Question 1

Which of the following could be considered to be substitutes for purchasing a mug of coffee from a Starbucks coffee shop?

Accepted Answer

A)  Purchasing a cup of coffee from Costa coffee shop 
B)  Purchasing a cup of coffee from an independent (non-chain) coffee shop 
C)  Making a coffee at home with a Gaggia coffee machine 
D)  Making a cup of Nescafe instant coffee at home 
A)  Purchasing a cup of coffee from Costa coffee shop 
B)  Purchasing a cup of coffee from an independent (non-chain) coffee shop 
C)  Making a coffee at home with a Gaggia coffee machine 
D)  Making a cup of Nescafe instant coffee at home C

Question 2

How might a firm achieve a generic strategy of cost leadership?

Accepted Answer

Cost leadership can be achieved by having the lowest unit costs compared to rivals in the industry. This can be achieved for example, by size leading to greater economies of scale or by managing resources in such a way that achieves economies of scope, by having access to the lowest cost raw materials compared to rivals. The whole value chain needs to be focused on keeping costs low. Cost leadership is more achievable when the firm can benefit from experience curve effects.

Question 3

_________________ curve effects occur when costs fall as production doubles.

Accepted Answer

Experience

Question 4

What is the purpose of doing a Porter's Five Forces analysis?

Accepted Answer

A Porter's Five Forces analysis can prov

Question 5

According to Porter, there are two basic ways of creating competitive advantage in an industry. These are through building cost advantages or through building ____________________ advantages.

Accepted Answer

The answer of According to Porter, there are two basic...

Question 6

The pharmaceutical industry is 'imperfect'.

Accepted Answer

A) True 
 B)False

Question 7

In a market with __________________ competition all firms in the market produce the same product and the prices is determined by the forces of supply and demand.

Accepted Answer

The answer of In a market with __________________ competition all...

Question 8

Compare the characteristics of a perfect market with the characteristics of an imperfect market.

Accepted Answer

In a perfect market all firms are produc

Question 9

What intangible aspects of a product can be sources of differentiation advantage?

Accepted Answer

Intangible aspects of a product are the

Question 10

Volume and _____________ are crucially important factors governing organizational survival.

Accepted Answer

The answer of Volume and _____________ are crucially important factors...

Question 11

Economies of scale is present for an organization if

Accepted Answer

A)  Unit costs increase as production increases 
B)  Fixed costs increase as production increases 
C)  Unit costs decrease as production increases 
D)  Fixed costs decrease as production increases 
A)  Unit costs increase as production increases 
B)  Fixed costs increase as production increases 
C)  Unit costs decrease as production increases 
D)  Fixed costs decrease as production increases

Question 12

In Porter's Five Forces analysis, which of the following would likely act as a barrier to entry?

Accepted Answer

A)  If the potential entrant has higher costs per unit than incumbent firms 
B)  If the potential entrant has lower costs per unit than incumbent firms 
C)  If the encumbent firms have benefits of the experience curve 
D)  If distribution channels are widely available 
A)  If the potential entrant has higher costs per unit than incumbent firms 
B)  If the potential entrant has lower costs per unit than incumbent firms 
C)  If the encumbent firms have benefits of the experience curve 
D)  If distribution channels are widely available

Question 13

The intensity of rivalry in the supermarket industry is low

Accepted Answer

A) True 
 B)False

Question 14

Porter's Five Forces is a framework for analysing the economic characteristics of an industry. The five forces consist of threat of entrants, bargaining power of suppliers, bargaining power of buyers, competitive rivalry and

Accepted Answer

A)  threat of substitute brands 
B)  threat of substitute products 
C)  threat of innovation 
D)  threat of innovative products 
A)  threat of substitute brands 
B)  threat of substitute products 
C)  threat of innovation 
D)  threat of innovative products

Question 15

In Porter's Five Forces, the power of suppliers is included in the analysis. The argument is that suppliers will want to raise their prices at the buying firm's expense.

Accepted Answer

A) True 
 B)False

Question 16

It is in the interest of individual firms to create __________________ in the marketplace. This is to avoid the situation where survival is solely determined by the market.

Accepted Answer

The answer of It is in the interest of individual...

Question 17

Porter's Five Forces analysis derives from macro-economic principles

Accepted Answer

A) True 
 B)False

Question 18

The supermarket industry in the UK is an example of which kind of market?

Accepted Answer

A)  Monopoly 
B)  Oligopoly 
C)  Perfect competition 
D)  Dominant firm 
A)  Monopoly 
B)  Oligopoly 
C)  Perfect competition 
D)  Dominant firm

Question 19

For food manufacturers the biggest source of power they face in their industry is from food producers.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are characteristics of an 'imperfect industry'?

Accepted Answer

A)  Brand names exist 
B)  No entry or exit barriers 
C)  Patent protection is common 
D)  There are many small firms 
A)  Brand names exist 
B)  No entry or exit barriers 
C)  Patent protection is common 
D)  There are many small firms

Which of the following could be considered to be substitutes for purchasing a mug of coffee from a Starbucks coffee shop?

How might a firm achieve a generic strategy of cost leadership?

_________________ curve effects occur when costs fall as production doubles.

What is the purpose of doing a Porter's Five Forces analysis?

According to Porter, there are two basic ways of creating competitive advantage in an industry. These are through building cost advantages or through building ____________________ advantages.

The pharmaceutical industry is 'imperfect'.

In a market with __________________ competition all firms in the market produce the same product and the prices is determined by the forces of supply and demand.

Compare the characteristics of a perfect market with the characteristics of an imperfect market.

What intangible aspects of a product can be sources of differentiation advantage?

Volume and _____________ are crucially important factors governing organizational survival.

Economies of scale is present for an organization if

In Porter's Five Forces analysis, which of the following would likely act as a barrier to entry?

The intensity of rivalry in the supermarket industry is low

Porter's Five Forces is a framework for analysing the economic characteristics of an industry. The five forces consist of threat of entrants, bargaining power of suppliers, bargaining power of buyers, competitive rivalry and

In Porter's Five Forces, the power of suppliers is included in the analysis. The argument is that suppliers will want to raise their prices at the buying firm's expense.

It is in the interest of individual firms to create __________________ in the marketplace. This is to avoid the situation where survival is solely determined by the market.

Porter's Five Forces analysis derives from macro-economic principles

The supermarket industry in the UK is an example of which kind of market?

For food manufacturers the biggest source of power they face in their industry is from food producers.

Which of the following are characteristics of an 'imperfect industry'?

Introduction to Strategy

Systems Model and Strategy Map

The Macroeconomics of Strategy

Competitive Strategy: The Analysis of Strategic Position

Competitive Strategy: The Analysis of Strategic Capability

The Competitive Environment

Corporate Strategy: Adding Value in Multi-Business Firms

Global Strategies and International Advantage

Organisational Models and Approaches to Strategy

Risk, Uncertainty and Strategy

Strategic Decision Making: Process Analysis

Strategic Decision Making: Managing Strategic Change

Strategy As Knowledge: Innovation and Learning

Strategy and Corporate Governance

Analyzing and Measuring Strategic Performance

Filters

Exam 3: The Microeconomics of Strategy

Which of the following could be considered to be substitutes for purchasing a mug of coffee from a Starbucks coffee shop?

How might a firm achieve a generic strategy of cost leadership?

_________________ curve effects occur when costs fall as production doubles.

What is the purpose of doing a Porter's Five Forces analysis?

According to Porter, there are two basic ways of creating competitive advantage in an industry. These are through building cost advantages or through building ____________________ advantages.

The pharmaceutical industry is 'imperfect'.

In a market with __________________ competition all firms in the market produce the same product and the prices is determined by the forces of supply and demand.

Compare the characteristics of a perfect market with the characteristics of an imperfect market.

What intangible aspects of a product can be sources of differentiation advantage?

Volume and _____________ are crucially important factors governing organizational survival.

Economies of scale is present for an organization if

In Porter's Five Forces analysis, which of the following would likely act as a barrier to entry?

The intensity of rivalry in the supermarket industry is low

Porter's Five Forces is a framework for analysing the economic characteristics of an industry. The five forces consist of threat of entrants, bargaining power of suppliers, bargaining power of buyers, competitive rivalry and

In Porter's Five Forces, the power of suppliers is included in the analysis. The argument is that suppliers will want to raise their prices at the buying firm's expense.

It is in the interest of individual firms to create __________________ in the marketplace. This is to avoid the situation where survival is solely determined by the market.

Porter's Five Forces analysis derives from macro-economic principles

The supermarket industry in the UK is an example of which kind of market?

For food manufacturers the biggest source of power they face in their industry is from food producers.

Which of the following are characteristics of an 'imperfect industry'?

Introduction to Strategy

Systems Model and Strategy Map

The Macroeconomics of Strategy

Competitive Strategy: The Analysis of Strategic Position

Competitive Strategy: The Analysis of Strategic Capability

The Competitive Environment

Corporate Strategy: Adding Value in Multi-Business Firms

Global Strategies and International Advantage

Organisational Models and Approaches to Strategy

Risk, Uncertainty and Strategy

Strategic Decision Making: Process Analysis

Strategic Decision Making: Managing Strategic Change

Strategy As Knowledge: Innovation and Learning

Strategy and Corporate Governance

Analyzing and Measuring Strategic Performance

Filters