Question 1

If economies of scale are an industry's primary entry barrier,a new entrant's major concern is:

Accepted Answer

A) its inability to counter brand loyalty that customers have for established companies in the industry. 
B) the inferior quality of its products. 
C) its inability to match the innovation of the established firm. 
D) its inability to produce in sufficient volume to match the cost advantages of established producers. 
E) its inability to get buyers to switch to its product. 
A) its inability to counter brand loyalty that customers have for established companies in the industry. 
B) the inferior quality of its products. 
C) its inability to match the innovation of the established firm. 
D) its inability to produce in sufficient volume to match the cost advantages of established producers. 
E) its inability to get buyers to switch to its product.

Question 2

Which of the following is true of growth industries?

Accepted Answer

A) They typically have high barriers to entry. 
B) They tend to be characterized by weak rivalry. 
C) They are characterized by low demands. 
D) They increase prices because customers are more aware of the industry's product. 
E) They inhibit the development of distribution channels. 
A) They typically have high barriers to entry. 
B) They tend to be characterized by weak rivalry. 
C) They are characterized by low demands. 
D) They increase prices because customers are more aware of the industry's product. 
E) They inhibit the development of distribution channels.

Question 3

Market segments are groups of:

Accepted Answer

A) customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B) companies within a market that produce similar goods or services which are close substitutes of each other. 
C) companies that follow a similar business model and cater to the needs of similar customers. 
D) closely related industries. 
E) large companies that are in a position to determine industry price. 
A) customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B) companies within a market that produce similar goods or services which are close substitutes of each other. 
C) companies that follow a similar business model and cater to the needs of similar customers. 
D) closely related industries. 
E) large companies that are in a position to determine industry price.

Question 4

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Accepted Answer

A) True 
 B)False

Question 5

A group of firms all make tools for baking-pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

Accepted Answer

A) True 
 B)False

Question 6

Intense rivalry lowers prices and raises costs.

Accepted Answer

A) True 
 B)False

Question 7

Using the industry life-cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

Accepted Answer

In the embryonic stage of the industry l

Question 8

In the late 1800s,when the automobile was first manufactured,the automobile industry would have been considered a(n):

Accepted Answer

A) mature industry. 
B) stakeout industry. 
C) embryonic industry. 
D) growth industry. 
E) declining industry. 
A) mature industry. 
B) stakeout industry. 
C) embryonic industry. 
D) growth industry. 
E) declining industry.

Question 9

The threat from potential competitors is greatest in the _____ stage of the industry life cycle.

Accepted Answer

A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline 
A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline

Question 10

Which of the following is currently an embryonic industry?

Accepted Answer

A) Personal computers 
B) Biotechnology 
C) Internet retailing 
D) Nanotechnology 
E) Wireless communications 
A) Personal computers 
B) Biotechnology 
C) Internet retailing 
D) Nanotechnology 
E) Wireless communications

Question 11

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

Accepted Answer

A) True 
 B)False

Question 12

The level of industry demand:

Accepted Answer

A) has little effect on competition in the industry. 
B) is one of the determinants of the intensity of rivalry in the industry. 
C) increases when customers exit a marketplace. 
D) does not impact the market share that established companies hold. 
E) decreases the rivalry among established companies, when in decline. 
A) has little effect on competition in the industry. 
B) is one of the determinants of the intensity of rivalry in the industry. 
C) increases when customers exit a marketplace. 
D) does not impact the market share that established companies hold. 
E) decreases the rivalry among established companies, when in decline.

Question 13

Demand reaches total saturation in the ____ stage of the industry life-cycle.

Accepted Answer

A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline 
A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline

Question 14

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Accepted Answer

A) True 
 B)False

Question 15

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other.
?

Accepted Answer

A) True 
 B)False

Question 16

Common exit barriers include:

Accepted Answer

A) minimal investment in assets like specific machines. 
B) emotional attachments to an industry. 
C) low fixed costs associated with leaving an industry. 
D) the lack of bankruptcy regulations. 
E) economic independence of a company 
A) minimal investment in assets like specific machines. 
B) emotional attachments to an industry. 
C) low fixed costs associated with leaving an industry. 
D) the lack of bankruptcy regulations. 
E) economic independence of a company

Question 17

In Porter's competitive forces framework,the stronger the five forces,the ability of established companies to raise prices and earn greater profits becomes more limited.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following industry structures consists of a large number of small or medium-sized companies,none of which is in a position to determine industry price?

Accepted Answer

A) Fragmented industry 
B) Consolidated industry 
C) Oligopoly 
D) Monopoly 
E) Sector 
A) Fragmented industry 
B) Consolidated industry 
C) Oligopoly 
D) Monopoly 
E) Sector

Question 19

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Accepted Answer

All three of these models fail to accoun

Question 20

Americans are currently living longer now than in the past because of advances in medicine.As a result,the sale of products that meet the needs of older individuals,such as devices that assist in walking and movement,have increased.In the context of an industry's macroenvironment,age is considered a:

Accepted Answer

A) technological force. 
B) demographic force. 
C) social force. 
D) political force. 
E) legal force. 
A) technological force. 
B) demographic force. 
C) social force. 
D) political force. 
E) legal force.

If economies of scale are an industry's primary entry barrier,a new entrant's major concern is:

Which of the following is true of growth industries?

Market segments are groups of:

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

A group of firms all make tools for baking-pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

Intense rivalry lowers prices and raises costs.

Using the industry life-cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

In the late 1800s,when the automobile was first manufactured,the automobile industry would have been considered a(n):

The threat from potential competitors is greatest in the _____ stage of the industry life cycle.

Which of the following is currently an embryonic industry?

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

The level of industry demand:

Demand reaches total saturation in the ____ stage of the industry life-cycle.

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other. ?

Common exit barriers include:

In Porter's competitive forces framework,the stronger the five forces,the ability of established companies to raise prices and earn greater profits becomes more limited.

Which of the following industry structures consists of a large number of small or medium-sized companies,none of which is in a position to determine industry price?

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy

Business Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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Exam 2: External Analysis: The Identification of Opportunities and Threats

If economies of scale are an industry's primary entry barrier,a new entrant's major concern is:

Which of the following is true of growth industries?

Market segments are groups of:

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

A group of firms all make tools for baking-pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

Intense rivalry lowers prices and raises costs.

Using the industry life-cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

In the late 1800s,when the automobile was first manufactured,the automobile industry would have been considered a(n):

The threat from potential competitors is greatest in the _____ stage of the industry life cycle.

Which of the following is currently an embryonic industry?

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

The level of industry demand:

Demand reaches total saturation in the ____ stage of the industry life-cycle.

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from each other. ?

Common exit barriers include:

In Porter's competitive forces framework,the stronger the five forces,the ability of established companies to raise prices and earn greater profits becomes more limited.

Which of the following industry structures consists of a large number of small or medium-sized companies,none of which is in a position to determine industry price?

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy

Business Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters