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Questions and Answers
Which of the following is NOT considered an important variable in the societal environment according to the text?
Which of the following is NOT considered an important variable in the societal environment according to the text?
Which of the following is a key variable in the ecological aspect of the societal environment?
Which of the following is a key variable in the ecological aspect of the societal environment?
Which of the following is NOT listed as an important variable in the economic aspect of the societal environment?
Which of the following is NOT listed as an important variable in the economic aspect of the societal environment?
Which of the following is a key variable in the technological aspect of the societal environment?
Which of the following is a key variable in the technological aspect of the societal environment?
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Which of the following is NOT included in the ecological variables of the international societal environment?
Which of the following is NOT included in the ecological variables of the international societal environment?
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Which category includes variables such as customs, norms, values, and religious beliefs?
Which category includes variables such as customs, norms, values, and religious beliefs?
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What is the term used for the analysis of the natural environment, technological environment, economic environment, and political-legal environment?
What is the term used for the analysis of the natural environment, technological environment, economic environment, and political-legal environment?
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Which of the following is NOT included in the technological variables of the international societal environment?
Which of the following is NOT included in the technological variables of the international societal environment?
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Which category includes variables such as form of government, political ideology, and trade regulations?
Which category includes variables such as form of government, political ideology, and trade regulations?
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What does the natural environment include?
What does the natural environment include?
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Which of the following is not a component of the societal environment in a STEEP analysis?
Which of the following is not a component of the societal environment in a STEEP analysis?
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What is one way to measure a firm's commitment to sustainability?
What is one way to measure a firm's commitment to sustainability?
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Which of the following is an example of an externality related to the exploitation of natural resources?
Which of the following is an example of an externality related to the exploitation of natural resources?
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In STEEP analysis, what does the 'P' stand for?
In STEEP analysis, what does the 'P' stand for?
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What does the natural environment include?
What does the natural environment include?
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Which of the following is NOT a factor in the societal environment?
Which of the following is NOT a factor in the societal environment?
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What is the purpose of environmental analysis?
What is the purpose of environmental analysis?
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Which of the following is NOT a factor contributing to increasing environmental uncertainty?
Which of the following is NOT a factor contributing to increasing environmental uncertainty?
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What does STEEP analysis refer to?
What does STEEP analysis refer to?
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What does the acronym STEEP stand for in the context of analyzing the societal environment?
What does the acronym STEEP stand for in the context of analyzing the societal environment?
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Which of the following is NOT listed as a current sociocultural trend in the given information?
Which of the following is NOT listed as a current sociocultural trend in the given information?
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Which generation is mentioned as having the highest percentage of the total adult population in the United States?
Which generation is mentioned as having the highest percentage of the total adult population in the United States?
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What is a multinational corporation (MNC) as defined in the given information?
What is a multinational corporation (MNC) as defined in the given information?
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Which of the following is NOT listed as a category of risk in the context of analyzing the societal environment?
Which of the following is NOT listed as a category of risk in the context of analyzing the societal environment?
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Which of the following is NOT a component of the societal environment analyzed in environmental scanning?
Which of the following is NOT a component of the societal environment analyzed in environmental scanning?
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What does the acronym STEEP stand for in the context of environmental analysis?
What does the acronym STEEP stand for in the context of environmental analysis?
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Which of the following is NOT typically considered a key variable in the ecological aspect of the societal environment?
Which of the following is NOT typically considered a key variable in the ecological aspect of the societal environment?
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What is the primary purpose of conducting an environmental analysis in strategic management?
What is the primary purpose of conducting an environmental analysis in strategic management?
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Which of the following is NOT a key variable in the technological aspect of the societal environment?
Which of the following is NOT a key variable in the technological aspect of the societal environment?
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What makes it difficult for a company to enter an industry?
What makes it difficult for a company to enter an industry?
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In the analysis of societal environments, what factor refers to the advantages that companies achieve due to their size?
In the analysis of societal environments, what factor refers to the advantages that companies achieve due to their size?
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Which of the following is NOT a barrier to entry for new companies according to the text?
Which of the following is NOT a barrier to entry for new companies according to the text?
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What characteristic of a product can create a barrier to entry for new companies?
What characteristic of a product can create a barrier to entry for new companies?
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Which of the following is a factor contributing to intense rivalry among existing firms?
Which of the following is a factor contributing to intense rivalry among existing firms?
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What factor related to the natural environment can impact industry competition?
What factor related to the natural environment can impact industry competition?
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Which of the following is a potential barrier to entry based on government regulations?
Which of the following is a potential barrier to entry based on government regulations?
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What contributes to the diversity of rivals in an industry?
What contributes to the diversity of rivals in an industry?
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What does Porter relate intense rivalry among firms to?
What does Porter relate intense rivalry among firms to?
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What is an economic aspect that can create barriers to entry for new companies?
What is an economic aspect that can create barriers to entry for new companies?
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What do inside directors typically refer to?
What do inside directors typically refer to?
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Which theory suggests that insiders identify with the corporation due to their long tenure?
Which theory suggests that insiders identify with the corporation due to their long tenure?
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Who are retired executive directors according to the text?
Who are retired executive directors according to the text?
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What is a key characteristic of affiliated directors?
What is a key characteristic of affiliated directors?
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What is the primary responsibility of family directors based on the provided information?
What is the primary responsibility of family directors based on the provided information?
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Outside directors may be executives of other firms but are not ___________ of the board's corporation.
Outside directors may be executives of other firms but are not ___________ of the board's corporation.
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What is the main problem highlighted by agency theory in corporations?
What is the main problem highlighted by agency theory in corporations?
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According to stewardship theory, why do insiders tend to identify with the corporation?
According to stewardship theory, why do insiders tend to identify with the corporation?
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Population ecology theory states that once an organization is established in a niche, it cannot adapt to changing conditions.
Population ecology theory states that once an organization is established in a niche, it cannot adapt to changing conditions.
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According to institution theory, organizations can adapt by imitating other successful organizations.
According to institution theory, organizations can adapt by imitating other successful organizations.
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Strategic choice perspective argues that organizations have the power to reshape their environment.
Strategic choice perspective argues that organizations have the power to reshape their environment.
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Organizational learning theory suggests that organizations adjust defensively to changing environments.
Organizational learning theory suggests that organizations adjust defensively to changing environments.
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Strategic flexibility demands only short-term commitment to development and nurturing of critical resources.
Strategic flexibility demands only short-term commitment to development and nurturing of critical resources.
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Globalization is not a factor considered important for strategic planning.
Globalization is not a factor considered important for strategic planning.
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Innovation is not vital for organizational adaptation according to the theories mentioned.
Innovation is not vital for organizational adaptation according to the theories mentioned.
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Sustainability is not a concern when discussing creating a learning organization.
Sustainability is not a concern when discussing creating a learning organization.
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Organizations cannot influence their environment according to the strategic choice perspective.
Organizations cannot influence their environment according to the strategic choice perspective.
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Institution theory focuses on organizations' abilities to adapt internally rather than imitate others.
Institution theory focuses on organizations' abilities to adapt internally rather than imitate others.
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Study Notes
Reasons for Serving on a Board
- Majority (79%) are interested in business
- Significant portion (65%) aims to make a difference
- Half (50%) want to stay active in the business community
- 25% are recruited by friends already on the board
- Only 14% are motivated by compensation
- Networking opportunities entice 11% of board members
- Notoriety or prestige influences 9%
- Minimal (4%) are recruited by friends not on the board
Organization of the Board
- Board size is determined by corporate charter and bylaws, within state law guidelines
- Many states require minimum board members, but corporations have flexibility
- Average board size for large publicly held firms is ten directors
- Small privately held companies typically have four to five board members
Board Leadership
- A lead director coordinates with the Chair/CEO and evaluates the CEO annually
- 94% of U.S. companies combining Chair and CEO roles have a lead director
Responsibilities of the Board
- Board has a duty of due care, overseeing corporate affairs without direct management
- Failure to act with due care can result in personal liability for directors
- Over 40% of outside directors have faced lawsuits associated with corporate actions
Role of the Board in Strategic Management
- Monitors internal and external developments impacting the corporation
- Evaluates and influences management's proposals and decisions
- Initiates and defines the corporation's mission and strategic options
Impact of Globalization
- Globalization integrates international markets and corporations, influencing business practices
- Offers new competitive advantages through formal trade agreements
Impact of Innovation
- Innovation encompasses new products, services, and methods that drive business success
- Effective implementation of innovations is crucial for noteworthy business performance
Impact of Sustainability
- Sustainability entails managing the triple bottom line: profit, social responsibility, and environmental responsibility
Learning Objectives in Strategic Management
- Understanding benefits of strategic management
- Exploring the effects of globalization, innovation, and sustainability on strategy
- Differentiating between organizational theories
- Identifying areas of excellence for learning organizations
- Grasping the basic model and components of strategic management
- Recognizing triggering events for strategic change
- Analyzing strategic decision-making modes
- Utilizing strategic audits for corporate analysis
- Exploring career opportunities in strategic management
Definition of Strategic Management
- Strategic management involves decisions and actions that shape a corporation's long-term performance
- Initially referred to as business policy
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Description
Test your knowledge on variables in international societal environments, including sociocultural, technological, economic, ecological, and political-legal factors. Explore the activities conducted by multinational corporations in other countries and the unique societal environments they encounter.
