Question 1

In analyzing the strength of competition among rival firms,an important consideration is:

Accepted Answer

A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction, objectives, strategies, and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups. 
A)  the potential for buyers to exercise strong bargaining power. 
B)  the diversity of competitors in terms of long-term direction, objectives, strategies, and countries of origin. 
C)  the number of firms pursuing differentiation strategies versus the number pursuing low-cost leadership strategies and focus strategies. 
D)  the extent to which some rivals have more than two competitively valuable competencies or capabilities. 
E)  whether the industry is characterized by a strong learning/experience curve and whether the industry is composed of many or few strategic groups.

Question 2

One of the things that can be gleaned from a strategic group map of industry rivals is:

Accepted Answer

A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D)  that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E)  which strategic groups are currently being shunned by customers because of high prices and relatively low product quality. 
A)  which rivals have been in business longer and thus have greater access to experience curve effects. 
B)  which rivals have newer manufacturing facilities and thus have achieved greater product quality. 
C)  which strategic groups have the highest profit margins and the highest customer switching costs and thus represent key operating characteristics. 
D)  that some strategic groups are more favorably positioned than others because they confront weaker competitive forces and/or because they are more favorably impacted by industry driving forces. 
E)  which strategic groups are currently being shunned by customers because of high prices and relatively low product quality.

Question 3

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 4

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

Accepted Answer

Threat of entry is a stronger force when

Question 5

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 6

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

Accepted Answer

A)  sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation. 
B)  some sellers may be less sensitive than others to price, quality, or service differences. 
C)  along the various stages of the value chain sellers are conducive to earning attractive profits. 
D)  the industry is a highly cohesive structure with limited fragmentation and few industry members. 
E)  sellers are large and few in number relative to the number of buyers. 
A)  sellers in an industry provide similar products and generally their cost structures are different because of competitive advantages in their operation. 
B)  some sellers may be less sensitive than others to price, quality, or service differences. 
C)  along the various stages of the value chain sellers are conducive to earning attractive profits. 
D)  the industry is a highly cohesive structure with limited fragmentation and few industry members. 
E)  sellers are large and few in number relative to the number of buyers.

Question 7

Buyer bargaining power is stronger when:

Accepted Answer

A)  winning the business of certain high-profile customers offers a seller important market exposure or prestige. 
B)  the extent and importance of collaborative partnerships and alliances between particular sellers and buyers is credible. 
C)  buyers cannot integrate backward into the product market of sellers. 
D)  sellers' products are differentiated, making it easy and inexpensive for buyers to switch to competing brands. 
E)  the industry's products are standardized or undifferentiated. 
A)  winning the business of certain high-profile customers offers a seller important market exposure or prestige. 
B)  the extent and importance of collaborative partnerships and alliances between particular sellers and buyers is credible. 
C)  buyers cannot integrate backward into the product market of sellers. 
D)  sellers' products are differentiated, making it easy and inexpensive for buyers to switch to competing brands. 
E)  the industry's products are standardized or undifferentiated.

Question 8

Factors that cause the rivalry among competing sellers to be weaker include:

Accepted Answer

A)  low buyer switching costs. 
B)  low fixed costs or storage costs. 
C)  many industry rivals of roughly equal size and competitive strength. 
D)  weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand. 
A)  low buyer switching costs. 
B)  low fixed costs or storage costs. 
C)  many industry rivals of roughly equal size and competitive strength. 
D)  weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand.

Question 9

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 10

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

Accepted Answer

A)  Whether certain customers offer sellers important market exposure or prestige 
B)  Whether customers are relatively well-informed about sellers' products, prices, and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether sellers' products are highly differentiated, making it troublesome or costly for buyers to switch to competing brands or to substitute products 
E)  Whether buyers pose a major threat to integrate backward into the product market of sellers 
A)  Whether certain customers offer sellers important market exposure or prestige 
B)  Whether customers are relatively well-informed about sellers' products, prices, and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether sellers' products are highly differentiated, making it troublesome or costly for buyers to switch to competing brands or to substitute products 
E)  Whether buyers pose a major threat to integrate backward into the product market of sellers

Question 11

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

Accepted Answer

A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across companies and countries 
D)  Increasing efforts to collaborate closely with suppliers 
E)  Advances in technology and manufacturing process innovation 
A)  Reductions in uncertainty and business risk 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across companies and countries 
D)  Increasing efforts to collaborate closely with suppliers 
E)  Advances in technology and manufacturing process innovation

Question 12

The bargaining leverage of suppliers is greater when:

Accepted Answer

A)  the suppliers' products/services account for a small percentage of industry members' costs. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members account for a big fraction of supplier's sales. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers. 
A)  the suppliers' products/services account for a small percentage of industry members' costs. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members account for a big fraction of supplier's sales. 
D)  there is extensive seller-supplier collaboration. 
E)  the supplier industry is composed of a large number of relatively small suppliers.

Question 13

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 14

Which of the following is NOT an integral part of driving-forces analysis?

Accepted Answer

A)  Determining whether forces are acting to cause fundamental changes in industry conditions and/or the industry's competitiveness 
B)  Determining whether forces are acting to cause industry rivals to shift to a different strategic group 
C)  Determining whether forces are acting to strengthen or weaken market demand 
D)  Determining whether forces are acting to make competition more or less intense 
E)  Determining whether forces are acting to raise or lower industry profitability 
A)  Determining whether forces are acting to cause fundamental changes in industry conditions and/or the industry's competitiveness 
B)  Determining whether forces are acting to cause industry rivals to shift to a different strategic group 
C)  Determining whether forces are acting to strengthen or weaken market demand 
D)  Determining whether forces are acting to make competition more or less intense 
E)  Determining whether forces are acting to raise or lower industry profitability

Question 15

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

Accepted Answer

Michael Porter's Framework for Competito

Question 16

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 17

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 18

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

Accepted Answer

A strategic group consists of those indu

Question 19

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

Accepted Answer

A)  Coca-Cola launches mobile campaigns for community-connect and awareness. 
B)  Discovery Channel launches a mobile game to promote its Gold Rush TV show. 
C)  T-Mobile US signs a pact with Nokia Networks for greater spectrum support. 
D)  Hugo Boss announces the launch of its fall/winter collection via mobile. 
E)  Apple enters into a pact with PayPal to market its mobile wallet application. 
A)  Coca-Cola launches mobile campaigns for community-connect and awareness. 
B)  Discovery Channel launches a mobile game to promote its Gold Rush TV show. 
C)  T-Mobile US signs a pact with Nokia Networks for greater spectrum support. 
D)  Hugo Boss announces the launch of its fall/winter collection via mobile. 
E)  Apple enters into a pact with PayPal to market its mobile wallet application.

Question 20

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

Accepted Answer

A)  the five forces framework. 
B)  PESTEL. 
C)  the driving forces model. 
D)  strategic group mapping. 
E)  competitor analysis. 
A)  the five forces framework. 
B)  PESTEL. 
C)  the driving forces model. 
D)  strategic group mapping. 
E)  competitor analysis.

In analyzing the strength of competition among rival firms,an important consideration is:

One of the things that can be gleaned from a strategic group map of industry rivals is:

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.

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

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

Buyer bargaining power is stronger when:

Factors that cause the rivalry among competing sellers to be weaker include:

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?

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

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

The bargaining leverage of suppliers is greater when:

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:

Which of the following is NOT an integral part of driving-forces analysis?

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

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

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

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

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

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

In analyzing the strength of competition among rival firms,an important consideration is:

One of the things that can be gleaned from a strategic group map of industry rivals is:

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.

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

Not all buyers of an industry's product have equal degrees of bargaining power with sellers,because:

Buyer bargaining power is stronger when:

Factors that cause the rivalry among competing sellers to be weaker include:

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?

Which of the following factors is NOT a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

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

The bargaining leverage of suppliers is greater when:

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:

Which of the following is NOT an integral part of driving-forces analysis?

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

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

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

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

Which of the following is LIKELY to have the biggest strategy-shaping impact on mobile service providers?

The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is:

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