Question 1

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

Accepted Answer

A)  building the picture of competition in three steps: (1)identify the different parties involved,along with specific factors that bring about competitive pressures;(2)evaluate how strong the pressures stemming from each of the five forces are (strong,moderate or weak);and (3)determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B)  building the picture of competition in two steps: (1)determining which rival has the biggest competitive advantage and (2)assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C)  evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D)  assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E)  gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage. 
A)  building the picture of competition in three steps: (1)identify the different parties involved,along with specific factors that bring about competitive pressures;(2)evaluate how strong the pressures stemming from each of the five forces are (strong,moderate or weak);and (3)determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B)  building the picture of competition in two steps: (1)determining which rival has the biggest competitive advantage and (2)assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C)  evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D)  assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E)  gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

Question 2

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on:

Accepted Answer

A)  the degree to which buyers have any bargaining preferences and the extent to which buyers are price-sensitive. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low and the size of the pool of likely entry candidates. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether demand-supply conditions represent a buyer's market or a seller's market. 
A)  the degree to which buyers have any bargaining preferences and the extent to which buyers are price-sensitive. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low and the size of the pool of likely entry candidates. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether demand-supply conditions represent a buyer's market or a seller's market.

Question 3

Correctly diagnosing an industry's key success factors:

Accepted Answer

A)  points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B)  hints at the firm's ability to generate above-average profitability. 
C)  reveals that the firm's capabilities and resources are aligned with operating practices of industry participants. 
D)  raises a company's chances of crafting a sound strategy. 
E)  raises a company's sustainability dimensions and market characteristics in line with industry dynamics. 
A)  points to those things that every firm in the industry needs to attend to in order to develop product propositions. 
B)  hints at the firm's ability to generate above-average profitability. 
C)  reveals that the firm's capabilities and resources are aligned with operating practices of industry participants. 
D)  raises a company's chances of crafting a sound strategy. 
E)  raises a company's sustainability dimensions and market characteristics in line with industry dynamics.

Question 4

Which of the following conditions acts to weaken buyer bargaining power?

Accepted Answer

A)  When buyers are unlikely to integrate backward into the business of sellers 
B)  When buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs 
C)  When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D)  When the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product 
E)  When buyers are few in number and/or often purchase in large quantities 
A)  When buyers are unlikely to integrate backward into the business of sellers 
B)  When buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs 
C)  When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D)  When the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product 
E)  When buyers are few in number and/or often purchase in large quantities

Question 5

The real payoff of driving forces is to help managers understand:

Accepted Answer

A)  what strategy changes are needed to prepare for the impacts of the driving forces. 
B)  the overall strength of the five competitive forces. 
C)  whether the industry's strategic group map will be static or dynamic. 
D)  what conditions exist in the economy at large. 
E)  the extent to which rivals have more than two competitively valuable competencies or capabilities. 
A)  what strategy changes are needed to prepare for the impacts of the driving forces. 
B)  the overall strength of the five competitive forces. 
C)  whether the industry's strategic group map will be static or dynamic. 
D)  what conditions exist in the economy at large. 
E)  the extent to which rivals have more than two competitively valuable competencies or capabilities.

Question 6

Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?

Accepted Answer

A)  A salad as a substitute for French fries 
B)  Wireless phones as a substitute for wired telephones 
C)  Coca-Cola as a substitute for Pepsi 
D)  Snowboards as a substitute for snow skis 
E)  Video-on-demand services from a cable TV company as a substitute for going to the movies 
A)  A salad as a substitute for French fries 
B)  Wireless phones as a substitute for wired telephones 
C)  Coca-Cola as a substitute for Pepsi 
D)  Snowboards as a substitute for snow skis 
E)  Video-on-demand services from a cable TV company as a substitute for going to the movies

Question 7

Factors that cause the rivalry among competing sellers to be weaker include:

Accepted Answer

A)  low buyer switching costs. 
B)  low fixed costs or storage costs. 
C)  many industry rivals of roughly equal size and competitive strength. 
D)  weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand. 
A)  low buyer switching costs. 
B)  low fixed costs or storage costs. 
C)  many industry rivals of roughly equal size and competitive strength. 
D)  weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand.

Question 8

Driving-forces analysis helps managers identify whether:

Accepted Answer

A)  the collective impact of the driving forces will act to increase/decrease market demand,increase/decrease competition,and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance. 
A)  the collective impact of the driving forces will act to increase/decrease market demand,increase/decrease competition,and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance.

Question 9

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Accepted Answer

Rivalry among competing sellers decrease

Question 10

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

Accepted Answer

Supplier bargaining power is stronger wh

Question 11

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Accepted Answer

A)  The supply of soccer balls increases during the World Cup season. 
B)  Consumers can easily compare different smartphones' features over the Internet before buying them. 
C)  Apple designs and manufactures its chip processors rather than buying them from IBM. 
D)  Dairy products are usually standardized and therefore differentiated only by price. 
E)  Buyers tend to delay purchases of expensive goods,such as home entertainment systems,until they are on sale. 
A)  The supply of soccer balls increases during the World Cup season. 
B)  Consumers can easily compare different smartphones' features over the Internet before buying them. 
C)  Apple designs and manufactures its chip processors rather than buying them from IBM. 
D)  Dairy products are usually standardized and therefore differentiated only by price. 
E)  Buyers tend to delay purchases of expensive goods,such as home entertainment systems,until they are on sale.

Question 12

Competitive pressures stemming from buyer bargaining power tend to be weaker in which of the following circumstances?

Accepted Answer

A)  Most consumers vary the brands they choose for their cookware and kitchen gadgets. 
B)  There is a global decline in the demand for CD players. 
C)  The investment banking industry offers highly differentiated products. 
D)  The Internet offers a huge amount of information on a variety of products. 
E)  Heinz owns a metal-can manufacturing subsidiary to cut back on supplier costs. 
A)  Most consumers vary the brands they choose for their cookware and kitchen gadgets. 
B)  There is a global decline in the demand for CD players. 
C)  The investment banking industry offers highly differentiated products. 
D)  The Internet offers a huge amount of information on a variety of products. 
E)  Heinz owns a metal-can manufacturing subsidiary to cut back on supplier costs.

Question 13

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Accepted Answer

Rivalry among competing sellers increase

Question 14

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

Accepted Answer

The most common drivers of industry chan

Question 15

The competitive pressures on companies within an industry come from all of the following,EXCEPT:

Accepted Answer

A)  those associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. 
B)  those companies in other industries attempting to win buyers over to their substitute products. 
C)  those associated with the threat of new entrants into the marketplace. 
D)  those associated with the bargaining power of suppliers and customers. 
E)  those associated with environmental factors such as water shortages. 
A)  those associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. 
B)  those companies in other industries attempting to win buyers over to their substitute products. 
C)  those associated with the threat of new entrants into the marketplace. 
D)  those associated with the bargaining power of suppliers and customers. 
E)  those associated with environmental factors such as water shortages.

Question 16

Which of the following is part of a company's macro-environment?

Accepted Answer

A)  Conditions outside the market 
B)  European culture,values,and lifestyles 
C)  The pace of technological change factors and legal and regulatory conditions 
D)  The industry and competitive environment arena outside the company's operating territory 
E)  The company's resource strengths,resource weaknesses,and competitive capabilities 
A)  Conditions outside the market 
B)  European culture,values,and lifestyles 
C)  The pace of technological change factors and legal and regulatory conditions 
D)  The industry and competitive environment arena outside the company's operating territory 
E)  The company's resource strengths,resource weaknesses,and competitive capabilities

Question 17

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

Accepted Answer

A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable. 
A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable.

Question 18

As a rule,the collective impact of competitive pressures associated with the five competitive forces:

Accepted Answer

A)  determines the strength of the industry's driving forces. 
B)  determines the extent of the competitive pressure on industry profitability. 
C)  means that fewer companies can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  means there will be a larger number of competitive advantage opportunities for industry members. 
E)  means there will be a greater number of industry key success factors. 
A)  determines the strength of the industry's driving forces. 
B)  determines the extent of the competitive pressure on industry profitability. 
C)  means that fewer companies can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  means there will be a larger number of competitive advantage opportunities for industry members. 
E)  means there will be a greater number of industry key success factors.

Question 19

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does NOT involve a consideration of which of the following factors?

Accepted Answer

A)  The industry's growth potential and whether competitive pressures will likely grow stronger or weaker,and whether strong competitive forces are squeezing industry profitability to subpar levels 
B)  Whether the company occupies a stronger market position than rivals 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The severity of the macro-environment problems confronting the industry 
E)  Whether the industry's product is strongly or weakly differentiated 
A)  The industry's growth potential and whether competitive pressures will likely grow stronger or weaker,and whether strong competitive forces are squeezing industry profitability to subpar levels 
B)  Whether the company occupies a stronger market position than rivals 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The severity of the macro-environment problems confronting the industry 
E)  Whether the industry's product is strongly or weakly differentiated

Question 20

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

Accepted Answer

A)  whether the profits of suppliers are relatively high or low. 
B)  the average number of suppliers that each seller/industry member purchases from. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  whether demand for supplier products is high and they are in short supply. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling. 
A)  whether the profits of suppliers are relatively high or low. 
B)  the average number of suppliers that each seller/industry member purchases from. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  whether demand for supplier products is high and they are in short supply. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling.

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on:

Correctly diagnosing an industry's key success factors:

Which of the following conditions acts to weaken buyer bargaining power?

The real payoff of driving forces is to help managers understand:

Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?

Factors that cause the rivalry among competing sellers to be weaker include:

Driving-forces analysis helps managers identify whether:

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Competitive pressures stemming from buyer bargaining power tend to be weaker in which of the following circumstances?

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

The competitive pressures on companies within an industry come from all of the following,EXCEPT:

Which of the following is part of a company's macro-environment?

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

As a rule,the collective impact of competitive pressures associated with the five competitive forces:

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does NOT involve a consideration of which of the following factors?

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

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

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Exam 3: Evaluating a Companys External Environment

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on:

Correctly diagnosing an industry's key success factors:

Which of the following conditions acts to weaken buyer bargaining power?

The real payoff of driving forces is to help managers understand:

Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?

Factors that cause the rivalry among competing sellers to be weaker include:

Driving-forces analysis helps managers identify whether:

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Identify and briefly explain any three of the factors that influence the bargaining strength and leverage of suppliers.

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers NOT relatively strong?

Competitive pressures stemming from buyer bargaining power tend to be weaker in which of the following circumstances?

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

The competitive pressures on companies within an industry come from all of the following,EXCEPT:

Which of the following is part of a company's macro-environment?

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

As a rule,the collective impact of competitive pressures associated with the five competitive forces:

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does NOT involve a consideration of which of the following factors?

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

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