Chapter 04 - The External Environment
Chapter 04
The External Environment
Multiple Choice Questions
1. (p. 81) The external environment can be divided into various subcategories:
A. Remote political social
!. Remote social operational
C. Remote industr" operating
#. Technological and social
Difficulty: Easy
Learning Objective: 1
$. (p. 81) A %irm&s external environment includes a remote sector industr" sector and an
operating sector. The remote sector includes 'hich o% the %ollo'ing categories(
A. )olitical technological economic and social
!. )olitical supplier po'er economic and labor
C. *tate government production social and economic
#. +ission compan" pro%ile and competition
Difficulty: Easy
Learning Objective: 1
,. (p. 81) The remote external environment includes:
A. Creditors
!. -ndustr" %actors
C. Emplo"ee
D. Ecological %actors
Difficulty: Easy
Learning Objective: 1
4-1
Chapter 04 - The External Environment
4. (p.81) The %actors be"ond the control o% the %irm that in%luence its choice o% direction and
action organi.ational structure and internal processes re%ers to
A. #irectional strategies
B. External environment
C. /rgani.ational processes
#. -nternal environment
Difficulty: Easy
Learning Objective: 1
0. (p. 81) The 111111 environment compromises %actors that originate be"ond and usuall"
irrespective o% an" single %irm&s operating situation.
A. Remote
!. -ndustr"
C. /perating
#. -nternal
Difficulty: Easy
Learning Objective: 2
2. (p. 81) *upplier po'er is an example o% a %actor that %alls 'ithin the 111111111 environment.
A. Economic
!. /perating
C. -ndustr"
#. Remote
Difficulty: Easy
Learning Objective: 1
4-$
Chapter 04 - The External Environment
3. (p. 81) 4hich environment compromises %actors in the immediate competitive situation that
a%%ect a %irm&s success in ac5uiring needed resources(
A. -ndustr"
!. Remote
C. Economic
D. /perating
Difficulty: Hard
Learning Objective: 1
6. (p. 81) 4hen 'e consider the level o% disposable income 'e are normall" considering:
A. Technological %actors
B. Economic %actors
C. )olitical %actors
#. *ocial %actors
Difficulty: ediu!
Learning Objective: "
7. (p. 82) The considerations involving the belie%s values attitudes and opinions o% those in a
%irm&s environment represent the 111111.
A. *ocial %actors
!. )ersonal %actors
C. Economic %actors
#. )olitical %actors
Difficulty: ediu!
Learning Objective: "
10. (p. 8") /ne o% the most pro%ound social changes in recent "ears is:
A. The decreased population
B. An increasing number o% 'omen in the 'or8%orce
C. The heav" reliabilit" o% children in the 'or8%orce
#. -ncreased education o% 9.*. citi.ens
Difficulty: Hard
Learning Objective: "
4-,
Chapter 04 - The External Environment
11. (p. 8") A pro%ound social change in the recent "ears has been
A. The accelerating interest o% consumers and emplo"ers in 5ualit" o% li%e issue
!. The decelerating interest o% %oreigners see8ing :obs and immigrant status in the 9.*.
C. The remar8abl" high placement o% 9.*. high school education in math and science in the
'orld
#. The global 'arming e%%ect
Difficulty: Hard
Learning Objective: "
1$. (p. 8#) )olitical %actors de%ine the 111111 parameters 'ithin 'hich %irms must operate.
A. Economic
B. ;egal and regulator"
C. <lobal
#. *ocial and cultural
Difficulty: ediu!
Learning Objective: "
1,. (p. 8#) Encompassed in political considerations is=are:
A. *ocial values
!. #isposable income
C. Anti-trust la's
#. Age distribution
Difficulty: ediu!
Learning Objective: "
14. (p. 8$) )olitical activit" ma" have a signi%icant impact on 'hich o% the %ollo'ing
governmental %unctions(
A. Religious orientation
B. Customer %unction
C. +anu%acturer %unction
#. *ocial changes
Difficulty: Hard
Learning Objective: "
4-4
Chapter 04 - The External Environment
10. (p. 8%) A'areness o% technological changes in its industr" helps the %irm to:
A. -nterpret ne' regulations
!. Act slo'l" and care%ull"
C. Exploit ne' mar8ets
#. >orecast social change
Difficulty: Hard
Learning Objective: "
12. (p. 8%) The 5uasi-science o% anticipating environmental and competitive changes and
estimating their importance to an organi.ations operation re%ers to
A. Technological %orecasting
!. Ecolog"
C. -ndustr" environment
#. /perating environment
Difficulty: ediu!
Learning Objective: "
13. (p. 8&) The term 111111 re%ers to the relationships among human beings and other living
things and the air soil and 'ater that supports them.
A. )ollution
B. Ecolog"
C. /perating environment
#. Remote environment
Difficulty: Easy
Learning Objective: "
4-0
Chapter 04 - The External Environment
16. (p. 8&) Threats to li%e-supporting ecolog" caused principall" b" human activities is an
industrial societ" are commonl" re%erred to as
A. Technolog"
!. Co-e%%icienc"
C. )ollution
#. )roduct di%%erentiation
Difficulty: Easy
Learning Objective: "
17. (p. 8&) !usiness is no' being held responsible %or:
A. 9sing onl" underground dumping sites
B. Cleaning up its previous environmental damage
C. +unicipal se'er s"stems
#. Ensuring that a ?thermal blan8et? is created
Difficulty: Hard
Learning Objective: "
$0. (p. 8') 4hich o% these is @/T an example o% a %ederal ecological legislation(
A. Air Aualit" Act
!. Re%use Act
C. /ccupational *a%et" and Bealth Act
#. Resource Recover" Act
Difficulty: ediu!
Learning Objective: "
$1. (p. 88) Compan" actions that produce more use%ul goods and services 'hile continuousl"
reducing recourse consumption and pollution re%ers to
A. )roduct di%%erentiation
!. Economics o% scale
C. !arriers to entr"
D. Eco-e%%icienc"
Difficulty: Easy
Learning Objective: "
4-2
Chapter 04 - The External Environment
$$. (p. 88) /ne o% the most important steps a %irm can ta8e in achieving a competitive position
'ith regard to the eco-e%%icienc" strateg" is to
A. /utsource the operations to a developing countr"
B. >ull" capitali.e on technological developments
C. *hi%t %rom service to manu%acturing operations
#. +andate that all suppliers distributors and customers reduce their resource consumption
Difficulty: Hard
Learning Objective: "
$,. (p. 8') 4hich o% these represent a 8e" characteristic o% eco-e%%icient corporations(
A. Eco-e%%icient %irms are reactive
!. Eco-e%%icienc" is added on
C. >lexibilit" is imperative %or eco-e%%icient strateg" implementation
#. Eco-e%%icienc" is insular
Difficulty: ediu!
Learning Objective: "
$4. (p. 88) All o% these are 8e" characteristics o% eco-e%%icient corporations ECCE)T
A. Eco-e%%icienc" is insular
!. Eco-e%%icient %irms are proactive
C. Eco-e%%icienc" is designed in
#. >lexibilit" is imperative %or eco-e%%icient strateg" implementation
Difficulty: ediu!
Learning Objective: "
$0. (p. '1) The state o% competition is an industr" according to )orter depends on 111111 basic
%orces.
A. ,
B. 0
C. 6
#. $
Difficulty: Easy
Learning Objective: #
4-3
Chapter 04 - The External Environment
$2. (p. '2('") Collectivel" competitive %orces determine the ultimate:
A. <ro'th o% a %irm
!. *urvival o% a %irm
C. )ro%itabilit" o% a %irm
#. Diabilit" o% a %irm
Difficulty: ediu!
Learning Objective: #
$3. (p. '2) 4hich o% these according to )orter is @/T a %orce driving industr" competition(
A. Threat o% ne' entrants
!. !argaining po'er o% bu"ers
C. !argaining po'er o% distributors
#. Threat o% substitutes
Difficulty: ediu!
Learning Objective: #
$6. (p. '") 4hich o% these is a determinant o% entr" according to )orter(
A. )resence o% substitute input
!. Abilit" to bac8'ard integrate
C. Exit barriers
D. Economies o% scale
Difficulty: Hard
Learning Objective: #
$7. (p. '#) !rand identit" is a determinant o% 'hich o% these %orces driving industr"
competition(
A. Entr"
!. Rivalr"
C. !u"er po'er
#. *upplier po'er
Difficulty: Hard
Learning Objective: $
4-6
Chapter 04 - The External Environment
,0. (p. '%) #i%%erentiation o% inputs represents a determinant o%
A. Entr"
!. Rivalr"
C. !u"er po'er
D. *upplier po'er
Difficulty: Hard
Learning Objective: $
,1. (p. '2) -n the economists& ?per%ectl" competitive? industr" :oc8e"ing %or position is
unbridled and entr" to the industr" is
A. Der" eas"
!. )rohibited b" regulations
C. +oderated due to national securit" concerns
#. Der" hard
Difficulty: Hard
Learning Objective: #
,$. (p. '#) Access to distribution channels is a ma:or source o% 'hich competitive %orce(
A. !argaining po'er o% bu"ers
B. Threat o% entr"
C. Threat o% substitute products
#. !argaining po'er o% suppliers
Difficulty: ediu!
