Question 1

The competitive pressures from substitute products tend to be stronger when

Accepted Answer

A) good substitutes are readily available. 
B) there are fewer number of substitute products. 
C) substitutes have lower performance features. 
D) buyers incur high costs in switching to substitutes. 
E) substitutes are priced above the market. 
A) good substitutes are readily available. 
B) there are fewer number of substitute products. 
C) substitutes have lower performance features. 
D) buyers incur high costs in switching to substitutes. 
E) substitutes are priced above the market.

Question 2

Which factors influence the bargaining strength and leverage of suppliers in the pizza segment of the restaurant industry?

Accepted Answer

Supplier bargaining power is stronger wh

Question 3

Buyer bargaining power is stronger when

Accepted Answer

A) winning the business of certain high-profile customers offers a seller important market exposure or prestige. 
B) the extent and importance of collaborative partnerships and alliances between particular sellers and buyers are credible. 
C) buyers cannot integrate backward into the product market of sellers. 
D) sellers' products are differentiated, making it easy and inexpensive for buyers to switch to competing brands. 
E) the industry's products are standardized or undifferentiated. 
A) winning the business of certain high-profile customers offers a seller important market exposure or prestige. 
B) the extent and importance of collaborative partnerships and alliances between particular sellers and buyers are credible. 
C) buyers cannot integrate backward into the product market of sellers. 
D) sellers' products are differentiated, making it easy and inexpensive for buyers to switch to competing brands. 
E) the industry's products are standardized or undifferentiated.

Question 4

Not all positions on a strategic group map are equally attractive because

Accepted Answer

A) small strategic groups are always less profitable than large strategic groups. 
B) entry and exit barriers are different for each strategic group. 
C) across-group rivalry is always weakest at the outer edge of the strategic group map. 
D) industry-driving forces and competitive pressures favor some groups and disadvantage others. 
E) key success factors are substantially different for differently positioned industry participants. 
A) small strategic groups are always less profitable than large strategic groups. 
B) entry and exit barriers are different for each strategic group. 
C) across-group rivalry is always weakest at the outer edge of the strategic group map. 
D) industry-driving forces and competitive pressures favor some groups and disadvantage others. 
E) key success factors are substantially different for differently positioned industry participants.

Question 5

What are an industry's key success factors (KSFs)? How would you assess those factors for the beer industry?

Accepted Answer

KSFs by their very nature are so importa

Question 6

The best test of whether potential entry is a strong or weak competitive force is

Accepted Answer

A) the strength of buyer loyalty to existing brands. 
B) whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C) whether the strategies of industry members are well-matched to the industry's key success factors. 
D) whether there are any vacant spaces on the industry's strategic group map. 
E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates. 
A) the strength of buyer loyalty to existing brands. 
B) whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C) whether the strategies of industry members are well-matched to the industry's key success factors. 
D) whether there are any vacant spaces on the industry's strategic group map. 
E) to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

Question 7

Which of the following is not one of the principal components of strategic significance in the PESTEL analysis?

Accepted Answer

A) political factors including the extent to which government intervenes in the economy 
B) economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence 
C) sociocultural forces that include societal values, attitudes, cultural factors, and lifestyles that impact business 
D) technological factors that include the pace of change and technical developments that have the potential for impacting society 
E) environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business 
A) political factors including the extent to which government intervenes in the economy 
B) economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence 
C) sociocultural forces that include societal values, attitudes, cultural factors, and lifestyles that impact business 
D) technological factors that include the pace of change and technical developments that have the potential for impacting society 
E) environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business

Question 8

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces. Which of the five competitive forces is typically the strongest?

Accepted Answer

The five forces framework holds that com

Question 9

The strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions-are known as

Accepted Answer

A) the industry and the competitive arena in which the company operates. 
B) general economic conditions plus the factors driving change in the markets where a company operates. 
C) a company's macro-environment. 
D) the competitive market environment that exists between a company and its competitors. 
E) the dominant economic features of a company's industry. 
A) the industry and the competitive arena in which the company operates. 
B) general economic conditions plus the factors driving change in the markets where a company operates. 
C) a company's macro-environment. 
D) the competitive market environment that exists between a company and its competitors. 
E) the dominant economic features of a company's industry.

Question 10

Correctly diagnosing an industry's key success factors

Accepted Answer

A) points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B) hints at the firm's ability to generate above-average profitability. 
C) reveals that the firm's capabilities and resources are aligned with operating practices of industry participants. 
D) raises a company's chances of crafting a sound strategy. 
E) raises a company's sustainability dimensions and market characteristics in line with industry dynamics. 
A) points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B) hints at the firm's ability to generate above-average profitability. 
C) reveals that the firm's capabilities and resources are aligned with operating practices of industry participants. 
D) raises a company's chances of crafting a sound strategy. 
E) raises a company's sustainability dimensions and market characteristics in line with industry dynamics.

Question 11

Your study group has been charged with conducting an assessment of competitive behavior in the sporting apparel industry. What are likely to be the key elements of your analysis?

Accepted Answer

Gathering competitive intelligence about

Question 12

Strategic group map analysis does not entail drawing conclusions about

Accepted Answer

A) where on the map is the best place to be and why. 
B) which companies/strategic groups are destined to prosper because of their positions. 
C) which companies/strategic groups seem destined to struggle. 
D) what accounts for why some parts of the map are better than others. 
E) where on the map is the easiest position to shift from to a more favorably situated position. 
A) where on the map is the best place to be and why. 
B) which companies/strategic groups are destined to prosper because of their positions. 
C) which companies/strategic groups seem destined to struggle. 
D) what accounts for why some parts of the map are better than others. 
E) where on the map is the easiest position to shift from to a more favorably situated position.

Question 13

Which of the following is generally not considered a barrier to entry?

Accepted Answer

A) restrictive regulatory policies 
B) high capital requirements 
C) strong brand preferences 
D) many industry patents in place 
E) weak network effects in customer demand 
A) restrictive regulatory policies 
B) high capital requirements 
C) strong brand preferences 
D) many industry patents in place 
E) weak network effects in customer demand

Question 14

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when

Accepted Answer

A) virtually all buyers have strong brand attachments and are highly brand loyal. 
B) demand for the product is growing rapidly. 
C) sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D) sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E) buyers are very quality conscious. 
A) virtually all buyers have strong brand attachments and are highly brand loyal. 
B) demand for the product is growing rapidly. 
C) sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D) sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E) buyers are very quality conscious.

Question 15

Driving-forces analysis has

Accepted Answer

A) speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B) theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C) practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead. 
D) no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments. 
E) perceived value and is associated with identifying the close and distant rivals within an operating industry. 
A) speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B) theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C) practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead. 
D) no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments. 
E) perceived value and is associated with identifying the close and distant rivals within an operating industry.

Question 16

What is the Value Net framework? What are the steps in using this framework?

Accepted Answer

Like the five forces framework, the Valu

Question 17

The competitive pressures on companies within an industry come from all of the following except

Accepted Answer

A) those associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. 
B) those companies in other industries attempting to win buyers over to their substitute products. 
C) those associated with the threat of new entrants into the marketplace. 
D) those associated with the bargaining power of suppliers and customers. 
E) those associated with environmental factors such as water shortages. 
A) those associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. 
B) those companies in other industries attempting to win buyers over to their substitute products. 
C) those associated with the threat of new entrants into the marketplace. 
D) those associated with the bargaining power of suppliers and customers. 
E) those associated with environmental factors such as water shortages.

The competitive pressures from substitute products tend to be stronger when

Which factors influence the bargaining strength and leverage of suppliers in the pizza segment of the restaurant industry?

Buyer bargaining power is stronger when

Not all positions on a strategic group map are equally attractive because

What are an industry's key success factors (KSFs)? How would you assess those factors for the beer industry?

The best test of whether potential entry is a strong or weak competitive force is

Which of the following is not one of the principal components of strategic significance in the PESTEL analysis?

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces. Which of the five competitive forces is typically the strongest?

The strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions-are known as

Correctly diagnosing an industry's key success factors

Your study group has been charged with conducting an assessment of competitive behavior in the sporting apparel industry. What are likely to be the key elements of your analysis?

Strategic group map analysis does not entail drawing conclusions about

Which of the following is generally not considered a barrier to entry?

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when

Driving-forces analysis has

What is the Value Net framework? What are the steps in using this framework?

The competitive pressures on companies within an industry come from all of the following except

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

The competitive pressures from substitute products tend to be stronger when

Which factors influence the bargaining strength and leverage of suppliers in the pizza segment of the restaurant industry?

Buyer bargaining power is stronger when

Not all positions on a strategic group map are equally attractive because

What are an industry's key success factors (KSFs)? How would you assess those factors for the beer industry?

The best test of whether potential entry is a strong or weak competitive force is

Which of the following is not one of the principal components of strategic significance in the PESTEL analysis?

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces. Which of the five competitive forces is typically the strongest?

The strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions-are known as

Correctly diagnosing an industry's key success factors

Your study group has been charged with conducting an assessment of competitive behavior in the sporting apparel industry. What are likely to be the key elements of your analysis?

Strategic group map analysis does not entail drawing conclusions about

Which of the following is generally not considered a barrier to entry?

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when

Driving-forces analysis has

What is the Value Net framework? What are the steps in using this framework?

The competitive pressures on companies within an industry come from all of the following except

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