Question 1

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 2

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 answer of Explain the meaning and significance of each...

Question 3

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 4

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 5

Which one of the following does NOT intensify the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist 
A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Question 6

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 answer of Identify at least five common driving forces...

Question 7

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 number of suppliers that each seller/industry member purchases from on average. 
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 number of suppliers that each seller/industry member purchases from on average. 
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.

Question 8

Which one of the following increases the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When strong brand preference and a high degree of customer loyalty exists for the product offerings of incumbents 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and financial resources and capabilities to hurdle whatever entry barriers exist 
E)  When new entrants can expect to earn attractive profits 
A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When strong brand preference and a high degree of customer loyalty exists for the product offerings of incumbents 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and financial resources and capabilities to hurdle whatever entry barriers exist 
E)  When new entrants can expect to earn attractive profits

Question 9

Strategic Group mapping 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 10

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)  None of these. 
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)  None of these.

Question 11

Just how strong the competitive pressures are from substitute products depends on:

Accepted Answer

A)  whether the substitutes are strongly or weakly differentiated and whether the relative frequency of buyer purchases is high or low. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing. 
A)  whether the substitutes are strongly or weakly differentiated and whether the relative frequency of buyer purchases is high or low. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing.

Question 12

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

Accepted Answer

The answer of Explain why low switching costs and weakly...

Question 13

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 14

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 15

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 16

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

Accepted Answer

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

Question 17

Competitive pressures associated with the threat of entry are greater when:

Accepted Answer

A)  incumbent firms are unable or unwilling to strongly contest the entry of newcomers. 
B)  a large pool of potential entrants exists,some of which have the capabilities to overcome high entry barriers. 
C)  entry barriers are relatively low and buyer demand for the product is growing rapidly,and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents. 
D)  existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence. 
E)  All of these conditions heighten the competitive pressures associated with fresh entry into the industry. 
A)  incumbent firms are unable or unwilling to strongly contest the entry of newcomers. 
B)  a large pool of potential entrants exists,some of which have the capabilities to overcome high entry barriers. 
C)  entry barriers are relatively low and buyer demand for the product is growing rapidly,and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents. 
D)  existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence. 
E)  All of these conditions heighten the competitive pressures associated with fresh entry into the industry.

Question 18

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

Accepted Answer

The answer of What is the analytical value of studying...

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

When an industry member is a major customer of the supplier,and the relationship (partnership)is unusually effective and mutually advantageous:

Accepted Answer

A)  it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships. 
B)  one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members. 
C)  there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers. 
D)  there is a high likelihood of such partnerships reducing competitive pressures on ALL industry members,provided technological change in the suppliers' business is rapid and the item being supplied is a commodity. 
E)  the usual result is to reduce competitive pressures on all industry members,provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost. 
A)  it is rare for such partnerships to have much competitive impact on those industry members not having such partnerships. 
B)  one unfortunate outcome is that it tends to give the supply partners much enhanced bargaining power in their dealings with these industry members. 
C)  there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers. 
D)  there is a high likelihood of such partnerships reducing competitive pressures on ALL industry members,provided technological change in the suppliers' business is rapid and the item being supplied is a commodity. 
E)  the usual result is to reduce competitive pressures on all industry members,provided the costs of the items furnished by supply chain partners amount to 50 percent or more of total cost.

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

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

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?

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

Which one of the following does NOT intensify the competitive pressures associated with the threat of entry?

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

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

Which one of the following increases the competitive pressures associated with the threat of entry?

Strategic Group mapping analysis does not entail drawing conclusions about:

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

Just how strong the competitive pressures are from substitute products depends on:

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

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

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

What makes the marketplace a competitive battlefield is:

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

Competitive pressures associated with the threat of entry are greater when:

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

The "driving forces" in an industry:

When an industry member is a major customer of the supplier,and the relationship (partnership)is unusually effective and mutually advantageous:

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

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Exam 3: Evaluating a Companys External Environment

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

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

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?

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

Which one of the following does NOT intensify the competitive pressures associated with the threat of entry?

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

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

Which one of the following increases the competitive pressures associated with the threat of entry?

Strategic Group mapping analysis does not entail drawing conclusions about:

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

Just how strong the competitive pressures are from substitute products depends on:

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

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

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

What makes the marketplace a competitive battlefield is:

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

Competitive pressures associated with the threat of entry are greater when:

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

The "driving forces" in an industry:

When an industry member is a major customer of the supplier,and the relationship (partnership)is unusually effective and mutually advantageous:

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