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

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A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters.The company is catering to different groups of customers known as:

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In growth industries:

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Companies facing greater exit barriers find it harder to reduce capacity,and face a greater threat of severe price competition.

(True/False)
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Members of a strategic group:

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Substitute products are not a threat if a company is the market leader.

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Which of the following statements is true about rivalry in the context of established companies?

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Which of the following statements is true about potential competitors in an industry?

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Suppliers are most powerful when the products that they sell have many substitutes.

(True/False)
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When buyers are in a weak bargaining position,companies in the industry must lower their prices to increase profits.

(True/False)
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Interest rates have an impact on the sale of automobiles,appliances,and capital equipment. This represents a macroeconomic force.

(True/False)
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The competitive structure of an industry refers to the:

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Suppliers in an industry are most powerful when:

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Which of the following is NOT a barrier to entry?

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Define and then relate the concepts of sectors,industries,and market segments.

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Starbucks and an independent local café are different in terms of their business techniques.They both sell coffee,and therefore belong to the same strategic group.

(True/False)
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The bottled water industry created new competitors for Coca-Cola,but it did not change the basic industry boundaries.

(True/False)
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Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.

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Which of the following statements is true about complementors?

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One of the defining characteristics of the mature stage of the industry life-cycle is that growth is low or zero.

(True/False)
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As a barrier to new entry,absolute cost advantages can be based on:

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