Question 1

According to the text, Google has been sued by several media companies for violations of copyright law. Which of the following would be the most appropriate interpretation of these under general environmental and industry analysis?

Accepted Answer

The text specifically mentions that Google has been sued for violations of copyright law, indicating a changing legal environment pertaining to the posting of copyrighted material on internet sites. It also implies that media companies are attempting to control the actions of internet companies like Google, indicating the challenges of controlling supplier actions. Therefore, option B is the most appropriate interpretation of these events.

Question 2

Diverse work groups tend to be more creative and innovative, as well as more ____, than homogenous work groups.

Accepted Answer

Diverse work groups can be more challenging to manage due to differences in perspectives, communication styles, and potential conflicts, despite their creativity and innovation benefits.

Question 3

Google has influenced what portion of the general environment for other software firms?

Accepted Answer

Google has significantly influenced the technological portion of the general environment for other software firms. With their groundbreaking products and services, Google has set a high standard for innovation, which has forced other software firms to continuously improve and develop new technologies to remain competitive.

Question 4

An analysis of society's attitudes and values would be conducted when studying the ____ segment of the general environment.

Accepted Answer

The sociocultural segment of the general environment includes the attitudes, beliefs, values, and lifestyles of people in a given society. It is concerned with the way people live, work, and interact with each other. Therefore, an analysis of society's attitudes and values would fall under this segment. The other segments, such as global, demographic, and economic, would focus on different aspects of the general environment, such as international trade, population trends, and economic indicators.

Question 5

The concepts of Guanxi, Wa, and Inhwa all convey the general idea of

Accepted Answer

Guanxi (China), Wa (Japan), and Inhwa (Korea) are all concepts that emphasize the importance of building and maintaining interpersonal relationships in business and society. These concepts emphasize trust, mutual respect, and reciprocity, and they facilitate cooperation and collaboration in various contexts. Therefore, the best choice is B, interpersonal relationships, as the other choices do not capture the essence of these concepts.

Question 6

New entrants to an industry are more likely when

Accepted Answer

The answer of New entrants to an industry are more...

Question 7

A Midwestern bank has outsourced its customer service function to a firm in India. This is an example of changes in the ____ segment of the general environment.

Accepted Answer

Outsourcing of services to a firm in India indicates a change in the global segment of the general environment as it involves cross-border transactions and influences from other countries.

Question 8

All of the following represent areas where Google is most likely assessing and forecasting the general environment EXCEPT

Accepted Answer

The other options involve legal or technological factors that would impact Google's business, while the relationship with Microsoft is not necessarily a key factor in the general environment.

Question 9

Economies of scale refer to the fact that as the

Accepted Answer

Economies of scale refer to the decrease in cost of manufacturing each unit as the quantity of product produced in a given time period increases. This is because the fixed costs associated with production are spread over a larger quantity of products, resulting in lower costs per unit.

Question 10

Which of the five forces of competition is MOST threatening to Google?

Accepted Answer

Google faces significant competition from other search engines, which directly impacts its market share and advertising revenue.

Question 11

The technological segment of environmental analysis includes

Accepted Answer

The answer of The technological segment of environmental analysis includes
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Question 12

An industry is defined as

Accepted Answer

The answer of An industry is defined as
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Question 13

The likelihood of entry of new competitors is affected by ____ and ____.

Accepted Answer

Barriers to entry refer to factors that make it difficult for new firms to enter an industry, such as high start-up costs, government regulations, and established brand recognition. Expected retaliation of current industry organizations is also an important factor because existing firms may use their resources and influence to discourage new entrants. Both of these factors impact the likelihood of entry of new competitors. The other choices (B, C, and D) do not directly relate to the likelihood of entry of new competitors.

Question 14

One of the segments of the external environment tends to drive (heavily influence) many of the other segments. This segment is the ____ segment.

Accepted Answer

The sociocultural segment tends to heavily influence many of the other segments, such as the economic, technological, and even political/legal segments. For example, changes in societal values and attitudes can impact consumer behavior and ultimately affect the demand for products and services in the economy. Additionally, advances in technology can also be heavily influenced by societal expectations and values. Therefore, the sociocultural segment is a key driver in shaping the external environment.

Question 15

The next critical technological opportunity for organizations is predicted to be

Accepted Answer

The answer of The next critical technological opportunity for organizations...

Question 16

In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owner fail to take into account when she began selling the lingerie?

Accepted Answer

The store owner failed to take into account the sociocultural segment of the environment, specifically the cultural norms and values of the community in which the store was located. Selling lingerie, particularly scanty lingerie, may not have aligned with the community's values and could have been seen as inappropriate or offensive, leading to a loss of customers and damage to the store's reputation.

Question 17

Which of the following is NOT an entry barrier to an industry?

Accepted Answer

The answer of Which of the following is NOT an...

Question 18

Understanding how new knowledge can develop new products, processes, or materials is a result of analyzing the ____ segment of the general environment.

Accepted Answer

The technological segment of the general environment includes all advancements in knowledge that can lead to the development of new products, processes, or materials. This segment includes factors such as research and development efforts, emerging technologies, and innovation trends. By analyzing this segment, organizations can identify new opportunities to create value and gain a competitive advantage.

Question 19

Product differentiation refers to the

Accepted Answer

Product differentiation refers to the belief by customers that a product is unique. This uniqueness can be based on quality, features, design, packaging, branding, or any other attribute that sets the product apart from others in the market. This perception of uniqueness helps firms to create brand loyalty and charge a premium price for their products.

Question 20

AT&T's bundling of high-speed Internet services, satellite television, and wireless phone services influences which of the five forces of industry structure the LEAST?

Accepted Answer

AT&T's bundling of high-speed Internet services, satellite television, and wireless phone services does not have a significant impact on the bargaining power of suppliers. The suppliers of the services and products being bundled are unlikely to have much bargaining power over AT&T as a large company with established relationships and contracts in place. The other four forces - rivalry between existing firms, threat of new entrants, bargaining power of buyers, and the threat of substitute products or services - are likely to be impacted by AT&T's bundling strategy.

Quiz 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis