Question 1

The payoff of good scouting reports on rivals is an improved ability to

Accepted Answer

A)  anticipate what moves rivals are likely to make next. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share. 
E)  determine whether a rival has the best strategy and is the industry leader. 
A)  anticipate what moves rivals are likely to make next. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share. 
E)  determine whether a rival has the best strategy and is the industry leader.

Question 2

One of the steps of driving-forces analysis is to identify which

Accepted Answer

A)  strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  strategic group is the most powerful. 
C)  industry member is likely to become (or remain) the industry leader and why. 
D)  key success factors are most likely to help their company gain a competitive advantage. 
E)  of the five competitive forces will be the strongest driver of industry change. 
A)  strategy changes a company may need to make to prepare for the impacts of the driving forces. 
B)  strategic group is the most powerful. 
C)  industry member is likely to become (or remain) the industry leader and why. 
D)  key success factors are most likely to help their company gain a competitive advantage. 
E)  of the five competitive forces will be the strongest driver of industry change.

Question 3

The rivalry among competing sellers tends to be less intense when

Accepted Answer

A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products. 
A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance. 
D)  rivals have diverse strategies and objectives and are located in different countries. 
E)  rival sellers have weakly differentiated products.

Question 4

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

Accepted Answer

Rivalry among competing sellers decrease

Question 5

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

Accepted Answer

Threat of entry is a weaker force when i

Question 6

The key success factors in an industry

Accepted Answer

A)  are those competitive factors that most affect industry members' abilities to prosper in the marketplace-the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss. 
B)  are determined by the industry's driving forces, which are essential to surviving and thriving in the industry. 
C)  hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages. 
D)  depend on how many rivals are trying to move from one strategic group to another without losing momentum. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse. 
A)  are those competitive factors that most affect industry members' abilities to prosper in the marketplace-the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss. 
B)  are determined by the industry's driving forces, which are essential to surviving and thriving in the industry. 
C)  hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages. 
D)  depend on how many rivals are trying to move from one strategic group to another without losing momentum. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse.

Question 7

Which of the following can aid company strategists in identifying key success factors in their industry?

Accepted Answer

A)  global distribution capabilities of suppliers 
B)  product attributes and service characteristics that buyers consider to be crucial 
C)  low switching costs of buyers and suppliers 
D)  accurate filling of buyer orders 
E)  short delivery time capability 
A)  global distribution capabilities of suppliers 
B)  product attributes and service characteristics that buyers consider to be crucial 
C)  low switching costs of buyers and suppliers 
D)  accurate filling of buyer orders 
E)  short delivery time capability

Question 8

Industry conditions change because of

Accepted Answer

A)  such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B)  newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C)  newly emerging industry key success factors. 
D)  important forces enticing or pressuring certain industry participants (competitors, customers, suppliers) to alter their actions in important ways. 
E)  changes in the barriers to entry and the degree of competition from substitute products. 
A)  such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B)  newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C)  newly emerging industry key success factors. 
D)  important forces enticing or pressuring certain industry participants (competitors, customers, suppliers) to alter their actions in important ways. 
E)  changes in the barriers to entry and the degree of competition from substitute products.

Question 9

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

Accepted Answer

A)  the strength of the federal banking system 
B)  the exogenous forces related to the general environmental demand 
C)  social factors that could fuel a political agenda and create greater transparency 
D)  bailouts and energy policies that are industry-specific 
E)  tax policy, fiscal policy, and tariffs providing impetus for anti-trust matters 
A)  the strength of the federal banking system 
B)  the exogenous forces related to the general environmental demand 
C)  social factors that could fuel a political agenda and create greater transparency 
D)  bailouts and energy policies that are industry-specific 
E)  tax policy, fiscal policy, and tariffs providing impetus for anti-trust matters

Question 10

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 11

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

Accepted Answer

Switching costs put a cap on how much in

Question 12

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

Accepted Answer

A)  limit supplier bargaining power. 
B)  enhance supplier bargaining power. 
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)  limit the supply of products and/or services. 
A)  limit supplier bargaining power. 
B)  enhance supplier bargaining power. 
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)  limit the supply of products and/or services.

Question 13

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Accepted Answer

Competitive pressures from buyers increa

Question 14

Determining how strong the threat of substitutes will be entails

Accepted Answer

A)  identifying the relative price/performance relationship of the substitutes, the switching costs, and the overall buyer demand for the substitute. 
B)  identifying the attractiveness of other industries. 
C)  measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D)  adopting a substitute product concentration factor to the buyer volume. 
E)  judging whether industry members are capable of self-manufacturing their products. 
A)  identifying the relative price/performance relationship of the substitutes, the switching costs, and the overall buyer demand for the substitute. 
B)  identifying the attractiveness of other industries. 
C)  measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques. 
D)  adopting a substitute product concentration factor to the buyer volume. 
E)  judging whether industry members are capable of self-manufacturing their products.

Question 15

Which of the following is MOST likely to qualify as a driving force?

Accepted Answer

A)  increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B)  successful introduction of innovative new products or new ways to market products 
C)  an increase in the prices of substitute products 
D)  decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E)  decisions by one or more outsiders not to attempt to enter the industry 
A)  increases in price-cutting by rival sellers and the launch of major new advertising campaigns by one or more rivals 
B)  successful introduction of innovative new products or new ways to market products 
C)  an increase in the prices of substitute products 
D)  decisions on the part of industry's three biggest competitors not to pursue a strategy of striving to be the industry's low-cost leader 
E)  decisions by one or more outsiders not to attempt to enter the industry

Question 16

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

Accepted Answer

A)  when certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B)  when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C)  when competitors are fairly equal in size and capability 
D)  when the products of rivals are weakly differentiated, buyer switching costs are low, and market demand is growing slowly 
E)  when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members 
A)  when certain competitors are dissatisfied with their market position and make moves to bolster their standing 
B)  when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders 
C)  when competitors are fairly equal in size and capability 
D)  when the products of rivals are weakly differentiated, buyer switching costs are low, and market demand is growing slowly 
E)  when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

Question 17

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 most common drivers of industry chan

Question 18

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 average number of suppliers that each seller/industry member purchases from. 
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 average number of suppliers that each seller/industry member purchases from. 
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 19

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

Accepted Answer

Every company operates in a broad "macro

Question 20

A strategic group

Accepted Answer

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

The payoff of good scouting reports on rivals is an improved ability to

One of the steps of driving-forces analysis is to identify which

The rivalry among competing sellers tends to be less intense when

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

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

The key success factors in an industry

Which of the following can aid company strategists in identifying key success factors in their industry?

Industry conditions change because of

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

The "driving forces" in an industry

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

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

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Determining how strong the threat of substitutes will be entails

Which of the following is MOST likely to qualify as a driving force?

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

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

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

A strategic group

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

The payoff of good scouting reports on rivals is an improved ability to

One of the steps of driving-forces analysis is to identify which

The rivalry among competing sellers tends to be less intense when

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

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

The key success factors in an industry

Which of the following can aid company strategists in identifying key success factors in their industry?

Industry conditions change because of

Which of the following factors represents the strategically relevant political factors in the macro-environment that will influence the performance of all firms across the board?

The "driving forces" in an industry

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

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

Identify and briefly discuss any three of the factors that influence the bargaining strength and leverage of buyers.

Determining how strong the threat of substitutes will be entails

Which of the following is MOST likely to qualify as a driving force?

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

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

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

A strategic group

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