Question 1

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 2

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 3

The extent to which firms are meeting objectives suggests they:

Accepted Answer

A)  are likely to prosper in the future. 
B)  are likely to continue their present strategy with only minor fine-tuning. 
C)  are virtually certain to make fresh strategic moves. 
D)  recognize "status quo" as the best course of action to adopt. 
E)  realize refocusing will ensure competitive gains. 
A)  are likely to prosper in the future. 
B)  are likely to continue their present strategy with only minor fine-tuning. 
C)  are virtually certain to make fresh strategic moves. 
D)  recognize "status quo" as the best course of action to adopt. 
E)  realize refocusing will ensure competitive gains.

Question 4

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Accepted Answer

Threat of entry is a weaker force when i

Question 5

Evaluating the industry's driving forces,as a whole,requires understanding their influence on the attractiveness of industry environment and generally are:

Accepted Answer

A)  determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  defined in ways that will strengthen or weaken market demand,competition,and industry profitability in future years. 
C)  the cause of a reduction in the bargaining power of buyers. 
D)  triggered by movement in the economy,higher or lower interest rates,or important new strategic alliances. 
E)  triggered by such factors as growing competitive pressures from substitute products,and the efforts of rival firms to employ new or different offensive strategies. 
A)  determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  defined in ways that will strengthen or weaken market demand,competition,and industry profitability in future years. 
C)  the cause of a reduction in the bargaining power of buyers. 
D)  triggered by movement in the economy,higher or lower interest rates,or important new strategic alliances. 
E)  triggered by such factors as growing competitive pressures from substitute products,and the efforts of rival firms to employ new or different offensive strategies.

Question 6

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 7

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

Accepted Answer

A)  the best strategy. 
B)  flawed or weak strategies. 
C)  strong performance objectives. 
D)  reliable resources and capabilities. 
E)  similar competitive approaches. 
A)  the best strategy. 
B)  flawed or weak strategies. 
C)  strong performance objectives. 
D)  reliable resources and capabilities. 
E)  similar competitive approaches.

Question 8

One of the things that can be gleaned from a strategic group map of industry rivals is:

Accepted Answer

A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D)  that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E)  which strategic groups are currently being shunned by customers because of high prices and relatively low product quality. 
A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D)  that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E)  which strategic groups are currently being shunned by customers because of high prices and relatively low product quality.

Question 9

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 10

Which of the following is NOT generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Movement in the economy and in interest rates 
E)  Regulatory influences and government policy changes 
A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Movement in the economy and in interest rates 
E)  Regulatory influences and government policy changes

Question 11

The intensity of rivalry among competing sellers does NOT depend on whether:

Accepted Answer

A)  the industry has more than two strong driving forces and whether the industry has more than two diverse and capable strategic groups. 
B)  competitors are diverse in terms of long-term directions,objectives,strategies,and countries of origin. 
C)  strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders. 
D)  one or two rivals have particularly powerful and successful strategies to grow the business,attract and retain buyers,and develop a sustained competitive advantage. 
E)  industry conditions attract industry members to use price cuts or other competitive weapons to boost total sales volume and market share. 
A)  the industry has more than two strong driving forces and whether the industry has more than two diverse and capable strategic groups. 
B)  competitors are diverse in terms of long-term directions,objectives,strategies,and countries of origin. 
C)  strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders. 
D)  one or two rivals have particularly powerful and successful strategies to grow the business,attract and retain buyers,and develop a sustained competitive advantage. 
E)  industry conditions attract industry members to use price cuts or other competitive weapons to boost total sales volume and market share.

Question 12

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Accepted Answer

It is a mistake to think of a particular

Question 13

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 14

In analyzing driving forces,the strategist's role is to:

Accepted Answer

A)  identify the driving forces and evaluate their impact on (1)demand for the industry's product,(2)the intensity of competition,and (3)industry profitability. 
B)  predict future marketing innovations and how fast the industry is likely to globalize. 
C)  evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage. 
D)  determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map. 
E)  forecast fluctuations in product demand and how buyer needs will most likely change. 
A)  identify the driving forces and evaluate their impact on (1)demand for the industry's product,(2)the intensity of competition,and (3)industry profitability. 
B)  predict future marketing innovations and how fast the industry is likely to globalize. 
C)  evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage. 
D)  determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map. 
E)  forecast fluctuations in product demand and how buyer needs will most likely change.

Question 15

The higher the switching costs for industry members,the more it can:

Accepted Answer

A)  limit supplier bargaining power. 
B)  enhance supplier bargaining power. 
C)  enhance the quality of parts and components being supplied,and in effect reduce defect rates. 
D)  provide important cost savings for the collaborative supplier-seller relationship. 
E)  limit the supply of products and/or services. 
A)  limit supplier bargaining power. 
B)  enhance supplier bargaining power. 
C)  enhance the quality of parts and components being supplied,and in effect reduce defect rates. 
D)  provide important cost savings for the collaborative supplier-seller relationship. 
E)  limit the supply of products and/or services.

Question 16

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Accepted Answer

A)  marketing tactics including special sales promotions such as introducing new or improved features or increasing the number of styles to provide greater product selection. 
B)  differentiating their products by offering better performance features than rivals. 
C)  improving innovation to increase product performance and quality. 
D)  making efforts to expand dealer networks. 
E)  reducing distribution capabilities and market presence. 
A)  marketing tactics including special sales promotions such as introducing new or improved features or increasing the number of styles to provide greater product selection. 
B)  differentiating their products by offering better performance features than rivals. 
C)  improving innovation to increase product performance and quality. 
D)  making efforts to expand dealer networks. 
E)  reducing distribution capabilities and market presence.

Question 17

Which of the following is NOT an integral part of driving-forces analysis?

Accepted Answer

A)  Determining whether forces are acting to cause fundamental changes in industry conditions and/or the industry's competitiveness 
B)  Determining whether forces are acting to cause industry rivals to shift to a different strategic group 
C)  Determining whether forces are acting to strengthen or weaken market demand 
D)  Determining whether forces are acting to make competition more or less intense 
E)  Determining whether forces are acting to raise or lower industry profitability 
A)  Determining whether forces are acting to cause fundamental changes in industry conditions and/or the industry's competitiveness 
B)  Determining whether forces are acting to cause industry rivals to shift to a different strategic group 
C)  Determining whether forces are acting to strengthen or weaken market demand 
D)  Determining whether forces are acting to make competition more or less intense 
E)  Determining whether forces are acting to raise or lower industry profitability

Question 18

Which of the following is most UNLIKELY to qualify as driving forces?

Accepted Answer

A)  Changes in the long-term industry growth rate,the entry or exit of major firms,and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications,new government regulations,and significant changes in government policy toward the industry 
D)  Increasing efforts to collaborate with suppliers via strategic alliances and partnerships,escalating risk levels and normalization of cost and efficiency in the industry 
E)  Marketing innovations and changes in who buys the industry's product and how they use it 
A)  Changes in the long-term industry growth rate,the entry or exit of major firms,and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications,new government regulations,and significant changes in government policy toward the industry 
D)  Increasing efforts to collaborate with suppliers via strategic alliances and partnerships,escalating risk levels and normalization of cost and efficiency in the industry 
E)  Marketing innovations and changes in who buys the industry's product and how they use it

Question 19

The "driving forces" in an industry:

Accepted Answer

A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product,the outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products. 
A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product,the outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Question 20

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions,so the firm can:

Accepted Answer

A)  pursue avenues that expose the firm to as many of the different competitive pressures as possible. 
B)  shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces. 
C)  pursue ways to identify and complement the five forces contradictions and inferences to attract competitive growth opportunities. 
D)  pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences. 
E)  shift societal concerns,attitudes,and lifestyles by altering the pattern of competition. 
A)  pursue avenues that expose the firm to as many of the different competitive pressures as possible. 
B)  shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces. 
C)  pursue ways to identify and complement the five forces contradictions and inferences to attract competitive growth opportunities. 
D)  pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences. 
E)  shift societal concerns,attitudes,and lifestyles by altering the pattern of competition.

Industry conditions change because of:

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

The extent to which firms are meeting objectives suggests they:

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Evaluating the industry's driving forces,as a whole,requires understanding their influence on the attractiveness of industry environment and generally are:

Strategic group map analysis does NOT entail drawing conclusions about:

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

One of the things that can be gleaned from a strategic group map of industry rivals is:

A rival's strategic moves and countermoves are:

Which of the following is NOT generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

The intensity of rivalry among competing sellers does NOT depend on whether:

Can an industry be attractive to one company and unattractive to another company? Why or why not?

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

In analyzing driving forces,the strategist's role is to:

The higher the switching costs for industry members,the more it can:

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Which of the following is NOT an integral part of driving-forces analysis?

Which of the following is most UNLIKELY to qualify as driving forces?

The "driving forces" in an industry:

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions,so the firm can:

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

Industry conditions change because of:

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

The extent to which firms are meeting objectives suggests they:

Identify and briefly explain any three factors that weaken the competitive pressures stemming from the threat that new firms will enter the industry.

Evaluating the industry's driving forces,as a whole,requires understanding their influence on the attractiveness of industry environment and generally are:

Strategic group map analysis does NOT entail drawing conclusions about:

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

One of the things that can be gleaned from a strategic group map of industry rivals is:

A rival's strategic moves and countermoves are:

Which of the following is NOT generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

The intensity of rivalry among competing sellers does NOT depend on whether:

Can an industry be attractive to one company and unattractive to another company? Why or why not?

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

In analyzing driving forces,the strategist's role is to:

The higher the switching costs for industry members,the more it can:

Competing companies deploy whatever means necessary to strengthen market position,including all of the following EXCEPT:

Which of the following is NOT an integral part of driving-forces analysis?

Which of the following is most UNLIKELY to qualify as driving forces?

The "driving forces" in an industry:

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions,so the firm can:

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