Question 1

An industry's driving forces

Accepted Answer

A)  are generally determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  generally act in ways which will strengthen or weaken market demand, competition, and industry profitability in future years. 
C)  frequently cause a reduction in the bargaining power of buyers. 
D)  are normally triggered by ups and downs in the economy, higher or lower interest rates, or important new strategic alliances. 
E)  can be triggered by such factors as growing competitive pressures from substitute products, and the efforts of rival firms to employ new or different offensive strategies. 
A)  are generally determined by the sizes of strategic groups and the power of rival firms' competitive strategies. 
B)  generally act in ways which will strengthen or weaken market demand, competition, and industry profitability in future years. 
C)  frequently cause a reduction in the bargaining power of buyers. 
D)  are normally triggered by ups and downs in the economy, higher or lower interest rates, or important new strategic alliances. 
E)  can be triggered by such factors as growing competitive pressures from substitute products, and the efforts of rival firms to employ new or different offensive strategies.

Question 2

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

Accepted Answer

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

Question 3

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

Accepted Answer

A)  whether most buyers possess roughly equal or varying degrees of bargaining power and leverage. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low and the size of the pool of likely entry candidates. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether demand-supply conditions represent a buyer's market or a seller's market. 
A)  whether most buyers possess roughly equal or varying degrees of bargaining power and leverage. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low and the size of the pool of likely entry candidates. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether demand-supply conditions represent a buyer's market or a seller's market.

Question 4

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

Accepted Answer

A)  Whether winning the business of prestigious customers gives a seller important market exposure and heightens its brand name 
B)  Whether the seller is a manufacturer. 
C)  Whether buyers pose a major threat to integrate backward into the product market of sellers 
D)  Whether sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands 
E)  Whether collaborative partnerships and alliances between particular sellers and buyers put rivals lacking such collaborative relationships at a competitive disadvantage 
A)  Whether winning the business of prestigious customers gives a seller important market exposure and heightens its brand name 
B)  Whether the seller is a manufacturer. 
C)  Whether buyers pose a major threat to integrate backward into the product market of sellers 
D)  Whether sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands 
E)  Whether collaborative partnerships and alliances between particular sellers and buyers put rivals lacking such collaborative relationships at a competitive disadvantage

Question 5

Which one of the following is not an integral part of driving forces analysis?

Accepted Answer

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

Question 6

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

Accepted Answer

The answer of Identify and briefly explain any two of...

Question 7

Which of the following is not a factor that causes buyer bargaining power to be stronger?

Accepted Answer

A)  Some buyers are a threat to integrate backward into the business of sellers and become an important competitor. 
B)  The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities. 
C)  Buyers have considerable discretion over whether and when they purchase the product. 
D)  Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs. 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low. 
A)  Some buyers are a threat to integrate backward into the business of sellers and become an important competitor. 
B)  The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities. 
C)  Buyers have considerable discretion over whether and when they purchase the product. 
D)  Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs. 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

Question 8

In which one of the following instances are the competitive pressures that industry members experience in their dealings with suppliers not weakened?

Accepted Answer

A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply 
A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply

Question 9

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

Accepted Answer

A)  Geographic coverage 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/quality range and whether the company's product appeals to many or few types of buyers 
A)  Geographic coverage 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/quality range and whether the company's product appeals to many or few types of buyers

Question 10

An industry's key success factors

Accepted Answer

A)  are a function of market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  can be determined from an analysis of an industry's dominant economic characteristics, what competition is like, the impacts of the driving forces, the comparative market positions of industry members, and the likely next moves of industry rivals. 
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, economies of scale, degree of vertical integration, and industry profitability. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  can be determined from an analysis of an industry's dominant economic characteristics, what competition is like, the impacts of the driving forces, the comparative market positions of industry members, and the likely next moves of industry rivals. 
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 11

A company's "macro-environment" refers to

Accepted Answer

A)  the industry and competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  all the relevant forces and factors outside a company's boundaries-general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates. 
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 competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets where a company operates. 
C)  all the relevant forces and factors outside a company's boundaries-general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry.

Question 12

Just how strong the competitive pressures are from substitute products depends on

Accepted Answer

A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing. 
A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing.

Question 13

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

Accepted Answer

The answer of Explain why low switching costs and weakly...

Question 14

Which of the following is generally not considered as a barrier to entry?

Accepted Answer

A)  Rapid market growth 
B)  Sizable capital requirements and an array of regulatory requirements 
C)  Strong buyer loyalty to existing brands 
D)  Sizable economies of scale in production 
E)  Difficulties in gaining access to technological know-how 
A)  Rapid market growth 
B)  Sizable capital requirements and an array of regulatory requirements 
C)  Strong buyer loyalty to existing brands 
D)  Sizable economies of scale in production 
E)  Difficulties in gaining access to technological know-how

Question 15

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

Accepted Answer

A)  Which rivals badly need to increase their unit sales and market share and what new offensive initiatives are they likely to employ? 
B)  Which rivals are poised to gain market share and which seem destined to lose market share? 
C)  Which rivals are good candidates to be acquired? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings (so as to enter new market segments where they currently do not have a presence)? 
E)  All of these. 
A)  Which rivals badly need to increase their unit sales and market share and what new offensive initiatives are they likely to employ? 
B)  Which rivals are poised to gain market share and which seem destined to lose market share? 
C)  Which rivals are good candidates to be acquired? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings (so as to enter new market segments where they currently do not have a presence)? 
E)  All of these.

Question 16

The task of driving forces analysis is to

Accepted Answer

A)  develop a comprehensive list of all the potential causes of changing industry conditions. 
B)  predict which new driving forces will emerge next. 
C)  determine which of the five competitive forces is the biggest driver of industry change. 
D)  identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces. 
E)  learn what the industry key success factors are and how they might change in the future. 
A)  develop a comprehensive list of all the potential causes of changing industry conditions. 
B)  predict which new driving forces will emerge next. 
C)  determine which of the five competitive forces is the biggest driver of industry change. 
D)  identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces. 
E)  learn what the industry key success factors are and how they might change in the future.

Question 17

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

Accepted Answer

The answer of Identify at least five common driving forces...

Question 18

Which one of the following is not a factor that affects the strength of supplier bargaining power?

Accepted Answer

A)  Whether needed inputs are in ample supply and are readily available from several different suppliers 
B)  Whether industry members are a strong threat to integrate backward into the business of suppliers and self-manufacture their own requirements 
C)  Whether industry members are struggling to make good profits because of slow-growing market demand 
D)  Whether the costs of industry members to switch their purchases to alternative suppliers are high or low 
E)  Whether the item being supplied is a commodity or is highly differentiated from supplier to supplier 
A)  Whether needed inputs are in ample supply and are readily available from several different suppliers 
B)  Whether industry members are a strong threat to integrate backward into the business of suppliers and self-manufacture their own requirements 
C)  Whether industry members are struggling to make good profits because of slow-growing market demand 
D)  Whether the costs of industry members to switch their purchases to alternative suppliers are high or low 
E)  Whether the item being supplied is a commodity or is highly differentiated from supplier to supplier

Question 19

Competitive pressures stemming from the threat of entry are weaker when

Accepted Answer

A)  there are fewer than 20 potential entry candidates and more than 10 firms already in the industry. 
B)  there are more than 3 entry barriers. 
C)  the industry outlook is risky or uncertain. 
D)  incumbent firms have little ability to leverage distributors, dealers, and/or retailers to retain their business. 
E)  the nature of the industry entails few scale economies. 
A)  there are fewer than 20 potential entry candidates and more than 10 firms already in the industry. 
B)  there are more than 3 entry barriers. 
C)  the industry outlook is risky or uncertain. 
D)  incumbent firms have little ability to leverage distributors, dealers, and/or retailers to retain their business. 
E)  the nature of the industry entails few scale economies.

Question 20

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

Accepted Answer

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

An industry's driving forces

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

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

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

Which one of the following is not an integral part of driving forces analysis?

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

Which of the following is not a factor that causes buyer bargaining power to be stronger?

In which one of the following instances are the competitive pressures that industry members experience in their dealings with suppliers not weakened?

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

An industry's key success factors

A company's "macro-environment" refers to

Just how strong the competitive pressures are from substitute products depends on

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

Which of the following is generally not considered as a barrier to entry?

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

The task of driving forces analysis is to

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

Which one of the following is not a factor that affects the strength of supplier bargaining power?

Competitive pressures stemming from the threat of entry are weaker when

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

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

An industry's driving forces

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

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

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

Which one of the following is not an integral part of driving forces analysis?

Identify and briefly explain any two of the factors that influence the strength of competition from substitute products.

Which of the following is not a factor that causes buyer bargaining power to be stronger?

In which one of the following instances are the competitive pressures that industry members experience in their dealings with suppliers not weakened?

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

An industry's key success factors

A company's "macro-environment" refers to

Just how strong the competitive pressures are from substitute products depends on

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

Which of the following is generally not considered as a barrier to entry?

In seeking to predict the next moves of close or key rivals,it is useful to consider such questions as:

The task of driving forces analysis is to

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

Which one of the following is not a factor that affects the strength of supplier bargaining power?

Competitive pressures stemming from the threat of entry are weaker when

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

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