Exam 2: Evaluating a Firms External Environment

Proprietary technology often is more important as a barrier to entry than is managerial know-how.

In the S-C-P model,________ refers to the strategies that firms in an industry implement.

The threat of buyers in the hardwood furniture industry is best described as

Overall,the average level of performance in an industry is likely to be highest when

Mature industries are characterized by elements such as increasing growth in total industry demand,significant increases in product capacity,and an overall increase in the profitability of firms in the industry.

Identify and define the three elements of the S-C-P model.

Identify the four generic industry structures and the specific strategic opportunities in each of these industries.

In general,technological change creates opportunities,but not threats.

In general,first-mover advantages can arise from any of these sources except

Within the five forces framework,the five most common threats facing firms from their competitive environment include each of the following except

An industry in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies is known as a(n)________ industry.

All other things being equal,which of the following would lead to lower barriers to entry in an industry?

Describe the difference between a competitor and a complementor and identify the role complementors play in an industry.

In a perfectly competitive industry,a large number of firms have products and services that are similar to each other and it is not very costly for firms to enter into or exit these markets.

A consolidation strategy is a good option in what type of industry?

Hickory Divine is one of the leading manufacturers in the hardwood furniture industry. Hickory Divine has many small competitors, none of which controls a significant portion of the industry. Hickory, like most of the furniture manufacturers, sells its products to a broad variety of small furniture stores throughout the country, none of which represents a large percentage of Hickory's sales. When purchasing the products it uses for manufacturing its furniture, Hickory is able to choose from many suppliers since the wood it uses is an undifferentiated commodity, and Hickory is able to easily switch to any supplier that has the best price and delivery times. While growth in the hardwood furniture industry has historically been in the double digits, the industry growth rate has slowed considerably into the single digits, to approximately 5% in recent years; consumers have been purchasing less expensive furniture made of composite wood that is considerably less expensive than hardwood furniture but that looks and functions very similarly once it is painted. -Based on the above description,the hardwood furniture industry can best be described as a(n)________ industry.

According to the S-C-P model,attributes of the industry structure within which a firm operates define the range of options and constraints facing a firm.

Incumbent firms may have a whole range of cost advantages compared to new competitors.

In an industry,the products or services provided by a firm's direct competition meet approximately the same customer needs in the same way as the products or services provided by the firm itself,whereas substitutes meet approximately the same customer needs but do so in different ways.

A(n)________ is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.