Question 1

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions, so the firm can

Accepted Answer

A) pursue avenues that expose the firm to as many of the different competitive pressures as possible. 
B) shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces. 
C) pursue ways to identify and complement the five forces' contradictions and inferences to attract competitive growth opportunities. 
D) pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences. 
E) shift societal concerns, attitudes, and lifestyles by altering the pattern of competition. 
A) pursue avenues that expose the firm to as many of the different competitive pressures as possible. 
B) shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces. 
C) pursue ways to identify and complement the five forces' contradictions and inferences to attract competitive growth opportunities. 
D) pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences. 
E) shift societal concerns, attitudes, and lifestyles by altering the pattern of competition.

Question 2

Market maneuvering among industry rivals

Accepted Answer

A) determines whether the industry's strategic group map will be static or dynamic. 
B) centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C) is usually an industry's strongest driving force. 
D) is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E) is ongoing and dynamic, with moves and countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers. 
A) determines whether the industry's strategic group map will be static or dynamic. 
B) centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C) is usually an industry's strongest driving force. 
D) is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E) is ongoing and dynamic, with moves and countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers.

Question 3

The stronger the collective impact of competitive pressures associated with the five competitive forces,

Accepted Answer

A) the stronger are the industry's driving forces. 
B) the greater number of companies that can achieve a competitive advantage via differentiation. 
C) the larger the number of competitive advantage opportunities for industry members. 
D) the greater the number of industry key success factors. 
E) the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
A) the stronger are the industry's driving forces. 
B) the greater number of companies that can achieve a competitive advantage via differentiation. 
C) the larger the number of competitive advantage opportunities for industry members. 
D) the greater the number of industry key success factors. 
E) the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader.

Question 4

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

Accepted Answer

A) is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies. 
B) is often weak when rivals have emotional stakes in business or face high exit barriers. 
C) is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D) tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders. 
E) is weaker when more firms have weakly differentiated products, buyer demand is growing slowly, and buyers have moderate switching costs. 
A) is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies. 
B) is often weak when rivals have emotional stakes in business or face high exit barriers. 
C) is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D) tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders. 
E) is weaker when more firms have weakly differentiated products, buyer demand is growing slowly, and buyers have moderate switching costs.

Question 5

Which of the following conditions acts to weaken buyer bargaining power?

Accepted Answer

A) when buyers are unlikely to integrate backward into the business of sellers 
B) when buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs 
C) when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D) when the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product 
E) when buyers are few in number and/or often purchase in large quantities 
A) when buyers are unlikely to integrate backward into the business of sellers 
B) when buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs 
C) when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D) when the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product 
E) when buyers are few in number and/or often purchase in large quantities

Question 6

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of

Accepted Answer

A) whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. 
B) whether suppliers self-manufacture what they supply or source their items from other manufacturers. 
C) whether the industry's position in the growth cycle is favorable. 
D) whether technological change in the businesses of suppliers is rapid or slow. 
E) whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly. 
A) whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. 
B) whether suppliers self-manufacture what they supply or source their items from other manufacturers. 
C) whether the industry's position in the growth cycle is favorable. 
D) whether technological change in the businesses of suppliers is rapid or slow. 
E) whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly.

Question 7

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

Accepted Answer

A) apparel 
B) tire manufacturing 
C) electric and gas utilities 
D) commercial airlines 
E) video streaming services 
A) apparel 
B) tire manufacturing 
C) electric and gas utilities 
D) commercial airlines 
E) video streaming services

Question 8

Which of the following pairs of variables are least likely to be useful in drawing a strategic group map?

Accepted Answer

A) geographic market scope and degree of vertical integration 
B) brand name reputation and distribution channel emphasis 
C) product quality and product-line breadth 
D) level of profitability and size of market share 
E) price/perceived quality and image range and the extent of buyer appeal 
A) geographic market scope and degree of vertical integration 
B) brand name reputation and distribution channel emphasis 
C) product quality and product-line breadth 
D) level of profitability and size of market share 
E) price/perceived quality and image range and the extent of buyer appeal

Question 9

When all sellers pursue essentially identical strategies and have similar market positions

Accepted Answer

A) they remain subject to different driving forces. 
B) they place about the same emphasis on various distribution channels. 
C) they use the same key success factors to differentiate their products. 
D) the industry can be said to contain one strategic group. 
E) they still must possess customer service attributes that differentiate them from one another in the marketplace. 
A) they remain subject to different driving forces. 
B) they place about the same emphasis on various distribution channels. 
C) they use the same key success factors to differentiate their products. 
D) the industry can be said to contain one strategic group. 
E) they still must possess customer service attributes that differentiate them from one another in the marketplace.

Question 10

A strategic group

Accepted Answer

A) consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B) includes all rival firms having comparable profitability. 
C) is a cluster of industry members with similar competitive approaches and market positions in the market. 
D) consists of those firms whose market shares are about the same size. 
E) is made up of those firms having comparable profit margins. 
A) consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B) includes all rival firms having comparable profitability. 
C) is a cluster of industry members with similar competitive approaches and market positions in the market. 
D) consists of those firms whose market shares are about the same size. 
E) is made up of those firms having comparable profit margins.

Question 11

One of the things that can be gleaned from a strategic group map of industry rivals is

Accepted Answer

A) which rivals have been in business longer and thus have greater access to experience curve effects. 
B) which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C) which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D) that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E) which strategic groups are currently being shunned by customers because of high prices and relatively low product quality. 
A) which rivals have been in business longer and thus have greater access to experience curve effects. 
B) which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C) which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D) that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E) which strategic groups are currently being shunned by customers because of high prices and relatively low product quality.

Question 12

Based on your analysis of the ease of entry into the pizza segment of the restaurant industry, your friends have decided to move forward with their plan to open a pizza parlor and delivery service within walking distance of your campus. Before they finalize the product mix for their restaurant, they have asked you to identify the competitive pressures stemming from the threat of substitutes for the pizza segment of the restaurant industry. What would your report to them include?

Accepted Answer

Companies in an industry or industry seg

Question 13

Competitive markets are economic battlefields. True or false? Explain.

Accepted Answer

A) True 
 B)False

Question 14

In analyzing driving forces, the strategist's role is to

Accepted Answer

A) identify the driving forces and evaluate their impact on demand for the industry's product, the intensity of competition, and industry profitability. 
B) predict future marketing innovations and how fast the industry is likely to globalize. 
C) evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage. 
D) determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map. 
E) forecast fluctuations in product demand and how buyer needs will most likely change. 
A) identify the driving forces and evaluate their impact on demand for the industry's product, the intensity of competition, and industry profitability. 
B) predict future marketing innovations and how fast the industry is likely to globalize. 
C) evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage. 
D) determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map. 
E) forecast fluctuations in product demand and how buyer needs will most likely change.

Question 15

Increasing globalization of the ride-share industry can be a driving force because

Accepted Answer

A) the services provided by foreign ride-share competitors are nearly always cheaper or of better quality than those of domestic companies. 
B) foreign ride-share operators typically have lower costs, more technological expertise, and greater social network integration capabilities than domestic firms. 
C) ride-share companies need to spread their operating reach into more and more country markets to meet emerging consumer demand and take advantage of available operating opportunities. 
D) it results in ride-share companies having fewer competitors and a strategic group map with fewer circles. 
E) market growth rates rise, product innovation accelerates, and new ride-share startups are increasingly likely to enter the industry. 
A) the services provided by foreign ride-share competitors are nearly always cheaper or of better quality than those of domestic companies. 
B) foreign ride-share operators typically have lower costs, more technological expertise, and greater social network integration capabilities than domestic firms. 
C) ride-share companies need to spread their operating reach into more and more country markets to meet emerging consumer demand and take advantage of available operating opportunities. 
D) it results in ride-share companies having fewer competitors and a strategic group map with fewer circles. 
E) market growth rates rise, product innovation accelerates, and new ride-share startups are increasingly likely to enter the industry.

Question 16

Where the real payoff from strategic analysis of industry dynamics comes is for managers to draw some conclusions about what strategy adjustments will be needed to deal with the impacts of the driving forces. True or false? Explain.

Accepted Answer

A) True 
 B)False

Question 17

With the aid of a strategic group map for the pizza segment of the food service industry, one can

Accepted Answer

A) identify easily the entry and exit barriers for each strategic group and intersegment competition with other casual restaurants. 
B) pinpoint precisely which pizza restaurants are in profitable strategic groups and which are not. 
C) identify which competitive forces are strong and which are weak for pizza restaurants. 
D) measure accurately whether across-group rivalry among pizza establishments is stronger than within-group rivalry, and vice versa. 
E) reveal which pizza establishments are close competitors and which are distant rivals, and that not all positions on the map are equally attractive. 
A) identify easily the entry and exit barriers for each strategic group and intersegment competition with other casual restaurants. 
B) pinpoint precisely which pizza restaurants are in profitable strategic groups and which are not. 
C) identify which competitive forces are strong and which are weak for pizza restaurants. 
D) measure accurately whether across-group rivalry among pizza establishments is stronger than within-group rivalry, and vice versa. 
E) reveal which pizza establishments are close competitors and which are distant rivals, and that not all positions on the map are equally attractive.

Question 18

In which one of the following instances is supplier bargaining power and leverage not weakened?

Accepted Answer

A) when industry members pose a credible threat of backward integration into the business of suppliers 
B) when the cost of switching from one supplier to another is low 
C) when the items purchased from suppliers are in short supply 
D) when the buying firms purchase in large quantities and thus are important customers of the suppliers 
E) when the item being supplied is a commodity 
A) when industry members pose a credible threat of backward integration into the business of suppliers 
B) when the cost of switching from one supplier to another is low 
C) when the items purchased from suppliers are in short supply 
D) when the buying firms purchase in large quantities and thus are important customers of the suppliers 
E) when the item being supplied is a commodity

Question 19

Identify three tools to diagnose the competitive conditions in an industry and explain the meaning and significance of each of the following and their relationship to one another.

Accepted Answer

Three tools to diagnose the competitive

Question 20

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

Accepted Answer

A) The costs to buyers of switching over to the substitutes are low. 
B) Buyers are dubious about using substitutes. 
C) The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements. 
D) Buyer brand loyalty is weak. 
E) Substitutes are readily available at competitive prices. 
A) The costs to buyers of switching over to the substitutes are low. 
B) Buyers are dubious about using substitutes. 
C) The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements. 
D) Buyer brand loyalty is weak. 
E) Substitutes are readily available at competitive prices.

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions, so the firm can

Market maneuvering among industry rivals

The stronger the collective impact of competitive pressures associated with the five competitive forces,

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

Which of the following conditions acts to weaken buyer bargaining power?

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

Which of the following pairs of variables are least likely to be useful in drawing a strategic group map?

When all sellers pursue essentially identical strategies and have similar market positions

A strategic group

One of the things that can be gleaned from a strategic group map of industry rivals is

Competitive markets are economic battlefields. True or false? Explain.

In analyzing driving forces, the strategist's role is to

Increasing globalization of the ride-share industry can be a driving force because

Where the real payoff from strategic analysis of industry dynamics comes is for managers to draw some conclusions about what strategy adjustments will be needed to deal with the impacts of the driving forces. True or false? Explain.

With the aid of a strategic group map for the pizza segment of the food service industry, one can

In which one of the following instances is supplier bargaining power and leverage not weakened?

Identify three tools to diagnose the competitive conditions in an industry and explain the meaning and significance of each of the following and their relationship to one another.

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 3: Evaluating a Companys External Environment

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions, so the firm can

Market maneuvering among industry rivals

The stronger the collective impact of competitive pressures associated with the five competitive forces,

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

Which of the following conditions acts to weaken buyer bargaining power?

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

Which of the following pairs of variables are least likely to be useful in drawing a strategic group map?

When all sellers pursue essentially identical strategies and have similar market positions

A strategic group

One of the things that can be gleaned from a strategic group map of industry rivals is

Competitive markets are economic battlefields. True or false? Explain.

In analyzing driving forces, the strategist's role is to

Increasing globalization of the ride-share industry can be a driving force because

Where the real payoff from strategic analysis of industry dynamics comes is for managers to draw some conclusions about what strategy adjustments will be needed to deal with the impacts of the driving forces. True or false? Explain.

With the aid of a strategic group map for the pizza segment of the food service industry, one can

In which one of the following instances is supplier bargaining power and leverage not weakened?

Identify three tools to diagnose the competitive conditions in an industry and explain the meaning and significance of each of the following and their relationship to one another.

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters