Question 1

Driving forces analysis helps managers identify whether

Accepted Answer

A)  the combined impacts of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance. 
A)  the combined impacts of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead. 
B)  it will become more or less important to aim the company's strategy at being the industry's low-cost producer. 
C)  the driving forces will have a bigger impact on company profitability than competitive forces. 
D)  the industry is likely to become more or less vertically integrated and why. 
E)  competitive advantages are likely to grow or diminish in importance.

Question 2

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

Accepted Answer

The answer of In doing driving forces analysis,is it sufficient...

Question 3

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 4

The intensity of rivalry among competing sellers does not depend on whether

Accepted Answer

A)  the industry has more than two strong driving forces and whether the industry has more than 2 strategic groups. 
B)  competitors are diverse in terms of visions, strategic intents, objectives, strategies, resources and countries of origin. 
C)  strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders. 
D)  one or two rivals have particularly powerful and successful strategies. 
E)  industry conditions tempt industry members to use price cuts or other competitive weapons to boost unit sales. 
A)  the industry has more than two strong driving forces and whether the industry has more than 2 strategic groups. 
B)  competitors are diverse in terms of visions, strategic intents, objectives, strategies, resources and countries of origin. 
C)  strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders. 
D)  one or two rivals have particularly powerful and successful strategies. 
E)  industry conditions tempt industry members to use price cuts or other competitive weapons to boost unit sales.

Question 5

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

Accepted Answer

The answer of What is the strategy-making value of identifying...

Question 6

Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong,moderate,or weak?

Accepted Answer

A)  Whether the products of rival sellers are strongly or weakly differentiated 
B)  Whether demand for the industry's product is growing rapidly or slowly 
C)  The degree to which rivals are satisfied with their current market position 
D)  Whether industry driving forces are strong or weak 
E)  Whether industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales and whether one or two rivals have particularly powerful strategies 
A)  Whether the products of rival sellers are strongly or weakly differentiated 
B)  Whether demand for the industry's product is growing rapidly or slowly 
C)  The degree to which rivals are satisfied with their current market position 
D)  Whether industry driving forces are strong or weak 
E)  Whether industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales and whether one or two rivals have particularly powerful strategies

Question 7

Rivalry among competing sellers is generally more intense when

Accepted Answer

A)  there are relatively few industry key success factors and rivals have highly differentiated products. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  rivals are active in making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share. 
E)  barriers to entry are high and buyer switching costs are high. 
A)  there are relatively few industry key success factors and rivals have highly differentiated products. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  rivals are active in making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share. 
E)  barriers to entry are high and buyer switching costs are high.

Question 8

The rivalry among competing firms tends to be more intense

Accepted Answer

A)  when demand for the product is growing slowly, buyers have low switching costs, and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals. 
B)  when the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares. 
A)  when demand for the product is growing slowly, buyers have low switching costs, and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals. 
B)  when the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares.

Question 9

Potential entrants are more likely to be deterred from actually entering an industry when

Accepted Answer

A)  incumbent firms have previously been aggressive in defending their market positions against entry. 
B)  incumbent firms are complacent. 
C)  buyers are not particularly price sensitive and the industry already contains a dozen or more rivals. 
D)  the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. 
E)  buyer switching costs are moderately low because of strong product differentiation among incumbent firms. 
A)  incumbent firms have previously been aggressive in defending their market positions against entry. 
B)  incumbent firms are complacent. 
C)  buyers are not particularly price sensitive and the industry already contains a dozen or more rivals. 
D)  the relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage. 
E)  buyer switching costs are moderately low because of strong product differentiation among incumbent firms.

Question 10

Which one of the following is not part of a company's macroenvironment?

Accepted Answer

A)  Conditions in the economy at large 
B)  Population demographics and societal values and lifestyles 
C)  Technological factors and governmental regulations and legislation 
D)  The industry and competitive environment arena in which the company operates 
E)  The company's resource strengths, resource weaknesses, and competitive capabilities 
A)  Conditions in the economy at large 
B)  Population demographics and societal values and lifestyles 
C)  Technological factors and governmental regulations and legislation 
D)  The industry and competitive environment arena in which the company operates 
E)  The company's resource strengths, resource weaknesses, and competitive capabilities

Question 11

Rivalry among competing sellers tends to be more intense when

Accepted Answer

A)  competitors are very unequal in size and capability, such that small competitors must really scramble to even survive. 
B)  buyer switching costs are high and market demand is growing rapidly. 
C)  several competitors are under pressure to improve their market share or profitability and launch fresh strategic initiatives to attract more buyers and bolster their business position. 
D)  the products of rival sellers are strongly differentiated. 
E)  there are fewer than 5 competitors and their products are strongly differentiated. 
A)  competitors are very unequal in size and capability, such that small competitors must really scramble to even survive. 
B)  buyer switching costs are high and market demand is growing rapidly. 
C)  several competitors are under pressure to improve their market share or profitability and launch fresh strategic initiatives to attract more buyers and bolster their business position. 
D)  the products of rival sellers are strongly differentiated. 
E)  there are fewer than 5 competitors and their products are strongly differentiated.

Question 12

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 answer of Draw the five-forces model of competition and...

Question 13

Competitive jockeying and market maneuvering among industry rivals

Accepted Answer

A)  determines whether the industry's strategic group map will be static or dynamic. 
B)  centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C)  is usually an industry's strongest driving force. 
D)  is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E)  is ever-changing as fresh offensive and defensive moves are initiated and as rivals emphasize first one mix of competitive weapons and tactics and then another. 
A)  determines whether the industry's strategic group map will be static or dynamic. 
B)  centers around collaborative efforts to overcome the bargaining power of powerful suppliers and powerful buyers. 
C)  is usually an industry's strongest driving force. 
D)  is usually one of the two or three weakest competitive forces because of the close familiarity that rivals have for one another's likely next moves. 
E)  is ever-changing as fresh offensive and defensive moves are initiated and as rivals emphasize first one mix of competitive weapons and tactics and then another.

Question 14

The most powerful of the five competitive forces is usually

Accepted Answer

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

Question 15

Which one of the following is not a reason why industry members are often motivated to enter into collaborative partnerships with key suppliers?

Accepted Answer

A)  To reduce the costs of switching suppliers 
B)  To speed the availability of next-generation components 
C)  To enhance the quality of parts and components being supplied and reduce defect rates 
D)  To squeeze out important cost savings for both themselves and their suppliers 
E)  To reduce inventory and logistics costs 
A)  To reduce the costs of switching suppliers 
B)  To speed the availability of next-generation components 
C)  To enhance the quality of parts and components being supplied and reduce defect rates 
D)  To squeeze out important cost savings for both themselves and their suppliers 
E)  To reduce inventory and logistics costs

Question 16

Evaluating whether an industry's environment presents a company with a sufficiently attractive business opportunity involves

Accepted Answer

A)  sizing up overall industry and competitive conditions to determine whether the industry's overall profit prospects are above average, average, or below average. 
B)  determining which firms in the industry have a competitive advantage and how they got their advantage. 
C)  determining the overall strength of the five competitive forces. 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E)  using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is. 
A)  sizing up overall industry and competitive conditions to determine whether the industry's overall profit prospects are above average, average, or below average. 
B)  determining which firms in the industry have a competitive advantage and how they got their advantage. 
C)  determining the overall strength of the five competitive forces. 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups. 
E)  using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

Question 17

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

Accepted Answer

A)  Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions 
B)  The extent to which economies of scale and learning/experience curve effects are present 
C)  How many strategic groups the industry has and which ones are most profitable and least profitable 
D)  The number and sizes of buyers, the number of rivals, and the pace of product innovation 
E)  The prevalence of technological change 
A)  Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions 
B)  The extent to which economies of scale and learning/experience curve effects are present 
C)  How many strategic groups the industry has and which ones are most profitable and least profitable 
D)  The number and sizes of buyers, the number of rivals, and the pace of product innovation 
E)  The prevalence of technological change

Question 18

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist 
A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low and buyer demand for the product is growing fairly rapidly 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Question 19

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

Accepted Answer

A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be either quantitative or qualitative. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 
A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be either quantitative or qualitative. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Question 20

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

Accepted Answer

A)  whether the profits of suppliers are relatively high or low. 
B)  the number of suppliers that each seller/industry member purchases from on average. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  whether suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling. 
A)  whether the profits of suppliers are relatively high or low. 
B)  the number of suppliers that each seller/industry member purchases from on average. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  whether suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling.

Driving forces analysis helps managers identify whether

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

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

The intensity of rivalry among competing sellers does not depend on whether

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

Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong,moderate,or weak?

Rivalry among competing sellers is generally more intense when

The rivalry among competing firms tends to be more intense

Potential entrants are more likely to be deterred from actually entering an industry when

Which one of the following is not part of a company's macroenvironment?

Rivalry among competing sellers tends to be more intense when

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?

Competitive jockeying and market maneuvering among industry rivals

The most powerful of the five competitive forces is usually

Which one of the following is not a reason why industry members are often motivated to enter into collaborative partnerships with key suppliers?

Evaluating whether an industry's environment presents a company with a sufficiently attractive business opportunity involves

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

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

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

Driving forces analysis helps managers identify whether

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

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

The intensity of rivalry among competing sellers does not depend on whether

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

Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong,moderate,or weak?

Rivalry among competing sellers is generally more intense when

The rivalry among competing firms tends to be more intense

Potential entrants are more likely to be deterred from actually entering an industry when

Which one of the following is not part of a company's macroenvironment?

Rivalry among competing sellers tends to be more intense when

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?

Competitive jockeying and market maneuvering among industry rivals

The most powerful of the five competitive forces is usually

Which one of the following is not a reason why industry members are often motivated to enter into collaborative partnerships with key suppliers?

Evaluating whether an industry's environment presents a company with a sufficiently attractive business opportunity involves

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

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

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