Question 1

External threats are conditions that jeopardize the organization's ability to prosper in the long term.

Accepted Answer

External threats are factors or conditions outside of an organization that could harm its performance or ability to achieve its objectives, thus affecting its long-term prosperity. Examples include economic downturns, competition, changes in regulations, and technological advancements.

Question 2

The general environment includes environmental forces that are within the organization's operating environment and may be influenced to some degree.

Accepted Answer

The general environment consists of external factors (economic, legal, sociocultural, technological, environmental, and political) that affect all organizations but are beyond their control and cannot be influenced by any single organization.

Question 3

Economic forces are an important part of a firm's task environment.

Accepted Answer

The answer of Economic forces are an important part of...

Question 4

Baby boomers are a demographic to be monitored in the socio-cultural environment.

Accepted Answer

Baby boomers, born between 1946 and 1964, represent a significant demographic group that impacts social, economic, and cultural trends, making them important to monitor in the socio-cultural environment.

Question 5

Issues such as tax policy, embargoes, and minimum-wage legislation are all issues concerned with the political-legal environment.

Accepted Answer

These issues are all related to the decisions and policies made by governments, which directly impact the legal and regulatory framework within which businesses and individuals operate, thus falling under the political-legal environment.

Question 6

The general component of an organization's external environment includes economic, socio-cultural, technological, and political-legal factors.

Accepted Answer

These are indeed the general components of an organization's external environment, which influence its operations and strategies.

Question 7

The political-legal environment includes the regulatory parameters within which an organization must operate.

Accepted Answer

The political-legal environment encompasses the laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society.

Question 8

Resource availability is a component of an organization's task environment.

Accepted Answer

Resource availability is part of an organization's task environment because it directly affects its ability to operate and achieve its goals. The task environment includes specific external elements that an organization interacts with to achieve its objectives, such as suppliers, customers, and competitors, all of which can influence the availability of resources.

Question 9

An organizational mission statement reflects the fundamental reasons for which the organization exists; provides strategic direction for the members of the organization; and keeps them focused on common goals.

Accepted Answer

An organizational mission statement indeed outlines the primary purpose of the organization, offers strategic guidance, and helps maintain focus on shared objectives among its members.

Question 10

Experts think that it is doubtful that mission statements are important to most organizations.

Accepted Answer

Experts generally believe that mission statements are important to most organizations because they help define the organization's purpose, guide its strategic planning, and communicate its goals and values to stakeholders.

Question 11

Missions statement are difficult to construct.

Accepted Answer

Mission statements require careful thought and consideration to accurately reflect an organization's goals, values, and purpose, making them challenging to construct.

Question 12

Vision can mean a guide to the future; or, a manager's ability to predict problems and opportunities which an organization may face.

Accepted Answer

Vision refers to both the conceptual roadmap for the future direction of an organization or effort, and the ability to foresee potential challenges and opportunities that may arise.

Question 13

The firm's task or operating environment include forces such as competition, creditors, and customers.

Accepted Answer

The firm's task or operating environment indeed includes forces such as competition, creditors, and customers, as these elements directly influence the firm's operations and strategic decisions.

Question 14

Michael Porter's Five Forces Model includes rivalry among competitors, the bargaining power of suppliers, the threat of new entrants to the industry, and the threat from substitute products or services.

Accepted Answer

Michael Porter's Five Forces Model indeed includes rivalry among existing competitors, the bargaining power of suppliers, the threat of new entrants, the threat of substitute products or services, and the bargaining power of buyers.

Question 15

Advances in technology, such as the ability to research products or services on the Internet, have helped the consumer have bargaining power.

Accepted Answer

The ability to research products or services online allows consumers to compare prices, read reviews, and find the best deals, which increases their bargaining power with sellers.

Question 16

Suppliers to Wal-mart have lots of bargaining power.

Accepted Answer

Wal-Mart is one of the largest retailers in the world, giving it significant leverage over its suppliers. This means that suppliers often have little bargaining power and must comply with Wal-Mart's terms if they wish to have their products sold in its stores.

Question 17

Threats include any area of the organization that needs improvement.

Accepted Answer

Threats refer to external factors that could cause trouble for the organization, not areas within the organization that need improvement.

Question 18

Strategy formulation addresses the question, "Where does the organization want to be?"

Accepted Answer

Strategy formulation involves defining the organization's vision, goals, and the plans to achieve them, essentially answering the question of where the organization aims to position itself in the future.

Question 19

Competitive advantage refers to the breadth of the market targeted by the organization.

Accepted Answer

Competitive advantage refers to the attributes or conditions that allow a company to produce goods or services better or more cheaply than its rivals, not the breadth of the market targeted.

Question 20

Accomplishing something better than its competitors gives an organization a competitive advantage.

Accepted Answer

Achieving superior performance or outcomes compared to competitors allows an organization to gain a competitive advantage, making it more attractive to customers and more resilient in the market.

Quiz 4: Strategic Management and Planning in a Global Environment