Question 1

Identify and briefly describe five common barriers to entering an industry.

Accepted Answer

Threat of entry is a stronger force when

Question 2

The bargaining leverage of suppliers is greater when:

Accepted Answer

A)  the suppliers' products/services account for a small percentage of industry members' costs. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members account for a big fraction of supplier's sales. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers. 
A)  the suppliers' products/services account for a small percentage of industry members' costs. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members account for a big fraction of supplier's sales. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers.

Question 3

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

Accepted Answer

Supplier bargaining power is weaker when

Question 4

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

Accepted Answer

A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful. 
A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful.

Question 5

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity,it primarily involves:

Accepted Answer

A)  determining the industry outlook for future profitability. 
B)  determining which firms in the industry have a competitive advantage and how they got their advantage. 
C)  determining the overall strength of the five competitive forces. 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E)  using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is. 
A)  determining the industry outlook for future profitability. 
B)  determining which firms in the industry have a competitive advantage and how they got their advantage. 
C)  determining the overall strength of the five competitive forces. 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E)  using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

Question 6

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces.Which of the five competitive forces is typically the strongest?

Accepted Answer

The five forces framework holds that com

Question 7

In identifying an industry's key success factors,strategists should:

Accepted Answer

A)  try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B)  consider on what basis customers choose between competing brands,what resources and competitive capabilities firms need to be competitively successful,and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C)  consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D)  consider what it will take to overtake the company with the industry's overall best strategy. 
E)  focus their attention on what it will take to capitalize on the impacts of the industry's driving forces. 
A)  try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B)  consider on what basis customers choose between competing brands,what resources and competitive capabilities firms need to be competitively successful,and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C)  consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D)  consider what it will take to overtake the company with the industry's overall best strategy. 
E)  focus their attention on what it will take to capitalize on the impacts of the industry's driving forces.

Question 8

What is the strategy-making value of identifying an industry's key success factors?

Accepted Answer

KSFs by their very nature are so importa

Question 9

Market maneuvering among industry rivals:

Accepted Answer

A)  determines whether the industry's strategic group map will be static or dynamic. 
B)  centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C)  is usually an industry's strongest driving force. 
D)  is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E)  is ongoing and dynamic,with moves and countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers. 
A)  determines whether the industry's strategic group map will be static or dynamic. 
B)  centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C)  is usually an industry's strongest driving force. 
D)  is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E)  is ongoing and dynamic,with moves and countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers.

Question 10

Rivalry among competing sellers increases:

Accepted Answer

A)  when buyer demand is growing slowly. 
B)  as it becomes more costly for buyers to switch brands. 
C)  as the products of rival sellers become more strongly differentiated. 
D)  when there is underproduction relative to demand.. 
E)  as the number of competitors decreases. 
A)  when buyer demand is growing slowly. 
B)  as it becomes more costly for buyers to switch brands. 
C)  as the products of rival sellers become more strongly differentiated. 
D)  when there is underproduction relative to demand.. 
E)  as the number of competitors decreases.

Question 11

Which of the following can aid industries in identifying key success factors?

Accepted Answer

A)  Global distribution capabilities 
B)  Crucial product attributes and service characteristics 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability 
A)  Global distribution capabilities 
B)  Crucial product attributes and service characteristics 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability

Question 12

The most powerful of the five competitive forces is USUALLY:

Accepted Answer

A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise. 
A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise.

Question 13

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Accepted Answer

Competitive pressures from buyers increa

Question 14

Which of the following is NOT one of the five typical sources of competitive pressures?

Accepted Answer

A)  The power and influence of industry driving forces 
B)  The bargaining power of suppliers and seller-supplier collaboration 
C)  The threat of new entrants into the market 
D)  The attempts of companies in other industries to win customers over to their own substitute products 
E)  The market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry 
A)  The power and influence of industry driving forces 
B)  The bargaining power of suppliers and seller-supplier collaboration 
C)  The threat of new entrants into the market 
D)  The attempts of companies in other industries to win customers over to their own substitute products 
E)  The market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry

Question 15

Which of the following is NOT an appropriate guideline for developing a strategic group map for a given industry?

Accepted Answer

A)  The variables chosen as axes for the map should indicate important differences among rival approaches. 
B)  The variables chosen as axes for the map don't have to be either quantitative or continuous.They can be discrete variables. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables give different exposures to the competitive positioning relationships present in the industry structure. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 
A)  The variables chosen as axes for the map should indicate important differences among rival approaches. 
B)  The variables chosen as axes for the map don't have to be either quantitative or continuous.They can be discrete variables. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables give different exposures to the competitive positioning relationships present in the industry structure. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Question 16

Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because:

Accepted Answer

A)  it identifies who the industry's current market share leaders are. 
B)  it allows a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence. 
C)  it helps identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing. 
A)  it identifies who the industry's current market share leaders are. 
B)  it allows a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence. 
C)  it helps identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.

Question 17

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

Accepted Answer

A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well-matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices. 
A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well-matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices.

Question 18

What are the five competitive forces that comprise the five forces model of competition?

Accepted Answer

The five forces framework holds that com

Question 19

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

Accepted Answer

A)  Which mode of transport does the rival's supplier use? 
B)  How does her rival manage door-to-door deliveries at no extra cost? 
C)  What percentage of customer frequent her rival's store? 
D)  Why are her rival's cupcakes so popular among customers? 
E)  When does her rival undertake special orders for custom cakes? 
A)  Which mode of transport does the rival's supplier use? 
B)  How does her rival manage door-to-door deliveries at no extra cost? 
C)  What percentage of customer frequent her rival's store? 
D)  Why are her rival's cupcakes so popular among customers? 
E)  When does her rival undertake special orders for custom cakes?

Question 20

In analyzing the strength of competition among rival firms,an important consideration is:

Accepted Answer

A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction,objectives,strategies,and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups. 
A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction,objectives,strategies,and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups.

Identify and briefly describe five common barriers to entering an industry.

The bargaining leverage of suppliers is greater when:

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

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity,it primarily involves:

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces.Which of the five competitive forces is typically the strongest?

In identifying an industry's key success factors,strategists should:

What is the strategy-making value of identifying an industry's key success factors?

Market maneuvering among industry rivals:

Rivalry among competing sellers increases:

Which of the following can aid industries in identifying key success factors?

The most powerful of the five competitive forces is USUALLY:

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Which of the following is NOT one of the five typical sources of competitive pressures?

Which of the following is NOT an appropriate guideline for developing a strategic group map for a given industry?

Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because:

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

What are the five competitive forces that comprise the five forces model of competition?

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

In analyzing the strength of competition among rival firms,an important consideration is:

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

Identify and briefly describe five common barriers to entering an industry.

The bargaining leverage of suppliers is greater when:

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

A competitive environment where there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers:

When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity,it primarily involves:

Draw the five forces model of competition and briefly describe the relevance of each of the five forces in determining the overall strength of competitive pressures a company faces.Which of the five competitive forces is typically the strongest?

In identifying an industry's key success factors,strategists should:

What is the strategy-making value of identifying an industry's key success factors?

Market maneuvering among industry rivals:

Rivalry among competing sellers increases:

Which of the following can aid industries in identifying key success factors?

The most powerful of the five competitive forces is USUALLY:

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Which of the following is NOT one of the five typical sources of competitive pressures?

Which of the following is NOT an appropriate guideline for developing a strategic group map for a given industry?

Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because:

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

What are the five competitive forces that comprise the five forces model of competition?

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

In analyzing the strength of competition among rival firms,an important consideration is:

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