Question 1

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 2

Using the five-forces model of competition to determine what competition is like in a given industry involves

Accepted Answer

A)  building the picture of competition in three steps: (1) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits. 
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) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits. 
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.

Question 3

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

Accepted Answer

A)  The industry's growth potential, whether competitive pressures will likely grow stronger or weaker, and whether the industry's future profit prospects are above average, average, or below average 
B)  An assessment of the degrees of business risk and uncertainty in the industry's future 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The severity of the problems confronting the industry as a whole 
E)  Whether the industry's product is strongly or weakly differentiated 
A)  The industry's growth potential, whether competitive pressures will likely grow stronger or weaker, and whether the industry's future profit prospects are above average, average, or below average 
B)  An assessment of the degrees of business risk and uncertainty in the industry's future 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The severity of the problems confronting the industry as a whole 
E)  Whether the industry's product is strongly or weakly differentiated

Question 4

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 hard 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 hard 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 5

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 rivals that have similar competitive approaches and market positions. 
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 rivals that have similar competitive approaches and market positions. 
D)  consists of those firms whose market shares are about the same size. 
E)  is made up of those firms having comparable profit margins.

Question 6

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

Accepted Answer

The seven key questions that form the fr

Question 7

The competitive pressures from substitute products tend to be stronger when

Accepted Answer

A)  buyers are relatively comfortable with using substitutes and the costs to buyers of switching over to the substitutes are low. 
B)  there are more than 10 sellers of substitute products. 
C)  the quality and performance of the substitutes is well above what buyers need to meet their requirements. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  demand for the industry's product is not very price sensitive. 
A)  buyers are relatively comfortable with using substitutes and the costs to buyers of switching over to the substitutes are low. 
B)  there are more than 10 sellers of substitute products. 
C)  the quality and performance of the substitutes is well above what buyers need to meet their requirements. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  demand for the industry's product is not very price sensitive.

Question 8

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

Accepted Answer

The answer of Identify five factors that tend to intensify...

Question 9

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

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 10

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Accepted Answer

A)  A salad as a substitute for French fries 
B)  Wireless phones as a substitute for wired telephones 
C)  Coca-Cola as a substitute for Pepsi 
D)  Snowboards as a substitute for snow skis 
E)  Video-on-demand services from a cable TV company as a substitute for going to the movies 
A)  A salad as a substitute for French fries 
B)  Wireless phones as a substitute for wired telephones 
C)  Coca-Cola as a substitute for Pepsi 
D)  Snowboards as a substitute for snow skis 
E)  Video-on-demand services from a cable TV company as a substitute for going to the movies

Question 11

The concept of strategic groups is relevant to industry and competitive analysis because

Accepted Answer

A)  firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B)  strategic group maps help identify each company's market position and its closest competitors. 
C)  competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D)  the profit potential of firms in the same strategic group is usually very similar. 
E)  competitive pressures tend to be weaker within strategic groups than across strategic groups. 
A)  firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups. 
B)  strategic group maps help identify each company's market position and its closest competitors. 
C)  competition grows in intensity as the number and diversity of the strategic groups in an industry increases. 
D)  the profit potential of firms in the same strategic group is usually very similar. 
E)  competitive pressures tend to be weaker within strategic groups than across strategic groups.

Question 12

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

Accepted Answer

A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices. 
A)  The costs to buyers of switching over to the substitutes are low. 
B)  Buyers are dubious about using substitutes. 
C)  The quality and performance of the substitutes is well matched to what buyers need to meet their requirements. 
D)  Buyer brand loyalty is weak. 
E)  Substitutes are readily available at competitive prices.

Question 13

What is the best technique for revealing the market position of industry competitors?

Accepted Answer

A)  Strategic group mapping. 
B)  Global industry change. 
C)  Dynamic mapping analysis. 
D)  Distribution analysis. 
E)  None of these. 
A)  Strategic group mapping. 
B)  Global industry change. 
C)  Dynamic mapping analysis. 
D)  Distribution analysis. 
E)  None of these.

Question 14

Industry conditions change

Accepted Answer

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

Question 15

The key success factors in an industry

Accepted Answer

A)  are those competitive aspects that most affect industry members' abilities to prosper in the marketplace-specific strategy elements, product attributes, competencies, competitive capabilities, and market achievements that spell the difference between being a strong competitor and a weak competitor. 
B)  are determined by the industry's driving forces. 
C)  hinge on how many different strategic groups the industry has. 
D)  depend on how many rivals are trying to move from one strategic group to another. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5%, and whether the business models being used are similar or diverse. 
A)  are those competitive aspects that most affect industry members' abilities to prosper in the marketplace-specific strategy elements, product attributes, competencies, competitive capabilities, and market achievements that spell the difference between being a strong competitor and a weak competitor. 
B)  are determined by the industry's driving forces. 
C)  hinge on how many different strategic groups the industry has. 
D)  depend on how many rivals are trying to move from one strategic group to another. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5%, and whether the business models being used are similar or diverse.

Question 16

Identify three conditions that tend to make potential entry a strong competitive force.

Accepted Answer

The answer of Identify three conditions that tend to make...

Question 17

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 sellers pose little threat of forward integration into the product market of their customers and 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 sellers pose little threat of forward integration into the product market of their customers and whether buyers pose a major threat to integrate backward into the product market of sellers

Question 18

Which one of the following is not a factor in causing supplier bargaining power to be relatively strong?

Accepted Answer

A)  The inputs needed from suppliers are in short supply. 
B)  Suppliers are a strong threat to integrate forward into the business of industry members. 
C)  The input being supplied is a commodity. 
D)  The input being supplied significantly enhances the quality or performance of the products of industry members. 
E)  There are only a few suppliers of the input. 
A)  The inputs needed from suppliers are in short supply. 
B)  Suppliers are a strong threat to integrate forward into the business of industry members. 
C)  The input being supplied is a commodity. 
D)  The input being supplied significantly enhances the quality or performance of the products of industry members. 
E)  There are only a few suppliers of the input.

Question 19

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

Accepted Answer

A)  it identifies who the industry's current market share leaders are. 
B)  it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals. 
C)  good scouting reports help identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing. 
A)  it identifies who the industry's current market share leaders are. 
B)  it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals. 
C)  good scouting reports help identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.

Question 20

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

Accepted Answer

A)  the forces driving change in the industry. 
B)  the dominant economic features of the industry in which the company operates. 
C)  the kinds of competitive forces industry members are facing and the strength of each competitive force. 
D)  the key factors influencing future competitive success in the industry. 
E)  All of these. 
A)  the forces driving change in the industry. 
B)  the dominant economic features of the industry in which the company operates. 
C)  the kinds of competitive forces industry members are facing and the strength of each competitive force. 
D)  the key factors influencing future competitive success in the industry. 
E)  All of these.

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

Using the five-forces model of competition to determine what competition is like in a given industry involves

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

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

A strategic group

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

The competitive pressures from substitute products tend to be stronger when

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

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

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

The concept of strategic groups is relevant to industry and competitive analysis because

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

What is the best technique for revealing the market position of industry competitors?

Industry conditions change

The key success factors in an industry

Identify three conditions that tend to make potential entry a strong competitive force.

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

Which one of the following is not a factor in causing supplier bargaining power to be relatively strong?

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

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 3: Evaluating a Companys External Environment

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

Using the five-forces model of competition to determine what competition is like in a given industry involves

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

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

A strategic group

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

The competitive pressures from substitute products tend to be stronger when

Identify five factors that tend to intensify competitive rivalry among an industry's member firms.

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

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

The concept of strategic groups is relevant to industry and competitive analysis because

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

What is the best technique for revealing the market position of industry competitors?

Industry conditions change

The key success factors in an industry

Identify three conditions that tend to make potential entry a strong competitive force.

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

Which one of the following is not a factor in causing supplier bargaining power to be relatively strong?

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

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies: Which One to Employ

Strengthening a Companys Competitive Position: Strategic Moves, timing, and Scope of Operation

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters