Question 1

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 2

Increasing globalization of the industry can be a driving force because:

Accepted Answer

A)  the products of foreign competitors are nearly always cheaper or of better quality than those of domestic companies. 
B)  foreign producers typically have lower costs, greater technological expertise, and more product innovation capabilities than domestic firms. 
C)  companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities. 
D)  it results in companies having fewer competitors and a strategic group map with fewer circles. 
E)  market growth rates go up, product innovation speeds up, and new firms are likely to enter the industry. 
A)  the products of foreign competitors are nearly always cheaper or of better quality than those of domestic companies. 
B)  foreign producers typically have lower costs, greater technological expertise, and more product innovation capabilities than domestic firms. 
C)  companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities. 
D)  it results in companies having fewer competitors and a strategic group map with fewer circles. 
E)  market growth rates go up, product innovation speeds up, and new firms are likely to enter the industry.

Question 3

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 4

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 5

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 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)  Sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that impact business 
D)  Technological factors that include 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)  Sociocultural forces including societal values, attitudes, cultural factors, and lifestyles that impact business 
D)  Technological factors that include 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

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 8

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 due to the product representing a significant fraction of their purchases. 
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 due to the product representing a significant fraction of their purchases.

Question 9

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 10

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 11

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 12

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 13

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

Accepted Answer

A)  virtually all buyers have strong brand attachments and are highly brand loyal. 
B)  demand for the product is growing rapidly. 
C)  sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D)  sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E)  buyers are very quality conscious. 
A)  virtually all buyers have strong brand attachments and are highly brand loyal. 
B)  demand for the product is growing rapidly. 
C)  sales are made to buyer groups with either strong bargaining power or high sensitivity. 
D)  sellers are racing to add the latest and greatest performance features so as to attract the patronage of important or prestigious buyers. 
E)  buyers are very quality conscious.

Question 14

The most powerful of the five competitive forces is USUALLY:

Accepted Answer

A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise. 
A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise.

Question 15

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 16

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

Accepted Answer

A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable. 
A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. 
D)  offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable.

Question 17

A company's "macro-environment" refers to:

Accepted Answer

A)  the industry and the competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  the strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry. 
A)  the industry and the competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  the strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry.

Question 18

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of:

Accepted Answer

A)  whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. 
B)  whether suppliers self-manufacture what they supply or source their items from other manufacturers. 
C)  whether the industry's position in the growth cycle is favorable. 
D)  whether technological change in the businesses of suppliers is rapid or slow. 
E)  whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly. 
A)  whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. 
B)  whether suppliers self-manufacture what they supply or source their items from other manufacturers. 
C)  whether the industry's position in the growth cycle is favorable. 
D)  whether technological change in the businesses of suppliers is rapid or slow. 
E)  whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly.

Question 19

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 20

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

Accepted Answer

Driving-forces analysis has three steps:

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

Increasing globalization of the industry can be a driving force because:

Industry conditions change because of:

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?

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

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

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

The "driving forces" in an industry:

Determining how strong the threat of substitutes will be entails:

A rival's strategic moves and countermoves are:

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

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

The most powerful of the five competitive forces is USUALLY:

Driving-forces analysis helps managers identify whether:

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

A company's "macro-environment" refers to:

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of:

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

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys Resources, Capabilities,and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 3: Evaluating a Companys External Environment

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

Increasing globalization of the industry can be a driving force because:

Industry conditions change because of:

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?

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

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

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

The "driving forces" in an industry:

Determining how strong the threat of substitutes will be entails:

A rival's strategic moves and countermoves are:

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

Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when:

The most powerful of the five competitive forces is USUALLY:

Driving-forces analysis helps managers identify whether:

A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers:

A company's "macro-environment" refers to:

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of:

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

In doing driving-forces analysis,is it sufficient to simply identify the driving forces that are operating to alter industry and competitive conditions? Why or why not? If not,then explain what else is required for a complete driving-forces assessment.

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

Evaluating a Companys Resources, Capabilities,and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental-Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Managing Internal Operations

Corporate Culture and Leadership

Filters