Question 1

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

Accepted Answer

.Threat of new entrants: New entrants th

Question 2

What are high exit barriers and how do they affect the competition within an industry?

Accepted Answer

.Exit barriers are economic,strategic,an

Question 3

The five forces model expands the arena of competitive analysis beyond direct competitors (i.e.,rivals)to include buyers and suppliers who may also be a source of competition.

Accepted Answer

A) True 
 B)False

Question 4

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

Accepted Answer

A)  Suppliers to a particular industry are the very best in the world 
B)  Strong industry competition 
C)  Buyers are among the most demanding in the world 
D)  All of the above 
A)  Suppliers to a particular industry are the very best in the world 
B)  Strong industry competition 
C)  Buyers are among the most demanding in the world 
D)  All of the above

Question 5

What does one assess in a five-forces analysis and what conclusions can be reached as a result of the analysis?

Accepted Answer

.A five-forces analysis assesses the com

Question 6

Porter's "diamond" model:

Accepted Answer

A)  Explains competitive advantage of leading industries within the same country 
B)  Explains competitive disadvantage of globally leading industries in different countries 
C)  Has been criticized for ignoring history 
D)  Has been criticized for focusing on institutions 
A)  Explains competitive advantage of leading industries within the same country 
B)  Explains competitive disadvantage of globally leading industries in different countries 
C)  Has been criticized for ignoring history 
D)  Has been criticized for focusing on institutions

Question 7

Identify and describe the three major parts of the external environment. What is the purpose of the firm's collecting information about these aspects of its environment?

Accepted Answer

.The external environment has three majo

Question 8

If there are many buyers but only a few sellers,the buyers tend to have the most bargaining power.

Accepted Answer

A) True 
 B)False

Question 9

One of the benefits of having a cost advantage is that it serves as barrier to entry.

Accepted Answer

A) True 
 B)False

Question 10

Why is analysis of social trends important?

Accepted Answer

.The values and beliefs of key stakehold

Question 11

When firms analyze the external environment,they typically have complete and unambiguous data.

Accepted Answer

A) True 
 B)False

Question 12

A collection of companies in an industry that tend to focus on the same subsets of key success factors is called a(n):

Accepted Answer

A)  Business guild 
B)  Trade association 
C)  Strategic group 
D)  Organizational herd 
A)  Business guild 
B)  Trade association 
C)  Strategic group 
D)  Organizational herd

Question 13

An organization's environment typically:

Accepted Answer

A)  Consists only of employees and managers 
B)  Includes all groups and individuals that are significantly influenced by or have a major impact on the organization 
C)  Includes only stockholders 
D)  Consists only of competitors, suppliers, and customers 
A)  Consists only of employees and managers 
B)  Includes all groups and individuals that are significantly influenced by or have a major impact on the organization 
C)  Includes only stockholders 
D)  Consists only of competitors, suppliers, and customers

Question 14

All of the following are forces that create high rivalry within an industry except:

Accepted Answer

A)  Numerous or equally balanced competitors 
B)  High fixed costs 
C)  Fast industry growth 
D)  High storage costs 
A)  Numerous or equally balanced competitors 
B)  High fixed costs 
C)  Fast industry growth 
D)  High storage costs

Question 15

There are three major types of competitors discussed in Porter's five-forces model: existing,potential,and indirect.

Accepted Answer

A) True 
 B)False

Question 16

Individual organizations typically have only a marginal impact on the broad environment.

Accepted Answer

A) True 
 B)False

Question 17

A firm experiencing intense rivalry with powerful competitors should energetically engage in competitor analysis.

Accepted Answer

A) True 
 B)False

Question 18

Monitoring involves the development of a forecast of what might happen at a future point in time.

Accepted Answer

A) True 
 B)False

Question 19

The five forces model over-emphasizes threats and downplays opportunities.

Accepted Answer

A) True 
 B)False

Question 20

High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing so may be questionable.

Accepted Answer

A) True 
 B)False

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

What are high exit barriers and how do they affect the competition within an industry?

The five forces model expands the arena of competitive analysis beyond direct competitors (i.e.,rivals)to include buyers and suppliers who may also be a source of competition.

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

What does one assess in a five-forces analysis and what conclusions can be reached as a result of the analysis?

Porter's "diamond" model:

Identify and describe the three major parts of the external environment. What is the purpose of the firm's collecting information about these aspects of its environment?

If there are many buyers but only a few sellers,the buyers tend to have the most bargaining power.

One of the benefits of having a cost advantage is that it serves as barrier to entry.

Why is analysis of social trends important?

When firms analyze the external environment,they typically have complete and unambiguous data.

A collection of companies in an industry that tend to focus on the same subsets of key success factors is called a(n):

An organization's environment typically:

All of the following are forces that create high rivalry within an industry except:

There are three major types of competitors discussed in Porter's five-forces model: existing,potential,and indirect.

Individual organizations typically have only a marginal impact on the broad environment.

A firm experiencing intense rivalry with powerful competitors should energetically engage in competitor analysis.

Monitoring involves the development of a forecast of what might happen at a future point in time.

The five forces model over-emphasizes threats and downplays opportunities.

High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing so may be questionable.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The Internal Environment

Business-Level Strategy

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters

Exam 6: The External Environment

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

What are high exit barriers and how do they affect the competition within an industry?

The five forces model expands the arena of competitive analysis beyond direct competitors (i.e.,rivals)to include buyers and suppliers who may also be a source of competition.

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

What does one assess in a five-forces analysis and what conclusions can be reached as a result of the analysis?

Porter's "diamond" model:

Identify and describe the three major parts of the external environment. What is the purpose of the firm's collecting information about these aspects of its environment?

If there are many buyers but only a few sellers,the buyers tend to have the most bargaining power.

One of the benefits of having a cost advantage is that it serves as barrier to entry.

Why is analysis of social trends important?

When firms analyze the external environment,they typically have complete and unambiguous data.

A collection of companies in an industry that tend to focus on the same subsets of key success factors is called a(n):

An organization's environment typically:

All of the following are forces that create high rivalry within an industry except:

There are three major types of competitors discussed in Porter's five-forces model: existing,potential,and indirect.

Individual organizations typically have only a marginal impact on the broad environment.

A firm experiencing intense rivalry with powerful competitors should energetically engage in competitor analysis.

Monitoring involves the development of a forecast of what might happen at a future point in time.

The five forces model over-emphasizes threats and downplays opportunities.

High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing so may be questionable.

What is Strategy

Strategic Objectives

Governance,Ethics & Corporate Social Responsibility in Strategy

Culture and Strategy

The Internal Environment

Business-Level Strategy

Corporate-Level Strategy

International Strategy

Competitive Rivalry & Competitive Dynamics

Strategic Leadership

Strategic Failure and Turnaround

Strategic Change

Strategic Implementation

Organizational Structure and Controls

Strategic Entrepreneurship

Filters