Question

60. The three components of the external environment are:

1. general, economic, and technological.
2. socio-cultural, economic, and demographic
3. technological, cultural, economic
4. general, industry and competitor.

61. The optimization of the location of each activity in the value chain can generate which of the following strategic advantages

a. to improve performance.

b.cost reduction.

c.reduce the risk.

d.All of the above

62. The U.S. Antitrust Act that made it illegal for a member of the same industry to be on the board of directors of an industry rival was the

1. Sherman Act
2. Clayton Act
3. Robinson-Patman Act
4. Board of Directors' Minutes of 1917

Answer 1

60. Ans: General, industry and competitor.

Explanation:

The three components of the external environment are :

• General Environment: It includes the social, economic, and political changes which affect the strategic processes.
• Industry Environment: It involves the factors that influence a firm.
• Competitor Environment: It involves each competitor's current strategy, future objective,etc..

Thus, option [d] is correct answer.

61. Ans: All of the above

62. Ans: Clayton Act

Explanation:

The Clayton Act (1914) make the following practices in business as illegal:

• Price discrimination
• Exclusive dealing
• Tying contract
• The acquisition of the competiting company's stock if the acquisition reduces competition.
• Interlocking of directors.

Thus, option [b] is correct answer.