Question 1

Suppliers in an industry are most powerful when

Accepted Answer

A)  there are few substitutes for the product suppliers sell. 
B)  switching costs are low. 
C)  companies in the industry can threaten to enter the suppliers' industry. 
D)  substitute products are readily available. 
E)  all of these choices 
A)  there are few substitutes for the product suppliers sell. 
B)  switching costs are low. 
C)  companies in the industry can threaten to enter the suppliers' industry. 
D)  substitute products are readily available. 
E)  all of these choices

Question 2

The bargaining power of an industry's suppliers is greater when

Accepted Answer

A)  the supply industry is fragmented. 
B)  switching costs are high. 
C)  the industry buys in large quantities. 
D)  many substitutes are available. 
E)  firms in the industry can threaten backward vertical integration. 
A)  the supply industry is fragmented. 
B)  switching costs are high. 
C)  the industry buys in large quantities. 
D)  many substitutes are available. 
E)  firms in the industry can threaten backward vertical integration.

Question 3

Intense rivalry lowers prices and raises costs.

Accepted Answer

A) True 
 B)False

Question 4

In the early 1900s,when the automobile was first manufactured,the automobile industry would have been considered a(n)

Accepted Answer

A)  mature industry. 
B)  industry stakeout. 
C)  embryonic industry. 
D)  growth industry. 
E)  declining industry. 
A)  mature industry. 
B)  industry stakeout. 
C)  embryonic industry. 
D)  growth industry. 
E)  declining industry.

Question 5

Which of the following is currently an embryonic industry?

Accepted Answer

A)  Personal computers 
B)  Biotechnology 
C)  Internet retailing 
D)  Nanotechnology 
E)  Wireless communications 
A)  Personal computers 
B)  Biotechnology 
C)  Internet retailing 
D)  Nanotechnology 
E)  Wireless communications

Question 6

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

Accepted Answer

A) True 
 B)False

Question 7

Brand loyalty may be created by

Accepted Answer

A)  continuous advertising. 
B)  patent protection of products. 
C)  product innovation achieved through company research and development. 
D)  emphasis on high product quality. 
E)  all of these. 
A)  continuous advertising. 
B)  patent protection of products. 
C)  product innovation achieved through company research and development. 
D)  emphasis on high product quality. 
E)  all of these.

Question 8

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company,and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite).This health trend represents a _____force.

Accepted Answer

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

Question 9

If economies of scale are an industry's primary entry barrier,a new entrant's major risk is

Accepted Answer

A)  its inability to access labor and materials. 
B)  the inferior quality of its products. 
C)  its inability to match the innovation of the established firm. 
D)  its inability to produce in sufficient volume to match the cost advantages of established producers. 
E)  its inability to get buyers to switch to its product. 
A)  its inability to access labor and materials. 
B)  the inferior quality of its products. 
C)  its inability to match the innovation of the established firm. 
D)  its inability to produce in sufficient volume to match the cost advantages of established producers. 
E)  its inability to get buyers to switch to its product.

Question 10

Which of the following is not one of Porter's five forces,as proposed in his original model?

Accepted Answer

A)  Threat of complementors 
B)  Bargaining power of suppliers 
C)  Rivalry among established companies 
D)  Threat of new entrants 
E)  Threat of market changes 
A)  Threat of complementors 
B)  Bargaining power of suppliers 
C)  Rivalry among established companies 
D)  Threat of new entrants 
E)  Threat of market changes

Question 11

As an industry enters the shakeout stage,

Accepted Answer

A)  rivalry among companies declines. 
B)  demand is still growing at a high rate. 
C)  prices rise. 
D)  excess capacity emerges. 
E)  new entrants come into the market. 
A)  rivalry among companies declines. 
B)  demand is still growing at a high rate. 
C)  prices rise. 
D)  excess capacity emerges. 
E)  new entrants come into the market.

Question 12

Economies of scale may arise from

Accepted Answer

A)  cost reductions gained through mass production. 
B)  discounts on bulk purchases of raw material inputs and component parts. 
C)  advantages gained by spreading production costs over a large production volume. 
D)  cost savings associated with spreading marketing and advertising costs over a large volume of output. 
E)  all of these. 
A)  cost reductions gained through mass production. 
B)  discounts on bulk purchases of raw material inputs and component parts. 
C)  advantages gained by spreading production costs over a large production volume. 
D)  cost savings associated with spreading marketing and advertising costs over a large volume of output. 
E)  all of these.

Question 13

Mobility barriers

Accepted Answer

A)  prevent movement within a strategic group. 
B)  inhibit the movement of companies between strategic groups in an industry. 
C)  inhibit the movement of a company from one industry to another. 
D)  include exit barriers of the strategic group that a company wants to enter. 
E)  are low when exit barriers in the strategic group that a company is a member of are high. 
A)  prevent movement within a strategic group. 
B)  inhibit the movement of companies between strategic groups in an industry. 
C)  inhibit the movement of a company from one industry to another. 
D)  include exit barriers of the strategic group that a company wants to enter. 
E)  are low when exit barriers in the strategic group that a company is a member of are high.

Question 14

A group of firms all make tools for baking -- pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

Accepted Answer

A) True 
 B)False

Question 15

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

Accepted Answer

A) True 
 B)False

Question 16

High exit barriers are most serious as a competitive threat when industry demand is declining.

Accepted Answer

A) True 
 B)False

Question 17

The Internet is an example of a

Accepted Answer

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

Question 18

Common exit barriers include

Accepted Answer

A)  investments in specific assets. 
B)  emotional attachments to an industry. 
C)  high fixed costs associated with leaving the industry. 
D)  bankruptcy regulations. 
E)  all of these. 
A)  investments in specific assets. 
B)  emotional attachments to an industry. 
C)  high fixed costs associated with leaving the industry. 
D)  bankruptcy regulations. 
E)  all of these.

Question 19

Fortunately,substitute products are not a threat if a company is the market leader.

Accepted Answer

A) True 
 B)False

Question 20

High tech industries are often dependent on complementor industries for their mutual success.

Accepted Answer

A) True 
 B)False

Suppliers in an industry are most powerful when

The bargaining power of an industry's suppliers is greater when

Intense rivalry lowers prices and raises costs.

In the early 1900s,when the automobile was first manufactured,the automobile industry would have been considered a(n)

Which of the following is currently an embryonic industry?

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

Brand loyalty may be created by

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company,and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite).This health trend represents a _____force.

If economies of scale are an industry's primary entry barrier,a new entrant's major risk is

Which of the following is not one of Porter's five forces,as proposed in his original model?

As an industry enters the shakeout stage,

Economies of scale may arise from

Mobility barriers

A group of firms all make tools for baking -- pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

High exit barriers are most serious as a competitive threat when industry demand is declining.

The Internet is an example of a

Common exit barriers include

Fortunately,substitute products are not a threat if a company is the market leader.

High tech industries are often dependent on complementor industries for their mutual success.

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

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

Suppliers in an industry are most powerful when

The bargaining power of an industry's suppliers is greater when

Intense rivalry lowers prices and raises costs.

In the early 1900s,when the automobile was first manufactured,the automobile industry would have been considered a(n)

Which of the following is currently an embryonic industry?

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

Brand loyalty may be created by

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company,and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite).This health trend represents a _____force.

If economies of scale are an industry's primary entry barrier,a new entrant's major risk is

Which of the following is not one of Porter's five forces,as proposed in his original model?

As an industry enters the shakeout stage,

Economies of scale may arise from

Mobility barriers

A group of firms all make tools for baking -- pots,pans,measuring cups,and utensils.This group should be referred to as a market segment.

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

High exit barriers are most serious as a competitive threat when industry demand is declining.

The Internet is an example of a

Common exit barriers include

Fortunately,substitute products are not a threat if a company is the market leader.

High tech industries are often dependent on complementor industries for their mutual success.

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