Strategic Analysis: External Environment

Correct answer B: Internal resources/capabilities alongside external conditions.

The two situational considerations must be balanced.

Correct answer B: Treat it as a lead to verify within systematic scanning.

Informal information can help but alone leaves coverage/evidence risks.

Correct answer B: Analysis does not automatically choose which option to pursue.

Options require judgment, feasibility and criteria.

Correct answer B: Balance external drivers and internal constraints.

Strategic decisions involve competing opportunities/constraints.

Correct answer C: Short-time external interpretation risk.

The mismatch is interpreting current environmental conditions.

Correct answer C: Short-time internal risk.

Current organisational capacity mismatches strategy.

Correct answer A: Long-time external risk.

Environmental change may invalidate strategy over time.

Correct answer D: Micro/immediate environment.

Specific regular supplier interaction is micro.

Correct answer D: Economic.

Rates affect capital cost and financial conditions.

Correct answer D: Demographic characteristics versus socio-cultural attitudes.

Population traits and belief/behaviour patterns differ.

Correct answer B: Legal, with possible overlap depending causal context.

Actual current law requires verification; case rules are stipulated.

Correct answer B: Environmental.

Physical/ecological hazards may also create legal responses.

Correct answer A: Technology can be both opportunity and threat.

External innovation and internal ability need joint assessment.

Correct answer C: Linked characteristics of a global business.

Ownership, resource pool and common strategy link global units.

Correct answer A: Country-specific economic/legal/political/cultural assessment.

Analysis narrows through multinational, regional and country levels.

Correct answer C: Products can include services and experiences as well as tangible goods.

The chapter includes goods/services/experiences.

Correct answer D: Introduction.

Stage diagnosis needs the stated awareness/market evidence, not size alone.

Correct answer C: Growth.

Growth is rapid acceptance, not a guaranteed future path.

Correct answer A: Maturity.

Maturity supports conditional stability/efficiency choices.

Correct answer B: Assess decline options such as selective harvesting/adaptation/retrenchment.

PLC guides diagnosis, not one compulsory action.

Correct answer D: Inbound logistics.

Inbound concerns input handling/storage.

Correct answer B: Procurement.

Procurement is resource acquisition process, not stock itself.

Correct answer C: HRM, technology development and infrastructure support activities.

Support activities enable primary operations across the chain.

Correct answer A: Identify pressures, evaluate strength, assess collective profit prospects.

Model use is a structured evidence-based diagnosis.

Correct answer A: Switching costs.

Changing supplier/product can require testing/training/contracts.

Correct answer C: Buyer bargaining power.

Concentration/alternatives may support demands on price/service.

Correct answer D: Supplier bargaining power.

Specialisation, concentration and switching support input leverage.

Correct answer A: Exit barriers can intensify existing rivalry.

Difficult exit can sustain capacity and pressure.

Correct answer D: Bus firm is rival; rail may be an outside-industry substitute meeting similar travel needs.

Industry boundary/end-customer function govern roles.

Correct answer A: 70, split into 40 customer surplus and 30 firm margin.

V-C=(V-P)+(P-C); source wording conflict disclosed.