Question 1

In which one of the following instances are the competitive pressures stemming from supplier bargaining power NOT weakened?

Accepted Answer

A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply 
A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply

Question 2

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

Accepted Answer

The seven key questions that form the fr

Question 3

To determine 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)  All of these. 
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)  All of these.

Question 4

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 about what market maneuvers to expect from its rivals. 
C)  good scouting reports help 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 about what market maneuvers to expect from its rivals. 
C)  good scouting reports help 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 5

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

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 6

A company's "macro-environment" refers to:

Accepted Answer

A)  the industry and the competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  the strategically relevant factors outside a company's industry boundaries-economic conditions,political factors,socio-cultural forces,technological factors,environmental factors,and legal/regulatory conditions. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry. 
A)  the industry and the competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  the strategically relevant factors outside a company's industry boundaries-economic conditions,political factors,socio-cultural forces,technological factors,environmental factors,and legal/regulatory conditions. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry.

Question 7

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

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 8

Which of the following are 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 9

In which one 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 10

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

Accepted Answer

A)  Five Forces Model. 
B)  SWOT. 
C)  Competition Intensity Model. 
D)  Dynamic Simulation Model. 
E)  Competitor Profiling. 
A)  Five Forces Model. 
B)  SWOT. 
C)  Competition Intensity Model. 
D)  Dynamic Simulation Model. 
E)  Competitor Profiling.

Question 11

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 12

Which of the following is NOT a factor to consider when identifying economic conditions in the macro-environment?

Accepted Answer

A)  The movement and influence of exchange rates,the inflation rate and per capita domestic product on the industry 
B)  The implications of trade deficits or surpluses on the macro-environment 
C)  The strategically relevant general economic climate outside the firm's industry boundaries 
D)  The combined strength of the competitive factors influencing the firm and their implications for strategic momentum and the moves and countermoves of rivals impacted by the economy at large 
E)  Conditions in the markets for stocks and bonds,which can affect consumer confidence and discretionary income 
A)  The movement and influence of exchange rates,the inflation rate and per capita domestic product on the industry 
B)  The implications of trade deficits or surpluses on the macro-environment 
C)  The strategically relevant general economic climate outside the firm's industry boundaries 
D)  The combined strength of the competitive factors influencing the firm and their implications for strategic momentum and the moves and countermoves of rivals impacted by the economy at large 
E)  Conditions in the markets for stocks and bonds,which can affect consumer confidence and discretionary income

Question 13

Which one of the following is NOT part of a company's macro-environment?

Accepted Answer

A)  Economic conditions in the economy at large 
B)  Political factors and socio-cultural forces 
C)  Technological factors and legal/regulatory conditions 
D)  The immediate industry and competitive environment in which the company operates 
E)  The company's resource strengths,resource weaknesses,and competitive capabilities 
A)  Economic conditions in the economy at large 
B)  Political factors and socio-cultural forces 
C)  Technological factors and legal/regulatory conditions 
D)  The immediate industry and competitive environment in which the company operates 
E)  The company's resource strengths,resource weaknesses,and competitive capabilities

Question 14

Rivalry among competing sellers tends to be more intense when:

Accepted Answer

A)  competitors vary in size and capability,such that smaller firms must really struggle to even survive. 
B)  buyer switching costs are high and market demand is growing rapidly. 
C)  several competitors are under pressure to improve their market share or profitability and launch fresh strategic initiatives to attract more buyers and bolster their business position. 
D)  the products of rival sellers are strongly differentiated. 
E)  All of these. 
A)  competitors vary in size and capability,such that smaller firms must really struggle to even survive. 
B)  buyer switching costs are high and market demand is growing rapidly. 
C)  several competitors are under pressure to improve their market share or profitability and launch fresh strategic initiatives to attract more buyers and bolster their business position. 
D)  the products of rival sellers are strongly differentiated. 
E)  All of these.

Question 15

A strategic group:

Accepted Answer

A)  consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B)  includes all rival firms having comparable profitability. 
C)  is a cluster of industry members with similar competitive approaches and market positions in the market. 
D)  consists of those firms whose market shares are about the same size. 
E)  is made up of those firms having comparable profit margins. 
A)  consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B)  includes all rival firms having comparable profitability. 
C)  is a cluster of industry members with similar competitive approaches and market positions in the market. 
D)  consists of those firms whose market shares are about the same size. 
E)  is made up of those firms having comparable profit margins.

Question 16

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 17

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

The answer of Identify and briefly explain any three factors...

Question 18

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

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 19

Factors that tend to result in weak rivalry among competing sellers include:

Accepted Answer

A)  less costly buyer switching costs and when low exit-barriers exist keep unprofitable firms from leaving the industry. 
B)  rapid growth in buyer demand,high buyer costs to switch brands,and more strongly differentiated products. 
C)  less strongly differentiated products among rival sellers. 
D)  rivals that are quite diverse in terms of their strategies,objectives,and countries of origin. 
E)  conditions where outsiders have recently acquired weak competitors and are challenged in migrating them into major contenders. 
A)  less costly buyer switching costs and when low exit-barriers exist keep unprofitable firms from leaving the industry. 
B)  rapid growth in buyer demand,high buyer costs to switch brands,and more strongly differentiated products. 
C)  less strongly differentiated products among rival sellers. 
D)  rivals that are quite diverse in terms of their strategies,objectives,and countries of origin. 
E)  conditions where outsiders have recently acquired weak competitors and are challenged in migrating them into major contenders.

Question 20

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

Accepted Answer

The answer of Identify five factors that tend to weaken...

In which one of the following instances are the competitive pressures stemming from supplier bargaining power NOT weakened?

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

To determine how strong the threat of substitutes will be entails:

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

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

A company's "macro-environment" refers to:

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

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

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

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

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

Which of the following is NOT a factor to consider when identifying economic conditions in the macro-environment?

Which one of the following is NOT part of a company's macro-environment?

Rivalry among competing sellers tends to be more intense when:

A strategic group:

In mapping strategic groups:

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

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

Factors that tend to result in weak rivalry among competing sellers include:

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

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters

Exam 3: Evaluating a Companys External Environment

In which one of the following instances are the competitive pressures stemming from supplier bargaining power NOT weakened?

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

To determine how strong the threat of substitutes will be entails:

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

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

A company's "macro-environment" refers to:

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

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

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

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

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

Which of the following is NOT a factor to consider when identifying economic conditions in the macro-environment?

Which one of the following is NOT part of a company's macro-environment?

Rivalry among competing sellers tends to be more intense when:

A strategic group:

In mapping strategic groups:

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

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

Factors that tend to result in weak rivalry among competing sellers include:

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

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters