MO Ch 2

According to Michael Porter’s model, the competitive environment includes rivalry among current competitors and the impact of new entrants, substitute and complementary products, suppliers, and customers.

• True
• False

Organizations are at an advantage if they depend on a single powerful supplier because such dependency ensures consistency.

• True
• False

April, a manager in a call center, encourages her employees to solve customers’ problems without her approval of the particular situation. In this case, April is trying to empower her employees.

• True
• False

Organizations are ________ systems that affect and are affected by their external environments.

• open
• closed
• free
• environmental
• capital

A firm’s ________ includes its rivals, suppliers, buyers (customers), new entrants, and substitutes or complementary products.

• environmental scanning
• competitive intelligence
• external environment
• competitive environment
• organizational climate

________ are measures of various characteristics of the people who make up groups or other social units.

• Psychographics
• Demographics
• Domain selections
• Lifestyle analytics
• Group dynamics

________ is managing the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers.

• Barriers to entry
• Benchmarking
• Supply chain management
• Empowerment
• Open systems

A(n) ________ is a threat because customers can use it as an alternative, buying less of one kind of product but more of another.

• new entrant
• substitute
• ensemble
• divestiture
• complement

Environmental ________ refers to the degree of discontinuous change that occurs within the industry.

• complexity
• dysfunction
• contracting
• cooptation
• dynamism

________ create alternative combinations of different factors into a total picture of the environment and a firm.

• Scenarios
• Forecasts
• Benchmarks
• Competitive intelligences
• Strategic maneuvers