Exam for Strategic Management Part II

158. Transformational change involves A. extensive communication. B. little training. C. no employee development. D. few incentives. Transformational change involves extensive communication, incentives, training, and development. 159. Whirlpool's transformation under corporate vice president Nancy Snyder included financial investments in A. shareholder dividends. B. capital spending. C. community development. D. paying down borrowed debt. Under the direction of Nancy Snyder, a corporate vice president, Whirlpool, the world's largest producer of household appliances, brought about a significant shift in the firm's reputation as an innovator. This five-year initiative included financial investments in capital spending. 160. Methods by which successful executives show their interest in learning what others are thinking include A. holding town hall meetings and consulting employees on what they would do if in charge. B. holding town hall meetings and consulting bankers on what they would do if in charge. C. holding retreats and consulting rivals on what they would do if in charge. D. consulting rivals and consulting investment bankers. Many successful executives reward honesty and input and show their interest in learning what others are thinking. Methods vary and include holding town-hall meetings, seeking the advice of people at all levels of the firm, and asking employees what they would do if they were in charge. 161. Tim Brown, CEO of IDEO, believes that the ________ of a person should not dictate the level of influence their ideas should be accorded. A. age B. seniority C. position D. education As noted by Tim Brown, CEO of the premier design consulting firm IDEO: The best can come from anywhere in an organization. So you had better do a good job of spotting and promoting them when they come, and not let their positions dictate how influential their ideas are. 162. The hierarchy of organizational goals is in this order (least specific to most specific): A. vision statements, strategic objectives, mission statements B. mission statements, strategic objectives, vision statements C. vision statements, mission statements, strategic objectives D. mission statements, vision statements, strategic objectives Organizations express priorities best through stated goals and objectives that form a hierarchy of goals, which includes its vision, mission, and strategic objectives. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images. On the other hand, strategic objectives tend to be more specific and provide a more direct means of determining if the organization is moving toward broader, overall goals. 163. Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements A. are very specific. B. provide specific objectives. C. set organizational structure. D. evoke powerful and compelling mental images. A vision is an organizational goal(s) that evoke(s) powerful and compelling mental images. 164. Effective vision statements include A. all strategic directions of the organization. B. a brief statement of the company's direction. C. strategic posturing and future objectives. D. financial objectives and projected figures. A vision is a goal that is massively inspiring, overarching, and long-term. It represents a destination that is driven by and evokes passion. What visions may lack in specificity, they make up for in their ability to evoke powerful and compelling mental images. 165. WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a A. strategic objective. B. vision statement. C. vague statement of direction. D. line manager's individual goal. Effective visions provide a fundamental statement of the values, aspirations and goals of an organization. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees. 166. Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the __________ of an organization. A. values, aspirations, and goals B. expected returns and limitations C. outstanding debt D. credibility Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of organization values, aspirations, and goals. Such visions go well beyond narrow financial objectives, of course, and strive to capture both the minds and hearts of employees. 167. In contrast to the vision of an organization, its mission should A. be shorter in length. B. encompass both the purpose of the company as well as the basis of competition. C. encompass all the major rules and regulations of the corporate work force. D. be less detailed. The mission statement of a company differs from its vision in that it encompasses both the purpose of the company as well as the basis of competition and competitive advantage. 168. The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? A. operationalize the mission statement B. modify the mission statement C. are a shorter version of the mission statement D. are only clarified by the board of directors Strategic objectives are used to operationalize the mission statement. That is, they help to provide guidance on how the organization can fulfill or move toward the higher goals in the goal hierarchy, that of the mission and vision. 169. Successful organizations are effective in motivating people. Employees work best when A. they are asked to do their best. B. work requirements are vague and unclear. C. they are striving toward specific goals. D. they are guided by an abstract mission statement. Challenging objectives can help to motivate and inspire employees to higher levels of commitment and effort. Much research has supported the notion that people work harder when they are striving toward specific goals instead of being asked simply to do their best. 170. Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a A. nonfinancial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement. Strategic objectives are used to operationalize the mission statement. This is an example of a financial strategic objective. 171. We want to be the top-ranked supplier to our customers. (PPG) This is an example of a A. nonfinancial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement. Strategic objectives are used to operationalize the mission statement. This is an example of a nonfinancial strategic objective. 172. In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives A. put financial objectives above human considerations. B. align departments toward departmental goals. C. help resolve conflicts through their common purpose. D. cause debate and increase conflict. There is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at crosspurposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise. 173. Which of the following is not an example of a financial strategic objective? A. Increase sales growth 6 percent to 8 percent and accelerate core net earnings growth from 13 percent to15 percent per share in each of the next 5 years. (Procter & Gamble) B. Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M) C. Generate Internet-related revenue of $1.5 billion. (AutoNation) D. Cut corporate overhead costs by $30 million per year. (Fortune Brands) Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales (3M) is a nonfinancial strategic objective. 174. In large organizations, the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals. Proper _______ can help to resolve conflicts when they arise. A. mission statements B. vision statements C. organization structure D. objectives As we noted earlier in the chapter, there is always the potential for different parts of an organization to pursue their own goals rather than overall company goals. Although well intentioned, these may work at cross-purposes to the organization as a whole. Meaningful objectives thus help to resolve conflicts when they arise. Ch2 Multiple Choice Questions 90. 91. Two of the key inputs to developing forecasts discussed in the text are A. environmental scanning and stakeholder identification. B. assessing internal strengths and environmental scanning. C. environmental scanning and competitive intelligence. D. environmental scanning and a SWOT analysis. Three important processes (scanning, monitoring, and gathering competitive intelligence) are used to develop forecasts. Salemi Industries launched Cell Zone unsuccessfully in 2005 because it did not understand the market demand for its new product. This is an example of A. vision statement evaluation. B. environmental scanning. C. assessing internal strengths. D. mission statement evaluation. Analyzing the external environment is a critical step in recognizing and understanding the opportunities and threats that organizations face. 92. Environmental analysis requires continual questioning of all of these assumptions except A. a priori ideas about the structure of the relevant industry. B. biases about how to make money in the industry. C. presuppositions about who is and is not a competitor. D. continual updating of environmental knowledge. According to Hamel and Prahalad, every manager carries around in his or her head a set of biases, assumptions, and presuppositions about the structure of the relevant industry, about how one makes money in the industry, about who the competition is and is not, about who the customers are and are not, and so on. Environmental analysis requires you to continually question such assumptions. 93. Firms that were successful in the past can fail today because A. they keep pace with changes in the nature of competition. B. their financial situation is resilient. C. the company strategy is outdated. D. management monitors the relevant environmental factors regularly. The strategy of the firm may be good at one point in time, but it may go astray when the management frame of reference gets out of touch with the realities of the actual business situation. This results when management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid. 94. Examples of how to improve perceptual acuity include: A. A CEO meets with other CEOs of non-competing companies to examine the world from multiple perspectives and then shares the results with his own management team. B. A CEO meets with the company management team regularly to analyze current world events and their potential impact on the company. C. A CEO meets with direct competitors to analyze current industry trends. The CEOs share their conclusions with their respective companies. D. Outsiders are brought in to the board meeting to critique the company strategy, which considers the new information in its potential revamping of the strategy. Although many CEOs may complain that the top job is a lonely one, they can't do it effectively by sitting alone in their office. Instead, high-performing CEOs are constantly meeting with people and searching out information. 95. Perceptual acuity requires all of the following except A. an ability to sense what is coming. B. the ability to detect early warning signals of environmental changes. C. a compulsive fixation on external environmental monitoring. D. a refusal to consult with others. The best CEOs are compulsively tuned to the external environment and seem to have a sixth sense that picks up anomalies and detects early warning signals which may represent key threats or opportunities. Although many CEOs may complain that the top job is a lonely one, they cannot do it effectively by sitting alone in their office. Instead, high-performing CEOs are constantly meeting with people and searching out information. 96. Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends. This is an example of how to improve A. stakeholder management. B. perceptual acuity. C. internal scanning. D. financial returns. Although many CEOs may complain that the top job is a lonely one, they cannot do it effectively by sitting alone in their office. Instead, high-performing CEOs are constantly meeting with people and searching out information. This helps them improve perceptual acuity. 97. Which of the following is not an input to develop forecasts? A. environmental scanning B. competitor intelligence C. environmental monitoring D. stakeholder management Three important processes (scanning, monitoring, and gathering competitive intelligence) are used to develop forecasts. 98. Boards of directors use outsiders to critique their strategy. This is necessary to improve mostly A. financial returns. B. organizational hierarchy. C. perceptual acuity. D. employee relations. To improve perpetual acuity, two companies ask outsiders to critique strategy during their board strategy sessions. Such input typically leads to spirited discussions that provide valued input on the hinge assumptions and options that are under consideration. Once, the focus was on pinpointing the risk inherent in a certain strategy. Now, discussions have led to finding that the company was missing a valuable opportunity. 99. When the management frame of reference gets out of touch with the realities of the actual business situation, what can happen to the firm? A. The company business strategy no longer works. B. Management gets across-the-board raises. C. Management perceptual acuity improves. D. It becomes easier to maintain competitive advantage. A company strategy may be good at one point in time, but it may go astray when the management frame of reference gets out of touch with the realities of the actual business situation. This results when management assumptions, premises, or beliefs are incorrect or when internal inconsistencies among them render the overall theory of the business invalid. 100. Corporate retreats do not A. permit companies to discuss larger marketplace trends. B. guarantee positive consumer response to new products. C. give companies an opportunity to look beyond their own industries. D. oblige management to automatically change strategy. According to Ram Charan, an adviser to many Fortune 500 CEOs, improving perceptual acuity is an advantage that one CEO finds from getting together with his critical people for half a day every eight weeks to discuss what is new and what is going on in the world. The setting is informal, and outsiders often attend. The participants look beyond the lens of their industry because some trends that affect one industry may impact others later on. 101. Why must successful managers recognize opportunities and threats in their company external environment? A. If they miscalculate the market, opportunities will be lost. B. If they misread the market, they are likely to become rich. C. If they identify all of the environmental threats, they are guaranteed to acquire large market share. D. If they identify all of the environmental opportunities, they are guaranteed to acquire large market share. Successful managers must recognize opportunities and threats in their company external environment. They must be aware of what is going on outside their company. If they focus exclusively on the efficiency of internal operations, the firm may degenerate into the most efficient producer of buggy whips, typewriters, or carbon paper. But if they miscalculate the market, opportunities will be lost. 102. _____________ tracks the evolution of environmental trends, sequences of events, or streams of activities. A. Environmental scanning B. Environmental monitoring C. Environmental surveying D. Competitive intelligence Environmental monitoring tracks the evolution of environmental trends, sequences of events, or streams of activities. Monitoring enables firms to evaluate how dramatically environmental trends are changing the competitive landscape. 103. Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the United States. A. soft; increase; increasing B. soft; decrease; decreasing C. hard; decrease; decreasing D. hard; decrease; increasing A hard trend is a projection based on measurable facts, events, or objects. It is something that will happen. The aging of the population is a hard trend. So is the increasing speed and decreasing cost of computers. 