Question 1

The punctuated equilibrium view can also be described as a freezing but not unfreezing process in an industry's life cycle.

Accepted Answer

A) True 
 B)False  False

Question 2

Julian is asked to examine the demographic environment facing his employer,a clothing manufacturer.Which of the following should Julian examine?

Accepted Answer

A)  Government regulations 
B)  Inflation 
C)  Manufacturing technology 
D)  Aging of the population 
E)  Society's growing interest in exercise 
A)  Government regulations 
B)  Inflation 
C)  Manufacturing technology 
D)  Aging of the population 
E)  Society's growing interest in exercise D

Question 3

Growth industries

Accepted Answer

A)  typically suffer from high mobility barriers. 
B)  tend to be characterized by weak rivalry. 
C)  have high rivalry among established companies. 
D)  increase prices because customers are more aware of the industry's product. 
E)  provide economies of scale to existing companies. 
A)  typically suffer from high mobility barriers. 
B)  tend to be characterized by weak rivalry. 
C)  have high rivalry among established companies. 
D)  increase prices because customers are more aware of the industry's product. 
E)  provide economies of scale to existing companies. B

Question 4

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Accepted Answer

A)  Fragmented industry 
B)  Consolidated industry 
C)  Oligopoly 
D)  Monopoly 
E)  Sector 
A)  Fragmented industry 
B)  Consolidated industry 
C)  Oligopoly 
D)  Monopoly 
E)  Sector

Question 5

Changes in the characteristics of a population,such as age or race,are irrelevant to the analysis of an industry's macroenvironment.

Accepted Answer

A) True 
 B)False

Question 6

Anheuser Busch,because it dominates the mass-market beer segment,does not complete with micro-brewers.

Accepted Answer

A) True 
 B)False

Question 7

A group of firms all make writing implements-pens,pencils,and markers.This group should be referred to as a(n)

Accepted Answer

A)  substitute. 
B)  market segment. 
C)  sector. 
D)  supplier. 
E)  industry. 
A)  substitute. 
B)  market segment. 
C)  sector. 
D)  supplier. 
E)  industry.

Question 8

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Accepted Answer

All of these concepts are useful in term

Question 9

Over the last few decades,the United States steel industry has become less concentrated.

Accepted Answer

A) True 
 B)False

Question 10

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Accepted Answer

A) True 
 B)False

Question 11

Why is it important to understand the external environment in order to think strategically?

Accepted Answer

Strategic thinking allows managers to se

Question 12

In growth industries,

Accepted Answer

A)  replacement demand is increasing rapidly. 
B)  technological expertise is the most important entry barrier. 
C)  rivalry is high. 
D)  distribution channels are poorly developed. 
E)  buyers are familiar with the industry's product. 
A)  replacement demand is increasing rapidly. 
B)  technological expertise is the most important entry barrier. 
C)  rivalry is high. 
D)  distribution channels are poorly developed. 
E)  buyers are familiar with the industry's product.

Question 13

What is the impact of shifting industry boundaries on firms within the industry?

Accepted Answer

A)  Higher exit barriers 
B)  More competitors 
C)  Reduced threat of substitutes 
D)  Greater bargaining power of suppliers 
E)  Lesser bargaining power of buyers 
A)  Higher exit barriers 
B)  More competitors 
C)  Reduced threat of substitutes 
D)  Greater bargaining power of suppliers 
E)  Lesser bargaining power of buyers

Question 14

The level of industry demand

Accepted Answer

A)  has little effect on competition in the industry. 
B)  is one of the determinants of the intensity of rivalry in the industry. 
C)  increases as the number of customers grows. 
D)  is influenced by bankruptcy regulations. 
E)  all of these. 
A)  has little effect on competition in the industry. 
B)  is one of the determinants of the intensity of rivalry in the industry. 
C)  increases as the number of customers grows. 
D)  is influenced by bankruptcy regulations. 
E)  all of these.

Question 15

When shopping for clothing such as shirts and jeans,Tyrone will only buy products sold by the Eastern Clothing Company,even if other brands are cheaper.Eastern Clothing Company has _____ with Tyrone.

Accepted Answer

A)  switching costs 
B)  bargaining power 
C)  risk of entry 
D)  brand loyalty 
E)  economies of scale 
A)  switching costs 
B)  bargaining power 
C)  risk of entry 
D)  brand loyalty 
E)  economies of scale

Question 16

Access to cheaper capital is an example of an economy of scale.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a determinant of the extent of rivalry among established companies?

Accepted Answer

A)  Industry competitive structure 
B)  Demand conditions 
C)  The cost structure of firms in an industry 
D)  Exit barriers 
E)  The power of buyers 
A)  Industry competitive structure 
B)  Demand conditions 
C)  The cost structure of firms in an industry 
D)  Exit barriers 
E)  The power of buyers

Question 18

Which of the following industry structures is dominated by a small number of large companies?

Accepted Answer

A)  Fragmented industry 
B)  Consolidated industry 
C)  Oligopoly 
D)  Monopoly 
E)  Sector 
A)  Fragmented industry 
B)  Consolidated industry 
C)  Oligopoly 
D)  Monopoly 
E)  Sector

Question 19

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Accepted Answer

A) True 
 B)False

Question 20

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Accepted Answer

A) True 
 B)False

The punctuated equilibrium view can also be described as a freezing but not unfreezing process in an industry's life cycle.

Julian is asked to examine the demographic environment facing his employer,a clothing manufacturer.Which of the following should Julian examine?

Growth industries

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Changes in the characteristics of a population,such as age or race,are irrelevant to the analysis of an industry's macroenvironment.

Anheuser Busch,because it dominates the mass-market beer segment,does not complete with micro-brewers.

A group of firms all make writing implements-pens,pencils,and markers.This group should be referred to as a(n)

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Over the last few decades,the United States steel industry has become less concentrated.

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Why is it important to understand the external environment in order to think strategically?

In growth industries,

What is the impact of shifting industry boundaries on firms within the industry?

The level of industry demand

When shopping for clothing such as shirts and jeans,Tyrone will only buy products sold by the Eastern Clothing Company,even if other brands are cheaper.Eastern Clothing Company has _____ with Tyrone.

Access to cheaper capital is an example of an economy of scale.

Which of the following is not a determinant of the extent of rivalry among established companies?

Which of the following industry structures is dominated by a small number of large companies?

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 2: External Analysis: The Identification of Opportunities and Threats

The punctuated equilibrium view can also be described as a freezing but not unfreezing process in an industry's life cycle.

Julian is asked to examine the demographic environment facing his employer,a clothing manufacturer.Which of the following should Julian examine?

Growth industries

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Changes in the characteristics of a population,such as age or race,are irrelevant to the analysis of an industry's macroenvironment.

Anheuser Busch,because it dominates the mass-market beer segment,does not complete with micro-brewers.

A group of firms all make writing implements-pens,pencils,and markers.This group should be referred to as a(n)

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Over the last few decades,the United States steel industry has become less concentrated.

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Why is it important to understand the external environment in order to think strategically?

In growth industries,

What is the impact of shifting industry boundaries on firms within the industry?

The level of industry demand

When shopping for clothing such as shirts and jeans,Tyrone will only buy products sold by the Eastern Clothing Company,even if other brands are cheaper.Eastern Clothing Company has _____ with Tyrone.

Access to cheaper capital is an example of an economy of scale.

Which of the following is not a determinant of the extent of rivalry among established companies?

Which of the following industry structures is dominated by a small number of large companies?

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Strong brand loyalty and high customer switching costs are low barriers to entering an industry.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters