Question 1

_____ are best described as industry-specific factors that separate one strategic group from another.

Accepted Answer

A)  Mobility barriers 
B)  Excise duties 
C)  Embargoes 
D)  Learning effects 
A)  Mobility barriers 
B)  Excise duties 
C)  Embargoes 
D)  Learning effects

Question 2

Discuss the situations in which bargaining power of suppliers is high.

Accepted Answer

The relative bargaining power of supplie

Question 3

When applying the five forces model, the first step should ideally be:

Accepted Answer

A)  drawing a strategic group map. 
B)  identify the underlying drivers of each force. 
C)  assessing the overall industry structure. 
D)  defining the relevant industry. 
A)  drawing a strategic group map. 
B)  identify the underlying drivers of each force. 
C)  assessing the overall industry structure. 
D)  defining the relevant industry.

Question 4

A fragmented industry is made into a consolidated industry through:

Accepted Answer

A)  governmental deregulation. 
B)  globalization. 
C)  technological innovation and new legislation. 
D)  horizontal mergers and acquisitions. 
A)  governmental deregulation. 
B)  globalization. 
C)  technological innovation and new legislation. 
D)  horizontal mergers and acquisitions.

Question 5

Discuss the advantages incumbent firms possess, independent of their size.

Accepted Answer

Incumbent firms often possess cost and q

Question 6

What are network effects?

Accepted Answer

Network effects describe the positive ef

Question 7

What are exit barriers in an industry? Discuss.

Accepted Answer

The rivalry among existing competitors i

Question 8

Due to economic regression in United Filipia, the profitability of the large conglomerate Blue Wing Products Inc.(BWP)was poor.An analysis of the company's business showed that the company could become profitable if it divested a few strategic business units under its banner.From which of the following businesses would BWP find it most easy to exit?

Accepted Answer

A)  The automobile business where the company has contractual obligations with suppliers 
B)  The airline business where the company's strategic commitments are long-term 
C)  The e-commerce retail business where investments on assets are low 
D)  The pharmaceutical business where the company has a large number of fixed costs 
A)  The automobile business where the company has contractual obligations with suppliers 
B)  The airline business where the company's strategic commitments are long-term 
C)  The e-commerce retail business where investments on assets are low 
D)  The pharmaceutical business where the company has a large number of fixed costs

Question 9

Which of the following is an example of monopolistic competition?

Accepted Answer

A)  Iron ore industry 
B)  Computer hardware industry 
C)  Express delivery industry 
D)  Beverages industry 
A)  Iron ore industry 
B)  Computer hardware industry 
C)  Express delivery industry 
D)  Beverages industry

Question 10

Bright Billion Inc., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability.Which of the following industries would Bright Billion Inc.find it most difficult to exit?

Accepted Answer

A)  The management consultancy industry in which the company's fixed costs are low 
B)  The steel industry in which the company has obligations like severance pay toward employees 
C)  The corporate training industry in which the company's commitments are mostly short-term 
D)  The e-commerce industry where the company has no long-term contractual agreements with suppliers 
A)  The management consultancy industry in which the company's fixed costs are low 
B)  The steel industry in which the company has obligations like severance pay toward employees 
C)  The corporate training industry in which the company's commitments are mostly short-term 
D)  The e-commerce industry where the company has no long-term contractual agreements with suppliers

Question 11

Family Needs Inc.is a supermarket chain.Due to strong competition from other stores in the industry, Family Needs has aggressively used branding, pricing, and superior customer service to uniquely position itself in the market.As a result, the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices.Which of the following industry competitive structures does this scenario best illustrate?

Accepted Answer

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

Question 12

Discuss the sixth force in Porter's five forces model.

Accepted Answer

As valuable as the five forces model is

Question 13

What is meant by industry convergence? Explain with the help of a real world example.

Accepted Answer

Student answers will vary.Industry conve

Question 14

Which of the following is a characteristic of a fragmented industry?

Accepted Answer

A)  The entry barriers are high. 
B)  There are many small firms. 
C)  Firms tend to have high profitability. 
D)  Firms have substantial pricing power. 
A)  The entry barriers are high. 
B)  There are many small firms. 
C)  Firms tend to have high profitability. 
D)  Firms have substantial pricing power.

Question 15

Potential new entry depresses industry profit potential in two ways.Elaborate on the statement.

Accepted Answer

The threat of entry describes the risk t

Question 16

The telecom industry in the country of Andalus is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms.Thus, in the telecom industry, the:

Accepted Answer

A)  threat of substitutes is most likely high. 
B)  threat of new entrants is most likely low. 
C)  bargaining power of buyers is most likely low. 
D)  entry barriers are most likely non-existent. 
A)  threat of substitutes is most likely high. 
B)  threat of new entrants is most likely low. 
C)  bargaining power of buyers is most likely low. 
D)  entry barriers are most likely non-existent.

Question 17

The _____ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

Accepted Answer

A)  VRIO framework 
B)  SWOT analysis 
C)  BCG matrix 
D)  PESTEL framework 
A)  VRIO framework 
B)  SWOT analysis 
C)  BCG matrix 
D)  PESTEL framework

Question 18

Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?

Accepted Answer

A)  The relative strengths of the five forces that shape competition are context-dependent. 
B)  The stronger the five forces in an industry, the greater the industry's profit potential. 
C)  Competition in the model is described as the tug-of-war between the five forces to capture as much as possible of the economic value created in an industry. 
D)  An analysis of the five forces provides the basis for how a firm should position itself to gain and sustain a competitive advantage. 
A)  The relative strengths of the five forces that shape competition are context-dependent. 
B)  The stronger the five forces in an industry, the greater the industry's profit potential. 
C)  Competition in the model is described as the tug-of-war between the five forces to capture as much as possible of the economic value created in an industry. 
D)  An analysis of the five forces provides the basis for how a firm should position itself to gain and sustain a competitive advantage.

Question 19

What does the strategic group model propagate?

Accepted Answer

To explain differences in firm performan

Question 20

Which of the following firms will most likely NOT be a complementor to a firm that manufactures computers?

Accepted Answer

A)  A company that develops operating software 
B)  A company that develops application software 
C)  A company that manufactures its own brand of desktops and laptops 
D)  A company that manufactures portable external disks 
A)  A company that develops operating software 
B)  A company that develops application software 
C)  A company that manufactures its own brand of desktops and laptops 
D)  A company that manufactures portable external disks

_____ are best described as industry-specific factors that separate one strategic group from another.

Discuss the situations in which bargaining power of suppliers is high.

When applying the five forces model, the first step should ideally be:

A fragmented industry is made into a consolidated industry through:

Discuss the advantages incumbent firms possess, independent of their size.

What are network effects?

What are exit barriers in an industry? Discuss.

Which of the following is an example of monopolistic competition?

Bright Billion Inc., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability.Which of the following industries would Bright Billion Inc.find it most difficult to exit?

Discuss the sixth force in Porter's five forces model.

What is meant by industry convergence? Explain with the help of a real world example.

Which of the following is a characteristic of a fragmented industry?

Potential new entry depresses industry profit potential in two ways.Elaborate on the statement.

The telecom industry in the country of Andalus is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms.Thus, in the telecom industry, the:

The _____ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?

What does the strategic group model propagate?

Which of the following firms will most likely NOT be a complementor to a firm that manufactures computers?

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

_____ are best described as industry-specific factors that separate one strategic group from another.

Discuss the situations in which bargaining power of suppliers is high.

When applying the five forces model, the first step should ideally be:

A fragmented industry is made into a consolidated industry through:

Discuss the advantages incumbent firms possess, independent of their size.

What are network effects?

What are exit barriers in an industry? Discuss.

Which of the following is an example of monopolistic competition?

Bright Billion Inc., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability.Which of the following industries would Bright Billion Inc.find it most difficult to exit?

Discuss the sixth force in Porter's five forces model.

What is meant by industry convergence? Explain with the help of a real world example.

Which of the following is a characteristic of a fragmented industry?

Potential new entry depresses industry profit potential in two ways.Elaborate on the statement.

The telecom industry in the country of Andalus is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms.Thus, in the telecom industry, the:

The _____ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?

What does the strategic group model propagate?

Which of the following firms will most likely NOT be a complementor to a firm that manufactures computers?

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