Question 1

Awareness of technological changes in its industry helps the firm to:

Accepted Answer

A) Interpret new regulations 
B) Act slowly and carefully 
C) Exploit new markets 
D) Forecast social change 
A) Interpret new regulations 
B) Act slowly and carefully 
C) Exploit new markets 
D) Forecast social change

Question 2

Economies of scale in an industry refers to:

Accepted Answer

A) Savings that companies within the industry achieve due to increased volume 
B) Declining average short run costs per unit 
C) Improved contractual agreements with suppliers in the near term 
D) Decreased barriers to entry to new firms attempting to enter the industry 
A) Savings that companies within the industry achieve due to increased volume 
B) Declining average short run costs per unit 
C) Improved contractual agreements with suppliers in the near term 
D) Decreased barriers to entry to new firms attempting to enter the industry

Question 3

A firm can more accurately forecast both its long-term and short-term growth and profit potential by developing its:

Accepted Answer

A) Competitor profile 
B) Financial position 
C) Technological innovation 
D) Vendor profile 
A) Competitor profile 
B) Financial position 
C) Technological innovation 
D) Vendor profile

Question 4

Which of the following is NOT a major barrier to entry?

Accepted Answer

A) Economies of scale 
B) Product differentiation 
C) Market breadth 
D) Cost disadvantages independent of size 
A) Economies of scale 
B) Product differentiation 
C) Market breadth 
D) Cost disadvantages independent of size

Question 5

Entrenched companies may have cost advantages not available to potential rivals.This is an example of:

Accepted Answer

A) Capital requirements 
B) Cost disadvantage independent of size 
C) Economies of scale 
D) Government policy 
A) Capital requirements 
B) Cost disadvantage independent of size 
C) Economies of scale 
D) Government policy

Question 6

The operating environment:

Accepted Answer

A) Also called the remote environment 
B) Also called the social environment 
C) Affects the firm's success in resource acquisition 
D) Does not include competitive position 
A) Also called the remote environment 
B) Also called the social environment 
C) Affects the firm's success in resource acquisition 
D) Does not include competitive position

Question 7

Which of the following can limit or even foreclose entry to industries with such controls as license requirements?

Accepted Answer

A) Equal opportunity employer 
B) Federal trade commission 
C) Government policy 
D) Securities and exchange commission 
A) Equal opportunity employer 
B) Federal trade commission 
C) Government policy 
D) Securities and exchange commission

Question 8

The environment that is typically subject to much influence by the firm is:

Accepted Answer

A) External 
B) Ecological 
C) Remote 
D) Operating 
A) External 
B) Ecological 
C) Remote 
D) Operating

Question 9

Which of these is a determinant of entry,according to Porter?

Accepted Answer

A) Presence of substitute input 
B) Ability to backward integrate 
C) Exit barriers 
D) Economies of scale 
A) Presence of substitute input 
B) Ability to backward integrate 
C) Exit barriers 
D) Economies of scale

Question 10

Highly profitable buyers are usually:

Accepted Answer

A) Less price sensitive 
B) More price sensitive 
C) Very quantity oriented 
D) Not very quantity oriented 
A) Less price sensitive 
B) More price sensitive 
C) Very quantity oriented 
D) Not very quantity oriented

Question 11

In intense rivalry among manufacturing firms,fixed costs are:

Accepted Answer

A) High 
B) Low 
C) Medium 
D) Less critical than variable costs 
A) High 
B) Low 
C) Medium 
D) Less critical than variable costs

Question 12

The remote external environment includes:

Accepted Answer

A) Creditors 
B) Industry factors 
C) Employee 
D) Ecological factors 
A) Creditors 
B) Industry factors 
C) Employee 
D) Ecological factors

Question 13

Which of the following are considered competitors?

Accepted Answer

A) Low substitutability products 
B) Firms with dissimilar scope 
C) Substitute products 
D) Uncommitted firms 
A) Low substitutability products 
B) Firms with dissimilar scope 
C) Substitute products 
D) Uncommitted firms

Question 14

In intense competitive rivalry,barriers to exit are:

Accepted Answer

A) High 
B) Low 
C) Medium 
D) Changing 
A) High 
B) Low 
C) Medium 
D) Changing

Question 15

Encompassed in political considerations is/are:

Accepted Answer

A) Social values 
B) Disposable income 
C) Anti-trust laws 
D) Age distribution 
A) Social values 
B) Disposable income 
C) Anti-trust laws 
D) Age distribution

Question 16

The definition of an industry's boundaries is important because

Accepted Answer

A) It has to be included in the mission statement 
B) It helps executives determine the arena in which their firm is competing 
C) It has to be reported to stockholders 
D) It helps set the prices for the firm's products 
A) It has to be included in the mission statement 
B) It helps executives determine the arena in which their firm is competing 
C) It has to be reported to stockholders 
D) It helps set the prices for the firm's products

Question 17

One of the most profound social changes in recent years is:

Accepted Answer

A) The decreased population 
B) An increasing number of women in the workforce 
C) The heavy reliability of children in the workforce 
D) Increased education of U.S.citizens 
A) The decreased population 
B) An increasing number of women in the workforce 
C) The heavy reliability of children in the workforce 
D) Increased education of U.S.citizens

Question 18

Which is perhaps the most important entry barrier in the soft drink,over-the-counter drugs,cosmetics,investment banking and public account industries?

Accepted Answer

A) Capital requirements 
B) Market differentiation 
C) Economies of scale 
D) Product differentiation 
A) Capital requirements 
B) Market differentiation 
C) Economies of scale 
D) Product differentiation

Question 19

The learning curve effect is an example of which barrier to entry?

Accepted Answer

A) Cost disadvantages independent of size 
B) Product differentiation 
C) Economies of scale 
D) Government policy 
A) Cost disadvantages independent of size 
B) Product differentiation 
C) Economies of scale 
D) Government policy

Question 20

The power of each supplier depends on:

Accepted Answer

A) Low concentration 
B) Its commodity-like product 
C) Relative importance of purchases 
D) Its inability to integrate forward 
A) Low concentration 
B) Its commodity-like product 
C) Relative importance of purchases 
D) Its inability to integrate forward

Awareness of technological changes in its industry helps the firm to:

Economies of scale in an industry refers to:

A firm can more accurately forecast both its long-term and short-term growth and profit potential by developing its:

Which of the following is NOT a major barrier to entry?

Entrenched companies may have cost advantages not available to potential rivals.This is an example of:

The operating environment:

Which of the following can limit or even foreclose entry to industries with such controls as license requirements?

The environment that is typically subject to much influence by the firm is:

Which of these is a determinant of entry,according to Porter?

Highly profitable buyers are usually:

In intense rivalry among manufacturing firms,fixed costs are:

The remote external environment includes:

Which of the following are considered competitors?

In intense competitive rivalry,barriers to exit are:

Encompassed in political considerations is/are:

The definition of an industry's boundaries is important because

One of the most profound social changes in recent years is:

Which is perhaps the most important entry barrier in the soft drink,over-the-counter drugs,cosmetics,investment banking and public account industries?

The learning curve effect is an example of which barrier to entry?

The power of each supplier depends on:

Strategic Management

Company Mission

Corporate Social Responsibility and Business Ethics

The Global Environment

Internal Analysis

Long-Term Objectives and Strategies

Business Strategy

Multibusiness Strategy

Implementation

Organizational Structure

Leadership and Culture

Strategic Control

Innovation and Entrepreneurship

Filters

Exam 4: The External Environment

Awareness of technological changes in its industry helps the firm to:

Economies of scale in an industry refers to:

A firm can more accurately forecast both its long-term and short-term growth and profit potential by developing its:

Which of the following is NOT a major barrier to entry?

Entrenched companies may have cost advantages not available to potential rivals.This is an example of:

The operating environment:

Which of the following can limit or even foreclose entry to industries with such controls as license requirements?

The environment that is typically subject to much influence by the firm is:

Which of these is a determinant of entry,according to Porter?

Highly profitable buyers are usually:

In intense rivalry among manufacturing firms,fixed costs are:

The remote external environment includes:

Which of the following are considered competitors?

In intense competitive rivalry,barriers to exit are:

Encompassed in political considerations is/are:

The definition of an industry's boundaries is important because

One of the most profound social changes in recent years is:

Which is perhaps the most important entry barrier in the soft drink,over-the-counter drugs,cosmetics,investment banking and public account industries?

The learning curve effect is an example of which barrier to entry?

The power of each supplier depends on:

Strategic Management

Company Mission

Corporate Social Responsibility and Business Ethics

The Global Environment

Internal Analysis

Long-Term Objectives and Strategies

Business Strategy

Multibusiness Strategy

Implementation

Organizational Structure

Leadership and Culture

Strategic Control

Innovation and Entrepreneurship

Filters