Student Name ______________________________________

True/False
Indicate whether the sentence or statement is true or false. For 'True' darken the circle under 'A' on your answer sheet. For 'False' darken the circle for 'B' on your answer sheet.

____ 1. Demographic, economic, political/legal, sociocultural, technological, and global are the six elements comprising the industry environment.

____ 2. The objective of assessing the external environment is to determine the timing and significance of the effects of environmental changes and trends on the strategic management of the firm.

____ 3. Early adopters of new technology often achieve higher market shares and higher returns than later adopters of the technology.

____ 4. An attractive industry is one that is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms.

____ 5. The process of competitor analysis should examine the competitor’s future objectives, current strategy, assumptions, and capabilities.

____ 6. Firms should seek to continually develop new core competencies because all core competencies have limited life spans.

____ 7. Compared to tangible resources, intangible resources are an inferior source of core competencies.

____ 8. One benefit of outsourcing is that it allows a firm to focus on those few value chain activities where it can produce the greatest value.

____ 9. A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets.

____ 10. To position itself differently from competitors, a firm must decide to either perform activities differently or to perform different activities.

____ 11. Essentially, there are only two basic competitive