Question 1

Which one of the following does NOT cause the rivalry among competing sellers to be weak?

Accepted Answer

A)  High buyer switching costs. 
B)  Rapid growth in buyer demand. 
C)  Industry conditions that tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D)  Low barriers to entry. 
E)  Strongly differentiated products among rival sellers. 
A)  High buyer switching costs. 
B)  Rapid growth in buyer demand. 
C)  Industry conditions that tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D)  Low barriers to entry. 
E)  Strongly differentiated products among rival sellers.

Question 2

The higher the switching costs for industry members,the more it can:

Accepted Answer

A)  limit supplier bargaining power. 
B)  provide a stronger bargaining power for suppliers. 
C)  enhance the quality of parts and components being supplied,and in effect reduce defect rates. 
D)  provide important cost savings for the collaborative supplier-seller relationship. 
E)  All of these. 
A)  limit supplier bargaining power. 
B)  provide a stronger bargaining power for suppliers. 
C)  enhance the quality of parts and components being supplied,and in effect reduce defect rates. 
D)  provide important cost savings for the collaborative supplier-seller relationship. 
E)  All of these.

Question 3

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

Accepted Answer

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

Question 4

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

Accepted Answer

The answer of Identify and briefly explain any two of...

Question 5

The competitive pressures from substitute products tend to be stronger when:

Accepted Answer

A)  good substitutes are readily available and priced above the market. 
B)  there are more than 10 sellers of substitute products. 
C)  the quality and performance and other attributes of the substitutes is viewed as being comparable or better in meeting buyer's requirements. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  Switching costs are high,thereby making it easier for the sellers of attractive substitutes to lure buyers to the offering. 
A)  good substitutes are readily available and priced above the market. 
B)  there are more than 10 sellers of substitute products. 
C)  the quality and performance and other attributes of the substitutes is viewed as being comparable or better in meeting buyer's requirements. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  Switching costs are high,thereby making it easier for the sellers of attractive substitutes to lure buyers to the offering.

Question 6

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

Accepted Answer

A)  Political factors including the extent to which government intervenes in the economy 
B)  Economic conditions that include the general economic climate and specific factors such as interest rates,inflation rate,and unemployment rate,as well as conditions in the stock and bond markets that can affect consumer confidence 
C)  Socio-cultural forces including societal values,attitudes,cultural factors,and lifestyles that impact business 
D)  Technological factors includes the pace of change and technical developments that have the potential for impacting society 
E)  Environmental forces that include the competitive structure,the degree of industry fragmentation,and the mobility barriers that inhibit business 
A)  Political factors including the extent to which government intervenes in the economy 
B)  Economic conditions that include the general economic climate and specific factors such as interest rates,inflation rate,and unemployment rate,as well as conditions in the stock and bond markets that can affect consumer confidence 
C)  Socio-cultural forces including societal values,attitudes,cultural factors,and lifestyles that impact business 
D)  Technological factors includes the pace of change and technical developments that have the potential for impacting society 
E)  Environmental forces that include the competitive structure,the degree of industry fragmentation,and the mobility barriers that inhibit business

Question 7

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 answer of Draw the five forces model of competition...

Question 8

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

Accepted Answer

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

Question 9

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 10

Competitive pressures stemming from buyer bargaining power tend to be weaker when:

Accepted Answer

A)  the number of buyers is small,such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs. 
E)  the buyer group consists of a few large buyers and the seller group consists of numerous small firms. 
A)  the number of buyers is small,such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers purchase the item frequently and are well-informed about sellers' products,prices,and costs. 
E)  the buyer group consists of a few large buyers and the seller group consists of numerous small firms.

Question 11

The rivalry among competing firms tends to be more intense:

Accepted Answer

A)  when demand for the product is growing slowly,buyers have low switching costs,and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals. 
B)  when the products/services of rival sellers are more strongly differentiated and buyer demand is strong and growing rapidly. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares. 
A)  when demand for the product is growing slowly,buyers have low switching costs,and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals. 
B)  when the products/services of rival sellers are more strongly differentiated and buyer demand is strong and growing rapidly. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares.

Question 12

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

Accepted Answer

The answer of Identify and briefly describe five common barriers...

