Question 1

Sales of complementors' products tend to

Accepted Answer

A)  increase sales of the industry's product. 
B)  decrease sales of the industry's product. 
C)  have no effect on sales of the industry's product. 
D)  increase sales of substitute products. 
E)  decrease sales of substitute products. 
A)  increase sales of the industry's product. 
B)  decrease sales of the industry's product. 
C)  have no effect on sales of the industry's product. 
D)  increase sales of substitute products. 
E)  decrease sales of substitute products.

Question 2

The personal computer industry is uniquely dependent upon a powerful supplier,Intel.

Accepted Answer

A) True 
 B)False

Question 3

An industry can be defined as a group of

Accepted Answer

A)  companies offering products or services that are close substitutes for each other. 
B)  twenty or more companies offering products or services that are close substitutes for each other. 
C)  companies. 
D)  companies that offer dissimilar products or services. 
E)  companies that offer products or services to dissimilar customers. 
A)  companies offering products or services that are close substitutes for each other. 
B)  twenty or more companies offering products or services that are close substitutes for each other. 
C)  companies. 
D)  companies that offer dissimilar products or services. 
E)  companies that offer products or services to dissimilar customers.

Question 4

Demand reaches total saturation in the ____ stage of the industry life cycle.

Accepted Answer

A)  embryonic 
B)  growth 
C)  shakeout 
D)  maturity 
E)  decline 
A)  embryonic 
B)  growth 
C)  shakeout 
D)  maturity 
E)  decline

Question 5

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

Accepted Answer

In the embryonic stage of the industry l

Question 6

The extent of rivalry among established companies is lowest when

Accepted Answer

A)  the industry's product is a commodity. 
B)  demand is growing rapidly. 
C)  exit barriers are substantial. 
D)  the industry is entering a decline stage. 
E)  the industry is dominated by a small number of large companies. 
A)  the industry's product is a commodity. 
B)  demand is growing rapidly. 
C)  exit barriers are substantial. 
D)  the industry is entering a decline stage. 
E)  the industry is dominated by a small number of large companies.

Question 7

Members of a strategic group

Accepted Answer

A)  compete directly with members of other strategic groups. 
B)  are affected by Porter's five competitive forces to the same degree that members of other strategic groups are affected. 
C)  follow a business model that is similar to that pursued by other companies in the group. 
D)  earn the same rate of return. 
E)  move easily to other groups as desired. 
A)  compete directly with members of other strategic groups. 
B)  are affected by Porter's five competitive forces to the same degree that members of other strategic groups are affected. 
C)  follow a business model that is similar to that pursued by other companies in the group. 
D)  earn the same rate of return. 
E)  move easily to other groups as desired.

Question 8

Entry barriers in the embryonic stage are frequently based on

Accepted Answer

A)  brand loyalty. 
B)  economies of scale. 
C)  absolute cost advantages. 
D)  economies of scope. 
E)  technological know-how. 
A)  brand loyalty. 
B)  economies of scale. 
C)  absolute cost advantages. 
D)  economies of scope. 
E)  technological know-how.

Question 9

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Accepted Answer

All three of these models fail to accoun

Question 10

A technological change such as the rise of the Internet can represent either an opportunity or a threat.

Accepted Answer

A) True 
 B)False

Question 11

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

Accepted Answer

A) True 
 B)False

Question 12

In part due to advances in medicine,Americans are currently living longer now than in the past.As a result,the sale of products that meet the needs of older individuals,such as devices that assist in walking and movement,have increased.Age can be referred to as a

Accepted Answer

A)  technological force. 
B)  demographic force. 
C)  social force. 
D)  political force. 
E)  legal force. 
A)  technological force. 
B)  demographic force. 
C)  social force. 
D)  political force. 
E)  legal force.

Question 13

The competitive structure of an industry refers to the

Accepted Answer

A)  number of segments in the industry. 
B)  number and size distribution of companies in the industry. 
C)  the number of consumers in the industry. 
D)  number of competing products in the industry. 
E)  form that competition in the industry takes. 
A)  number of segments in the industry. 
B)  number and size distribution of companies in the industry. 
C)  the number of consumers in the industry. 
D)  number of competing products in the industry. 
E)  form that competition in the industry takes.

Question 14

In determining its opportunities and threats,a firm should focus on internal processes and capabilities.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following components was an extension of Porter's original five forces model?

Accepted Answer

A)  Risk of entry by potential competitors 
B)  The intensity of rivalry among established companies within an industry 
C)  The bargaining power of buyers 
D)  The bargaining power of suppliers 
E)  The lack of substitutes for an industry's products 
A)  Risk of entry by potential competitors 
B)  The intensity of rivalry among established companies within an industry 
C)  The bargaining power of buyers 
D)  The bargaining power of suppliers 
E)  The lack of substitutes for an industry's products

Question 16

When the value of the dollar is low compared with the value of other currencies,products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the factors in the economic forces of the macroenvironment?

Accepted Answer

A)  Interest rates 
B)  Inflation 
C)  Regulation 
D)  Currency exchange rates 
E)  Economic growth rate 
A)  Interest rates 
B)  Inflation 
C)  Regulation 
D)  Currency exchange rates 
E)  Economic growth rate

Question 18

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

Accepted Answer

A) True 
 B)False

Question 19

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

Accepted Answer

A)  embryonic 
B)  growth 
C)  shakeout 
D)  maturity 
E)  decline 
A)  embryonic 
B)  growth 
C)  shakeout 
D)  maturity 
E)  decline

Question 20

The Cott Corporation,in the soft drink industry,is an example of how a company failed to overcome barriers to entry in an industry.

Accepted Answer

A) True 
 B)False

Sales of complementors' products tend to

The personal computer industry is uniquely dependent upon a powerful supplier,Intel.

An industry can be defined as a group of

Demand reaches total saturation in the ____ stage of the industry life cycle.

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

The extent of rivalry among established companies is lowest when

Members of a strategic group

Entry barriers in the embryonic stage are frequently based on

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

A technological change such as the rise of the Internet can represent either an opportunity or a threat.

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

In part due to advances in medicine,Americans are currently living longer now than in the past.As a result,the sale of products that meet the needs of older individuals,such as devices that assist in walking and movement,have increased.Age can be referred to as a

The competitive structure of an industry refers to the

In determining its opportunities and threats,a firm should focus on internal processes and capabilities.

Which of the following components was an extension of Porter's original five forces model?

When the value of the dollar is low compared with the value of other currencies,products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

Which of the following is not one of the factors in the economic forces of the macroenvironment?

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

The Cott Corporation,in the soft drink industry,is an example of how a company failed to overcome barriers to entry in 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

Sales of complementors' products tend to

The personal computer industry is uniquely dependent upon a powerful supplier,Intel.

An industry can be defined as a group of

Demand reaches total saturation in the ____ stage of the industry life cycle.

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

The extent of rivalry among established companies is lowest when

Members of a strategic group

Entry barriers in the embryonic stage are frequently based on

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

A technological change such as the rise of the Internet can represent either an opportunity or a threat.

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

In part due to advances in medicine,Americans are currently living longer now than in the past.As a result,the sale of products that meet the needs of older individuals,such as devices that assist in walking and movement,have increased.Age can be referred to as a

The competitive structure of an industry refers to the

In determining its opportunities and threats,a firm should focus on internal processes and capabilities.

Which of the following components was an extension of Porter's original five forces model?

When the value of the dollar is low compared with the value of other currencies,products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

Which of the following is not one of the factors in the economic forces of the macroenvironment?

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

The Cott Corporation,in the soft drink industry,is an example of how a company failed to overcome barriers to entry in 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