Chapter 2

2726 WordsDec 30, 201211 Pages
True/False Questions 1. Environmental scanning and competitor intelligence provide important inputs for forecasting activities. Answer: True 2. Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process. Answer: True 3. Competitor Intelligence (CI) is a tool that can provide management with “early warnings” about both threats and opportunities. Answer: True 4. Competitor Intelligence gathering is no different from spying. Answer: False 5. Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain. Answer: False 6.…show more content…
B) forecasting's retrospective nature provides little information about the future. C) managers may view uncertainty as “black and white” while ignoring important “gray areas.” D) it can create legal problems for the firm if regulators discover the company is making forecasts. Answer: C 37. The aging of the population of the United States A) is a myth. B) increases demand for products geared to retirees. C) is an important sociocultural trend. D) is an important trend in the political and legal environment. Answer: B 38. The aging of the population, changes in ethnic composition, and effects of the baby boom are A) macroeconomic changes. B) demographic changes. C) global changes. D) sociocultural changes. Answer: B 39. Increasingly larger numbers of women entering the work force since the early 1970's is an example of A) demographic changes. B) political and legal environmental changes. C) sociocultural changes. D) technological developments. Answer: C 40. Which of the following would be considered part of a firm's general environment? A) decreased entry barriers B) increased trade deficit C) increased bargaining power of the firm's suppliers D) increased competitive intensity Answer: B 41. Emerging sociocultural changes in the environment include A) changes in the ethnic composition.

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