Chapter 2

Question 1

General Environment

Answer 1

Composed of dimensions in the broader society that influence an industry and the firms within it
1. Demographic
2. Economic
3. Political/Legal
4. Sociocultural
5. Technological
6. Global
7. Sustainable Physical

Question 2

Industry Environment

Answer 2

Porter’s 5 Forces

Question 3

Porter’s 5 Forces

Answer 3

Threat of Substitutes
Threat of New Entrants
Intensity of Rivalry
Bargaining power of suppliers
Bargaining power of buyers

Question 4

External Analysis

Answer 4

To cope with ambiguous and incomplete environmental data and to increase understanding of the general environment

Question 5

4 Parts of the External Analysis

Answer 5

1 - Scanning
2 - Monitoring
3 - Forecasting
4 - Assessing

Question 6

Scanning

Answer 6

Identifying early signals of environmental changes and trends

Question 7

Monitoring

Answer 7

Detecting meaning through ongoing observations of environmental changes and trends

Question 8

Forecasting

Answer 8

Developing projections of anticipated outcomes based on monitored changes and trends

Question 9

Assessing

Answer 9

Determining the timing and importance of environmental changes and trends for firm’s strategies and their management

Question 10

Strategic Group

Answer 10

set of firms emphasizing similar strategic dimensions and using a similar strategy