Question 1

A firm following a niche strategy in a declining industry reduces its scope of operations and focuses on narrow segments of the declining industry.

Accepted Answer

A) True 
 B)False  True

Question 2

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.

Accepted Answer

A)  barriers to entry 
B)  new entrants 
C)  suppliers 
D)  buyers 
A)  barriers to entry 
B)  new entrants 
C)  suppliers 
D)  buyers B

Question 3

Identify the four generic industry structures and the specific strategic opportunities in each of these industries.

Accepted Answer

The four generic industry structures are fragmented industries,emerging industries,mature industries,and declining industries.
Fragmented industries are industries in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies.The major opportunity facing firms in fragmented industries is the implementation of strategies that begin to consolidate the industry into smaller firms.
Emerging industries are newly created,or newly recreated industries formed by technological innovations,changes in demand,and the emergence of new customer needs.The opportunities that face firms in emerging industries fall into the general category of first-mover advantages or making important strategic and technological decisions early in the development of an industry.
Industries begin to enter the mature stage when the rate of innovation in new products and technologies drops.Opportunities for firms in mature industries focus on a greater emphasis on refining a firm's current products,on increasing the quality of service,on reducing manufacturing costs,and on increasing quality through process innovations.
A declining industry is an industry that has experienced an absolute decline in unit sales over a sustained period of time.The major strategic options that face firms in this kind of industry are leadership,niche,harvest and divestment.

Question 4

If you were to purchase a new Apple iPod and were unable to use your previously downloaded library of digital music with your new iPod,this would be an example of a customer-switching cost you would incur to use Apple's product.

Accepted Answer

A) True 
 B)False

Question 5

It is possible for a single firm to be a complementor of one firm and a competitor of another.

Accepted Answer

A) True 
 B)False

Question 6

In the S-C-P model,________ refers to the strategies that firms in an industry implement.

Accepted Answer

A)  structure 
B)  strategy 
C)  conduct 
D)  performance 
A)  structure 
B)  strategy 
C)  conduct 
D)  performance

Question 7

________ make a wide variety of raw materials,labor and other critical assets available to firms.

Accepted Answer

A)  Buyers 
B)  Rivals 
C)  Suppliers 
D)  Substitutes 
A)  Buyers 
B)  Rivals 
C)  Suppliers 
D)  Substitutes

Question 8

Identify the four types of competition,the attributes of each type and the expected performance under each.

Accepted Answer

The four types of competition include pe

Question 9

The threat of suppliers in the hardwood furniture can best be described as

Accepted Answer

A)  low because there are a large number of suppliers selling an undifferentiated product. 
B)  high because there are a large number of suppliers selling an undifferentiated product. 
C)  moderate because the large number of suppliers is offset by the undifferentiated products they are selling. 
D)  moderate because of the slowing growth rate in the industry and the commodity nature of the products produced by suppliers. 
A)  low because there are a large number of suppliers selling an undifferentiated product. 
B)  high because there are a large number of suppliers selling an undifferentiated product. 
C)  moderate because the large number of suppliers is offset by the undifferentiated products they are selling. 
D)  moderate because of the slowing growth rate in the industry and the commodity nature of the products produced by suppliers.

Question 10

Which of the following statements regarding substitutes is accurate?

Accepted Answer

A)  In the extreme,substitutes can ultimately replace an industry's products or services. 
B)  Substitutes place a floor on the prices firms in an industry can charge and on the profits firms in an industry can earn. 
C)  Substitutes rarely impact the profitability that firms in an industry can earn. 
D)  The importance of substitutes in reducing the profit potential in a wide variety of industries is decreasing. 
A)  In the extreme,substitutes can ultimately replace an industry's products or services. 
B)  Substitutes place a floor on the prices firms in an industry can charge and on the profits firms in an industry can earn. 
C)  Substitutes rarely impact the profitability that firms in an industry can earn. 
D)  The importance of substitutes in reducing the profit potential in a wide variety of industries is decreasing.

Question 11

A firm's supplier poses a greater threat if the supplier's industry has a large number of firms,none of which dominate the supplying industry,than if the supplier's industry is dominated by a small number of firms.

Accepted Answer

A) True 
 B)False

Question 12

All other things being equal,which of the following would lead to lower barriers to entry in an industry?

Accepted Answer

A)  The existence of economies of scale in the industry 
B)  Products are highly differentiated in the industry. 
C)  Industry incumbents have learning-curve cost advantages. 
D)  Raw materials are widely and readily available at a competitive price. 
A)  The existence of economies of scale in the industry 
B)  Products are highly differentiated in the industry. 
C)  Industry incumbents have learning-curve cost advantages. 
D)  Raw materials are widely and readily available at a competitive price.

Question 13

Diseconomies of scale exist in an industry when a firm's costs fall as a function of that firm's volume of production.

Accepted Answer

A) True 
 B)False

Question 14

The products or services provided by a firm's rivals meet ________ customer needs in ________ ways as the product provided by the firm itself.

Accepted Answer

A)  different; the same 
B)  approximately the same; the same 
C)  different; different 
D)  approximately the same; different 
A)  different; the same 
B)  approximately the same; the same 
C)  different; different 
D)  approximately the same; different

Question 15

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone,the other firm is considered to be a

Accepted Answer

A)  competitor. 
B)  complementor. 
C)  rival. 
D)  substitute. 
A)  competitor. 
B)  complementor. 
C)  rival. 
D)  substitute.

Question 16

To a firm seeking competitive advantage,an environmental threat is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

Accepted Answer

A) True 
 B)False

Question 17

In general,first-mover advantages can arise from any of these sources except

Accepted Answer

A)  technological leadership. 
B)  preemption of strategically valuable assets. 
C)  the creation of customer switching costs. 
D)  using an imitative strategy to introduce improved versions of competitors' new products. 
A)  technological leadership. 
B)  preemption of strategically valuable assets. 
C)  the creation of customer switching costs. 
D)  using an imitative strategy to introduce improved versions of competitors' new products.

Question 18

According to Bradenburger and Nalebluff,a firm's competitors help increase the size of a firm's markets while complementors divide this market among a set of firms.

Accepted Answer

A) True 
 B)False

Question 19

Mature industries are characterized by elements such as slowing growth in total industry demand,a slowdown in increases in product capacity,and an overall increase in the profitability of firms in the industry.

Accepted Answer

A) True 
 B)False

Question 20

The advantages that come to firms that make important strategic and technological decisions early in the development of an industry are known as ________ advantages.

Accepted Answer

A)  first-mover 
B)  competitive 
C)  early-entrant 
D)  first-comer 
A)  first-mover 
B)  competitive 
C)  early-entrant 
D)  first-comer

A firm following a niche strategy in a declining industry reduces its scope of operations and focuses on narrow segments of the declining industry.

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.

Identify the four generic industry structures and the specific strategic opportunities in each of these industries.

If you were to purchase a new Apple iPod and were unable to use your previously downloaded library of digital music with your new iPod,this would be an example of a customer-switching cost you would incur to use Apple's product.

It is possible for a single firm to be a complementor of one firm and a competitor of another.

In the S-C-P model,________ refers to the strategies that firms in an industry implement.

________ make a wide variety of raw materials,labor and other critical assets available to firms.

Identify the four types of competition,the attributes of each type and the expected performance under each.

The threat of suppliers in the hardwood furniture can best be described as

Which of the following statements regarding substitutes is accurate?

A firm's supplier poses a greater threat if the supplier's industry has a large number of firms,none of which dominate the supplying industry,than if the supplier's industry is dominated by a small number of firms.

All other things being equal,which of the following would lead to lower barriers to entry in an industry?

Diseconomies of scale exist in an industry when a firm's costs fall as a function of that firm's volume of production.

The products or services provided by a firm's rivals meet customer needs in ways as the product provided by the firm itself.

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone,the other firm is considered to be a

To a firm seeking competitive advantage,an environmental threat is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

In general,first-mover advantages can arise from any of these sources except

According to Bradenburger and Nalebluff,a firm's competitors help increase the size of a firm's markets while complementors divide this market among a set of firms.

Mature industries are characterized by elements such as slowing growth in total industry demand,a slowdown in increases in product capacity,and an overall increase in the profitability of firms in the industry.

The advantages that come to firms that make important strategic and technological decisions early in the development of an industry are known as ________ advantages.

What Is Strategy and the Strategic Management Process?

Evaluating a Firm's Internal Capabilities

Cost Leadership

Product Differentiation

Vertical Integration

Corporate Diversification

Organizing to Implement Corporate Diversification

Strategic Alliances

Mergers and Acquisitions

International Strategies

Filters

Exam 2: Evaluating a Firm's External Environment

A firm following a niche strategy in a declining industry reduces its scope of operations and focuses on narrow segments of the declining industry.

Firms that have either recently begun operations in an industry or that threaten to begin operations in an industry soon are considered to be ________ in the five forces framework.

Identify the four generic industry structures and the specific strategic opportunities in each of these industries.

If you were to purchase a new Apple iPod and were unable to use your previously downloaded library of digital music with your new iPod,this would be an example of a customer-switching cost you would incur to use Apple's product.

It is possible for a single firm to be a complementor of one firm and a competitor of another.

In the S-C-P model,________ refers to the strategies that firms in an industry implement.

________ make a wide variety of raw materials,labor and other critical assets available to firms.

Identify the four types of competition,the attributes of each type and the expected performance under each.

The threat of suppliers in the hardwood furniture can best be described as

Which of the following statements regarding substitutes is accurate?

A firm's supplier poses a greater threat if the supplier's industry has a large number of firms,none of which dominate the supplying industry,than if the supplier's industry is dominated by a small number of firms.

All other things being equal,which of the following would lead to lower barriers to entry in an industry?

Diseconomies of scale exist in an industry when a firm's costs fall as a function of that firm's volume of production.

The products or services provided by a firm's rivals meet ________ customer needs in ________ ways as the product provided by the firm itself.

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone,the other firm is considered to be a

To a firm seeking competitive advantage,an environmental threat is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

In general,first-mover advantages can arise from any of these sources except

According to Bradenburger and Nalebluff,a firm's competitors help increase the size of a firm's markets while complementors divide this market among a set of firms.

Mature industries are characterized by elements such as slowing growth in total industry demand,a slowdown in increases in product capacity,and an overall increase in the profitability of firms in the industry.

The advantages that come to firms that make important strategic and technological decisions early in the development of an industry are known as ________ advantages.

What Is Strategy and the Strategic Management Process?

Evaluating a Firm's Internal Capabilities

Cost Leadership

Product Differentiation

Vertical Integration

Corporate Diversification

Organizing to Implement Corporate Diversification

Strategic Alliances

Mergers and Acquisitions

International Strategies

Filters

The products or services provided by a firm's rivals meet customer needs in ways as the product provided by the firm itself.