chp3 - 1. A company's "macro-environment" refers...

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1. A company's "macro-environment" refers to A) the immediate industry and competitive conditions with which it must contend. B) the global economic and competitive situation in which the company does business. C) all the relevant forces and factors outside a company's boundaries¾the economy at large, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and the industry and competitive environment in which it operates. D) the nature of the competitive rivalry that exists between a company and its competitors. E) the dominant economic and business characteristics of a company's industry. 2. The primary purpose of assessing a company's external environment and internal circumstances is to A) draw out those features in a company's internal/external environment which are shaping the competitive threats and business risks with which it must contend over the next few years. B) help managers be responsive to industry and competitive conditions. C) decide how best to undermine the competitive positions of rival firms. D) determine whether the company's objectives are sufficiently challenging. E) help managers craft a strategy that is well-matched to its situation. 3. Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry? A) What factors are driving change in industry and what impact will they have on the industry's competitive structure and business environment? B) Which rivals will likely make what competitive moves next? C) What are the key factors for competitive success in this industry? D) Is the industry attractive and what are the prospects for above- average profitability? E) Which companies have the best strategies and the best track records for earnings growth and return on shareholder investment? 4. An industry's market growth rate is strategically important because A) large, high-profit markets often draw the interest of big corporations looking to acquire companies with long-established positions in major industries. B)
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This note was uploaded on 07/03/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

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chp3 - 1. A company's "macro-environment" refers...

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