Question 1

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

Accepted Answer

Supplier bargaining power is weaker when

Question 2

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 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 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 5

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 6

What makes the marketplace a competitive battlefield is:

Accepted Answer

A)  the race of industry members to build strong defenses against the industry's driving forces. 
B)  the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals. 
C)  the ongoing race among rival sellers to have the highest-quality product. 
D)  the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals. 
E)  the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits. 
A)  the race of industry members to build strong defenses against the industry's driving forces. 
B)  the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals. 
C)  the ongoing race among rival sellers to have the highest-quality product. 
D)  the ongoing efforts of industry members to introduce new and improved products/services at a faster rate than their rivals. 
E)  the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits.

Question 7

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 8

Information regarding the four components of the Framework for Competitor Analysis can NOT be:

Accepted Answer

A)  gleaned from company press releases. 
B)  gathered from a rival's internal proprietary strategic information. 
C)  assembled from website data. 
D)  observed from public information. 
E)  garnered from competitive intelligence departments. 
A)  gleaned from company press releases. 
B)  gathered from a rival's internal proprietary strategic information. 
C)  assembled from website data. 
D)  observed from public information. 
E)  garnered from competitive intelligence departments.

Question 9

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

Accepted Answer

A)  Which mode of transport does the rival's supplier use? 
B)  How does her rival manage door-to-door deliveries at no extra cost? 
C)  What percentage of customer frequent her rival's store? 
D)  Why are her rival's cupcakes so popular among customers? 
E)  When does her rival undertake special orders for custom cakes? 
A)  Which mode of transport does the rival's supplier use? 
B)  How does her rival manage door-to-door deliveries at no extra cost? 
C)  What percentage of customer frequent her rival's store? 
D)  Why are her rival's cupcakes so popular among customers? 
E)  When does her rival undertake special orders for custom cakes?

Question 10

Strategic group mapping is a visual technique for displaying:

Accepted Answer

A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models. 
A)  how many rivals are pursuing each type of strategy. 
B)  which companies have the biggest market share and who the industry leader really is. 
C)  the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors. 
D)  which companies have the highest degrees of brand loyalty. 
E)  which companies have failing business models.

Question 11

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 12

Which of the following can aid industries in identifying key success factors?

Accepted Answer

A)  Global distribution capabilities 
B)  Crucial product attributes and service characteristics 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability 
A)  Global distribution capabilities 
B)  Crucial product attributes and service characteristics 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability

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

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 15

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

Accepted Answer

A)  the best strategy. 
B)  flawed or weak strategies. 
C)  strong performance objectives. 
D)  reliable resources and capabilities. 
E)  similar competitive approaches. 
A)  the best strategy. 
B)  flawed or weak strategies. 
C)  strong performance objectives. 
D)  reliable resources and capabilities. 
E)  similar competitive approaches.

Question 16

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

Accepted Answer

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

Question 17

An industry's key success factors can always be deduced by asking what factors:

Accepted Answer

A)  are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  such as product attributes and service characteristics are crucial, and what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage. 
D)  can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E)  depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack. 
A)  are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  such as product attributes and service characteristics are crucial, and what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage. 
D)  can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E)  depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.

Question 18

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

Accepted Answer

A)  the speed with which general economic conditions and interest rates are changing. 
B)  the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C)  how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D)  the number of buyers versus the number of sellers. 
E)  whether industry members are spending more or less on advertising. 
A)  the speed with which general economic conditions and interest rates are changing. 
B)  the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. 
C)  how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. 
D)  the number of buyers versus the number of sellers. 
E)  whether industry members are spending more or less on advertising.

Question 19

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 20

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

Accepted Answer

A)  building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B)  building the picture of competition in two steps: (1) determining which rival has the biggest competitive advantage and (2) assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C)  evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D)  assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E)  gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage. 
A)  building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
B)  building the picture of competition in two steps: (1) determining which rival has the biggest competitive advantage and (2) assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
C)  evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
D)  assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E)  gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

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

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

The rivalry among competing sellers tends to be less intense when:

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

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

What makes the marketplace a competitive battlefield is:

The key success factors in an industry:

Information regarding the four components of the Framework for Competitor Analysis can NOT be:

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

Strategic group mapping is a visual technique for displaying:

Driving-forces analysis has:

Which of the following can aid industries in identifying key success factors?

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

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

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

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

An industry's key success factors can always be deduced by asking what factors:

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

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

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

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

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

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

The rivalry among competing sellers tends to be less intense when:

Identify at least five common driving forces and briefly explain how each one can produce important changes in industry and competitive conditions.

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

What makes the marketplace a competitive battlefield is:

The key success factors in an industry:

Information regarding the four components of the Framework for Competitor Analysis can NOT be:

Amanda owns one of two bakery stores in her neighborhood.Which of the following questions would NOT help Amanda predict the next strategic moves and countermoves of her rivals?

Strategic group mapping is a visual technique for displaying:

Driving-forces analysis has:

Which of the following can aid industries in identifying key success factors?

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

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

Good intelligence about the strategic direction and likely moves of key competitors allows a company to determine which competitors have all of the following,EXCEPT:

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

An industry's key success factors can always be deduced by asking what factors:

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of:

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

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves:

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