as

Accepted Answer

Competitive intelligence is a systematic program of collecting and analyzing information about competitors' activities, strengths, and weaknesses. Statistical modeling is a technique used to make predictions based on statistical analysis of data. Competitive strategy refers to the plan of action a company takes to compete successfully. Quantitative forecasting is a method of predicting future trends and outcomes through quantitative analysis. Qualitative matrix is not a commonly used term in business or marketing.

Question 14

According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stable and the other one is variable, reflects which strategic orientation?

Accepted Answer

Miles and Snow's strategic orientation model suggests that analyzers are companies that operate in multiple product-market areas, with one product that is stable and one that is variable. Analyzers seek to maintain their stable product while also exploring new opportunities in the variable product area.

Question 15

A table which summarizes the key success factors within a particular industry is called a(n)

Accepted Answer

The answer of A table which summarizes the key success...

Question 16

According to Miles and Snow, companies with fairly broad product lines that focus on product innovations and market opportunities such as Frito-Lay, reflect which strategic orientation?

Accepted Answer

According to Miles and Snow, companies with broad product lines that focus on product innovations and market opportunities are known as prospectors. Therefore, the best choice is D - prospectors.

Question 17

The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1)the pressure for coordination within the MNCs operating in that industry and (2)

Accepted Answer

The pressure for local responsiveness on the part of individual country markets is the second factor that tends to determine whether an industry will be primarily multidomestic or primarily global. This means that industries with high local responsiveness tend to be more multidomestic, while industries with low local responsiveness tend to be more global.

Question 18

Which of the following is true in regards to competitive intelligence?

Accepted Answer

The Economic Espionage Act criminalizes the theft of trade secrets, the Society of Competitive Intelligence Professionals promotes ethical information gathering, and illegal activities are discouraged as most competitive intelligence is publicly accessible. Some firms may still hire consultants who use unethical methods.

Question 19

According to Miles and Snow, which strategic orientation is demonstrated by companies that have a limited product line and focuses on improving the efficiency of their existing operations?

Accepted Answer

Defenders are companies that focus on a narrow product line and seek to improve the efficiency of their existing operations.

Question 20

Which of the following is NOT one of the general strategic types according to Miles and Snow?

Accepted Answer

The four general strategic types according to Miles and Snow are defenders, prospectors, analyzers, and reactors. Initiators are not one of the categories identified by Miles and Snow.

Quiz 4: Environmental Scanning and Industry Analysis