Chapter 2
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. Even with all of the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.
Answer: False
7. Scenario planning is usually concerned with short-term forecasts.
Answer: False
8. The same environmental trend can often have very different effects on firms within the same industry.
Answer: True
9. Although changes in the general environment may often adversely or favorably impact a firm, they seldom alter an entire industry.
Answer: False
10. Growth in the United States' population has been rather evenly distributed among major geographic regions.
Answer: False
11. A major sociocultural trend in the United States is the rapid decline in the number of retirees.
Answer: False
12. Technological innovations can create entirely new industries and alter the boundaries of industries.
Answer: True
13. There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.
Answer: False
14. Porter's five forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.
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. Even with all of the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.
Answer: False
7. Scenario planning is usually concerned with short-term forecasts.
Answer: False
8. The same environmental trend can often have very different effects on firms within the same industry.
Answer: True
9. Although changes in the general environment may often adversely or favorably impact a firm, they seldom alter an entire industry.
Answer: False
10. Growth in the United States' population has been rather evenly distributed among major geographic regions.
Answer: False
11. A major sociocultural trend in the United States is the rapid decline in the number of retirees.
Answer: False
12. Technological innovations can create entirely new industries and alter the boundaries of industries.
Answer: True
13. There is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.
Answer: False
14. Porter's five forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.