Question 1

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)  the extent to which 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)  the extent to which 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.

Question 2

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  changes in who buys the product and how they use it,changes in the long-term industry growth rate,and changes in cost and efficiency 
B)  entry or exit of major firms,product innovation,and marketing innovation 
C)  increases in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  diffusion of technical know-how and changing societal concerns,attitudes,and lifestyles 
E)  changes in manufacturing processes brought on by technological change,increasing globalization of the industry,and new Internet capabilities 
A)  changes in who buys the product and how they use it,changes in the long-term industry growth rate,and changes in cost and efficiency 
B)  entry or exit of major firms,product innovation,and marketing innovation 
C)  increases in the economic power and bargaining leverage of customers and suppliers,growing supplier-seller collaboration,and growing buyer-seller collaboration 
D)  diffusion of technical know-how and changing societal concerns,attitudes,and lifestyles 
E)  changes in manufacturing processes brought on by technological change,increasing globalization of the industry,and new Internet capabilities

Question 3

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

Accepted Answer

The answer of Identify and briefly describe five common barriers...

Question 4

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Accepted Answer

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

Question 5

Steps involved in driving forces analysis include:

Accepted Answer

A)  developing a comprehensive list of all the potential causes of changing industry conditions. 
B)  predicting which new driving forces will emerge next. 
C)  determining which of the five competitive forces is the biggest driver of industry change. 
D)  identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes are needed to prepare for the impact of the driving forces. 
E)  All of these choices are correct. 
A)  developing a comprehensive list of all the potential causes of changing industry conditions. 
B)  predicting which new driving forces will emerge next. 
C)  determining which of the five competitive forces is the biggest driver of industry change. 
D)  identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes are needed to prepare for the impact of the driving forces. 
E)  All of these choices are correct.

Question 6

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Ups and downs in the economy and interest rates 
E)  New government regulations or significant changes in government policy toward the industry 
A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Ups and downs in the economy and interest rates 
E)  New government regulations or significant changes in government policy toward the industry

Question 7

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 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 buyers have the ability to postpone purchases if they don't like the prices offered by sellers 
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 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 buyers have the ability to postpone purchases if they don't like the prices offered by sellers 
E)  when buyers are few in number and/or often purchase in large quantities

Question 8

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

Accepted Answer

A)  artificial sweetener as a substitute for sugar 
B)  wireless phone service as a substitute for a landline telephone 
C)  Coca-Cola as a substitute for Pepsi 
D)  digital cameras as substitutes for film cameras 
E)  video-on-demand services as a substitute for renting movies from a movie rental store 
A)  artificial sweetener as a substitute for sugar 
B)  wireless phone service as a substitute for a landline telephone 
C)  Coca-Cola as a substitute for Pepsi 
D)  digital cameras as substitutes for film cameras 
E)  video-on-demand services as a substitute for renting movies from a movie rental store

Question 9

Having good competitive intelligence about rivals' strategies,latest actions and announcements,resource strengths and weaknesses,and moves to improve their situation is important because it

Accepted Answer

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

Question 10

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

Accepted Answer

The answer of What are the key questions that form...

Question 11

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Accepted Answer

A)  the industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors 
B)  an assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor 
C)  whether there are more than five key success factors and more than five barriers to entry 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 
A)  the industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors 
B)  an assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor 
C)  whether there are more than five key success factors and more than five barriers to entry 
D)  constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question 12

Can an industry be attractive to one company and unattractive to another company? Why or why not?

Accepted Answer

The answer of Can an industry be attractive to one...

Question 13

The payoff of good scouting reports on rivals is improved ability to

Accepted Answer

A)  predict what strategic moves rivals are likely to make next,thereby allowing a company to prepare defensive countermoves and develop strategies to exploit rivals' missteps. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share,whether rivals are increasing or decreasing R&D spending,and what new marketing promotions are in the works. 
E)  determine whether a rival has the best strategy and is the industry leader. 
A)  predict what strategic moves rivals are likely to make next,thereby allowing a company to prepare defensive countermoves and develop strategies to exploit rivals' missteps. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share,whether rivals are increasing or decreasing R&D spending,and what new marketing promotions are in the works. 
E)  determine whether a rival has the best strategy and is the industry leader.

Question 14

Rivalry among competing sellers tends to be less intense when

Accepted Answer

A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak,and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D)  rivals have diverse strategies and objectives,and are located in different countries. 
E)  rival sellers have weakly differentiated products. 
A)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B)  buyer demand is weak,and many sellers have excess capacity and/or inventory. 
C)  industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D)  rivals have diverse strategies and objectives,and are located in different countries. 
E)  rival sellers have weakly differentiated products.

Question 15

Driving forces analysis

Accepted Answer

A)  involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impact of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain) the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change. 
A)  involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impact of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain) the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change.

Question 16

Which of the following is not a good example of a marketing-related key success factor?

Accepted Answer

A)  high utilization of fixed assets 
B)  a well-known and well-respected brand name 
C)  breadth of product line and product selection 
D)  clever advertising 
E)  courteous,personalized customer service 
A)  high utilization of fixed assets 
B)  a well-known and well-respected brand name 
C)  breadth of product line and product selection 
D)  clever advertising 
E)  courteous,personalized customer service

Question 17

As a rule,the stronger the collective impact of competitive pressures associated with the five competitive forces,the

Accepted Answer

A)  stronger are the industry's driving forces. 
B)  lower the combined profitability of industry members. 
C)  fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  larger the number of competitive advantage opportunities for industry members. 
E)  greater the number of industry key success factors. 
A)  stronger are the industry's driving forces. 
B)  lower the combined profitability of industry members. 
C)  fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  larger the number of competitive advantage opportunities for industry members. 
E)  greater the number of industry key success factors.

Question 18

Explain the meaning and significance of each of the following:
a.driving forces
b.PESTEL analysis
c.strategic group mapping
d.key success factors

Accepted Answer

The answer of Explain the meaning and significance of each...

Question 19

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 
B)  whether competitive pressures will likely grow stronger or weaker 
C)  whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  the company's competitive position in the industry and its ability to perform industry key success factors 
E)  whether the industry's product is strongly or weakly differentiated 
A)  the industry's growth potential 
B)  whether competitive pressures will likely grow stronger or weaker 
C)  whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  the company's competitive position in the industry and its ability to perform industry key success factors 
E)  whether the industry's product is strongly or weakly differentiated

Question 20

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,and...

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

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

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

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Steps involved in driving forces analysis include:

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

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

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

Having good competitive intelligence about rivals' strategies,latest actions and announcements,resource strengths and weaknesses,and moves to improve their situation is important because it

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

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Can an industry be attractive to one company and unattractive to another company? Why or why not?

The payoff of good scouting reports on rivals is improved ability to

Rivalry among competing sellers tends to be less intense when

Driving forces analysis

Which of the following is not a good example of a marketing-related key success factor?

As a rule,the stronger the collective impact of competitive pressures associated with the five competitive forces,the

Explain the meaning and significance of each of the following: a.driving forces b.PESTEL analysis c.strategic group mapping d.key success factors

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

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

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

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

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

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

Identify five factors that tend to weaken the intensity of competitive rivalry among an industry's member firms.

Steps involved in driving forces analysis include:

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

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

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

Having good competitive intelligence about rivals' strategies,latest actions and announcements,resource strengths and weaknesses,and moves to improve their situation is important because it

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

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Can an industry be attractive to one company and unattractive to another company? Why or why not?

The payoff of good scouting reports on rivals is improved ability to

Rivalry among competing sellers tends to be less intense when

Driving forces analysis

Which of the following is not a good example of a marketing-related key success factor?

As a rule,the stronger the collective impact of competitive pressures associated with the five competitive forces,the

Explain the meaning and significance of each of the following: a.driving forces b.PESTEL analysis c.strategic group mapping d.key success factors

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

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

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