Question 1

The macro-environment is also referred to as the _______________ environment.

Accepted Answer

General environment

Question 2

The competitive environment can be seen as being influenced by five major forces: potential entrants, power of buyers, power of suppliers, competitive rivalry, and:
A) Strategic groups
B) Substitutes
C) Competing firms
D) Competing brands

Accepted Answer

The fifth major force is the threat of substitutes, which refers to the availability of alternative products or services that can fulfill the same customer needs. Substitutes can limit the profit potential of an industry by placing a ceiling on prices that can be charged.

Question 3

Environmental analysis involves the activities of scanning, ________, and forecasting.

Accepted Answer

Monitoring

Question 4

Porter (1985) has argued that an analysis of the organization's competitive environment provides more useful data than an analysis of the macro-environment.

Accepted Answer

Porter's Five Forces framework emphasizes that understanding the competitive dynamics of an industry is crucial in developing effective strategies. The macro-environment is larger and more difficult to analyze, while the competitive environment offers more specific and actionable insights.

Question 5

Threats faced by an organization that have the potential to undermine the way they compete are known as _________________

Accepted Answer

The answer of Threats faced by an organization that have...

Question 6

The aim of macro-environmental analysis is to aid the organization in discerning trends in the macro-environment which might impact upon its industry and markets.

Accepted Answer

The statement is true. The purpose of macro-environmental analysis is to identify external factors that may affect the organization, such as social, economic, technological, environmental, and political factors. By understanding these trends and changes, companies can adapt their strategies to meet new challenges and take advantage of opportunities.

Question 7

It allows the company to create a new performance trajectory for consumers based on different attributes than those of the existing technology used by the incumbent firm. This business activity is known as: Please select all that apply.
A) Disruptive innovation
B) Sustaining innovation
C) To enhance the performance of the existing technology
D) Discontinuities with the existing technology

Accepted Answer

Disruptive innovation involves creating a new market and value network that eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. This often involves different attributes than those of the existing technology. Discontinuities with the existing technology refer to breaks or disruptions in the current technological or business model, which aligns with the concept of disruptive innovation. Sustaining innovation and enhancing the performance of existing technology, on the other hand, focus on improving the current products and do not necessarily create a new performance trajectory based on different attributes.

Question 8

Fahey and Narayanan (1986) suggest a number of goals for an analysis of the general environment. These include: Please select all that apply.
A) To understand current and potential environmental changes
B) To provide useful information for decision makers
C) To foster a culture of strategic thinking from being aware of the environment
D) To predict the future so that the organization can pre-empt the changes

Accepted Answer

Fahey and Narayanan suggest that goals for analyzing the general environment include understanding current and potential environmental changes, providing useful information for decision makers, and fostering a culture of strategic thinking from being aware of the environment. However, their approach does not prioritize predicting the future or pre-empting changes.

Question 9

Organizations must be diligent in continually scanning the macro-environment for weak signals.

Accepted Answer

Organizations must always be vigilant in scanning the macro-environment for weak signals, as these signals may indicate future opportunities or threats. By identifying these signals early on, organizations can better prepare themselves to respond to changing market conditions and stay ahead of the competition.

Question 10

British Petroleum famously used scenario planning to predict the impact of OPEC on the oil industry.

Accepted Answer

The answer of British Petroleum famously used scenario planning to...

Question 11

The oil multinational Royal Dutch Shell uses the technique of _______________ to help it generate strategic options.

Accepted Answer

The answer of The oil multinational Royal Dutch Shell uses...

Question 12

Van Der Heijden (1996) identifies three main types of uncertainty. The least uncertain category is:
A) Risks
B) Structural uncertainties
C) Unknowables
D) Weak signals

Accepted Answer

Van Der Heijden categorizes uncertainty into three types- Risks, Structural uncertainties and Unknowables. Risks are events or conditions with known probabilities and their potential impacts can also be estimated. Therefore, risks are the least uncertain category of uncertainty.

Question 13

Scenario planning is most effective when the imagined scenarios are: Please select all that apply.
A) The most likely outcome
B) Plausible
C) Beyond the most likely outcome
D) Challenging

Accepted Answer

Scenario planning is most effective when the imagined scenarios are plausible, beyond the most likely outcome, and challenging. Plausible scenarios are realistic and believable, beyond the most likely outcome ensures that plans are flexible and can withstand uncertainty, and challenging scenarios help to identify potential weaknesses in current strategies. The most likely outcome may not always be the most effective scenario to plan for.

