Exam 2: Evaluating a Firm's External Environment

Which of the following best describes the competition in the U.S.online auction industry?

________ valuable assets are resources required to successfully compete in an industry.

In the structure-conduct-performance model,the term "structure" refers to industry structure,measured by such factors as the number of competitors in an industry.

Firms that engage in a long,systematic phased withdrawal from an industry,extracting as much value as possible during the withdrawal period,are following a(n)________ strategy.

Monopolistically competitive industries consist of only a single firm.

Firms pursuing a harvest strategy in a declining industry do not expect to remain in the industry over the long term.

The major opportunity facing firms in fragmented industries is the implementation of strategies that begin to consolidate the industry into a smaller number of firms.

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 are called ________ industries.

________ industries are newly created,or newly recreated industries formed by technological innovations,changes in demand,or the emergence of new customer needs.

Identify the six interrelated elements that comprise a firm's general environment.

Which type of competition is characterized by a large number of firms,heterogeneous products and low cost of entry and exit?

If Hickory Divine were to open its own chain of furniture stores,this would be an example of

The threat of buyers is greater if the products or services that are being sold to buyers are standard and not differentiated than if the products sold to buyers are highly differentiated.

Suppliers are a greater threat to firms in an industry when suppliers are threatened by substitutes.

A fragmented industry is an industry that has experienced an absolute decline in unit sales over a sustained period of time.

A severe recession that lasts for several years is known as a depression.

The aging of the "baby boomer" generation in American society is an example of a demographic trend.

In the structure-conduct-performance model,the term "performance" refers solely to the performance of individual firms.

Identify and clearly distinguish between the four strategic options available to firms in a declining industry.

The major opportunity facing firms in fragmented industries is