Question 1

Rivalry tends to be high when

Accepted Answer

A)  there are few firms in an industry and these firms tend to be unequal in size. 
B)  the industry growth rate is higher. 
C)  firms are unable to differentiate their products. 
D)  production capacity can be added in small increments. 
A)  there are few firms in an industry and these firms tend to be unequal in size. 
B)  the industry growth rate is higher. 
C)  firms are unable to differentiate their products. 
D)  production capacity can be added in small increments.

Question 2

Which type of competition is characterized by a small number of firms,homogeneous products and costly entry and exit?

Accepted Answer

A)  Perfect competition 
B)  Monopolistic competition 
C)  Oligopoly 
D)  Monopoly 
A)  Perfect competition 
B)  Monopolistic competition 
C)  Oligopoly 
D)  Monopoly

Question 3

Sophisticated software can enhance the value that customers receive from a personal computer.Therefore,software can be said to be a complementor of a personal computer.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the best example of forward vertical integration?

Accepted Answer

A)  A car dealership opening up its own automobile manufacturing plant 
B)  A car company opening its own dealerships to sell its products directly to customers 
C)  A car company opening its own chain of video rental stores 
D)  A car company opening a plant to product motorcycles 
A)  A car dealership opening up its own automobile manufacturing plant 
B)  A car company opening its own dealerships to sell its products directly to customers 
C)  A car company opening its own chain of video rental stores 
D)  A car company opening a plant to product motorcycles

Question 5

A firm's general environment consists of broad trends in the context within which the firm operates that can have an impact on the firm's strategic choices.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  Visionary advantages 
B)  First-mover advantages 
C)  Comparative advantages 
D)  Missionary advantages 
A)  Visionary advantages 
B)  First-mover advantages 
C)  Comparative advantages 
D)  Missionary advantages

Question 7

The objective of divestment is to extract a firm from a declining industry.

Accepted Answer

A) True 
 B)False

Question 8

Describe the difference between a competitor and a complementor and identify the role complementors play in an industry.

Accepted Answer

A firm is a competitor if your customers

Question 9

The threat of buyers in this industry is best described as

Accepted Answer

A)  high because there are many suppliers,none of which represents a significant portion of the hardwood furniture industry's sales. 
B)  low because of the slow industry growth and the commodity nature of the suppliers. 
C)  low because there are many suppliers,none of which represents a significant portion of the hardwood furniture industry's sales. 
D)  high because of the slow industry growth and the commodity nature of the suppliers. 
A)  high because there are many suppliers,none of which represents a significant portion of the hardwood furniture industry's sales. 
B)  low because of the slow industry growth and the commodity nature of the suppliers. 
C)  low because there are many suppliers,none of which represents a significant portion of the hardwood furniture industry's sales. 
D)  high because of the slow industry growth and the commodity nature of the suppliers.

Question 10

Brand identification and customer loyalty serve as entry barriers because new entrants not only have to absorb the standard costs associated with starting production in a new industry,but also have to absorb the costs associated with overcoming an incumbent firm's differentiation advantages.

Accepted Answer

A) True 
 B)False

Question 11

If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open its own diamond brokerage firm,this would be an example of forward vertical integration.

Accepted Answer

A) True 
 B)False

Question 12

Learning-curve cost advantages are present when the cost of production falls with the cumulative volume of production.

Accepted Answer

A) True 
 B)False

Question 13

For BidBuy,services such as those offered by DollarDog that make BidBuy's services more valuable for customers who use the services of both companies are best described as

Accepted Answer

A)  complementors. 
B)  substitutes. 
C)  rivals. 
D)  suppliers. 
A)  complementors. 
B)  substitutes. 
C)  rivals. 
D)  suppliers.

Question 14

Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of

Accepted Answer

A)  first-mover advantages. 
B)  complementors. 
C)  substitutes. 
D)  customer-switching costs. 
A)  first-mover advantages. 
B)  complementors. 
C)  substitutes. 
D)  customer-switching costs.

Question 15

According to the S-C-P model,attributes of the industry structure within which a firm operates define the range of options and constraints facing a firm.

Accepted Answer

A) True 
 B)False

Question 16

Identify and define the three elements of the S-C-P model.

Accepted Answer

The three elements of the S-C-P model ar

Question 17

The threat of rivalry tends to be high in an industry when firms are able to meaningfully differentiate their products.

Accepted Answer

A) True 
 B)False

Question 18

What is a harvest strategy?

Accepted Answer

In a harvest strategy,which is usually e

Question 19

The values,beliefs and norms that guide behavior in society are known as

Accepted Answer

A)  climate. 
B)  demographics. 
C)  economics. 
D)  culture. 
A)  climate. 
B)  demographics. 
C)  economics. 
D)  culture.

Question 20

The most promising opportunity for a firm in a declining industry is to

Accepted Answer

A)  establish itself as a first mover in the post-shakeout industry. 
B)  become a market leader in the pre-shakeout industry. 
C)  become a fast follower in the pre-shakeout industry. 
D)  merge with another firm. 
A)  establish itself as a first mover in the post-shakeout industry. 
B)  become a market leader in the pre-shakeout industry. 
C)  become a fast follower in the pre-shakeout industry. 
D)  merge with another firm.

Rivalry tends to be high when

Which type of competition is characterized by a small number of firms,homogeneous products and costly entry and exit?

Sophisticated software can enhance the value that customers receive from a personal computer.Therefore,software can be said to be a complementor of a personal computer.

Which of the following is the best example of forward vertical integration?

A firm's general environment consists of broad trends in the context within which the firm operates that can have an impact on the firm's strategic choices.

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

The objective of divestment is to extract a firm from a declining industry.

Describe the difference between a competitor and a complementor and identify the role complementors play in an industry.

The threat of buyers in this industry is best described as

Brand identification and customer loyalty serve as entry barriers because new entrants not only have to absorb the standard costs associated with starting production in a new industry,but also have to absorb the costs associated with overcoming an incumbent firm's differentiation advantages.

If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open its own diamond brokerage firm,this would be an example of forward vertical integration.

Learning-curve cost advantages are present when the cost of production falls with the cumulative volume of production.

For BidBuy,services such as those offered by DollarDog that make BidBuy's services more valuable for customers who use the services of both companies are best described as

Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of

According to the S-C-P model,attributes of the industry structure within which a firm operates define the range of options and constraints facing a firm.

Identify and define the three elements of the S-C-P model.

The threat of rivalry tends to be high in an industry when firms are able to meaningfully differentiate their products.

What is a harvest strategy?

The values,beliefs and norms that guide behavior in society are known as

The most promising opportunity for a firm in a declining industry is to

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

Rivalry tends to be high when

Which type of competition is characterized by a small number of firms,homogeneous products and costly entry and exit?

Sophisticated software can enhance the value that customers receive from a personal computer.Therefore,software can be said to be a complementor of a personal computer.

Which of the following is the best example of forward vertical integration?

A firm's general environment consists of broad trends in the context within which the firm operates that can have an impact on the firm's strategic choices.

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

The objective of divestment is to extract a firm from a declining industry.

Describe the difference between a competitor and a complementor and identify the role complementors play in an industry.

The threat of buyers in this industry is best described as

Brand identification and customer loyalty serve as entry barriers because new entrants not only have to absorb the standard costs associated with starting production in a new industry,but also have to absorb the costs associated with overcoming an incumbent firm's differentiation advantages.

If the owner of a jewelry store who normally purchased diamonds from a diamond brokerage firm were to open its own diamond brokerage firm,this would be an example of forward vertical integration.

Learning-curve cost advantages are present when the cost of production falls with the cumulative volume of production.

For BidBuy,services such as those offered by DollarDog that make BidBuy's services more valuable for customers who use the services of both companies are best described as

Factors such as BidBuy's feedback rating system that are valuable to the company's customers but which are not useful on other online auction sites are examples of

According to the S-C-P model,attributes of the industry structure within which a firm operates define the range of options and constraints facing a firm.

Identify and define the three elements of the S-C-P model.

The threat of rivalry tends to be high in an industry when firms are able to meaningfully differentiate their products.

What is a harvest strategy?

The values,beliefs and norms that guide behavior in society are known as

The most promising opportunity for a firm in a declining industry is to

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