Question 13

Which of the following do NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in who buys the product and how they use it,and changes in the long-term industry growth rate 
B)  Changes brought about by the entry or exit of major firms,product innovation,and marketing innovation and cost efficiency. 
C)  Changes in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  Changes in buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities 
A)  Changes in who buys the product and how they use it,and changes in the long-term industry growth rate 
B)  Changes brought about by the entry or exit of major firms,product innovation,and marketing innovation and cost efficiency. 
C)  Changes in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  Changes in buyer preferences for differentiated products instead of mostly standardized or identical products 
E)  Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities

Question 14

Driving forces analysis:

Accepted Answer

A)  has speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B)  has theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C)  has practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead. 
D)  has no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments. 
E)  All of these. 
A)  has speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B)  has theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C)  has practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes ahead. 
D)  has no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments. 
E)  All of these.

Question 15

The competitive threat that outsiders will enter a market is weaker when:

Accepted Answer

A)  financially strong incumbents send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the industry is characterized by the lack of sizable scale economies and learning/experience curve effects. 
C)  the industry's market growth is rapid. 
D)  the capital requirements for entering the market are within acceptable levels to provide acceptable returns on investment. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members. 
A)  financially strong incumbents send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the industry is characterized by the lack of sizable scale economies and learning/experience curve effects. 
C)  the industry's market growth is rapid. 
D)  the capital requirements for entering the market are within acceptable levels to provide acceptable returns on investment. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members.

Question 16

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Accepted Answer

The answer of Can an industry be attractive to one...

Question 17

Rivalry among competing sellers grows in intensity when:

Accepted Answer

A)  rivals' products/services are sold at widely varying prices and there are only a few rivals. 
B)  rivals have highly differentiated products and buyer demand is growing rapidly. 
C)  there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
D)  the products/services of rivals are strongly differentiated and buyers have high switching costs. 
E)  buyer demand is growing slowly or declining and the number of competitors is increasing and they become more equal in size and competitive capability. 
A)  rivals' products/services are sold at widely varying prices and there are only a few rivals. 
B)  rivals have highly differentiated products and buyer demand is growing rapidly. 
C)  there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
D)  the products/services of rivals are strongly differentiated and buyers have high switching costs. 
E)  buyer demand is growing slowly or declining and the number of competitors is increasing and they become more equal in size and competitive capability.

Question 18

Driving forces analysis:

Accepted Answer

A)  involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain)the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change. 
A)  involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain)the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change.

Question 19

Which of the following factors is NOT a relevant consideration in determining the strength of buyer bargaining power?

Accepted Answer

A)  The relationship between the buyer market and seller market 
B)  The degree to which the seller is a manufacturer of goods and services in substantial quantities 
C)  The degree to which buyers pose a credible threat to integrate backward into the product market of sellers 
D)  The degree to which buyers are well-informed about a seller's products,prices and costs 
E)  The degree to which industry goods are standardized and undifferentiated 
A)  The relationship between the buyer market and seller market 
B)  The degree to which the seller is a manufacturer of goods and services in substantial quantities 
C)  The degree to which buyers pose a credible threat to integrate backward into the product market of sellers 
D)  The degree to which buyers are well-informed about a seller's products,prices and costs 
E)  The degree to which industry goods are standardized and undifferentiated

Question 20

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

Accepted Answer

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

Which one of the following does NOT cause the rivalry among competing sellers to be weak?

The higher the switching costs for industry members,the more it can:

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

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

The competitive pressures from substitute products tend to be stronger when:

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

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?

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

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

Competitive pressures stemming from buyer bargaining power tend to be weaker when:

The rivalry among competing firms tends to be more intense:

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

Which of the following do NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Driving forces analysis:

The competitive threat that outsiders will enter a market is weaker when:

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Rivalry among competing sellers grows in intensity when:

Driving forces analysis:

Which of the following factors is NOT a relevant consideration in determining the strength of buyer bargaining power?

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

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 one of the following does NOT cause the rivalry among competing sellers to be weak?

The higher the switching costs for industry members,the more it can:

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

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

The competitive pressures from substitute products tend to be stronger when:

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

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?

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

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

Competitive pressures stemming from buyer bargaining power tend to be weaker when:

The rivalry among competing firms tends to be more intense:

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

Which of the following do NOT qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Driving forces analysis:

The competitive threat that outsiders will enter a market is weaker when:

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Rivalry among competing sellers grows in intensity when:

Driving forces analysis:

Which of the following factors is NOT a relevant consideration in determining the strength of buyer bargaining power?

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

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