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Which of the following is NOT considered part of a corporation's task environment?
Which of the following is NOT considered part of a corporation's task environment?
Which of the following is a key factor in conducting an industry analysis?
Which of the following is a key factor in conducting an industry analysis?
Which of the following is NOT considered part of the natural environment?
Which of the following is NOT considered part of the natural environment?
Which of the following is a way to measure a firm's commitment to sustainability?
Which of the following is a way to measure a firm's commitment to sustainability?
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Which of the following is NOT considered part of the STEEP analysis?
Which of the following is NOT considered part of the STEEP analysis?
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What does environmental uncertainty in an organization's external environment refer to?
What does environmental uncertainty in an organization's external environment refer to?
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Which of the following is NOT considered a part of the natural environment?
Which of the following is NOT considered a part of the natural environment?
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What does the societal environment refer to within an organization's external analysis?
What does the societal environment refer to within an organization's external analysis?
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In external environmental analysis, what does 'sustainability' most closely relate to?
In external environmental analysis, what does 'sustainability' most closely relate to?
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Why is environmental uncertainty considered to be increasing in organizations?
Why is environmental uncertainty considered to be increasing in organizations?
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Which of the following is NOT one of the learning objectives covered in this chapter?
Which of the following is NOT one of the learning objectives covered in this chapter?
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Which of the following best describes the concept of 'industry maturity' as discussed in the text?
Which of the following best describes the concept of 'industry maturity' as discussed in the text?
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Which of the following is NOT considered an aspect of an organization's environment that can influence its long-term decisions, according to the text?
Which of the following is NOT considered an aspect of an organization's environment that can influence its long-term decisions, according to the text?
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Which of the following is a key step in conducting an industry analysis, as discussed in the text?
Which of the following is a key step in conducting an industry analysis, as discussed in the text?
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Which of the following is a way to categorize international industries based on their pressures for coordination and local responsiveness?
Which of the following is a way to categorize international industries based on their pressures for coordination and local responsiveness?
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Which category of risk is NOT mentioned in the text under Sociocultural Trends?
Which category of risk is NOT mentioned in the text under Sociocultural Trends?
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What is a key trend in the current Sociocultural Environment?
What is a key trend in the current Sociocultural Environment?
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What characterizes a Multinational Corporation (MNC) according to the text?
What characterizes a Multinational Corporation (MNC) according to the text?
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Which of the following is a key variable in the societal environment that businesses must consider when analyzing their industry?
Which of the following is a key variable in the societal environment that businesses must consider when analyzing their industry?
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Which of the following is an important economic variable that businesses should monitor as part of their environmental analysis?
Which of the following is an important economic variable that businesses should monitor as part of their environmental analysis?
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Which of the following is a key ecological variable that businesses should consider in their sustainability efforts?
Which of the following is a key ecological variable that businesses should consider in their sustainability efforts?
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Which of the following is an important political-legal variable that can impact a business's operations?
Which of the following is an important political-legal variable that can impact a business's operations?
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Which of the following is NOT one of the key variables that MNCs must consider when operating in international societal environments?
Which of the following is NOT one of the key variables that MNCs must consider when operating in international societal environments?
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Which of the following is a key challenge for MNCs related to the natural environment when operating globally?
Which of the following is a key challenge for MNCs related to the natural environment when operating globally?
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An MNC seeking to improve its sustainability efforts globally should MOST focus on:
An MNC seeking to improve its sustainability efforts globally should MOST focus on:
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Which of the following would be the LEAST important consideration for an MNC analyzing the societal environment of a new target market?
Which of the following would be the LEAST important consideration for an MNC analyzing the societal environment of a new target market?
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An MNC seeking to expand its global operations should MOST prioritize understanding the:
An MNC seeking to expand its global operations should MOST prioritize understanding the:
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The Sociocultural Trends section does not mention declining mass market as a current trend.
The Sociocultural Trends section does not mention declining mass market as a current trend.
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The text states that a Multinational Corporation (MNC) is a company with significant assets and activities in only one country.
The text states that a Multinational Corporation (MNC) is a company with significant assets and activities in only one country.
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The STEEP analysis framework does not include the 'Technological' category.
The STEEP analysis framework does not include the 'Technological' category.
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The text states that 'Increasing diversity of workforce and markets' is not considered a current Sociocultural Trend.
The text states that 'Increasing diversity of workforce and markets' is not considered a current Sociocultural Trend.
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The text does not mention 'Litigation' as a category of risk that businesses should consider.
The text does not mention 'Litigation' as a category of risk that businesses should consider.
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The text does not mention 'Reputational' as a category of risk that businesses should consider.
The text does not mention 'Reputational' as a category of risk that businesses should consider.
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What is the purpose of combining assumptions about individual trends into internally consistent scenarios?
What is the purpose of combining assumptions about individual trends into internally consistent scenarios?
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In the context of the text, what is a key task environment force that involves predicting competitors' behavior under different scenarios?
In the context of the text, what is a key task environment force that involves predicting competitors' behavior under different scenarios?
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Based on the text, which of the following forces of the task environment is related to identifying uncertainties in potential new entrants to an industry?
Based on the text, which of the following forces of the task environment is related to identifying uncertainties in potential new entrants to an industry?
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Which force of the task environment focuses on determining the sources of competitive advantage under different scenarios?
Which force of the task environment focuses on determining the sources of competitive advantage under different scenarios?
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Why is competitive intelligence important for companies?
Why is competitive intelligence important for companies?
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What does monitoring competitors for strategic planning involve?
What does monitoring competitors for strategic planning involve?
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In an industry analysis, what role do key success factors play?
In an industry analysis, what role do key success factors play?
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What differentiates competitive intelligence from regular business operations?
What differentiates competitive intelligence from regular business operations?
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Which of the following is a key barrier to entry that can prevent new competitors from entering an industry?
Which of the following is a key barrier to entry that can prevent new competitors from entering an industry?
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Which factor, according to Porter, is most likely to contribute to intense rivalry among existing firms in an industry?
Which factor, according to Porter, is most likely to contribute to intense rivalry among existing firms in an industry?
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Which of the following is NOT considered a potential barrier to entry that can deter new competitors from entering an industry?
Which of the following is NOT considered a potential barrier to entry that can deter new competitors from entering an industry?
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Which factor is LEAST likely to contribute to intense rivalry among existing firms in an industry, according to Porter's framework?
Which factor is LEAST likely to contribute to intense rivalry among existing firms in an industry, according to Porter's framework?
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Which of the following is NOT considered a potential threat of new entrants to an industry, according to the text?
Which of the following is NOT considered a potential threat of new entrants to an industry, according to the text?
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Study Notes
Environmental Analysis and Industry Analysis
- Environmental analysis is the monitoring, evaluation, and dissemination of information relevant to the organizational development of strategy.
- It involves analyzing the external environment, including the task environment, societal environment, and natural environment.
Task Environment
- The task environment consists of entities that directly affect a corporation and are affected by it.
- Elements of the task environment include:
- Government
- Local communities
- Suppliers
- Competitors
- Customers
- Creditors
- Employees/labor unions
- Special-interest groups
- Trade associations
Societal Environment
- The societal environment includes general forces that do not directly touch on the short-run activities of the organization but can influence its long-term decisions.
- Factors of the societal environment include:
- Economic
- Technological
- Political-legal
- Sociocultural
- Ecological
Natural Environment
- The natural environment includes physical resources, wildlife, and climate.
- Exploitation of natural resources can result in externalities, or side effects, such as pollution.
- Sustainability is premised on the view that long-term survival of society depends on the responsible use of natural resources.
STEEP Analysis
- STEEP analysis is a framework for monitoring trends in the societal and natural environments.
- The STEEP acronym stands for:
- Sociocultural
- Technological
- Economic
- Ecological
- Political-legal
Industry Analysis
- Industry analysis is an in-depth examination of key factors within a corporation's task environment.
- It involves analyzing the competitive forces that influence the intensity of rivalry within an industry.
Competitive Forces
- Threat of new entrants: new entrants to an industry bring new capacity, a desire to gain market share, and substantial resources.
- Rivalry among existing firms: intense rivalry is related to the presence of several factors, including number of competitors, rate of industry growth, product or service characteristics, and more.
External Factor Analysis Summary (EFAS Table)
- An EFAS table is a tool for summarizing external factors that affect a company's strategic position.
- It involves listing opportunities and threats, weighting each factor, rating each factor, and calculating a weighted score for each factor.
International Societal Considerations
- Multinational corporations (MNCs) are companies with significant assets and activities in multiple countries.
- MNCs conduct activities such as marketing, financial, manufacturing, and other functional activities in multiple countries.
Useful Forecasting Techniques
- Identify uncertainties in each of the six forces of the task environment.
- Make a range of plausible assumptions about future trends.
- Combine assumptions about individual trends into internally consistent scenarios.
- Analyze the industry situation that would prevail under each scenario.
- Determine the sources of competitive advantage under each scenario.
- Predict competitors' behavior under each scenario.
- Select the scenarios that are either most likely to occur or most likely to have a strong impact on the future of the company.
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Description
Test your knowledge on identifying external environmental variables such as government, local communities, suppliers, competitors, and more that directly affect a corporation. This quiz covers topics like task environment and industry analysis.
