Exam 2: Evaluating a Firm's External Environment

All divestments are caused by industry decline.

In a perfectly competitive industry,a large number of firms have products and services that are similar to each other and it is not very costly for firms to enter into or exit these markets.

An industry 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 is known as a(n)________ industry.

Within the five forces framework,when all five threats are very high competition in the industry begins to approach a monopoly.

________ costs exist when customers make investments in order to use a firm's particular products or services.

Based on the above description,the hardwood furniture industry can best be described as a(n)________ industry.

Mature industries are characterized by

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

The threat of entry in an industry depends on the cost of entry,and the cost of entry,in turn,depends upon the existence and "height" of barriers to entry.

Buyers tend to have less power when

Civil wars,political coups,terrorism,wars between countries,famines,and country or regional economic recessions are all examples of which element of the general environment?

________ is/are the distribution of individuals in a society in terms of age,sex,marital status,income,ethnicity,and other personal attributes that may determine buying patterns.

________ exist when a firm's cost rise as a function of its volume of production.

Discuss the difference between a company's rivals and its substitutes and discuss the role substitutes play in an industry.

A(n)________ is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

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

Identify the five most common threats facing firms from their local competitive environment that are represented in the five forces framework,and discuss under what conditions firms in a specific industry are most likely to earn an above average profit and when they are to likely to earn a below average profit.

Within the five forces framework,the five most common threats facing firms from their competitive environment include each of the following except

In this example,composite wood furniture would be an example of

What are customer-switching costs?