Learning Objective: $
,,. (p. '") @e' entrants to an industr" bring:
A. @e' capacit"
!. @e' customers
C. >e' resources
#. !igger margins
Difficulty: ediu!
Learning Objective: #
4-7
Chapter 04 - The External Environment
,4. (p. '") Economies o% scale in an industr" re%ers to:
A. *avings that companies 'ithin the industr" achieve due to increased volume
!. #eclining average short run costs per unit
C. -mproved contractual agreements 'ith suppliers in the near term
#. #ecreased barriers to entr" to ne' %irms attempting to enter the industr"
Difficulty: Hard
Learning Objective: $
,0. (p. '#) 4hich o% the %ollo'ing is a %actor that does @/T %oster brand identi%ication(
A. Advertising
!. Customer service
C. )roduct di%%erences
D. )rice
Difficulty: Hard
Learning Objective: $
,2. (p. '#) !arriers to entr":
A. Can be c"clical
!. Can involve the legal constraints leveling the pla"ing %ield
C. Can include customer lo"alt"
#. Are not important to small %irms
Difficulty: ediu!
Learning Objective: #
,3. (p. '#) 4hich o% the %ollo'ing %actors is @/T commonl" seen as %ostering brand
identi%ication(
A. !eing %irst in the industr"
!. )roduct di%%erences
C. Customer service
D. Customer credit
Difficulty: Hard
Learning Objective: $
4-10
Chapter 04 - The External Environment
,6. (p. '#) 4hich is perhaps the most important entr" barrier in the so%t drin8 over-the-counter
drugs cosmetics investment ban8ing and public account industries(
A. Capital re5uirements
!. +ar8et di%%erentiation
C. Economies o% scale
D. )roduct di%%erentiation
Difficulty: Hard
Learning Objective: $
,7. (p. '"('#) 4hich o% the %ollo'ing is @/T a ma:or barrier to entr"(
A. Economies o% scale
!. )roduct di%%erentiation
C. +ar8et breadth
#. Cost disadvantages independent o% si.e
Difficulty: ediu!
Learning Objective: $
40. (p. '#) 4hen aspirants are %orced to accept either a large scale disadvantage o% a cost
disadvantage the" are %ace 'ith problems o%:
A. )roduct di%%erentiation
B. Cost disadvantage and economies o% scale
C. Capital re5uirements
#. #istribution
Difficulty: ediu!
Learning Objective: $
4-11
Chapter 04 - The External Environment
41. (p. '#) 4hich o% the %ollo'ing can limit or even %oreclose entr" to industries 'ith such
controls as license re5uirements(
A. E5ual opportunit" emplo"er
!. >ederal trade commission
C. <overnment polic"
#. *ecurities and exchange commission
Difficulty: ediu!
Learning Objective: $
4$. (p. '#) The need to invest large %inancial resources in order to compete creates
A. -ncreased supplier po'er
!. -ncreased bu"er po'er
C. -ncreased :oc8e"ing %or position
D. A barrier to entr"
Difficulty: ediu!
Learning Objective: $
4,. (p. '#) Cost disadvantages independent o% si.e is a %actor relevant to
A. Threat o% ne' entrants
!. )o'er%ul suppliers
C. Eoc8e"ing %or position
#. )o'er%ul bu"ers
Difficulty: ediu!
Learning Objective: $
44. (p. '#) The learning curve e%%ect is an example o% 'hich barrier to entr"(
A. Cost disadvantages independent o% si.e
!. )roduct di%%erentiation
C. Economies o% scale
#. <overnment polic"
Difficulty: Hard
Learning Objective: $
4-1$
Chapter 04 - The External Environment
40. (p. '#) Entrenched companies ma" have cost advantages not available to potential rivals.
This is an example o%:
A. Capital re5uirements
B. Cost disadvantage independent o% si.e
C. Economies o% scale
#. <overnment polic"
Difficulty: ediu!
Learning Objective: $
42. (p. '%) *uppliers can exert bargaining po'er on participants in an industr" b":
A. *tabili.ing their cost bas
!. ;o'ering prices
C. Raising prices
#. -ncreasing the 5ualit" o% services
Difficulty: Hard
Learning Objective: $
43. (p. '%) The po'er o% each supplier depends on:
A. ;o' concentration
!. -ts commodit"-li8e product
C. Relative importance o% purchases
#. -ts inabilit" to integrate %or'ard
Difficulty: Hard
Learning Objective: $
46. (p. '%) A supplier group is po'er%ul i%:
A. -t is not concentrated
B. -t is not obligated to contend 'ith other products %or sale to the industr"
C. Ra' materials are the ma:or input cost
#. -ts product is not uni5ue
Difficulty: ediu!
Learning Objective: $
4-1,
Chapter 04 - The External Environment
47. (p. '%) A supplier group is po'er%ul i%:
A. -ts product is undi%%erentiated
B. -ts product is uni5ue
C. -ts mar8et is uni5ue
#. -t must contend 'ith other products
Difficulty: ediu!
Learning Objective: $
00. (p. '%) A bu"er group is po'er%ul i%:
A. -t earns lo' pro%its
!. The industr"&s product is important to the 5ualit" o% the bu"er&s products or services
C. The industr"&s product saves the bu"er mone"
#. -t is not concentrated
Difficulty: ediu!
Learning Objective: $
01. (p. '%) Bighl" pro%itable bu"ers are usuall":
A. ;ess price sensitive
!. +ore price sensitive
C. Der" 5uantit" oriented
#. @ot ver" 5uantit" oriented
Difficulty: ediu!
Learning Objective: $
0$. (p. '%) A bu"er group is po'er%ul i%:
A. The bu"ers pose a credible threat to ma8e the industr"&s product
!. The industr" product saves the bu"er mone"
C. -t earns high pro%it
#. The industr" has high exit barriers
Difficulty: ediu!
Learning Objective: $
4-14
Chapter 04 - The External Environment
0,. (p. '%) Customers have the po'er to:
A. Raise prices
B. #emand higher 5ualit"
C. ;o'er service 5ualit"
#. Coordinate competitors
Difficulty: ediu!
Learning Objective: $
04. (p. '8) -% price ceilings exist substitute products are limited unless:
A. The 5ualit" o% the product can be reduced
B. The 5ualit" o% the product can be upgraded
C. The 5uantities o% the product available can be increased
#. The product can not be di%%erentiated
Difficulty: Hard
Learning Objective: $
00. (p. '8) 4hich o% the %ollo'ing are considered competitors(
A. ;o' substitutabilit" products
!. >irms 'ith dissimilar scope
C. *ubstitute products
#. 9ncommitted %irms
Difficulty: Hard
Learning Objective: $
02. (p. '%) *ubstitute products that deserve the most attention strategicall" are those that are:
A. *ub:ect to trends
!. )roduced b" industries earning lo' pro%its
C. +ost expensive to produce
#. *lo' coming into pla"
Difficulty: ediu!
Learning Objective: $
4-10
Chapter 04 - The External Environment
03. (p. '8) -n intense competitive rivalr" barriers to exit are:
A. Bigh
!. ;o'
C. +edium
#. Changing
Difficulty: ediu!
Learning Objective: $
06. (p. '8) Exit barriers represent a determinant o%
A. Entr"
B. Rivalr"
C. !u"er po'er
#. *upplier po'er
Difficulty: Hard
Learning Objective: $
07. (p. '8) Rivalr" among existing competitors ta8es the %amiliar %orm o%:
A. *ubstitute products
B. Eoc8e"ing %or position
C. )ositioning the compan"
#. -n%luencing the balance
Difficulty: Hard
Learning Objective: $
20. (p. '') As an industr" matures its:
A. <ro'th rate is unchanged
!. )ro%its are higher
C. <ro'th rate changes
#. @e' %irms enter
Difficulty: ediu!
Learning Objective: $
4-12
Chapter 04 - The External Environment
21. (p. '8) -n intense rivalr" among manu%acturing %irms %ixed costs are:
A. Bigh
!. ;o'
C. +edium
#. ;ess critical than variable costs
Difficulty: ediu!
