Question 1

What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry?

Accepted Answer

A)  Strategic group mapping 
B)  PESTEL analysis 
C)  Five forces framework 
D)  The value net framework 
E)  Competitor analysis 
A)  Strategic group mapping 
B)  PESTEL analysis 
C)  Five forces framework 
D)  The value net framework 
E)  Competitor analysis

Question 2

Which of the following is NOT a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Accepted Answer

A)  How many companies in the industry have good track records for revenue growth and profitability? 
B)  What strategic moves are rivals likely to make next? 
C)  What are the industry's key factors for future competitive success? 
D)  Is the outlook for the industry conducive to providing attractive profitability? 
E)  What are the driving forces in the industry,and what impact will these changes have on competitive intensity and industry profitability? 
A)  How many companies in the industry have good track records for revenue growth and profitability? 
B)  What strategic moves are rivals likely to make next? 
C)  What are the industry's key factors for future competitive success? 
D)  Is the outlook for the industry conducive to providing attractive profitability? 
E)  What are the driving forces in the industry,and what impact will these changes have on competitive intensity and industry profitability?

Question 3

Explain why low switching costs and weakly differentiated products tend to give buyers a high degree of bargaining power.

Accepted Answer

Switching costs put a cap on how much in

Question 4

The payoff of good scouting reports on rivals is an improved ability to:

Accepted Answer

A)  anticipate what moves rivals are likely to make next. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share. 
E)  determine whether a rival has the best strategy and is the industry leader. 
A)  anticipate what moves rivals are likely to make next. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share. 
E)  determine whether a rival has the best strategy and is the industry leader.

Question 5

Identify three conditions that tend to make potential entry a strong competitive force.

Accepted Answer

Threat of entry is a stronger force when

Question 6

What makes the marketplace a competitive battlefield is:

Accepted Answer

A)  the race of industry members to build strong defenses against the industry's driving forces. 
B)  the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals. 
C)  the ongoing race among rival sellers to have the highest-quality product. 
D)  the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals. 
E)  the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits. 
A)  the race of industry members to build strong defenses against the industry's driving forces. 
B)  the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals. 
C)  the ongoing race among rival sellers to have the highest-quality product. 
D)  the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals. 
E)  the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits.

Question 7

Determining how strong the threat of substitutes will be entails:

Accepted Answer

A)  identifying the relative price/performance relationship of the substitutes,the switching costs,and the overall buyer demand for the substitute. 
B)  identifying the attractiveness of other industries. 
C)  measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D)  adopting a substitute product concentration factor to the buyer volume. 
E)  judging whether industry members are capable of self-manufacturing their products. 
A)  identifying the relative price/performance relationship of the substitutes,the switching costs,and the overall buyer demand for the substitute. 
B)  identifying the attractiveness of other industries. 
C)  measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D)  adopting a substitute product concentration factor to the buyer volume. 
E)  judging whether industry members are capable of self-manufacturing their products.

Question 8

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

Accepted Answer

Driving-forces analysis has three steps:

Question 9

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

Accepted Answer

A)  Coca-Cola launches mobile campaigns for community-connect and awareness. 
B)  Discovery Channel launches a mobile game to promote its Gold Rush TV show. 
C)  T-Mobile US signs a pact with Nokia Networks for greater spectrum support. 
D)  Hugo Boss announces the launch of its fall/winter collection via mobile. 
E)  Apple enters into a pact with PayPal to market its mobile wallet application. 
A)  Coca-Cola launches mobile campaigns for community-connect and awareness. 
B)  Discovery Channel launches a mobile game to promote its Gold Rush TV show. 
C)  T-Mobile US signs a pact with Nokia Networks for greater spectrum support. 
D)  Hugo Boss announces the launch of its fall/winter collection via mobile. 
E)  Apple enters into a pact with PayPal to market its mobile wallet application.

Question 10

Which of the following pairs of variables is LEAST likely to be useful in drawing a strategic group map?

Accepted Answer

A)  Geographic market scope and degree of vertical integration 
B)  Brand name reputation and distribution channel emphasis 
C)  Product quality and product-line breadth 
D)  Level of profitability and size of market share 
E)  Price/perceived quality and image range and the extent of buyer appeal 
A)  Geographic market scope and degree of vertical integration 
B)  Brand name reputation and distribution channel emphasis 
C)  Product quality and product-line breadth 
D)  Level of profitability and size of market share 
E)  Price/perceived quality and image range and the extent of buyer appeal

Question 11

Explain the meaning and significance of each of the following and their relationship to one another.
a.driving forces
b.strategic group mapping
c.key success factors

Accepted Answer

The most powerful of the change agents a

Question 12

Which of the following is NOT a common type of driving force?

Accepted Answer

A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns,attitudes,and lifestyles 
C)  Diffusion of technical know-how across companies and countries 
D)  Increasing efforts to collaborate closely with suppliers 
E)  Advances in technology and manufacturing process innovation 
A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns,attitudes,and lifestyles 
C)  Diffusion of technical know-how across companies and countries 
D)  Increasing efforts to collaborate closely with suppliers 
E)  Advances in technology and manufacturing process innovation

Question 13

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?

Accepted Answer

A)  Some buyers are a threat to integrate backward into the business of sellers and become an important competitor. 
B)  Buyers are small and numerous relative to sellers. 
C)  Buyers have considerable discretion over whether and when they purchase the product. 
D)  Buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs. 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low. 
A)  Some buyers are a threat to integrate backward into the business of sellers and become an important competitor. 
B)  Buyers are small and numerous relative to sellers. 
C)  Buyers have considerable discretion over whether and when they purchase the product. 
D)  Buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs. 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Question 14

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

Accepted Answer

A)  the five forces framework. 
B)  PESTEL. 
C)  the driving forces model. 
D)  strategic group mapping. 
E)  competitor analysis. 
A)  the five forces framework. 
B)  PESTEL. 
C)  the driving forces model. 
D)  strategic group mapping. 
E)  competitor analysis.

Question 15

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

Accepted Answer

Threat of entry is a stronger force when

Question 16

Which of the following is MOST likely to qualify as a driving force?

Accepted Answer

A)  Increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B)  Successful introduction of innovative new products or new ways to market products 
C)  An increase in the prices of substitute products 
D)  Decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E)  Decisions by one or more outsiders not to attempt to enter the industry 
A)  Increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B)  Successful introduction of innovative new products or new ways to market products 
C)  An increase in the prices of substitute products 
D)  Decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E)  Decisions by one or more outsiders not to attempt to enter the industry

Question 17

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

Accepted Answer

A)  Whether certain customers offer sellers important market exposure or prestige 
B)  Whether customers are relatively well-informed about sellers' products,prices,and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether sellers' products are highly differentiated,making it troublesome or costly for buyers to switch to competing brands or to substitute products 
E)  Whether buyers pose a major threat to integrate backward into the product market of sellers 
A)  Whether certain customers offer sellers important market exposure or prestige 
B)  Whether customers are relatively well-informed about sellers' products,prices,and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether sellers' products are highly differentiated,making it troublesome or costly for buyers to switch to competing brands or to substitute products 
E)  Whether buyers pose a major threat to integrate backward into the product market of sellers

Question 18

In mapping strategic groups:

Accepted Answer

A)  one strategic variable and one financial variable should be used as axes for the map. 
B)  it is important for the variables used as axes to be highly correlated. 
C)  the best variables to use as axes for the map are those that identify the competitive characteristics that delineate strategic approaches used in the industry. 
D)  it is important to use price as the variable for the vertical axis. 
E)  the primary objective is to determine which strategic groups are profitable and which are not. 
A)  one strategic variable and one financial variable should be used as axes for the map. 
B)  it is important for the variables used as axes to be highly correlated. 
C)  the best variables to use as axes for the map are those that identify the competitive characteristics that delineate strategic approaches used in the industry. 
D)  it is important to use price as the variable for the vertical axis. 
E)  the primary objective is to determine which strategic groups are profitable and which are not.

Question 19

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 including 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 including 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 20

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.

What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry?

Which of the following is NOT a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Explain why low switching costs and weakly differentiated products tend to give buyers a high degree of bargaining power.

The payoff of good scouting reports on rivals is an improved ability to:

Identify three conditions that tend to make potential entry a strong competitive force.

What makes the marketplace a competitive battlefield is:

Determining how strong the threat of substitutes will be entails:

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

Which of the following pairs of variables is LEAST likely to be useful in drawing a strategic group map?

Explain the meaning and significance of each of the following and their relationship to one another. a.driving forces b.strategic group mapping c.key success factors

Which of the following is NOT a common type of driving force?

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

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

Which of the following is MOST likely to qualify as a driving force?

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

In mapping strategic groups:

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

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

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

What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry?

Which of the following is NOT a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Explain why low switching costs and weakly differentiated products tend to give buyers a high degree of bargaining power.

The payoff of good scouting reports on rivals is an improved ability to:

Identify three conditions that tend to make potential entry a strong competitive force.

What makes the marketplace a competitive battlefield is:

Determining how strong the threat of substitutes will be entails:

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

Which of the following pairs of variables is LEAST likely to be useful in drawing a strategic group map?

Explain the meaning and significance of each of the following and their relationship to one another. a.driving forces b.strategic group mapping c.key success factors

Which of the following is NOT a common type of driving force?

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

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

Which of the following is MOST likely to qualify as a driving force?

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

In mapping strategic groups:

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

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

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