Strategic Management Chapter 3

A low value of the dollar means higher imports and lower exports.
False
Political, government, and legal factors are considered key threats or opportunities for most small and large organizations.
True
What is the first step in designing an EFE Matrix?
Identifying key external factors in the industry.
Economic factors do not have much impact on the attractiveness of strategies.
False
The United States is getting older and less Caucasian.
True
Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 1.0.
True
The internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility.
True
Changes in tax rates cannot significantly affect firms.
False
The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are _________ internal factors in a firm achieving competitive advantage.
more important than
One difference between CPM and EFE is that
CPM includes both internal and external issues.
When a industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?
Political
Americans are on the move in a population shift to
the South and West
Technological advancements can create new _______ advantages that are more powerful than existing advantages.
Competitive
Identifying and evaluating key social, political, economic, technological, and competitive trends and events compromise performing an external audit.
True
According to Michael Porter,the most powerful of the five competitive forces is new entrants.
False
________ is not part of an external audit.
Analyzing financial ratios
An external audit focuses on identifying and evaluating trends and events within the control of management.
False
________ is not a basic mission of a competitive intelligence program.
To identify industry executives who could be hired by the firm
Which of the following is not a characteristic that describes the most competitive companies in America?
Divestiture is essential to growth.