104. Scanning the general environment would identify information on A. substitute goods. B. the aging population and ethnic shifts. C. customer and firm bargaining power. D. competitive rivalry. Environmental scanning involves surveillance of the external environment of a firm to predict environmental changes and detect changes already under way. This alerts the organization to critical trends and events before changes develop a discernible pattern and before competitors recognize them. 105. Which of the following is not an example of corporate competitive analysis? A. banks tracking home loans B. airlines changing hundreds of fares daily in response to competitor tactics C. car manufacturers offering sales incentives based on rival offers D. consumers comparing product offers online Corporate competitive intelligence is the activity of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitor strengths and weaknesses in order to avoid surprises by anticipating competitor moves and decreasing response time. 106. Gathering competitive intelligence A. is good business practice. B. is illegal. C. is considered unethical. D. minimizes the need to obtain information in the public domain. Competitive intelligence (CI) helps firms define and understand their industry and identify strengths and weaknesses of rivals. This includes the intelligence gathering associated with collecting data on competitors and interpreting such data. 107. Environmental forecasting does not involve plausible projections about the ________ of environmental change. A. direction B. scope C. speed D. lack of intensity Environmental forecasting involves the development of plausible projections about the direction, scope, speed, and intensity of environmental change. Its purpose is to predict change. 108. Which of the following websites is not an example of one used routinely for corporate competitive intelligence gathering? A. Slideshare B. Quora C. Duolingo D. YouTube Keeping track of competitors has become easier today with the amount of information that is available on the Internet. The following are examples of some websites that companies routinely use for competitive intelligence gathering: Slideshare, Quora, Ispionage, YouTube. Duolingo is a language learning website. 109. Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________. A. competitors; customers B. customers; competitors C. existing customers; existing competitors D. traditional competitors; new competitors A word of caution: Executives must be careful to avoid spending so much time and effort tracking the actions of traditional competitors that they ignore new competitors. Further, broad environmental changes and events may have a dramatic impact on company viability. 110. Banks and airlines are examples of two industries that track competitor offers continually. This is called the process of gathering A. consumer responses. B. competitive intelligence. C. past decisions. D. mainline information. Competitive intelligence is the activity of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitor strengths and weaknesses. Banks continually track home loan, auto loan, and certificate of deposit (CD) interest rates charged by rivals. Major airlines change hundreds of fares daily in response to competitors' tactics. 111. Which of the following would not lead a manager to believe that an ethical concern exists? A. Have I done anything that coerced somebody to share this information? B. Is the contemplated technique for gathering information relevant? C. Have I done something to circumvent a system intended to secure or protect information? D. Have I misled anybody in order to gain access? The Code of Ethics Guide on Competitive Intelligence at United Technologies encourages managers and workers to ask themselves these five questions whenever they have ethical concerns. Collecting relevant information is not an ethical concern; however, this is a concern if the contemplated technique for gathering information is invasive. 112. In 1977, Kenneth H. Olsen, then president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. Long since disproven, this is an example of A. overestimation of uncertainty. B. excellent forecasting. C. underestimation of uncertainty. D. good prediction skills. In 1977, one of the colossal underestimations in business history occurred when Kenneth H. Olsen, president of Digital Equipment Corp., announced that there was no reason for individuals to have a computer in their home. The explosion in the personal computer market was not easy to detect in 1977, but it was clearly within the range of possibilities at the time. Environmental forecasting involves the development of plausible projections about the direction, scope, speed, and intensity of environmental change. Its purpose is to predict change. 113. It is important to question the reliability of forecasts because A. if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity. B. uncertainty is black and white and therefore the gray areas are unimportant. C. underestimating uncertainty can lead to good competitive strategies. D. the growth new industries, such as that of telecommunications, cannot be predicted. Some forecasting issues are much more specific to a particular firm and the industry in which it competes. Consider how important it is for Motel 6 to predict future indicators, such as the number of rooms, in the budget segment of the industry. If its predictions are low, it will build too many units, creating a surplus of room capacity that would drive down room rates. 114. A danger of forecasting discussed in the text is that A. B. C. D. in most cases, the expense of collecting the necessary data exceeds the benefit. the retrospective nature of forecasting provides little information about the future. managers may view uncertainty as black and white while ignoring important gray areas. it can create legal problems for the firm if regulators discover the company is making forecasts. A danger of forecasting is that managers may view uncertainty as black and white and ignore important gray areas. The problem is that underestimating uncertainty can lead to strategies that neither defend against threats nor take advantage of opportunities. 115. PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it? A. crowdsourcing B. scenario analysis C. competitive intelligence D. monitoring Scenario analysis is a more in-depth approach to forecasting. It draws on a range of disciplines and interests, among them economics, psychology, sociology, and demographics. It usually begins with a discussion of participant thoughts on ways in which societal trends, economics, politics, and technology may affect an issue. Developing strategies based on possible future scenarios seems to be paying off for PPG Industries. The company currently boasts a return on equity of 19.1 percent and its stock had a total return of over 43 percent over the most recent 52-week period. 116. SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow? A. build on its weaknesses B. remedy the weaknesses or work around them C. take advantage of the opportunities presented by the environment D. protect the firm from the threats The general idea of SWOT analysis is that company strategy must build on its strengths, remedy its weaknesses or work around them, take advantage of the opportunities presented by the environment, and protect the firm from the threats. Despite its apparent simplicity, the SWOT approach has been very popular. First, it forces managers to consider both internal and external factors simultaneously. Second, its emphasis on identifying opportunities and threats makes firms act proactively rather than reactively. Third, it raises awareness about the role of strategy in creating a match between the environmental conditions and the firm's internal strengths and weaknesses. Finally, its conceptual simplicity is achieved without sacrificing analytical rigor. 117. Scenario planning is a useful technique for firms competing in industries characterized by __________ and ____________. A. predictability; stability B. low profit margins; stability C. unpredictability; change D. high profit margins; stability Scenario planning is a useful technique for firms competing in industries characterized by unpredictability and change. 118. Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting. A. basic B. fundamental C. in-depth D. superficial Scenario analysis is a more in-depth approach to forecasting. It draws on a range of disciplines and interests, among them economics, psychology, sociology, and demographics. 119. In the SWOT framework, ______________ are the same for all firms in the same competitive environment. A. strengths and weaknesses B. strengths and opportunities C. weaknesses and threats D. opportunities and threats Opportunities and Threats are environmental conditions external to the firm. These could be factors in either the general or the competitive environment. In the general environment, one might experience developments that are beneficial for most companies, such as improving economic conditions that lower borrowing costs, or trends that benefit some companies and harm others. 120. In the SWOT framework, ______________ are internal factors that are specific to the company. A. strengths and opportunities B. strengths and threats C. threats and weaknesses D. strengths and weaknesses The Strengths and Weaknesses refer to the internal conditions of the firm in which a firm excels (strengths) and may be lacking relative to competitors (weaknesses). 121. Heightened concern with fitness might be a threat to some companies and an opportunity to others. In the SWOT framework, these are A. internal environmental factors. B. external environmental factors. C. both internal and external environmental factors. D. not relevant external environmental factors. In the general environment, one might experience developments that are beneficial for most companies, such as improving economic conditions that lower borrowing costs, or trends that benefit some companies and harm others. An example is the heightened concern with fitness, which is a threat to some companies (e.g., tobacco) and an opportunity to others (e.g., health clubs). 122. By emphasizing the importance of identifying opportunities and threats, the SWOT framework makes firms act ________ rather than ___________. A. quickly; slowly B. immediately; eventually C. proactively; reactively D. intelligently; uninformed Despite its apparent simplicity, the SWOT approach has been very popular. First, it forces managers to consider both internal and external factors simultaneously. Second, its emphasis on identifying opportunities and threats makes firms act proactively rather than reactively. 123. SWOT analysis raises awareness about the role of strategy in creating a match between the environmental conditions and ______________ of the firm. A. internal opportunities and threats B. internal strengths and weaknesses C. internal strengths and opportunities D. internal weaknesses and opportunities The SWOT framework raises awareness about the role of strategy in creating a match between the environmental conditions and the internal strengths and weaknesses of the firm. 124. Steve Jobs, former chairman of Apple, demonstrated that ___________ also are important in forecasting. A. character and ability B. intuition and judgment C. training and experience D. imagination and training While analysis is necessary, it is also equally important to recognize the role played by intuition and judgment. Steve Jobs, the legendary former chairman of Apple, took a very different approach in determining what customers really wanted. Jobs relied on his own intuition, his radar-like feel for emerging technologies and how they could be brought together to create insanely great products that ultimately made the difference. For Jobs, intuition was no mere gut call. 125. Which of the following is not a correct usage of the SWOT framework? A. build on its strengths B. remedy the weaknesses or work around them C. take advantage of the opportunities presented by the environment D. protect the firm from environmental weaknesses The general idea of SWOT analysis is that a firm's strategy must build on its strengths, remedy its weaknesses or work around them, take advantage of the opportunities presented by the environment, and protect the firm from the threats. 126. The aging of the population, changes in ethnic composition, and effects of the baby boom are __________ changes. A. macroeconomic B. demographic C. global D. sociocultural Demographics are genetic and observable characteristics of a population, including elements such as the aging population, rising or declining affluence, changes in ethnic composition, geographic distribution of the population, and disparities in income level. 127. Larger numbers of women entering the work force since the early 1970s is an example of A. demographic changes. B. political and legal environmental changes. C. sociocultural changes. D. technological developments. Sociocultural forces influence the values, beliefs, and lifestyles of a society. Examples include a higher percentage of women in the workforce. 128. Emerging sociocultural changes in the environment include A. changes in the ethnic composition. B. the increasing educational attainment of women in the past decade. C. progressively less disposable income by consumers. D. changes in the geographic distribution of the population. Sociocultural forces influence the values, beliefs, and lifestyles of a society. Examples include an increased educational attainment by women in the workplace. 129. All of the following are important elements of the political and legal segment of the general environment except A. the deregulation of utilities. B. the Americans with Disabilities Act (ADA). C. the increased use of Internet technology. D. increases in the federally mandated minimum wage. Political processes and legislation influence environmental regulations with which industries must comply. Some elements of the political and legal arena include the Americans with Disabilities Act (ADA) of 1990, deregulation of utilities, and increases in the federally mandated minimum wage. 130. Which of the following would be considered part of the general environment of a firm? A. decreased entry barriers B. higher unemployment rates C. increased bargaining power of the firm's suppliers D. increased competitive intensity The general environment is divided into six segments: demographic, sociocultural, political/legal, technological, economic, and global. 131. Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. A. positive; negligible B. negative; negligible C. negative; positive D. positive; negative Interest-rate increases have a negative impact on the residential home construction industry but a negligible (or neutral) effect on industries that produce consumer necessities such as prescription drugs or common grocery items. 132. In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts. A. negative; positive; demographic B. positive; negative; technological C. negative; positive; sociocultural D. positive; negative; demographic The general environment is divided into six segments: demographic, sociocultural, political/legal, technological, economic, and global. The aging population is a demographic trend that could positively affect the health care industry and negatively affect the baby product industry. 133. In the general environment, which of the following is not a demographic trend? A. aging population B. greater disparities in income levels C. more women in the workforce D. changes in ethnic composition The general environment is divided into six segments: demographic, sociocultural, political/legal, technological, economic, and global. The demographic segment of the general environment involves genetic and observable characteristics of a population, including the levels and growth of age, density, sex, race, ethnicity, education, geographic region, and income. 134. Lowes has found that women prefer to do larger home-improvement projects with a man, whether a boyfriend, husband, or neighbor. As a result, in addition to its recipe card classes (that explain various projects that take only one weekend), Lowes offers co-ed store clinics for projects like sink installation. This is an example of which segment of the general environment? A. economic B. sociocultural C. political and legal D. demographic Sociocultural forces influence the values, beliefs, and lifestyles of a society. Examples include a higher percentage of women in the workforce, dual-income families, increases in the number of temporary workers, greater concern for healthy diets and physical fitness, greater interest in the environment, and postponement of having children.