Question 1

Define and then relate the concepts of sectors, industries, and market segments.

Accepted Answer

All of these concepts are useful in term

Question 2

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

Accepted Answer

A)  its inability to counter brand loyalty that customers have for established companies in the industry. 
B)  the inferior quality of its products. 
C)  its inability to match the innovation of the established firm. 
D)  its inability to produce in sufficient volume to match the cost advantages of established producers. 
E)  its inability to get buyers to switch to its product. 
A)  its inability to counter brand loyalty that customers have for established companies in the industry. 
B)  the inferior quality of its products. 
C)  its inability to match the innovation of the established firm. 
D)  its inability to produce in sufficient volume to match the cost advantages of established producers. 
E)  its inability to get buyers to switch to its product.

Question 3

An impact that the changing industry boundaries have had is that:

Accepted Answer

A)  owners of companies can now define boundaries. 
B)  there is an increase in the number of competitors for companies. 
C)  technological changes do not affect companies anymore. 
D)  the pattern of customer needs does not affect companies anymore. 
E)  the number of product substitutes available for customers has reduced. 
A)  owners of companies can now define boundaries. 
B)  there is an increase in the number of competitors for companies. 
C)  technological changes do not affect companies anymore. 
D)  the pattern of customer needs does not affect companies anymore. 
E)  the number of product substitutes available for customers has reduced.

Question 4

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.

Accepted Answer

A) True 
 B)False

Question 5

Successful innovation cannot transform the nature of industry competition.

Accepted Answer

A) True 
 B)False

Question 6

Suppliers are most powerful when the products that they sell have many substitutes.

Accepted Answer

A) True 
 B)False

Question 7

_____ arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

Accepted Answer

A)  Overhead costs 
B)  Incremental costs 
C)  Marginal costs 
D)  Opportunity costs 
E)  Switching costs 
A)  Overhead costs 
B)  Incremental costs 
C)  Marginal costs 
D)  Opportunity costs 
E)  Switching costs

Question 8

Companies facing greater exit barriers find it harder to reduce capacity, and face a greater threat of severe price competition.

Accepted Answer

A) True 
 B)False

Question 9

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Accepted Answer

A) True 
 B)False

Question 10

Market segments are distinct groups of customers within a market that can be distinguished from each other based on their individual attributes and specific demands.

Accepted Answer

A) True 
 B)False

Question 11

A sector refers to a group of:

Accepted Answer

A)  government regulators. 
B)  closely related industries. 
C)  manufacturing plants of a company based in the same location. 
D)  business units owned by a single firm. 
E)  companies that manufacture similar products under different brand names. 
A)  government regulators. 
B)  closely related industries. 
C)  manufacturing plants of a company based in the same location. 
D)  business units owned by a single firm. 
E)  companies that manufacture similar products under different brand names.

Question 12

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if  there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates:

Accepted Answer

A)  lack of demand. 
B)  bargaining power. 
C)  risk of entry. 
D)  brand loyalty. 
E)  lack of economies of scale 
A)  lack of demand. 
B)  bargaining power. 
C)  risk of entry. 
D)  brand loyalty. 
E)  lack of economies of scale

Question 13

To determine its opportunities and threats, a firm should focus on internal processes and capabilities.

Accepted Answer

A) True 
 B)False

Question 14

A group of firms all make tools for baking-pots, pans, measuring cups, and utensils. This group should be referred to as a market segment.

Accepted Answer

A) True 
 B)False

Question 15

Intense rivalry lowers prices and raises costs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a determinant of the extent of rivalry among established companies?

Accepted Answer

A)  Industry competitive structure 
B)  Demand conditions 
C)  The cost structure of firms in an industry 
D)  Exit barriers 
E)  The power of buyers 
A)  Industry competitive structure 
B)  Demand conditions 
C)  The cost structure of firms in an industry 
D)  Exit barriers 
E)  The power of buyers

Question 17

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

Accepted Answer

A)  mature industry. 
B)  stakeout industry. 
C)  embryonic industry. 
D)  growth industry. 
E)  declining industry. 
A)  mature industry. 
B)  stakeout industry. 
C)  embryonic industry. 
D)  growth industry. 
E)  declining industry.

Question 18

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Accepted Answer

A) True 
 B)False

Question 19

Market segments are groups of:

Accepted Answer

A)  customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B)  companies within a market that produce similar goods or services which are close substitutes of each other. 
C)  companies that follow a similar business model and cater to the needs of similar customers. 
D)  closely related industries. 
E)  large companies that are in a position to determine industry price. 
A)  customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B)  companies within a market that produce similar goods or services which are close substitutes of each other. 
C)  companies that follow a similar business model and cater to the needs of similar customers. 
D)  closely related industries. 
E)  large companies that are in a position to determine industry price.

Question 20

Companies operating in high-technology industries are dependent on complementary products for their mutual success.

Accepted Answer

A) True 
 B)False

Define and then relate the concepts of sectors, industries, and market segments.

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

An impact that the changing industry boundaries have had is that:

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.

Successful innovation cannot transform the nature of industry competition.

Suppliers are most powerful when the products that they sell have many substitutes.

_____ arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

Companies facing greater exit barriers find it harder to reduce capacity, and face a greater threat of severe price competition.

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Market segments are distinct groups of customers within a market that can be distinguished from each other based on their individual attributes and specific demands.

A sector refers to a group of:

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates:

To determine its opportunities and threats, a firm should focus on internal processes and capabilities.

A group of firms all make tools for baking-pots, pans, measuring cups, and utensils. This group should be referred to as a market segment.

Intense rivalry lowers prices and raises costs.

Which of the following is NOT a determinant of the extent of rivalry among established companies?

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Market segments are groups of:

Companies operating in high-technology industries are dependent on complementary products for their mutual success.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

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Exam 2: External Analysis: The Identification of Opportunities and Threats

Define and then relate the concepts of sectors, industries, and market segments.

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

An impact that the changing industry boundaries have had is that:

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.

Successful innovation cannot transform the nature of industry competition.

Suppliers are most powerful when the products that they sell have many substitutes.

_____ arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

Companies facing greater exit barriers find it harder to reduce capacity, and face a greater threat of severe price competition.

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Market segments are distinct groups of customers within a market that can be distinguished from each other based on their individual attributes and specific demands.

A sector refers to a group of:

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates:

To determine its opportunities and threats, a firm should focus on internal processes and capabilities.

A group of firms all make tools for baking-pots, pans, measuring cups, and utensils. This group should be referred to as a market segment.

Intense rivalry lowers prices and raises costs.

Which of the following is NOT a determinant of the extent of rivalry among established companies?

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Market segments are groups of:

Companies operating in high-technology industries are dependent on complementary products for their mutual success.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters