Question 1

What is a key feature of an oligopoly?

Accepted Answer

A key feature of an oligopoly is that th

Question 2

Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?

Accepted Answer

A)  The overall industry profitability will increase. 
B)  The threat of strong competitive forces such as supplier power will increase. 
C)  The industry will face excess capacity in the future. 
D)  The structure of the industry will change from consolidated to one that is fragmented. 
A)  The overall industry profitability will increase. 
B)  The threat of strong competitive forces such as supplier power will increase. 
C)  The industry will face excess capacity in the future. 
D)  The structure of the industry will change from consolidated to one that is fragmented.

Question 3

Which of the following is an implication of low interest rates?

Accepted Answer

A)  Cost of capital for firms will be high. 
B)  Firms will invest less in future growth. 
C)  Economic growth rate will fall. 
D)  Consumer demand will increase. 
A)  Cost of capital for firms will be high. 
B)  Firms will invest less in future growth. 
C)  Economic growth rate will fall. 
D)  Consumer demand will increase.

Question 4

A firm's _____ relates to its ability to create value for customers (V)while containing the cost to do so (C).

Accepted Answer

A)  strategic position 
B)  incumbency 
C)  threat of entry 
D)  attrition rate 
A)  strategic position 
B)  incumbency 
C)  threat of entry 
D)  attrition rate

Question 5

Eon Inc., Electravia Inc., and FC Inc., the three largest firms in the consumer electronics industry, hold close to 85 percent of the industry's market share.These companies mainly compete against each other by providing unique features in their products rather than pricing them low.These firms are interdependent, and each firm must consider the strategic actions of its competitors.Which of the following industry competitive structures does this scenario best illustrate?

Accepted Answer

A)  Monopolistic competition 
B)  Oligopoly 
C)  Monopoly 
D)  Perfect competition 
A)  Monopolistic competition 
B)  Oligopoly 
C)  Monopoly 
D)  Perfect competition

Question 6

A strategic group will typically include:

Accepted Answer

A)  firms within the same industry. 
B)  customers belonging to a particular socioeconomic class. 
C)  firms employing similar number of employees, irrespective of their industries. 
D)  employees within a firm earning the same amount of salaries. 
A)  firms within the same industry. 
B)  customers belonging to a particular socioeconomic class. 
C)  firms employing similar number of employees, irrespective of their industries. 
D)  employees within a firm earning the same amount of salaries.

Question 7

In a firm's external environment, _____ primarily capture population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class.

Accepted Answer

A)  political trends 
B)  demographic trends 
C)  ecological trends 
D)  economic trends 
A)  political trends 
B)  demographic trends 
C)  ecological trends 
D)  economic trends

Question 8

The final step in industry analysis is to:

Accepted Answer

A)  draw a strategic group map. 
B)  identify the underlying drivers of the five forces. 
C)  identify the key players in each of the five forces. 
D)  define the relevant industry. 
A)  draw a strategic group map. 
B)  identify the underlying drivers of the five forces. 
C)  identify the key players in each of the five forces. 
D)  define the relevant industry.

Question 9

Companies in the same strategic group are _____ to each other.

Accepted Answer

A)  complementors 
B)  direct competitors 
C)  strategic partners 
D)  shareholders 
A)  complementors 
B)  direct competitors 
C)  strategic partners 
D)  shareholders

Question 10

Which of the following is a feature of an oligopolistic industry structure?

Accepted Answer

A)  Many small sellers 
B)  Standardized or undifferentiated products 
C)  Limited pricing power 
D)  High entry barriers 
A)  Many small sellers 
B)  Standardized or undifferentiated products 
C)  Limited pricing power 
D)  High entry barriers

Question 11

What is most likely to happen when there is too much money in an economy?

Accepted Answer

A)  There are too many goods and services. 
B)  There is a drop in interest rates. 
C)  There is high economic growth. 
D)  There is an increase in prices. 
A)  There are too many goods and services. 
B)  There is a drop in interest rates. 
C)  There is high economic growth. 
D)  There is an increase in prices.

Question 12

What does a competitive industry structure refer to?

Accepted Answer

A competitive industry structure refers

Question 13

Discuss the features of a perfectly competitive industry.

Accepted Answer

A perfectly competitive industry is char

Question 14

The government of Filvia has mandated that the standard minimum wage in the country be increased to $8,000 per year.This has ensured that all firms in the country pay their employees at least $8,000 per year, which has brought about a higher standard of living for the people of Filvia.Which of the following factors in a firm's general environment does this mandate best indicate?

Accepted Answer

A)  Ecological factors 
B)  Sociocultural factors 
C)  Technological factors 
D)  Legal factors 
A)  Ecological factors 
B)  Sociocultural factors 
C)  Technological factors 
D)  Legal factors

Question 15

What are the important dimensions along which strategic groups differ?

Accepted Answer

Strategic groups differ from one another

Question 16

In which of the following situations is a company that exists in the telecommunications industry most likely to face the highest threat of entry?

Accepted Answer

A)  If the company is able to put up a credible threat of retaliation 
B)  If the capital requirements in the industry are high 
C)  If the customer switching costs in the industry are high 
D)  If the industry has recently become deregulated 
A)  If the company is able to put up a credible threat of retaliation 
B)  If the capital requirements in the industry are high 
C)  If the customer switching costs in the industry are high 
D)  If the industry has recently become deregulated

Question 17

Vibgyor TV Inc.is a large production company that controls a major portion of the movie industry's market share along with two other firms.Despite its competitiveness with the two other firms, it is influenced by their actions and often has to consider their strategic actions before acting on its own.In this scenario, Vibgyor TV Inc.is most likely functioning in a(n)_____ industry.

Accepted Answer

A)  oligopolistic 
B)  monopolistic 
C)  perfectly competitive 
D)  monopolistically competitive 
A)  oligopolistic 
B)  monopolistic 
C)  perfectly competitive 
D)  monopolistically competitive

Question 18

Discuss the sociocultural factors managers need to consider in a PESTEL analysis.

Accepted Answer

Sociocultural factors capture a society'

Question 19

The telecommunication industry of United Canava is primarily dominated by three large firms, AD Telecom Inc., Mystic Telecom Corp., and Total Talk Inc.Instead of cutting prices competitively, these firms have resorted to non-price competition through branding and product differentiation.Which of the following industry competitive structures are these companies most likely in?

Accepted Answer

A)  Monopoly 
B)  Perfect competition 
C)  Monopolistic competition 
D)  Oligopoly 
A)  Monopoly 
B)  Perfect competition 
C)  Monopolistic competition 
D)  Oligopoly

Question 20

Which of the following is an implication of high exit barriers in an industry?

Accepted Answer

A)  The number of underperforming firms in the industry will be low. 
B)  The industry will face excess capacity. 
C)  The competitive pressure among existing firms will be low. 
D)  The industry will be more attractive for new entrants. 
A)  The number of underperforming firms in the industry will be low. 
B)  The industry will face excess capacity. 
C)  The competitive pressure among existing firms will be low. 
D)  The industry will be more attractive for new entrants.

What is a key feature of an oligopoly?

Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?

Which of the following is an implication of low interest rates?

A firm's _____ relates to its ability to create value for customers (V)while containing the cost to do so (C).

A strategic group will typically include:

In a firm's external environment, _____ primarily capture population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class.

The final step in industry analysis is to:

Companies in the same strategic group are _____ to each other.

Which of the following is a feature of an oligopolistic industry structure?

What is most likely to happen when there is too much money in an economy?

What does a competitive industry structure refer to?

Discuss the features of a perfectly competitive industry.

What are the important dimensions along which strategic groups differ?

In which of the following situations is a company that exists in the telecommunications industry most likely to face the highest threat of entry?

Discuss the sociocultural factors managers need to consider in a PESTEL analysis.

Which of the following is an implication of high exit barriers in an industry?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters

Exam 3: External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

What is a key feature of an oligopoly?

Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?

Which of the following is an implication of low interest rates?

A firm's _____ relates to its ability to create value for customers (V)while containing the cost to do so (C).

A strategic group will typically include:

In a firm's external environment, _____ primarily capture population characteristics related to age, gender, family size, ethnicity, sexual orientation, religion, and socioeconomic class.

The final step in industry analysis is to:

Companies in the same strategic group are _____ to each other.

Which of the following is a feature of an oligopolistic industry structure?

What is most likely to happen when there is too much money in an economy?

What does a competitive industry structure refer to?

Discuss the features of a perfectly competitive industry.

What are the important dimensions along which strategic groups differ?

In which of the following situations is a company that exists in the telecommunications industry most likely to face the highest threat of entry?

Discuss the sociocultural factors managers need to consider in a PESTEL analysis.

Which of the following is an implication of high exit barriers in an industry?

What Is Strategy

Strategic Leadership: Managing the Strategy Process

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters