Question 1

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

Accepted Answer

A)  What are the industry product R&D capabilities and expertise in product design? 
B)  On what basis do buyers choose between the competing brands of sellers? 
C)  What product attributes and service characteristics are crucial? 
D)  What resources must a company have to be competitive? 
E)  What shortcomings are almost certain to put a company at a significant disadvantage? 
A)  What are the industry product R&D capabilities and expertise in product design? 
B)  On what basis do buyers choose between the competing brands of sellers? 
C)  What product attributes and service characteristics are crucial? 
D)  What resources must a company have to be competitive? 
E)  What shortcomings are almost certain to put a company at a significant disadvantage?

Question 2

A rival's strategic moves and countermoves are

Accepted Answer

A)  indicators for the visualization of strategic mapping techniques. 
B)  enabled and constrained by the set of capabilities they have at hand. 
C)  measured by the extent to which they can unveil financial objectives. 
D)  responses to the broader definition of the industry opportunities. 
E)  signs of the competitive pressures from the industry. 
A)  indicators for the visualization of strategic mapping techniques. 
B)  enabled and constrained by the set of capabilities they have at hand. 
C)  measured by the extent to which they can unveil financial objectives. 
D)  responses to the broader definition of the industry opportunities. 
E)  signs of the competitive pressures from the industry.

Question 3

The task of driving-forces analysis is to

Accepted Answer

A)  develop a comprehensive list of all the potential causes of changing industry conditions. 
B)  predict which new driving forces will emerge next. 
C)  determine which of the five competitive forces is the biggest driver of industry change. 
D)  identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces. 
E)  learn what the industry key success factors are and how they might change in the future. 
A)  develop a comprehensive list of all the potential causes of changing industry conditions. 
B)  predict which new driving forces will emerge next. 
C)  determine which of the five competitive forces is the biggest driver of industry change. 
D)  identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces. 
E)  learn what the industry key success factors are and how they might change in the future.

Question 4

The stronger the collective impact of competitive pressures associated with the five competitive forces,

Accepted Answer

A)  the stronger are the industry's driving forces. 
B)  the greater number of companies that can achieve a competitive advantage via differentiation. 
C)  the larger the number of competitive advantage opportunities for industry members. 
D)  the greater the number of industry key success factors. 
E)  the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
A)  the stronger are the industry's driving forces. 
B)  the greater number of companies that can achieve a competitive advantage via differentiation. 
C)  the larger the number of competitive advantage opportunities for industry members. 
D)  the greater the number of industry key success factors. 
E)  the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader.

Question 5

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 6

Which of the following does NOT exemplify the impact of the macro-environment on a company's strategic opportunities?

Accepted Answer

A)  Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products. 
B)  Consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C)  Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D)  Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products. 
E)  Sales of FitBit surge on account of a new feature that monitors users' blood pressure. 
A)  Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products. 
B)  Consumer confidence in Volkswagen drops precipitously because of falsified emissions data. 
C)  Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. 
D)  Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products. 
E)  Sales of FitBit surge on account of a new feature that monitors users' blood pressure.

Question 7

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 8

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

Accepted Answer

A)  incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable. 
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)  customers have low brand preferences and low degrees of loyalty to seller. 
A)  incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable. 
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)  customers have low brand preferences and low degrees of loyalty to seller.

Question 9

Identify three conditions that tend to make potential entry a potentially potent competitive force.

Accepted Answer

Threat of entry is a stronger force when

Question 10

Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and generally are

Accepted Answer

A)  determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  defined in ways that will strengthen or weaken market demand, competition, and industry profitability in future years. 
C)  the cause of a reduction in the bargaining power of buyers. 
D)  triggered by movement in the economy, higher or lower interest rates, or important new strategic alliances. 
E)  triggered by such factors as growing competitive pressures from substitute products, and the efforts of rival firms to employ new or different offensive strategies. 
A)  determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  defined in ways that will strengthen or weaken market demand, competition, and industry profitability in future years. 
C)  the cause of a reduction in the bargaining power of buyers. 
D)  triggered by movement in the economy, higher or lower interest rates, or important new strategic alliances. 
E)  triggered by such factors as growing competitive pressures from substitute products, and the efforts of rival firms to employ new or different offensive strategies.

Question 11

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Accepted Answer

An industry's key success factors (KSFs)

Question 12

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

Accepted Answer

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

Question 13

Identify at least three benefits of constructing a strategic group map.

Accepted Answer

A strategic group consists of those indu

Question 14

Which of the following is 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 15

Rivalry among competing sellers decreases

Accepted Answer

A)  when buyer demand is growing rapidly. 
B)  as it becomes less costly for buyers to switch brands. 
C)  as the products of rival sellers become commoditized. 
D)  when there is excess production relative to demand. 
E)  as the number of competitors increases. 
A)  when buyer demand is growing rapidly. 
B)  as it becomes less costly for buyers to switch brands. 
C)  as the products of rival sellers become commoditized. 
D)  when there is excess production relative to demand. 
E)  as the number of competitors increases.

Question 16

Which of the following is NOT a common type of driving force?

Accepted Answer

A)  reductions in uncertainty and business risk 
B)  changing societal concerns, attitudes, and lifestyles 
C)  diffusion of technical know-how across companies and countries 
D)  increasing efforts to collaborate closely with suppliers 
E)  advances in technology and manufacturing process innovation 
A)  reductions in uncertainty and business risk 
B)  changing societal concerns, attitudes, and lifestyles 
C)  diffusion of technical know-how across companies and countries 
D)  increasing efforts to collaborate closely with suppliers 
E)  advances in technology and manufacturing process innovation

Question 17

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 18

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

Accepted Answer

KSFs by their very nature are so importa

Question 19

Competitive intelligence can be gleaned from

Accepted Answer

A)  company press releases, company websites, management presentations, and annual reports and 10-K filings. 
B)  SWOT analysis, PESTLE analysis, KSF analysis, and driving forces analysis. 
C)  strategic group maps, Value Net analysis, and five force analysis. 
D)  financial ratio analysis, KSF analysis, driving forces analysis, and five forces analysis. 
E)  KSF analysis, Value Net analysis, and driving forces analysis. 
A)  company press releases, company websites, management presentations, and annual reports and 10-K filings. 
B)  SWOT analysis, PESTLE analysis, KSF analysis, and driving forces analysis. 
C)  strategic group maps, Value Net analysis, and five force analysis. 
D)  financial ratio analysis, KSF analysis, driving forces analysis, and five forces analysis. 
E)  KSF analysis, Value Net analysis, and driving forces analysis.

Question 20

Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft?

Accepted Answer

A)  Yellow Cab company launches mobile app campaigns for community-connect and awareness. 
B)  Amazon launches a mobile delivery service via drones. 
C)  Apple launches a global network of driverless cars, buses, and trucks on demand via mobile app. 
D)  Tesla and ZipCar announce a joint venture for electric automobile sharing services. 
E)  Greyhound develops and markets a mobile app for customers to purchase inter-city bus tickets. 
A)  Yellow Cab company launches mobile app campaigns for community-connect and awareness. 
B)  Amazon launches a mobile delivery service via drones. 
C)  Apple launches a global network of driverless cars, buses, and trucks on demand via mobile app. 
D)  Tesla and ZipCar announce a joint venture for electric automobile sharing services. 
E)  Greyhound develops and markets a mobile app for customers to purchase inter-city bus tickets.

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

A rival's strategic moves and countermoves are

The task of driving-forces analysis is to

The stronger the collective impact of competitive pressures associated with the five competitive forces,

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

Which of the following does NOT exemplify the impact of the macro-environment on a company's strategic opportunities?

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

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

Identify three conditions that tend to make potential entry a potentially potent competitive force.

Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and generally are

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

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

Identify at least three benefits of constructing a strategic group map.

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

Rivalry among competing sellers decreases

Which of the following is NOT a common type of driving force?

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?

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

Competitive intelligence can be gleaned from

Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft?

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

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

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

A rival's strategic moves and countermoves are

The task of driving-forces analysis is to

The stronger the collective impact of competitive pressures associated with the five competitive forces,

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

Which of the following does NOT exemplify the impact of the macro-environment on a company's strategic opportunities?

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

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

Identify three conditions that tend to make potential entry a potentially potent competitive force.

Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and generally are

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

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

Identify at least three benefits of constructing a strategic group map.

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

Rivalry among competing sellers decreases

Which of the following is NOT a common type of driving force?

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?

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

Competitive intelligence can be gleaned from

Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft?

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters