Question 1

The S-C-P model assumes that any competitive advantages a firm has in an industry must benefit society.

Accepted Answer

A) True 
 B)False

Question 2

In general,it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time.

Accepted Answer

A) True 
 B)False

Question 3

Overall,the average level of performance in an industry is likely to be highest when

Accepted Answer

A)  the threat level of all five forces is high. 
B)  the threat level of rivalry and substitutes is low,but the threat level of suppliers,buyers and new entrants is high. 
C)  the threat level of rivalry,substitutes and new entrants is high,but the threat level of buyers and supplies is low. 
D)  the threat level of all five forces is low. 
A)  the threat level of all five forces is high. 
B)  the threat level of rivalry and substitutes is low,but the threat level of suppliers,buyers and new entrants is high. 
C)  the threat level of rivalry,substitutes and new entrants is high,but the threat level of buyers and supplies is low. 
D)  the threat level of all five forces is low.

Question 4

Consolidation strategy is a good option in what type of industry?

Accepted Answer

A)  Mature 
B)  Emerging 
C)  Fragmented 
D)  Declining 
A)  Mature 
B)  Emerging 
C)  Fragmented 
D)  Declining

Question 5

BidBuy has a ________ advantage.

Accepted Answer

A)  visionary 
B)  global 
C)  first-mover 
D)  comparative 
A)  visionary 
B)  global 
C)  first-mover 
D)  comparative

Question 6

Which if the following attributes makes suppliers a stronger threat?

Accepted Answer

A)  The supplier's industry is dominated by a small number of firms. 
B)  When the product or service provided by suppliers is not highly differentiated 
C)  When suppliers are threatened by substitutes 
D)  When suppliers are not able to enter into and begin competing in a firm's industry 
A)  The supplier's industry is dominated by a small number of firms. 
B)  When the product or service provided by suppliers is not highly differentiated 
C)  When suppliers are threatened by substitutes 
D)  When suppliers are not able to enter into and begin competing in a firm's industry

Question 7

The ________ consists of broad trends in the context in which a firm operates that can have an impact on a firm's strategic choices.

Accepted Answer

A)  micro-environment 
B)  general environment 
C)  task environment 
D)  internal environment 
A)  micro-environment 
B)  general environment 
C)  task environment 
D)  internal environment

Question 8

Firms in industries characterized by ________ can expect to earn only competitive parity.

Accepted Answer

A)  perfect competition 
B)  monopolistic competition 
C)  oligopoly 
D)  monopoly 
A)  perfect competition 
B)  monopolistic competition 
C)  oligopoly 
D)  monopoly

Question 9

In a perfectly competitive industry,

Accepted Answer

A)  there are relatively few firms operating in the industry. 
B)  the products and services sold by firms in the industry are very different from each other. 
C)  it is very costly for firms to enter the industry. 
D)  it is not very costly for firms to exit the industry. 
A)  there are relatively few firms operating in the industry. 
B)  the products and services sold by firms in the industry are very different from each other. 
C)  it is very costly for firms to enter the industry. 
D)  it is not very costly for firms to exit the industry.

Question 10

Proprietary technology is more important as a barrier to entry than is managerial know-how.

Accepted Answer

A) True 
 B)False

Question 11

Culture is the values,beliefs and norms that guide a behavior in a society,and culture is largely the same across the world.

Accepted Answer

A) True 
 B)False

Question 12

An emerging industry is an industry in which a large number of small or medium-sized firms operate and no small set of firms has a dominant market share or creates dominant technologies.

Accepted Answer

A) True 
 B)False

Question 13

Product innovation is an effort to refine and improve a firm's current processes.

Accepted Answer

A) True 
 B)False

Question 14

When activity in an economy is relatively low for a short period of time,the economy is said to be in a

Accepted Answer

A)  recession. 
B)  depression. 
C)  prosperous cycle. 
D)  boom. 
A)  recession. 
B)  depression. 
C)  prosperous cycle. 
D)  boom.

Question 15

In an industry,the products or services provided by a firm's rivals meet approximately the same customer needs in the same way as the products or services provided by the firm itself,whereas substitutes meet approximately the same customer needs but do so in different ways.

Accepted Answer

A) True 
 B)False

Question 16

The five forces framework is based on the S-C-P model and identifies the five most common threats facing firms from their local competitive environment and the conditions under which these threats are more or less likely to be present.

Accepted Answer

A) True 
 B)False

Question 17

Frequent price cutting by firms in an industry,frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of

Accepted Answer

A)  high power of buyers. 
B)  high threat of entry. 
C)  high levels of rivalry. 
D)  high threat of substitutes. 
A)  high power of buyers. 
B)  high threat of entry. 
C)  high levels of rivalry. 
D)  high threat of substitutes.

Question 18

First movers that invest only in technology usually obtain sustained competitive advantages,even if they do not tie up strategically valuable resources in an industry before their full value is widely understood.

Accepted Answer

A) True 
 B)False

Question 19

In general,technological change creates opportunities,but not threats.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are elements of the general environment except

Accepted Answer

A)  technological trends. 
B)  demographic trends. 
C)  industrial trends. 
D)  cultural trends. 
A)  technological trends. 
B)  demographic trends. 
C)  industrial trends. 
D)  cultural trends.

The S-C-P model assumes that any competitive advantages a firm has in an industry must benefit society.

In general,it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time.

Overall,the average level of performance in an industry is likely to be highest when

Consolidation strategy is a good option in what type of industry?

BidBuy has a ________ advantage.

Which if the following attributes makes suppliers a stronger threat?

The ________ consists of broad trends in the context in which a firm operates that can have an impact on a firm's strategic choices.

Firms in industries characterized by ________ can expect to earn only competitive parity.

In a perfectly competitive industry,

Proprietary technology is more important as a barrier to entry than is managerial know-how.

Culture is the values,beliefs and norms that guide a behavior in a society,and culture is largely the same across the world.

An emerging industry is an industry in which a large number of small or medium-sized firms operate and no small set of firms has a dominant market share or creates dominant technologies.

Product innovation is an effort to refine and improve a firm's current processes.

When activity in an economy is relatively low for a short period of time,the economy is said to be in a

In an industry,the products or services provided by a firm's rivals meet approximately the same customer needs in the same way as the products or services provided by the firm itself,whereas substitutes meet approximately the same customer needs but do so in different ways.

The five forces framework is based on the S-C-P model and identifies the five most common threats facing firms from their local competitive environment and the conditions under which these threats are more or less likely to be present.

Frequent price cutting by firms in an industry,frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of

First movers that invest only in technology usually obtain sustained competitive advantages,even if they do not tie up strategically valuable resources in an industry before their full value is widely understood.

In general,technological change creates opportunities,but not threats.

All of the following are elements of the general environment except

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

The S-C-P model assumes that any competitive advantages a firm has in an industry must benefit society.

In general,it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time.

Overall,the average level of performance in an industry is likely to be highest when

Consolidation strategy is a good option in what type of industry?

BidBuy has a ________ advantage.

Which if the following attributes makes suppliers a stronger threat?

The ________ consists of broad trends in the context in which a firm operates that can have an impact on a firm's strategic choices.

Firms in industries characterized by ________ can expect to earn only competitive parity.

In a perfectly competitive industry,

Proprietary technology is more important as a barrier to entry than is managerial know-how.

Culture is the values,beliefs and norms that guide a behavior in a society,and culture is largely the same across the world.

An emerging industry is an industry in which a large number of small or medium-sized firms operate and no small set of firms has a dominant market share or creates dominant technologies.

Product innovation is an effort to refine and improve a firm's current processes.

When activity in an economy is relatively low for a short period of time,the economy is said to be in a

In an industry,the products or services provided by a firm's rivals meet approximately the same customer needs in the same way as the products or services provided by the firm itself,whereas substitutes meet approximately the same customer needs but do so in different ways.

The five forces framework is based on the S-C-P model and identifies the five most common threats facing firms from their local competitive environment and the conditions under which these threats are more or less likely to be present.

Frequent price cutting by firms in an industry,frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of

First movers that invest only in technology usually obtain sustained competitive advantages,even if they do not tie up strategically valuable resources in an industry before their full value is widely understood.

In general,technological change creates opportunities,but not threats.

All of the following are elements of the general environment except

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