I.

TRUE OR FALSE

1. When a complementor's good and service contributes to the functionality of a local

firm's good and service, it in turn creates additional value for that firm? True or false?
(TRUE)

2. Demographic segments are commonly analyzed on a domestic basis because they do

not affect other countries. (FALSE)

3. Certain practices like blackmail, trespassing, eavesdropping and the like are widely
viewed as ethical and often are illegal as well. (FALSE)

4. When monitoring, analysts develop feasible projections of what might happen, and how
quickly, as a result of the events and trends detected through scanning and monitoring.
(FALSE)

5. Industry environment has a more direct effect on the competitive actions and responses
a firm takes to succeed. (TRUE)

6. A supplier group is powerful when it is dominated by many large companies and is more
concentrated than the industry to which it sells. (FALSE)

7. An opportunity is a condition in the general environment that, if exploited effectively,

helps a company reach strategic competitiveness. (TRUE)

8. Firms avoid the possibility of legal entanglements and ethical quandaries only when
their competitive intelligence gathering methods are governed by a strict set of legal
and ethical guidelines. (TRUE)

9. Compared with the general environment, the industrial environment has more direct
effect on the competitive actions and responses a firm takes to succeed. (TRUE)

10. It is uncommon for government to attempt to regulate the entry of foreign firms,
especially in industries considered critical to the country's economy/important markets
within it. (TRUE)

11. Firms must follow relevant laws and regulations as well as carefully articulated ethical
guidelines when gathering competitor intelligence. (TRUE)

12. The larger the number of competitors, along with the number of equivalent products
and services they offer, the higher the power of a company. (FALSE, higher should be
lesser)
II. IDENTIFICATION

1. The objective of this is to determine the timing and significance of the effects of
environmental changes and trends that have been identified. (ASSESSING)

2. It is the arena in which organization and interest groups compete for attention,
resources, and a voice in overseeing the body of laws and regulations guiding
interactions among nations as well as between firms and various local governmental
agencies. (POLITICAL/LEGAL SEGMENT)

3. It is a condition in the general environment that may hinder a company’s efforts to

achieve strategic competitiveness. (THREAT)

4. It entails the study of all segments in the general environment. (SCANNING)

5. The __ includes relevant new global markets, existing markets that are changing,
important international political events, and critical cultural and institutional
characteristics of global markets. (GLOBAL SEGMENT)

6. _ is a set of data and information the firm gathers to better understand and anticipate
competitor's objectives, strategies, assumptions, and capabilities. (COMPETITOR
INTELLIGENCE)

7. This is called developing projections of anticipated outcomes based on monitored

changes and trends. (FORECASTING)

8. How competitors gather and interpret information about their competitors is called __.
(COMPETITOR ANALYSIS)

9. It is an act of developing projections of anticipated outcomes based on monitored

changes and trend. (FORECASTING)

10. It is one of the common exit barriers that firms face which refers to assets with values
that are linked to a particular business or location. (SPECIALIZED ASSETS)

11. These are derived from incremental efficiency improvements through experience as a
firm grows larger. (ECONOMIES OF SCALE)

12. It is identifying early signals of environmental changes. (SCANNING)

13. It is determining the timing and importance of environmental changes and trends for
firm's strategies and their management. (ASSESSING)

14. This model expands the scope of a firm's competitive analysis. (FIVE FORCES OF
COMPETITION MODEL)

15. This is composed of dimensions in the broader society that influence an industry and the
firms within it. (GENERAL ENVIRONMENT)

16. This is a condition in the general environment that, if exploited effectively, helps a
company reach strategic competitiveness. (OPPORTUNITY)

17. This is part of the external environmental analysis wherein the objective is to determine
the timing and significance of the effects of environmental changes and trends that have
been identified. (ASSESSING)

18. Are derived from incremental efficiency improvements through experience as a firm
grows larger. (ECONOMIES OF SCALE)

19. Are onetime costs customer incur when they buy from a different supplier. (SWITCHING
COST)

20. A segment of the general environment concerned with the population's size, age
structure, geographic distribution, ethnic mix and income distribution. (DEMOGRAPHIC
SEGMENT)

21. A set of firms emphasizing similar strategic dimension and using a similar strategy.
(STRATEGIC GROUP)

22. One of the segments of global environment concerned with relevant new global
markets, existing markets that are changing, important international political events,
and critical cultural and institutional characteristics of global markets. (GLOBAL
SEGMENT)

23. It is often used by firms with moderate levels of international operations who increase
their internalization by focusing on global niche markets. (GLOBAL FOCUSING)

24. It refers to the potential and actual changes in the physical environment and business
practice that are intended to positively respond to those changes with the intent of
creating sustainable environment. (SUSTAINABLE PHYSICAL ENVIRONMENT SEGMENT)

25. Q1. It is concerned with a population’s size, age structure, geographic distribution,
ethnic mix and income distribution. (DEMOGRAPHIC SEGMENT)
 26. A set of firms emphasizing similar strategic dimensions and using a similar strategy.
(STRATEGIC GROUP)

27. A barrier to entry which refers to the impediment to a customer's changing of suppliers.
(SWITCHING COST)

28. It refers to the nature and direction of the economy in which a firm competes or may
compete. (ECONOMIC ENVIRONMENT)

29. A set of firms emphasizing similar strategic dimensions and using a similar strategy.
(STRATEGIC GROUP)

30. These are goods or services from outside a given industry that perform similar or the
same functions as a product that the industry produces. (SUBSTITUTE PRODUCTS)

III. ENUMERATION
1. Enumerate the demographic segments
ANSWERS: POPUALTION SIZE, AGE STRUCTURE, GEOGRAPHIC DISTRIBUTION, ETHNIC
MIX, AND INCOME DISTRIBUTION.

IV. EXPLANATION
1. Why does the government often restrict entry into some industries?
Because of the need to provide quality services or the desire to protect jobs

2. What is the relationship between customer's switching cost and the level of threat of
substitute products?
The relationship between customer's switching cost and the level of threat of substitute
products is inversely proportional. If the customer’s switching costs are low, meaning
there is little if anything stopping the consumer from purchasing the substitute instead
of the industry’s product, then the threat of substitute products is high.