Question 1

What professional sports complement poses the biggest dilemma?

Accepted Answer

A) Cheerleaders 
B) Mascots 
C) Gambling 
D) Television 
E) Radio 
A) Cheerleaders 
B) Mascots 
C) Gambling 
D) Television 
E) Radio C

Question 2

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Accepted Answer

A) Fast follower 
B) Passive 
C) Aggressive 
D) Innovator 
E) De novo 
A) Fast follower 
B) Passive 
C) Aggressive 
D) Innovator 
E) De novo E

Question 3

Which of the following conditions does not tend to heat up price competition?

Accepted Answer

A) Many sellers in the market 
B) Products are differentiated/buyers have high switching costs 
C) Some firms have excess capacity 
D) The industry is stagnant or declining 
E) There are large/infrequent sales orders 
A) Many sellers in the market 
B) Products are differentiated/buyers have high switching costs 
C) Some firms have excess capacity 
D) The industry is stagnant or declining 
E) There are large/infrequent sales orders B

Question 4

In which of the following ways can entry erode incumbents' profits?

Accepted Answer

A) Entrants divide market demand among fewer sellers 
B) Entrants decrease market concentration 
C) Entrants usually grow the market for all parties 
D) Entrants increase market concentration 
E) Entrants reduce internal rivalry 
A) Entrants divide market demand among fewer sellers 
B) Entrants decrease market concentration 
C) Entrants usually grow the market for all parties 
D) Entrants increase market concentration 
E) Entrants reduce internal rivalry

Question 5

Which of the following does not tend to affect the threat of entry?

Accepted Answer

A) Expectations about pre-entry competition 
B) Government protection of incumbents 
C) Consumers highly valuable reputation/consumers are brand loyal 
D) Experience curve 
E) Network externalities 
A) Expectations about pre-entry competition 
B) Government protection of incumbents 
C) Consumers highly valuable reputation/consumers are brand loyal 
D) Experience curve 
E) Network externalities

Question 6

What concept developed by Brandenburger and Nalebuff as a counterpart to Porter's five-forces consists of suppliers,customers,competitors and complementors?

Accepted Answer

A) McKinsey 7-S Framework 
B) Value net 
C) BCG Market Share Matrix 
D) 6 C's of Marketing 
E) 4 P's of Marketing 
A) McKinsey 7-S Framework 
B) Value net 
C) BCG Market Share Matrix 
D) 6 C's of Marketing 
E) 4 P's of Marketing

Question 7

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Accepted Answer

A) Patients began accepting MCOs with "narrow networks" and MCOs had the upper hand in negotiating with hospitals for inclusion in networks 
B) Hospitals removed brand identities 
C) Hospitals dropped "centers of excellence" from their hospitals 
D) Hospitals consolidating away from related products 
E) Hospitals consolidated (conducted mergers) 
A) Patients began accepting MCOs with "narrow networks" and MCOs had the upper hand in negotiating with hospitals for inclusion in networks 
B) Hospitals removed brand identities 
C) Hospitals dropped "centers of excellence" from their hospitals 
D) Hospitals consolidating away from related products 
E) Hospitals consolidated (conducted mergers)

Question 8

Which of the following is not a barrier to entry in professional sports markets?

Accepted Answer

A) Each league has rules governing the addition of new franchises 
B) Potential new owners must pay current owners hundreds of millions of dollars 
C) Most potential owners must offer to build new stadiums 
D) Incumbent teams have rights to veto franchises in their own geographic markets 
E) Because the number of potential billionaire owners has risen dramatically, the purchase prices have dropped 
A) Each league has rules governing the addition of new franchises 
B) Potential new owners must pay current owners hundreds of millions of dollars 
C) Most potential owners must offer to build new stadiums 
D) Incumbent teams have rights to veto franchises in their own geographic markets 
E) Because the number of potential billionaire owners has risen dramatically, the purchase prices have dropped

Question 9

Which of the following is not a part of the five-forces framework?

Accepted Answer

A) Supplier Power 
B) Internal rivalry 
C) Regulation 
D) Buyer Power 
E) Substitutes and Complements 
A) Supplier Power 
B) Internal rivalry 
C) Regulation 
D) Buyer Power 
E) Substitutes and Complements

Question 10

Which of the following is generally thought of as a buyer in the hospital industry?

Accepted Answer

A) Pharmaceutical drug houses 
B) Medical equipment companies 
C) Technician 
D) Patients 
E) Nurse 
A) Pharmaceutical drug houses 
B) Medical equipment companies 
C) Technician 
D) Patients 
E) Nurse

Question 11

Which of the following is generally thought of as a supplier in the hospital industry?

Accepted Answer

A) Medicaid 
B) Admitting physicians 
C) Hospital-based physician 
D) Patients 
E) Medicare 
A) Medicaid 
B) Admitting physicians 
C) Hospital-based physician 
D) Patients 
E) Medicare

Question 12

Which of following factors should be considered when assessing complements and substitutes?

Accepted Answer

A) Availability of close substitutes and/or complements 
B) Price-value characteristics of substitutes/complements 
C) Price elasticity of industry demand 
D) All of the above 
E) None of the above 
A) Availability of close substitutes and/or complements 
B) Price-value characteristics of substitutes/complements 
C) Price elasticity of industry demand 
D) All of the above 
E) None of the above

Question 13

Who are the most powerful suppliers in professional sports?

Accepted Answer

A) Players unions 
B) Referees 
C) Owners 
D) Politicians 
E) Cities 
A) Players unions 
B) Referees 
C) Owners 
D) Politicians 
E) Cities

Question 14

Why are suppliers in a competitive upstream market said to have "indirect power"?

Accepted Answer

A) They can sell their services to the lowest bidder 
B) They are always concentrated 
C) Their customers are always locked into relationships with them 
D) The price they charge never depends on supply and demand in the upstream market 
E) The can sell their services to the highest bidder 
A) They can sell their services to the lowest bidder 
B) They are always concentrated 
C) Their customers are always locked into relationships with them 
D) The price they charge never depends on supply and demand in the upstream market 
E) The can sell their services to the highest bidder

Question 15

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Accepted Answer

A) Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales 
B) Treated all hospitals as identical 
C) Kept price negotiations between insurers and hospitals secret, encouraging hospitals to lower prices to win contracts 
D) Contracted with hospitals that patients were most loyal to 
E) Created pressure for hospitals to win each individual contract with no thought of future consequences 
A) Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales 
B) Treated all hospitals as identical 
C) Kept price negotiations between insurers and hospitals secret, encouraging hospitals to lower prices to win contracts 
D) Contracted with hospitals that patients were most loyal to 
E) Created pressure for hospitals to win each individual contract with no thought of future consequences

Question 16

Which of the following is not a significant entry barrier in the commercial airframe manufacturing market?

Accepted Answer

A) High development costs 
B) Learning curve in production 
C) Raw materials and labor 
D) Airlines prefer to purchase from the same manufacturer 
E) Airlines are reluctant to purchase from startups 
A) High development costs 
B) Learning curve in production 
C) Raw materials and labor 
D) Airlines prefer to purchase from the same manufacturer 
E) Airlines are reluctant to purchase from startups

Question 17

Which of the following is not a way teams "collude" within professional sports markets?

Accepted Answer

A) Agreeing on ticket prices 
B) Agreeing on rules and schedules 
C) Employing the same pool of referees 
D) Sharing national broadcast revenues 
E) Agreeing on rookie drafts 
A) Agreeing on ticket prices 
B) Agreeing on rules and schedules 
C) Employing the same pool of referees 
D) Sharing national broadcast revenues 
E) Agreeing on rookie drafts

Question 18

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

Accepted Answer

A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power 
A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power

Question 19

How did European governments help Airbus aggressively pursue a 50% market share in its early years of operation?

Accepted Answer

A) Subsidies 
B) High-interest loans 
C) Helping to ensure scope economies from military aircraft division 
D) Paying in excess of cost for military aircraft 
E) Guaranteeing a set level of annual aircraft purchases 
A) Subsidies 
B) High-interest loans 
C) Helping to ensure scope economies from military aircraft division 
D) Paying in excess of cost for military aircraft 
E) Guaranteeing a set level of annual aircraft purchases

Question 20

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

Accepted Answer

A) Relatively large number of hospitals 
B) Considerable variation in production costs 
C) Relatively small number of doctors 
D) Excess capacity 
E) Aging baby boomers increasing demand for admissions 
A) Relatively large number of hospitals 
B) Considerable variation in production costs 
C) Relatively small number of doctors 
D) Excess capacity 
E) Aging baby boomers increasing demand for admissions

What professional sports complement poses the biggest dilemma?

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Which of the following conditions does not tend to heat up price competition?

In which of the following ways can entry erode incumbents' profits?

Which of the following does not tend to affect the threat of entry?

What concept developed by Brandenburger and Nalebuff as a counterpart to Porter's five-forces consists of suppliers,customers,competitors and complementors?

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Which of the following is not a barrier to entry in professional sports markets?

Which of the following is not a part of the five-forces framework?

Which of the following is generally thought of as a buyer in the hospital industry?

Which of the following is generally thought of as a supplier in the hospital industry?

Which of following factors should be considered when assessing complements and substitutes?

Who are the most powerful suppliers in professional sports?

Why are suppliers in a competitive upstream market said to have "indirect power"?

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Which of the following is not a significant entry barrier in the commercial airframe manufacturing market?

Which of the following is not a way teams "collude" within professional sports markets?

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

How did European governments help Airbus aggressively pursue a 50% market share in its early years of operation?

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 12: Industry Analysispart Fourstrategic Position and Dynamics

What professional sports complement poses the biggest dilemma?

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Which of the following conditions does not tend to heat up price competition?

In which of the following ways can entry erode incumbents' profits?

Which of the following does not tend to affect the threat of entry?

What concept developed by Brandenburger and Nalebuff as a counterpart to Porter's five-forces consists of suppliers,customers,competitors and complementors?

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Which of the following is not a barrier to entry in professional sports markets?

Which of the following is not a part of the five-forces framework?

Which of the following is generally thought of as a buyer in the hospital industry?

Which of the following is generally thought of as a supplier in the hospital industry?

Which of following factors should be considered when assessing complements and substitutes?

Who are the most powerful suppliers in professional sports?

Why are suppliers in a competitive upstream market said to have "indirect power"?

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Which of the following is not a significant entry barrier in the commercial airframe manufacturing market?

Which of the following is not a way teams "collude" within professional sports markets?

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

How did European governments help Airbus aggressively pursue a 50% market share in its early years of operation?

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters