TEST 1 - IM - FINALS

What is strategic analysis?

• The process of hiring employees

• The process of reducing costs

• The process of studying and understanding the competitive environment

• The process of increasing sales

Why do firms need to analyze their competitive environment?

• To expand their product line

• To reduce employee turnover

• To increase their advertising budget

• To understand the impact of external forces on their operations

How do changes in population demographics impact business success?

• Companies reduce their workforce

• Companies adapt to the growing Spanish-speaking population by adding Spanish signage and labels to their products

• Companies increase their prices

• Companies decrease their product quality

What is included in a firm's competitive environment?

• Components inside and outside the firm

• Only components inside the firm

• Only components outside the firm

• Components in the local environment

How do external factors impact a firm's operations?

• They cannot be controlled but must be managed effectively

• They have no impact on the firm's operations

• They are always detrimental for the firm

• They are always beneficial for the firm

How does the unemployment rate affect a firm's ability to hire employees?

• Low unemployment means fewer qualified applicants at a higher pay rate

• Low unemployment means more qualified applicants at a lower pay rate

• High unemployment means fewer qualified applicants at a higher pay rate

• High unemployment means more qualified applicants at a lower pay rate

What is the impact of high unemployment on a firm's ability to hire employees?

• Fewer highly qualified applicants at a higher pay rate

• More highly qualified applicants at a lower pay rate

• More highly qualified applicants at a higher pay rate

• Fewer highly qualified applicants at a lower pay rate

What is the impact of low unemployment on a firm's ability to hire employees?

• More qualified applicants at a higher pay rate

• Fewer qualified applicants at a lower pay rate

• More qualified applicants at a lower pay rate

• Fewer qualified applicants at a higher pay rate

How do successful firms prepare for and adapt to environmental changes?

• By understanding how external forces impact their operations

• By ignoring external forces

• By focusing only on internal factors

• By avoiding any changes

What is the impact of understanding external forces on a firm's success?

• The most successful firms are able to prepare for and adapt to environmental changes

• Understanding external forces leads to bankruptcy

• Understanding external forces has no impact on a firm's success

• Understanding external forces leads to failure