Question 14

Gladwell (2000) came up with the idea of the ____________________ to explain how seemingly small events can have profound impacts on the environment.

Accepted Answer

The answer of Gladwell (2000) came up with the idea...

Question 15

Barely perceptible changes in the environment whose impact has yet to be felt are known as ____________.

Accepted Answer

The answer of Barely perceptible changes in the environment whose...

Question 16

Scenario planning helps to overcome many of the shortcomings of traditional decision-making methods because: Please select all that apply.
A) It is an approach to decision-making under dynamic conditions.
B) It allows us to overcome some of the biases and imperfect reasoning of human beings.
C) The organization is more likely to make a certain decision.
D) The organization is more likely to be prepared for possible futures.

Accepted Answer

A) Scenario planning is designed to help organizations make decisions under uncertain and dynamic conditions, which is often the case in today's fast-changing business environment.
B) Scenario planning involves identifying a range of possible future scenarios, which helps to overcome biases and imperfect reasoning by ensuring that decision-makers consider a variety of perspectives and possibilities.
C) Scenario planning does not guarantee a certain decision. In fact, it is designed to help organizations explore different possibilities and make an informed choice based on the best available information.
D) By considering a range of possible futures, scenario planning helps organizations to be better prepared for future challenges and opportunities. This can be especially valuable in industries that are subject to rapid change or disruption.

Question 17

Which of the following factors is the most 'knowable' in terms of predicting the future?
A) Future oil prices
B) Interest rates
C) The population profile of the country
D) Outcomes of political elections

Accepted Answer

The population profile of the country can be predicted with greater accuracy than the other factors. It is determined by past birth and death rates, and can be projected in the future with reasonable certainty. This has a significant impact on economic and social development, and can provide useful insights for future planning. However, political events, oil prices, and interest rates are subject to a wide range of unpredictable factors and can fluctuate rapidly, making them more difficult to forecast with precision.

Question 18

In a process of building scenarios, to define the scope consists of: please select all that apply
A) Setting the time frame.
B) Identifying the major stakeholders.
C) Setting the scope of analysis.
D) Identifying key uncertainties.

Accepted Answer

Setting the time frame and setting the scope of analysis are both part of defining the scope in a process of building scenarios.

Question 19

Scenario planning is a useful tool for predicting the future.

Accepted Answer

Scenario planning is not about predicting the future; rather, it's a method for exploring multiple plausible futures and preparing for various possible outcomes.

Question 20

Each scenario describes an equilibrium state that can exist forever.

Accepted Answer

Equilibrium states, especially in dynamic systems such as economies, ecosystems, or chemical reactions, can be disrupted by external changes or internal fluctuations, leading to a new equilibrium or a non-equilibrium state.

Quiz 2: Evaluating the Macro-Environment

The macro-environment is also referred to as the _______________ environment.

The competitive environment can be seen as being influenced by five major forces: potential entrants, power of buyers, power of suppliers, competitive rivalry, and:

Environmental analysis involves the activities of scanning, ________, and forecasting.

Porter (1985) has argued that an analysis of the organization's competitive environment provides more useful data than an analysis of the macro-environment.

Threats faced by an organization that have the potential to undermine the way they compete are known as _________________

The aim of macro-environmental analysis is to aid the organization in discerning trends in the macro-environment which might impact upon its industry and markets.

It allows the company to create a new performance trajectory for consumers based on different attributes than those of the existing technology used by the incumbent firm. This business activity is known as: Please select all that apply.

Fahey and Narayanan (1986) suggest a number of goals for an analysis of the general environment. These include: Please select all that apply.

Organizations must be diligent in continually scanning the macro-environment for weak signals.

British Petroleum famously used scenario planning to predict the impact of OPEC on the oil industry.

The oil multinational Royal Dutch Shell uses the technique of _______________ to help it generate strategic options.

Van Der Heijden (1996) identifies three main types of uncertainty. The least uncertain category is:

Scenario planning is most effective when the imagined scenarios are: Please select all that apply.

Gladwell (2000) came up with the idea of the ____________________ to explain how seemingly small events can have profound impacts on the environment.

Barely perceptible changes in the environment whose impact has yet to be felt are known as ____________.

Scenario planning helps to overcome many of the shortcomings of traditional decision-making methods because: Please select all that apply.

Which of the following factors is the most 'knowable' in terms of predicting the future?

In a process of building scenarios, to define the scope consists of: please select all that apply

Scenario planning is a useful tool for predicting the future.

Each scenario describes an equilibrium state that can exist forever.