Question 1

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

Accepted Answer

Answers may vary.

Question 2

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

Accepted Answer

Answers may vary.

Question 3

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)  The number of buyers is small,or a customer is particularly important to the seller. 
B)  Buyers are relatively well informed about sellers' products,prices,and costs. 
C)  Buyer needs and expectations are changing slowly or rapidly. 
D)  Buyer demand is weak or strong and slowly or rapidly growing. 
E)  Buyers pose a credible threat of integrating backward into the business of sellers. 
A)  The number of buyers is small,or a customer is particularly important to the seller. 
B)  Buyers are relatively well informed about sellers' products,prices,and costs. 
C)  Buyer needs and expectations are changing slowly or rapidly. 
D)  Buyer demand is weak or strong and slowly or rapidly growing. 
E)  Buyers pose a credible threat of integrating backward into the business of sellers. C

Question 4

Which one of the following is not a common type of driving force?

Accepted Answer

A)  entry or exit of major firms 
B)  changing societal concerns,attitudes,and lifestyles 
C)  diffusion of technical know-how across more companies and more countries 
D)  increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  technological change and manufacturing process innovation 
A)  entry or exit of major firms 
B)  changing societal concerns,attitudes,and lifestyles 
C)  diffusion of technical know-how across more companies and more countries 
D)  increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  technological change and manufacturing process innovation

Question 5

Identify and briefly explain any three factors that weaken the 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...

Question 6

Competitive pressures stemming from buyer bargaining power tend to be weaker when

Accepted Answer

A)  the number of buyers is small,such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers are well informed about sellers' products,prices,and costs. 
E)  the buyer group consists of a few large buyers,and the seller group consists of numerous small firms. 
A)  the number of buyers is small,such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers are well informed about sellers' products,prices,and costs. 
E)  the buyer group consists of a few large buyers,and the seller group consists of numerous small firms.

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. 
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 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. 
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 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

The "driving forces" in an industry

Accepted Answer

A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  are usually spawned by growing demand for the product,an outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products. 
A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  are usually spawned by growing demand for the product,an outbreak of price-cutting,and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

Question 9

The bargaining leverage of suppliers is greater when

Accepted Answer

A)  only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  it makes good economic sense for industry members to vertically integrate backward. 
E)  the supplier industry is composed of a large number of relatively small suppliers. 
A)  only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  it makes good economic sense for industry members to vertically integrate backward. 
E)  the supplier industry is composed of a large number of relatively small suppliers.

Question 10

Factors that cause the rivalry among competing sellers to be weak include

Accepted Answer

A)  low buyer switching costs and rival sellers that are relatively equal in size and capability. 
B)  rapid growth in buyer demand and high buyer switching costs. 
C)  a recent acquisition of a weak rival by an industry outsider with the intent of turning the acquisition into a major contender. 
D)  low barriers to entry and weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand and strongly differentiated products. 
A)  low buyer switching costs and rival sellers that are relatively equal in size and capability. 
B)  rapid growth in buyer demand and high buyer switching costs. 
C)  a recent acquisition of a weak rival by an industry outsider with the intent of turning the acquisition into a major contender. 
D)  low barriers to entry and weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand and strongly differentiated products.

Question 11

A strategic group consists of those firms in an industry that

Accepted Answer

A)  are subject to the same driving forces. 
B)  place about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares. 
A)  are subject to the same driving forces. 
B)  place about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares.

Question 12

Which of the following is a good example of a manufacturing-related key success factor?

Accepted Answer

A)  global distribution capabilities 
B)  high labor productivity (especially if the production process has high labor content) 
C)  low distribution costs 
D)  accurate filling of buyer orders 
E)  short delivery time capability 
A)  global distribution capabilities 
B)  high labor productivity (especially if the production process has high labor content) 
C)  low distribution costs 
D)  accurate filling of buyer orders 
E)  short delivery time capability

Question 13

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 14

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 15

Which one of the following is not a reason 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

The state of competition in an industry is a function of

Accepted Answer

A)  competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these choices are correct. 
A)  competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these choices are correct.

Question 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

A)  Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers. 
B)  Industry members are struggling to earn good profits. 
C)  Entry barriers are relatively low. 
D)  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)  Newcomers can expect to earn attractive profits,and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist. 
A)  Incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers. 
B)  Industry members are struggling to earn good profits. 
C)  Entry barriers are relatively low. 
D)  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)  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

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 20

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

Accepted Answer

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

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

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

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 common type of driving force?

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

Competitive pressures stemming from buyer bargaining power tend to be weaker when

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

The "driving forces" in an industry

The bargaining leverage of suppliers is greater when

Factors that cause the rivalry among competing sellers to be weak include

A strategic group consists of those firms in an industry that

Which of the following is a good example of a manufacturing-related key success factor?

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

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

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

The state of competition in an industry is a function of

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

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

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.

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

Strategy,Business Models, and Competitive Advantage

Strategy Formulation, Execution, and Governance

Evaluating a Company Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strength-Ending a Company Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multi-Business Company

Ethics,Corporate Social Responsibility,Environmental Sustainability, and Strategy

Super Strategy Execution-Another Path to Competitive Advantage

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Exam 3: Evaluating a Companys External Environment

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

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

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 common type of driving force?

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

Competitive pressures stemming from buyer bargaining power tend to be weaker when

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

The "driving forces" in an industry

The bargaining leverage of suppliers is greater when

Factors that cause the rivalry among competing sellers to be weak include

A strategic group consists of those firms in an industry that

Which of the following is a good example of a manufacturing-related key success factor?

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

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

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

The state of competition in an industry is a function of

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

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

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.

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

Strategy,Business Models, and Competitive Advantage

Strategy Formulation, Execution, and Governance

Evaluating a Company Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strength-Ending a Company Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multi-Business Company

Ethics,Corporate Social Responsibility,Environmental Sustainability, and Strategy

Super Strategy Execution-Another Path to Competitive Advantage

Filters