Learning Objective: $
2$. (p. '8) Bigh %ixed costs is a %actor in 'hich o% the %ive %orces(
A. Threat o% entr"
!. *ubstitute products
C. Eoc8e"ing %or position
#. )o'er%ul suppliers
Difficulty: ediu!
Learning Objective: $
2,. (p. '8) 4hich one o% the %ollo'ing is a tactic t"picall" used b" %irms to :oc8e" %or position(
A. Economies o% scale
B. Advertising slug%ests
C. Access to distribution
#. )roduct 'ithdra'al
Difficulty: Hard
Learning Objective: $
24. (p. '8) -ndustr" gro'th has 'hat characteristicFsG intense competitive rivalr"(
A. >ast gro'th
!. +oderate gro'th
C. *lo' gro'th
#. *poradic gro'th
Difficulty: ediu!
Learning Objective: $
4-13
Chapter 04 - The External Environment
20. (p. '8) -n intense competition competitors are characteristicall":
A. >e'
!. /% une5ual po'er
C. E5ual in si.e
#. @ot %oreign
Difficulty: ediu!
Learning Objective: $
22. (p. '8) -n intense rivalr" rivals are:
A. *imilar in strategies
B. #iverse in origins
C. *imilar in personalit"
#. >e'
Difficulty: ediu!
Learning Objective: $
23. (p. '8) 4hich one o% the %ollo'ing is @/T a tactic used b" competitors 'hen the" :oc8e"
%or position(
A. )rice competition
B. Reduced advertising
C. Advertising slug%ests
#. )roduct introduction
Difficulty: ediu!
Learning Objective: $
4-16
Chapter 04 - The External Environment
26. (p. '') #esigning viable strategies %or a %irm re5uires a thorough understanding o% the %irm&s
industr" and competition. 4hich one o% the %ollo'ing is @/T a 5uestion the %irm&s executives
need to address(
A. 4ho are our customers(
!. 4hat are the boundaries o% the industr"(
C. 4hat is the structure o% the industr"(
#. 4hich %irms are our competitors(
Difficulty: ediu!
Learning Objective: $
27. (p. '') The de%inition o% an industr"&s boundaries is important because
A. -t has to be included in the mission statement
B. -t helps executives determine the arena in 'hich their %irm is competing
C. -t has to be reported to stoc8holders
#. -t helps set the prices %or the %irm&s products
Difficulty: ediu!
Learning Objective: $
30. (p. '') 4hich o% the %ollo'ing is @/T a reason 'h" de%ining an industr"&s boundaries is
important(
A. -t helps executives determine the arena in 'hich their %irm is competing
!. -t %ocuses attention on the %irm&s competitors
C. -t helps executives determine 8e" %actors %or success
D. *ta8eholders demand it
Difficulty: ediu!
Learning Objective: $
4-17
Chapter 04 - The External Environment
31. (p. 1))) #esigning viable strategies %or a %irm re5uires a thorough understanding o% the
%irm&s:
A. Earnings
!. <ro'th rate
C. +ar8et share
D. Competition
Difficulty: Hard
Learning Objective: $
3$. (p. 1))) #e%ining industr" boundaries is a ver" di%%icult" tas8 because
A. -ndustr" evolution creates industries 'ithin industries
!. -ndustries are becoming ver" narro' in scope
C. -ndustries do not evolve over time
#. -ndustries remain static over time
Difficulty: ediu!
Learning Objective: $
3,. (p. 1))) The starting point %or industr" de%inition is
A. The %irm&s mission statement
!. A %ocus group session 'ith the %irm&s top managers
C. The %ederal government&s de%inition o% the industr"
D. A de%inition o% the industr" in global terms
Difficulty: ediu!
Learning Objective: $
4-$0
Chapter 04 - The External Environment
34. (p. 1)") The environment that is t"picall" sub:ect to much in%luence b" the %irm is:
A. External
!. Ecological
C. Remote
D. /perating
Difficulty: ediu!
Learning Objective: $
30. (p. 1)") The operating environment:
A. Also called the remote environment
!. Also called the social environment
C. A%%ects the %irm&s success in resource ac5uisition
#. #oes not include competitive position
Difficulty: ediu!
Learning Objective: %
32. (p. 1)") -n considering the competition&s pro%ile a %irm 'ould @/T be concerned 'ith 'hich
o% the %ollo'ing(
A. +ar8et share and breadth o% product line
!. >acilit" location and production capacit"
C. >inancial position and caliber o% personnel
D. *alar" o% the chie% executive and board o% directors
Difficulty: Hard
Learning Objective: &
33. (p. 1)") A %irm can more accuratel" %orecast both its long-term and short-term gro'th and
pro%it potential b" developing its:
A. Competitor pro%ile
!. >inancial position
C. Technological innovation
#. Dendor pro%ile
Difficulty: Hard
Learning Objective: &
4-$1
Chapter 04 - The External Environment
36. (p. 1)") -ncluded in a competitor pro%ile is:
A. )s"chographic
!. *upplier relations
C. Experience
#. #emographic
Difficulty: ediu!
Learning Objective: %
37. (p. 1)#) A valuable result o% tas8 environment anal"sis 'ith respect to geographic
demographic ps"chographic and bu"er-behavior %actors is called:
A. +ar8et share anal"sis
B. Customer pro%ile
C. Competitive edge
#. Consumer=surve"s
Difficulty: Hard
Learning Objective: %
60. (p. 1)$) 4hile developing the customer pro%ile it is important to include:
A. )s"chographic in%ormation
!. +ar8et share
C. Experience
#. +anagement image
Difficulty: ediu!
Learning Objective: &
61. (p. 1)$) This term re%ers to descriptive characteristics that can be used to di%%erentiate groups
o% present or potential customers.
A. <eographics
B. #emographics
C. !u"er behaviors
#. )s"chographics
Difficulty: ediu!
Learning Objective: &
4-$$
Chapter 04 - The External Environment
6$. (p. 1)$) )urchasing behavior is o%ten better predicted b":
A. <eographics
!. #emographics
C. )s"chographics
#. Reputation
Difficulty: ediu!
Learning Objective: &
6,. (p. 1)%) >our %actors are mentioned 'hich a%%ect a %irm&s access to needed personnel. /ne o%
these %actors is:
A. <eographic location
!. Emplo"ee bene%its
C. @ational emplo"ment rates
D. Availabilit" o% s8ills
Difficulty: ediu!
Learning Objective: &
Essay Questions
64. #escribe the three tiers o% environmental %actors that a%%ect the per%ormance o% a %irm.
)lease re%er to exhibit 4.1 on page 61.
Learning Objective: 1
60. -denti%" and brie%l" describe the di%%erent %actors comprising the remote environment.
)lease re%er to the discussion on ?Remote Environment? on pages 61-70.
Learning Objective: 2
4-$,
Chapter 04 - The External Environment
62. #iscuss the three pro%ound social changes in the recent "ears that a%%ect the per%ormance
o% a %irm.
)lease re%er to the discussion on ?*ocial >actors? on pages 6$-64.
Learning Objective: "
63. #escribes brie%l" the air 'ater and land pollution occurring in our environment. )rovide
examples o% %ederal legislations that address each o% these areas.
)lease re%er to the discussion on ?Ecological >actors? on pages 63-66.
Learning Objective: "
66. #e%ine eco-e%%icienc". -denti%" the %our 8e" characteristics o% eco-e%%icient corporations.
)lease re%er to the discussion on Eco-e%%icienc" on page 66-70.
Learning Objective: "
67. Explain the %ive %orce model o% industr" anal"sis as described b" )orter. <ive an example
o% each %orce.
)lease re%er to the discussion on ?Bo' Competitive >orces *hape *trateg"? on pages 7,-77.
Learning Objective: #
70. -denti%" and brie%l" describe the ma:or sources o% barriers to entr".
)lease see the discussion on ?Threat o% Entr"? on pages 7,-70.
Learning Objective: $
4-$4
Chapter 04 - The External Environment
71. 4hat characteristics ma8e a supplier group po'er%ul( Explain.
)lease re%er to the discussion on ?)o'er%ul *uppliers? on page 72.
Learning Objective: $
7$. -denti%" and explain the %actors=characteristics that ma8e the bu"er group po'er%ul.
)lease see the discussion on ?)o'er%ul !u"ers? on pages 72-73.
Learning Objective: $
7,. -denti%" and brie%l" explain the %ive %actors in the operating environment.
)lease re%er to the discussion on ?/perating Environment? on pages 10,-103.
Learning Objective: %
4-$0
