Question 1

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 2

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

Accepted Answer

A)  the speed with which general economic conditions and interest rates are changing. 
B)  the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C)  how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D)  the number of buyers versus the number of sellers. 
E)  whether industry members are spending more or less on advertising. 
A)  the speed with which general economic conditions and interest rates are changing. 
B)  the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C)  how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D)  the number of buyers versus the number of sellers. 
E)  whether industry members are spending more or less on advertising.

Question 3

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

Accepted Answer

A)  The industry's growth potential,whether competition appears destined to become stronger or weaker,and whether the industry's overall profit prospects are above average,average,or below average 
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 and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 
A)  The industry's growth potential,whether competition appears destined to become stronger or weaker,and whether the industry's overall profit prospects are above average,average,or below average 
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 and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question 4

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 5

Strategic group mapping is a visual technique for displaying:

Accepted Answer

A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models. 
A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models.

Question 6

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

Accepted Answer

Competitive pressures from substitutes a

Question 7

With the aid of a strategic group map,one can:

Accepted Answer

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

Question 8

Not all buyers of an industry's product are likely to possess the same degree of bargaining power or leverage over the terms and conditions under which they purchase the product.True or false? Explain.

Accepted Answer

Competitive pressures from buyers increa

Question 9

What are the six key questions that form the framework of thinking strategically about a company's industry and competitive environment?

Accepted Answer

Every company operates in a broad "macro

Question 10

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 their 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 their 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 11

The lower the user's switching costs,the:

Accepted Answer

A)  harder it is for the sellers of attractive substitutes to lure buyers to their offering. 
B)  more intense the competitive pressures posed by substitute products. 
C)  less intense the competitive pressures posed by substitute products. 
D)  greater the bargaining power from both suppliers and influential customers. 
E)  lesser the bargaining power from both suppliers and influential customers. 
A)  harder it is for the sellers of attractive substitutes to lure buyers to their offering. 
B)  more intense the competitive pressures posed by substitute products. 
C)  less intense the competitive pressures posed by substitute products. 
D)  greater the bargaining power from both suppliers and influential customers. 
E)  lesser the bargaining power from both suppliers and influential customers.

Question 12

In which of the following instances is rivalry among competing sellers NOT more intense?

Accepted Answer

A)  When certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B)  When strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C)  When competitors are fairly equal in size and capability 
D)  When the products of rivals are weakly differentiated,buyer switching costs are low,and market demand is growing slowly 
E)  When there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members 
A)  When certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B)  When strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C)  When competitors are fairly equal in size and capability 
D)  When the products of rivals are weakly differentiated,buyer switching costs are low,and market demand is growing slowly 
E)  When there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

Question 13

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

Accepted Answer

A)  The strength of the federal banking system 
B)  The exogenous forces related to the general environmental demand 
C)  Social factors that could fuel a political agenda and create greater transparency 
D)  Bailouts and energy policies that are industry-specific 
E)  Tax policy,fiscal policy,and tariffs providing impetus for anti-trust matters 
A)  The strength of the federal banking system 
B)  The exogenous forces related to the general environmental demand 
C)  Social factors that could fuel a political agenda and create greater transparency 
D)  Bailouts and energy policies that are industry-specific 
E)  Tax policy,fiscal policy,and tariffs providing impetus for anti-trust matters

Question 14

Potential entrants are more likely to be deterred from actually entering an industry when:

Accepted Answer

A)  incumbent firms are willing and able to be aggressive in defending their market positions against entry. 
B)  incumbent firms are complacent. 
C)  buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals. 
D)  the relative cost positions of incumbent firms are about the same,such that no one incumbent has a meaningful cost advantage. 
E)  buyer switching costs are moderately low because of strong product differentiation among incumbent firms. 
A)  incumbent firms are willing and able to be aggressive in defending their market positions against entry. 
B)  incumbent firms are complacent. 
C)  buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals. 
D)  the relative cost positions of incumbent firms are about the same,such that no one incumbent has a meaningful cost advantage. 
E)  buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

Question 15

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 is 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 is 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 16

Each of the following exemplifies the impact of the macro-environment on a company's strategic opportunities EXCEPT:

Accepted Answer

A)  sales of Smirnoff dwindle on account of new laws regulating the sale of liquor. 
B)  consumer confidence in GM rises as its stock price soars. 
C)  Nike considers Adidas its most potent rival in the industry. 
D)  footfalls at the outlets of Pizza Express increase following its drive to go vegan. 
E)  sales of Smooth Fitness Treadmills surge on account of a new feature that monitors users' blood pressure. 
A)  sales of Smirnoff dwindle on account of new laws regulating the sale of liquor. 
B)  consumer confidence in GM rises as its stock price soars. 
C)  Nike considers Adidas its most potent rival in the industry. 
D)  footfalls at the outlets of Pizza Express increase following its drive to go vegan. 
E)  sales of Smooth Fitness Treadmills surge on account of a new feature that monitors users' blood pressure.

Question 17

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 18

One of the steps of driving-forces analysis is to identify which:

Accepted Answer

A)  strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  strategic group is the most powerful. 
C)  industry member is likely to become (or remain)the industry leader and why. 
D)  key success factors are most likely to help their company gain a competitive advantage. 
E)  of the five competitive forces will be the strongest driver of industry change. 
A)  strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  strategic group is the most powerful. 
C)  industry member is likely to become (or remain)the industry leader and why. 
D)  key success factors are most likely to help their company gain a competitive advantage. 
E)  of the five competitive forces will be the strongest driver of industry change.

Question 19

Which of the following does NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in who buys the product and how they use it,and changes in the long-term industry growth rate 
B)  Changes brought about by the entry or exit of major firms,product innovation,and marketing innovation and cost efficiency 
C)  Changes in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  Changes in buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities 
A)  Changes in who buys the product and how they use it,and changes in the long-term industry growth rate 
B)  Changes brought about by the entry or exit of major firms,product innovation,and marketing innovation and cost efficiency 
C)  Changes in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  Changes in buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities

Question 20

Identify and briefly explain any three factors that lead to strong bargaining power on the part of buyers.

Accepted Answer

Competitive pressures from buyers increa

Driving-forces analysis has:

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

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

Strategic group mapping is a visual technique for displaying:

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

With the aid of a strategic group map,one can:

Not all buyers of an industry's product are likely to possess the same degree of bargaining power or leverage over the terms and conditions under which they purchase the product.True or false? Explain.

What are the six key questions that form the framework of thinking strategically about a company's industry and competitive environment?

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

The lower the user's switching costs,the:

In which of the following instances is rivalry among competing sellers NOT more intense?

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

Potential entrants are more likely to be deterred from actually entering an industry when:

Buyer bargaining power is stronger when:

Each of the following exemplifies the impact of the macro-environment on a company's strategic opportunities EXCEPT:

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

One of the steps of driving-forces analysis is to identify which:

Which of the following does NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Identify and briefly explain any three factors that lead to strong bargaining power on the part of buyers.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

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

Driving-forces analysis has:

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

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

Strategic group mapping is a visual technique for displaying:

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

With the aid of a strategic group map,one can:

Not all buyers of an industry's product are likely to possess the same degree of bargaining power or leverage over the terms and conditions under which they purchase the product.True or false? Explain.

What are the six key questions that form the framework of thinking strategically about a company's industry and competitive environment?

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

The lower the user's switching costs,the:

In which of the following instances is rivalry among competing sellers NOT more intense?

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

Potential entrants are more likely to be deterred from actually entering an industry when:

Buyer bargaining power is stronger when:

Each of the following exemplifies the impact of the macro-environment on a company's strategic opportunities EXCEPT:

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

One of the steps of driving-forces analysis is to identify which:

Which of the following does NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Identify and briefly explain any three factors that lead to strong bargaining power on the part of buyers.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

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