Question 1

When a buyer has a credible threat of backward integration,what happens to their power in the industry?

Accepted Answer

A)  It decreases. 
B)  It increases. 
C)  It converges. 
D)  It has no impact. 
A)  It decreases. 
B)  It increases. 
C)  It converges. 
D)  It has no impact.

Question 2

Court decisions and regulations such as CARB zero-emissions are elements of which macro environmental force?

Accepted Answer

A)  Political factors 
B)  Economic factors 
C)  Sociocultural factors 
D)  Legal factors 
A)  Political factors 
B)  Economic factors 
C)  Sociocultural factors 
D)  Legal factors

Question 3

Which of the following is NOT a main industry group in the SCP model?

Accepted Answer

A)  Monopolistic competition 
B)  An oligopoly 
C)  Perfect competition 
D)  A strategic group 
A)  Monopolistic competition 
B)  An oligopoly 
C)  Perfect competition 
D)  A strategic group

Question 4

When the collective strength of the five forces works against an industry:

Accepted Answer

A)  Individual firms should compete on price. 
B)  Individual firms should move from one strategic group to another. 
C)  The profit potential is weak. 
D)  There is a high degree of profit potential. 
A)  Individual firms should compete on price. 
B)  Individual firms should move from one strategic group to another. 
C)  The profit potential is weak. 
D)  There is a high degree of profit potential.

Question 5

What is the sixth force we added to the Five Forces model? Give an example of it.

Accepted Answer

Complements was added.A complement is a

Question 6

The bargaining power of suppliers is low when the suppliers' products are differentiated or have built-in switching costs.

Accepted Answer

A) True 
 B)False

Question 7

The factors that are important to focus on when mapping strategic groups include:

Accepted Answer

A)  Identifying the top competitive factors in your market, such as expenditures on research and development, pricing, distribution channels, and customers. 
B)  Choosing two key dimensions from these factors for the horizontal and vertical axes, plotting your rivals along these axes, and looking for differences among the competition. 
C)  Analyzing the firms that are closest to your organization on the map, because they will give your firm the strongest rivalry. 
D)  All of these. 
A)  Identifying the top competitive factors in your market, such as expenditures on research and development, pricing, distribution channels, and customers. 
B)  Choosing two key dimensions from these factors for the horizontal and vertical axes, plotting your rivals along these axes, and looking for differences among the competition. 
C)  Analyzing the firms that are closest to your organization on the map, because they will give your firm the strongest rivalry. 
D)  All of these.

Question 8

Describe industry convergence and provide an example.

Accepted Answer

Convergence is when previously unrelated

Question 9

The competitive threat of potential entry is NOT strong when _____________.

Accepted Answer

A)  there will be expected competitive retaliation 
B)  there are sizable economies of scale 
C)  there are strong brand preferences and customers are loyal 
D)  All of these 
A)  there will be expected competitive retaliation 
B)  there are sizable economies of scale 
C)  there are strong brand preferences and customers are loyal 
D)  All of these

Question 10

A ____________ is created when the government believes the product or service would not be supplied by the market under free market conditions.

Accepted Answer

A)  monopolistic competition 
B)  regulated monopoly 
C)  near monopoly 
D)  natural monopoly 
A)  monopolistic competition 
B)  regulated monopoly 
C)  near monopoly 
D)  natural monopoly

Question 11

The level of entry barriers is only relevant to potential competitors because:

Accepted Answer

A)  Firms that are established in an industry have already overcome the barriers to entry. 
B)  The existence of high entry barriers has little impact on overall industry profitability. 
C)  Competitive markets are dynamic, so established firms expect that there will always be new entrants. 
D)  The level of entry barriers is relevant to both existing and potential firms due to the competitive consequences for both. 
A)  Firms that are established in an industry have already overcome the barriers to entry. 
B)  The existence of high entry barriers has little impact on overall industry profitability. 
C)  Competitive markets are dynamic, so established firms expect that there will always be new entrants. 
D)  The level of entry barriers is relevant to both existing and potential firms due to the competitive consequences for both.

Question 12

In the example strategic map of the U.S.airline industry,what is it that creates the mobility barrier between the two identified strategic groups?

Accepted Answer

The groups are defined by a point to poi

Question 13

Mr.Smith was looking to buy a car but decided to buy a motorcycle instead.The motorcycle is a _______ and comes from outside the original industry.

Accepted Answer

A)  complement 
B)  substitute 
C)  convergence 
D)  complementor 
A)  complement 
B)  substitute 
C)  convergence 
D)  complementor

Question 14

The United Auto Workers (UAW)union is which of the five forces in the automotive industry?

Accepted Answer

A)  A supplier 
B)  A buyer 
C)  A complement 
D)  A substitute 
A)  A supplier 
B)  A buyer 
C)  A complement 
D)  A substitute

Question 15

The type of industry most likely to engage in non-price competition is ___________.

Accepted Answer

A)  a perfectly competitive industry 
B)  an oligopolistic industry 
C)  all industries engage in non-price competition 
D)  only strategic groups engage in non-price competition 
A)  a perfectly competitive industry 
B)  an oligopolistic industry 
C)  all industries engage in non-price competition 
D)  only strategic groups engage in non-price competition

Question 16

Industry structures are not stable over time.The U.S.banking industry has seen major consolidation in recent years.We would expect the result of this dynamic change to be what?

Accepted Answer

A)  Generally lower industry profits. 
B)  It will have no effect on profitability. 
C)  Further erosion in business. 
D)  Generally higher industry profits. 
A)  Generally lower industry profits. 
B)  It will have no effect on profitability. 
C)  Further erosion in business. 
D)  Generally higher industry profits.

Question 17

Macro-environmental PESTEL analysis considers the effects of forces on ________.

Accepted Answer

A)  a single firm 
B)  industry leaders 
C)  an entire industry 
D)  a strategic group 
A)  a single firm 
B)  industry leaders 
C)  an entire industry 
D)  a strategic group

Question 18

Recessions are often viewed as a period of defensive position for firms.However,shrewd managers initiate strategic successes during downturns.What is an example of this provided in the text?

Accepted Answer

A)  GM's foray into electric vehicles in California 
B)  Apple's increased R&D spending that lead to the launch of iPod 
C)  Intel's movement into European markets 
D)  UBS 
A)  GM's foray into electric vehicles in California 
B)  Apple's increased R&D spending that lead to the launch of iPod 
C)  Intel's movement into European markets 
D)  UBS

Question 19

Name the six macro level factors that make up the PESTEL model.

Accepted Answer

Political,Economic,Sociocultur

Question 20

Under the PESTEL framework,external economic factors that are important to a firm's strategy include deflation and levels of employment.

Accepted Answer

A) True 
 B)False

When a buyer has a credible threat of backward integration,what happens to their power in the industry?

Court decisions and regulations such as CARB zero-emissions are elements of which macro environmental force?

Which of the following is NOT a main industry group in the SCP model?

When the collective strength of the five forces works against an industry:

What is the sixth force we added to the Five Forces model? Give an example of it.

The bargaining power of suppliers is low when the suppliers' products are differentiated or have built-in switching costs.

The factors that are important to focus on when mapping strategic groups include:

Describe industry convergence and provide an example.

The competitive threat of potential entry is NOT strong when _____________.

A ____________ is created when the government believes the product or service would not be supplied by the market under free market conditions.

The level of entry barriers is only relevant to potential competitors because:

In the example strategic map of the U.S.airline industry,what is it that creates the mobility barrier between the two identified strategic groups?

Mr.Smith was looking to buy a car but decided to buy a motorcycle instead.The motorcycle is a _______ and comes from outside the original industry.

The United Auto Workers (UAW)union is which of the five forces in the automotive industry?

The type of industry most likely to engage in non-price competition is ___________.

Industry structures are not stable over time.The U.S.banking industry has seen major consolidation in recent years.We would expect the result of this dynamic change to be what?

Macro-environmental PESTEL analysis considers the effects of forces on ________.

Recessions are often viewed as a period of defensive position for firms.However,shrewd managers initiate strategic successes during downturns.What is an example of this provided in the text?

Name the six macro level factors that make up the PESTEL model.

Under the PESTEL framework,external economic factors that are important to a firm's strategy include deflation and levels of employment.

What Is Strategy and Why Is It Important

The Strategic Management Process

Internal Analysis: Resources, Capabilities, and Activities

Competitive Advantage and Firm Performance

Business Strategy: Differentiation, Cost Leadership, and Integration

Business Strategy: Innovation and Strategic Entrepreneurship

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Acquisitions, Alliances, and Networks

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance, Business Ethics, and Strategic Leadership

Filters

Exam 3: External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

When a buyer has a credible threat of backward integration,what happens to their power in the industry?

Court decisions and regulations such as CARB zero-emissions are elements of which macro environmental force?

Which of the following is NOT a main industry group in the SCP model?

When the collective strength of the five forces works against an industry:

What is the sixth force we added to the Five Forces model? Give an example of it.

The bargaining power of suppliers is low when the suppliers' products are differentiated or have built-in switching costs.

The factors that are important to focus on when mapping strategic groups include:

Describe industry convergence and provide an example.

The competitive threat of potential entry is NOT strong when _____________.

A ____________ is created when the government believes the product or service would not be supplied by the market under free market conditions.

The level of entry barriers is only relevant to potential competitors because:

In the example strategic map of the U.S.airline industry,what is it that creates the mobility barrier between the two identified strategic groups?

Mr.Smith was looking to buy a car but decided to buy a motorcycle instead.The motorcycle is a _______ and comes from outside the original industry.

The United Auto Workers (UAW)union is which of the five forces in the automotive industry?

The type of industry most likely to engage in non-price competition is ___________.

Industry structures are not stable over time.The U.S.banking industry has seen major consolidation in recent years.We would expect the result of this dynamic change to be what?

Macro-environmental PESTEL analysis considers the effects of forces on ________.

Recessions are often viewed as a period of defensive position for firms.However,shrewd managers initiate strategic successes during downturns.What is an example of this provided in the text?

Name the six macro level factors that make up the PESTEL model.

Under the PESTEL framework,external economic factors that are important to a firm's strategy include deflation and levels of employment.

What Is Strategy and Why Is It Important

The Strategic Management Process

Internal Analysis: Resources, Capabilities, and Activities

Competitive Advantage and Firm Performance

Business Strategy: Differentiation, Cost Leadership, and Integration

Business Strategy: Innovation and Strategic Entrepreneurship

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Acquisitions, Alliances, and Networks

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance, Business Ethics, and Strategic Leadership

Filters