Question 1

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

Accepted Answer

A)  apparel 
B)  tire manufacturing 
C)  electric and gas utilities 
D)  commercial airlines 
E)  video streaming services 
A)  apparel 
B)  tire manufacturing 
C)  electric and gas utilities 
D)  commercial airlines 
E)  video streaming services

Question 2

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

Accepted Answer

Supplier bargaining power is stronger wh

Question 3

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

Accepted Answer

A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful. 
A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. 
C)  makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs in order to be competitively successful.

Question 4

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)  shift societal concerns, attitudes, and lifestyles by altering the pattern of competition. 
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)  shift societal concerns, attitudes, and lifestyles by altering the pattern of competition.

Question 5

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 five forces framework holds that com

Question 6

Driving-forces analysis helps managers identify whether

Accepted Answer

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

Question 7

Which of the following driving forces would have the LEAST impact on the attractiveness of the automobile industry?

Accepted Answer

A)  changes in the long-term industry growth rate 
B)  entry or exit of major firms 
C)  shifts in who buys the product and how the product is used 
D)  changes in costs and efficiency 
E)  regulatory influences and government policy changes 
A)  changes in the long-term industry growth rate 
B)  entry or exit of major firms 
C)  shifts in who buys the product and how the product is used 
D)  changes in costs and efficiency 
E)  regulatory influences and government policy changes

Question 8

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

Accepted Answer

Threat of entry is a stronger force when

Question 9

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

Accepted Answer

A)  financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the industry's market growth is rapid. 
C)  the pool of entry candidates is large and some have resources that would make them formidable market contenders. 
D)  newcomers can be expected to earn attractive profits. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members. 
A)  financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the industry's market growth is rapid. 
C)  the pool of entry candidates is large and some have resources that would make them formidable market contenders. 
D)  newcomers can be expected to earn attractive profits. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members.

Question 10

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. 
C)  it helps 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. 
C)  it helps 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 11

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 12

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

Accepted Answer

Competitive pressures from buyers increa

Question 13

Which of the following pairs of variables are 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 14

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

Accepted Answer

A)  is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies. 
B)  is often weak when rivals have emotional stakes in business or face high exit barriers. 
C)  is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D)  tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders. 
E)  is weaker when more firms have weakly differentiated products, buyer demand is growing slowly, and buyers have moderate switching costs. 
A)  is stronger when firms strive to be low-cost producers than when they use differentiation and focus strategies. 
B)  is often weak when rivals have emotional stakes in business or face high exit barriers. 
C)  is largely unaffected by whether industry conditions tempt rivals to use price cuts or other competitive weapons to boost unit sales. 
D)  tends to intensify when strong companies with sizable financial resources, proven competitive capabilities, and respected brand names hurdle entry barriers looking for growth opportunities and launch aggressive, well-funded moves to transform into strong market contenders. 
E)  is weaker when more firms have weakly differentiated products, buyer demand is growing slowly, and buyers have moderate switching costs.

Question 15

With the aid of a strategic group map, one can

Accepted Answer

A)  identify easily the entry and exit barriers for each strategic group. 
B)  pinpoint precisely which firms are in profitable strategic groups and which are not. 
C)  identify which competitive forces are strong and which are weak. 
D)  measure accurately whether across-group rivalry is stronger than within-group rivalry, and vice versa. 
E)  reveal which companies are close competitors and which are distant rivals, and that not all positions on the map are equally attractive. 
A)  identify easily the entry and exit barriers for each strategic group. 
B)  pinpoint precisely which firms are in profitable strategic groups and which are not. 
C)  identify which competitive forces are strong and which are weak. 
D)  measure accurately whether across-group rivalry is stronger than within-group rivalry, and vice versa. 
E)  reveal which companies are close competitors and which are distant rivals, and that not all positions on the map are equally attractive.

Question 16

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 17

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.

Question 18

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

Accepted Answer

Threat of entry is a stronger force when

Question 19

Driving-forces analysis has

Accepted Answer

A)  speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B)  theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C)  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)  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)  perceived value and is associated with identifying the close and distant rivals within an operating industry. 
A)  speculative value because it compels the firm to drive strategic intent and collective choice into operating practices. 
B)  theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality. 
C)  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)  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)  perceived value and is associated with identifying the close and distant rivals within an operating industry.

Question 20

Buyers are in position to exert strong bargaining power in dealing with sellers when

Accepted Answer

A)  their costs to switch to competing brands or to substitute products are relatively high. 
B)  a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands. 
C)  they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs. 
D)  buyer demand is growing rapidly. 
E)  buyers are price-sensitive because the product represents a significant portion of their purchasing budget. 
A)  their costs to switch to competing brands or to substitute products are relatively high. 
B)  a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands. 
C)  they buy the product infrequently or in small quantities and are not particularly well-informed about sellers' products, prices, and costs. 
D)  buyer demand is growing rapidly. 
E)  buyers are price-sensitive because the product represents a significant portion of their purchasing budget.

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

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

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

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

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?

Driving-forces analysis helps managers identify whether

Which of the following driving forces would have the LEAST impact on the attractiveness of the automobile industry?

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

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

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

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

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

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

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

With the aid of a strategic group map, one can

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

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

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

Driving-forces analysis has

Buyers are in position to exert strong bargaining power in dealing with sellers when

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

Based on an analysis of the five competitive forces, in which of the following industries is profitability likely to be highest?

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

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

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

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?

Driving-forces analysis helps managers identify whether

Which of the following driving forces would have the LEAST impact on the attractiveness of the automobile industry?

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

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

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

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

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

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

The competitive battles among rival sellers striving for better market positions, higher sales and market shares, and competitive advantage, suggest the rivalry force

With the aid of a strategic group map, one can

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

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

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

Driving-forces analysis has

Buyers are in position to exert strong bargaining power in dealing with sellers when

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