Question 1

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

Accepted Answer

Extrapolation assumes that past trends will continue into the future, which may not always be the case. While the world may change quickly in some areas, it is not necessarily a universal truth and extrapolation may lead to inaccurate predictions.

Question 2

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

Accepted Answer

It is not necessary to generate at least 15 scenarios, as the number of scenarios will depend on the complexity of the industry being analyzed and the scope of the analysis. However, examining possible shifts in societal variables, identifying uncertainties in each of the six forces in the task environment, making plausible assumptions about future trends, and analyzing the industry situation that would prevail under each scenario are all important steps in the process of developing industry scenarios.

Question 3

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

Accepted Answer

A.C. Nielsen is a well-known provider of market research and competitive intelligence services for businesses. They offer a variety of data and insights on consumer behavior, market trends, and competitor strategies that can help companies stay ahead of the competition. As an outside organization, A.C. Nielsen is independent of the firm and can provide unbiased information that can be used to inform business decisions and strategies.

Question 4

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 in 1996 to address the growing issue of theft of intellectual property and trade secrets.

Question 5

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 6

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

Accepted Answer

Extrapolation involves projecting past trend data into the future, assuming that the future will follow a similar pattern as the past. This assumes that the world is reasonably consistent and changes slowly in the short run.

Question 7

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

This is an accurate definition of statistical modeling. It involves analyzing data to identify patterns and relationships between variables, with the goal of making predictions or uncovering insights. By examining different statistical models, analysts are able to identify the factors that are most strongly correlated with changes in the variables being studied, and use this information to forecast future outcomes.

Question 8

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, which means that all ideas, no matter how wild or seemingly irrelevant, should be shared and considered without judgment or critique in the early stages of brainstorming. This encourages free-flowing creativity and opens up possibilities for unique and innovative solutions. Scrutinizing, calculating future earnings, critiquing for rationality or forecasting success could stifle creativity and limit the potential for successful ideas to emerge.

Question 9

Trend extrapolation is

Accepted Answer

Trend extrapolation involves extending present trends into the future based on historical data. It does not involve intuition or asking authorities for guesses. It also does not involve detecting faulty assumptions. Option D refers to scenario planning, which is different from trend extrapolation.

Question 10

Over ________ of large companies use trend extrapolation for forecasting.

Accepted Answer

According to the textbook "Operations Management" by Jay Heizer and Barry Render, over 70% of large companies use trend extrapolation for forecasting.

Question 11

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

Accepted Answer

The EFAS matrix, or External Factor Analysis Summary, is the technique recommended by the text to organize an analysis of external strategic factors. The IFAS matrix (Internal Factor Analysis Summary) is used for analyzing internal factors, while the SFAS matrix (Strategic Factor Analysis Summary) is used for combining both internal and external factors into a single matrix. SWOT analysis is a broader strategic planning tool that assesses both internal and external factors, but does not provide a specific organization technique like EFAS or IFAS. The issues priority matrix, while useful for prioritizing problems, is not specifically related to external strategic factors.

Question 12

Define competitive intelligence.

Accepted Answer

The answer of Define competitive intelligence....

Question 13

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 screening them is called brainstorming. The other options, such as simulation and signal monitoring, involve more quantitative or data-driven approaches to forecasting. The Delphi technique involves collecting and synthesizing expert opinions, but still involves a screening or filtering process. Scenarios involve developing narratives or storylines about possible future situations.

Question 14

The most widely used forecasting technique used after trend extrapolation is

Accepted Answer

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

Question 15

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

According to the information given, trend extrapolation is the most widely practiced form of forecasting among the world's largest corporations.

Question 16

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

Accepted Answer

Faulty underlying assumptions can lead to inaccurate forecasting, as the forecast is built upon flawed premises. This is a common cause of forecasting errors.

Question 17

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 forecasted description of a particular industry's likely future based on the analysis of societal forces and their impact on key groups in the industry.

Question 18

Regression analysis is an example of which quantitative forecasting technique?

Accepted Answer

Regression analysis is a statistical modeling technique that uses historical data to identify patterns and relationships among variables, allowing for the prediction of future values.

Question 19

Discuss the most commonly practiced form of forecasting.

Accepted Answer

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

Quiz 4: Environmental Scanning and Industry Analysis