Strategic Management Creating Competitive Advantages 9th Edition – Test Bank

Strategic Management Creating Competitive Advantages 9th Edition – Test Bank

Strategic Management: Text and Cases, 9e (Dess)

Chapter 2   Analyzing the External Environment of the Firm: Creating Competitive Advantages

1) Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Answer:  TRUE

Explanation:  Three important processes (scanning, monitoring, and gathering competitive intelligence) are used to develop forecasts.

Difficulty: 2 Medium

Topic:  Understanding a Firm’s External Environment

Learning Objective:  02-01 The importance of developing forecasts of the business environment.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

2) Perceptual acuity, according to Ram Charan, is the ability to know for certain what will happen in the future.

Answer:  FALSE

Explanation:  Ram Charan defines perceptual acuity as the ability to sense what is coming before the fog clears.

Difficulty: 2 Medium

Topic:  Understanding a Firm’s External Environment

Learning Objective:  02-01 The importance of developing forecasts of the business environment.

Bloom’s:  Understand

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

3) Ted Turner saw the potential of 24-hour news before anyone else. This is an example of perceptual acuity.

Answer:  TRUE

Explanation:  Ram Charan defines perceptual acuity as the ability to sense what is coming before the fog clears. Turner saw the potential of 24-hour news before anyone else did. All the ingredients were there, but no others connected them until he created CNN.

Difficulty: 2 Medium

Topic:  Understanding a Firm’s External Environment

Learning Objective:  02-01 The importance of developing forecasts of the business environment.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

4) Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Answer:  TRUE

Explanation:  Environmental monitoring tracks the evolution of environmental trends, sequences of events, or streams of activities.

Difficulty: 1 Easy

Topic:  Understanding a Firm’s External Environment

Learning Objective:  02-02 Why environmental scanning, environmental monitoring, and collecting competitive intelligence are critical inputs to forecasting.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation