Question 1

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Accepted Answer

An industry's key success factors are th

Question 2

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Accepted Answer

A) the industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors 
B) an assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C) whether there are more than five key success factors, more than five barriers to entry, and more than five industry drivers 
D) whether the market leaders enjoy competitive advantages and how difficult it is to promote innovation to develop a strongly differentiated product or service for which a price premium may be charged 
E) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
A) the industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors 
B) an assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C) whether there are more than five key success factors, more than five barriers to entry, and more than five industry drivers 
D) whether the market leaders enjoy competitive advantages and how difficult it is to promote innovation to develop a strongly differentiated product or service for which a price premium may be charged 
E) constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group

Question 3

The impact of the macro-environment on a company's strategic opportunities is not exemplified by the following situation?

Accepted Answer

A) Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products. 
B) Consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C) Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D) Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products. 
E) Sales of FitBit surge on account of a new feature that monitors users' blood pressure. 
A) Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products. 
B) Consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C) Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D) Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products. 
E) Sales of FitBit surge on account of a new feature that monitors users' blood pressure.

Question 4

The homebuilding industry is not affected by such macro-influences as

Accepted Answer

A) changes in mortgage interest rates, rules, and regulations that make it easier/harder for homebuyers to obtain mortgages. 
B) trends in household incomes and buying power. 
C) the distinctive competences of incumbent firms. 
D) disasters and other unanticipated events in the natural environment. 
E) shifting preferences of families for renting versus owning a home, and/or homes of various sizes, styles, and price ranges. 
A) changes in mortgage interest rates, rules, and regulations that make it easier/harder for homebuyers to obtain mortgages. 
B) trends in household incomes and buying power. 
C) the distinctive competences of incumbent firms. 
D) disasters and other unanticipated events in the natural environment. 
E) shifting preferences of families for renting versus owning a home, and/or homes of various sizes, styles, and price ranges.

Question 5

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

Accepted Answer

Rivalry among competing sellers increase

Question 6

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does not involve a consideration of which of the following factors?

Accepted Answer

A) the industry's growth potential and whether competitive pressures will likely grow stronger or weaker, and whether strong competitive forces are squeezing industry profitability to subpar levels 
B) whether the company occupies a stronger market position than rivals 
C) whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D) the severity of the macro-environment problems confronting the industry 
E) whether the industry's product is strongly or weakly differentiated 
A) the industry's growth potential and whether competitive pressures will likely grow stronger or weaker, and whether strong competitive forces are squeezing industry profitability to subpar levels 
B) whether the company occupies a stronger market position than rivals 
C) whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D) the severity of the macro-environment problems confronting the industry 
E) whether the industry's product is strongly or weakly differentiated

Question 7

The bargaining leverage of suppliers is greater when

Accepted Answer

A) the suppliers' products/services account for a small percentage of industry members' costs. 
B) industry members incur low costs in switching their purchases from one supplier to another. 
C) industry members account for a big fraction of supplier's sales. 
D) there is extensive seller-supplier collaboration. 
E) the supplier industry is composed of a large number of relatively small suppliers. 
A) the suppliers' products/services account for a small percentage of industry members' costs. 
B) industry members incur low costs in switching their purchases from one supplier to another. 
C) industry members account for a big fraction of supplier's sales. 
D) there is extensive seller-supplier collaboration. 
E) the supplier industry is composed of a large number of relatively small suppliers.

Question 8

Industry conditions change because of

Accepted Answer

A) such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B) newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C) newly emerging industry key success factors. 
D) important forces enticing or pressuring certain industry participants (competitors, customers, suppliers)to alter their actions in important ways. 
E) changes in the barriers to entry and the degree of competition from substitute products. 
A) such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B) newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C) newly emerging industry key success factors. 
D) important forces enticing or pressuring certain industry participants (competitors, customers, suppliers)to alter their actions in important ways. 
E) changes in the barriers to entry and the degree of competition from substitute products.

Question 9

Which of the following is most. likely to qualify as a driving force?

Accepted Answer

A) increases in price cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B) successful introduction of innovative new products or new ways to market products 
C) an increase in the prices of substitute products 
D) decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E) decisions by one or more outsiders not to attempt to enter the industry 
A) increases in price cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B) successful introduction of innovative new products or new ways to market products 
C) an increase in the prices of substitute products 
D) decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E) decisions by one or more outsiders not to attempt to enter the industry

Question 10

To succeed in predicting a competitor's next moves, company strategists need to appraise a rival's

Accepted Answer

A) current strategy, financial health, market share, resources and capabilities. 
B) strategic group, assumptions, resources and capabilities, financial health. 
C) current strategy, assumptions, resources and capabilities, objectives. 
D) market share, strategic group, driving forces, assumptions. 
E) resources and capabilities, assumptions, current strategy, objectives. 
A) current strategy, financial health, market share, resources and capabilities. 
B) strategic group, assumptions, resources and capabilities, financial health. 
C) current strategy, assumptions, resources and capabilities, objectives. 
D) market share, strategic group, driving forces, assumptions. 
E) resources and capabilities, assumptions, current strategy, objectives.

Question 11

A rival's strategic moves and countermoves are

Accepted Answer

A) indicators for the visualization of strategic mapping techniques. 
B) enabled and constrained by the set of capabilities they have at hand. 
C) measured by the extent to which they can unveil financial objectives. 
D) responses to the broader definition of the industry opportunities. 
E) signs of the competitive pressures from the industry. 
A) indicators for the visualization of strategic mapping techniques. 
B) enabled and constrained by the set of capabilities they have at hand. 
C) measured by the extent to which they can unveil financial objectives. 
D) responses to the broader definition of the industry opportunities. 
E) signs of the competitive pressures from the industry.

Question 12

The concept of strategic groups is relevant to industry and competitive analysis because

Accepted Answer

A) firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B) strategic group maps help identify how each competing firm is positioned and the relationship to its closest competitors. 
C) competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D) the profit potential of firms in the same strategic group is usually very similar. 
E) competitive pressures tend to be weaker within strategic groups than across strategic groups. 
A) firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B) strategic group maps help identify how each competing firm is positioned and the relationship to its closest competitors. 
C) competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D) the profit potential of firms in the same strategic group is usually very similar. 
E) competitive pressures tend to be weaker within strategic groups than across strategic groups.

Question 13

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

Accepted Answer

A) pharmaceuticals 
B) wireless lighting systems 
C) wearable fitness and health monitors 
D) pizza restaurants 
E) delivery services using drones 
A) pharmaceuticals 
B) wireless lighting systems 
C) wearable fitness and health monitors 
D) pizza restaurants 
E) delivery services using drones

Question 14

An industry's key success factors can always be deduced by asking what factors

Accepted Answer

A) are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous. 
B) vary according to whether an industry has high or low long-term attractiveness. 
C) such as product attributes and service characteristics are crucial, and what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage. 
D) can be determined from studying the winning strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have losing strategies. 
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack. 
A) are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous. 
B) vary according to whether an industry has high or low long-term attractiveness. 
C) such as product attributes and service characteristics are crucial, and what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage. 
D) can be determined from studying the winning strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have losing strategies. 
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.

Question 15

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

Accepted Answer

A) lacks powerful driving forces. 
B) gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C) makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D) is conducive to industry members earning attractive profits. 
E) requires that industry members have low costs in order to be competitively successful. 
A) lacks powerful driving forces. 
B) gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C) makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D) is conducive to industry members earning attractive profits. 
E) requires that industry members have low costs in order to be competitively successful.

Question 16

You have been asked to analyze the Value Net of the major regions of the California wine industry and have observed close relationships between wineries and local hospitality businesses (such as restaurants and lodging facilities)in the regions under study. Those local hospitality businesses can be said to be

Accepted Answer

A) cohabitors. 
B) competitors. 
C) cooperators. 
D) complementors. 
E) customers. 
A) cohabitors. 
B) competitors. 
C) cooperators. 
D) complementors. 
E) customers.

Question 17

Managers must chart a company's strategic course by

Accepted Answer

A) focusing on the local environment in which they are operating. 
B) ensuring excess production capacity and/or inventory. 
C) competing fiercely for a share in the market. 
D) building a bigger dealer network. 
E) developing a thorough understanding of the company's external and internal environment. 
A) focusing on the local environment in which they are operating. 
B) ensuring excess production capacity and/or inventory. 
C) competing fiercely for a share in the market. 
D) building a bigger dealer network. 
E) developing a thorough understanding of the company's external and internal environment.

Question 18

Rivalry among competing sellers decreases

Accepted Answer

A) when buyer demand is growing rapidly. 
B) as it becomes less costly for buyers to switch brands. 
C) as the products of rival sellers become commoditized. 
D) when there is excess production relative to demand. 
E) as the number of competitors increases. 
A) when buyer demand is growing rapidly. 
B) as it becomes less costly for buyers to switch brands. 
C) as the products of rival sellers become commoditized. 
D) when there is excess production relative to demand. 
E) as the number of competitors increases.

Question 19

Driving-forces analysis helps managers identify whether

Accepted Answer

A) the collective impact of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead. 
B) it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C) the driving forces will have a bigger impact on company profitability than competitive forces. 
D) the industry is likely to become more or less vertically integrated and why. 
E) competitive advantages are likely to grow or diminish in importance. 
A) the collective impact of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead. 
B) it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C) the driving forces will have a bigger impact on company profitability than competitive forces. 
D) the industry is likely to become more or less vertically integrated and why. 
E) competitive advantages are likely to grow or diminish in importance.

Question 20

In identifying an industry's key success factors, strategists should

Accepted Answer

A) try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B) consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C) consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D) consider what it will take to overtake the company with the industry's overall best strategy. 
E) focus their attention on what it will take to capitalize on the impacts of the industry's driving forces. 
A) try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B) consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C) consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D) consider what it will take to overtake the company with the industry's overall best strategy. 
E) focus their attention on what it will take to capitalize on the impacts of the industry's driving forces.

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

The impact of the macro-environment on a company's strategic opportunities is not exemplified by the following situation?

The homebuilding industry is not affected by such macro-influences as

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does not involve a consideration of which of the following factors?

The bargaining leverage of suppliers is greater when

Industry conditions change because of

Which of the following is most. likely to qualify as a driving force?

To succeed in predicting a competitor's next moves, company strategists need to appraise a rival's

A rival's strategic moves and countermoves are

The concept of strategic groups is relevant to industry and competitive analysis because

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

An industry's key success factors can always be deduced by asking what factors

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

Managers must chart a company's strategic course by

Rivalry among competing sellers decreases

Driving-forces analysis helps managers identify whether

In identifying an industry's key success factors, strategists should

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

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

The impact of the macro-environment on a company's strategic opportunities is not exemplified by the following situation?

The homebuilding industry is not affected by such macro-influences as

Identify and briefly explain any four of the factors that influence the strength or intensity of competitive rivalry among an industry's member firms.

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does not involve a consideration of which of the following factors?

The bargaining leverage of suppliers is greater when

Industry conditions change because of

Which of the following is most. likely to qualify as a driving force?

To succeed in predicting a competitor's next moves, company strategists need to appraise a rival's

A rival's strategic moves and countermoves are

The concept of strategic groups is relevant to industry and competitive analysis because

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

An industry's key success factors can always be deduced by asking what factors

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

Managers must chart a company's strategic course by

Rivalry among competing sellers decreases

Driving-forces analysis helps managers identify whether

In identifying an industry's key success factors, strategists should

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