Question 1

Switching costs may arise when

Accepted Answer

A)  changing from one computer system to another. 
B)  substitute products are available at a lower unit cost. 
C)  when there are a large number of interchangeable products. 
D)  products are commodity-like in nature. 
E)  all of these. 
A)  changing from one computer system to another. 
B)  substitute products are available at a lower unit cost. 
C)  when there are a large number of interchangeable products. 
D)  products are commodity-like in nature. 
E)  all of these.

Question 2

Eventually most industries enter a decline stage where

Accepted Answer

A)  growth becomes negative. 
B)  rivalry among established companies usually decreases. 
C)  competitive pressures abate. 
D)  excess capacity declines. 
E)  demand continues to hold steady. 
A)  growth becomes negative. 
B)  rivalry among established companies usually decreases. 
C)  competitive pressures abate. 
D)  excess capacity declines. 
E)  demand continues to hold steady.

Question 3

In Porter's framework,the stronger the five forces,the more limited the ability of established companies to raise prices and earn greater profits.

Accepted Answer

A) True 
 B)False

Question 4

Due to a recent relaxation in pollution standards,Ford Motors is withdrawing its electric-powered cars from sales in the U.S.market.Ford is responding to a change in which of the following macroenvironmental forces?

Accepted Answer

A)  Economic 
B)  Demographic 
C)  Political and legal 
D)  Social 
E)  Strategic 
A)  Economic 
B)  Demographic 
C)  Political and legal 
D)  Social 
E)  Strategic

Question 5

Leslie is the owner of Crafts and Things,a local craft store that sells homemade gifts such as jewelry and quilts.Recently,there has been an increase in the price of the items that Leslie uses to make her crafts,such as beads and yarn.The rising cost of these items represent a(n)_____ to Leslie's business.

Accepted Answer

A)  opportunity 
B)  threat 
C)  cost advantage 
D)  rivalry 
E)  strength 
A)  opportunity 
B)  threat 
C)  cost advantage 
D)  rivalry 
E)  strength

Question 6

Strategic groups within an industry compete amongst themselves even though their business models may vary greatly.

Accepted Answer

A) True 
 B)False

Question 7

Starbucks and an independent local café both sell coffee and therefore belong to the same strategic group.

Accepted Answer

A) True 
 B)False

Question 8

Rivalry refers to

Accepted Answer

A)  competition. 
B)  the intensity of competition among established companies within an industry. 
C)  a struggle among firms using price, product design, and advertising. 
D)  all of these. 
E)  none of these. 
A)  competition. 
B)  the intensity of competition among established companies within an industry. 
C)  a struggle among firms using price, product design, and advertising. 
D)  all of these. 
E)  none of these.

Question 9

A market segment is a group of

Accepted Answer

A)  customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B)  companies that produce similar goods or services. 
C)  customers within a market that purchase goods or services in similar quantities. 
D)  customers within a market that have similar levels of profitability. 
E)  none of these. 
A)  customers within a market that can be different from each other on the basis of their distinct attributes and specific demands. 
B)  companies that produce similar goods or services. 
C)  customers within a market that purchase goods or services in similar quantities. 
D)  customers within a market that have similar levels of profitability. 
E)  none of these.

Question 10

United Airlines,Amtrak,and Greyhound are all companies in the transportation

Accepted Answer

A)  industry. 
B)  sector. 
C)  game. 
D)  segment. 
E)  strategic group. 
A)  industry. 
B)  sector. 
C)  game. 
D)  segment. 
E)  strategic group.

Question 11

Even when entry barriers are very high,new firms may still enter an industry if they perceive that the benefits outweigh the costs of entry.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a barrier to entry?

Accepted Answer

A)  Economies of scale 
B)  Brand loyalty 
C)  Absolute cost advantages 
D)  High customer bargaining power 
E)  High customer switching costs 
A)  Economies of scale 
B)  Brand loyalty 
C)  Absolute cost advantages 
D)  High customer bargaining power 
E)  High customer switching costs

Question 13

An industry's buyers have high bargaining power when

Accepted Answer

A)  buyers purchase in large quantities. 
B)  switching costs are low. 
C)  it is economically feasible for buyers to purchase inputs from several companies at once. 
D)  buyers can threaten to enter an industry and produce the product themselves. 
E)  all of these. 
A)  buyers purchase in large quantities. 
B)  switching costs are low. 
C)  it is economically feasible for buyers to purchase inputs from several companies at once. 
D)  buyers can threaten to enter an industry and produce the product themselves. 
E)  all of these.

Question 14

Consider the macroenvironment facing a large,international airline headquartered in the United States (such as American or United).Give at least three examples of important trends or events from each of the five segments of the airline's macroenvironment (macroeconomic,technological,demographic,social,political,and legal),and explain whether each represents a threat or an opportunity for the firm.

Accepted Answer

Students don't need to conduct research

Question 15

Unfortunately,successful innovation cannot transform the nature of industry competition.

Accepted Answer

A) True 
 B)False

Question 16

Cosmetics makers focus on the unique needs of customers of different ages.The cosmetics makers recognize the importance of

Accepted Answer

A)  shifting industry boundaries. 
B)  the threat of new entrants. 
C)  sectors. 
D)  market segments. 
E)  substitutes. 
A)  shifting industry boundaries. 
B)  the threat of new entrants. 
C)  sectors. 
D)  market segments. 
E)  substitutes.

Question 17

Beverage makers are finding that water sales are increasing due to consumers' preferences for healthy drinks.Which part of the macroenvironment does this represent?

Accepted Answer

A)  Economic forces 
B)  Demographic forces 
C)  Embryonic forces 
D)  Political forces 
E)  Social forces 
A)  Economic forces 
B)  Demographic forces 
C)  Embryonic forces 
D)  Political forces 
E)  Social forces

Question 18

Historically,government reputation has

Accepted Answer

A)  encouraged new entrants into an industry. 
B)  constituted a major entry barrier into major industries. 
C)  neither hampered nor encouraged new entrants into an industry. 
D)  encouraged the growth of new companies. 
E)  none of these choices. 
A)  encouraged new entrants into an industry. 
B)  constituted a major entry barrier into major industries. 
C)  neither hampered nor encouraged new entrants into an industry. 
D)  encouraged the growth of new companies. 
E)  none of these choices.

Question 19

Interest rates have an impact on the sale of autos,appliances,and capital equipment and thus represent a macoeconomic force.

Accepted Answer

A) True 
 B)False

Question 20

In general,the more that an industry's product is like a commodity,the lower the intensity of any price war that may develop.

Accepted Answer

A) True 
 B)False

Switching costs may arise when

Eventually most industries enter a decline stage where

In Porter's framework,the stronger the five forces,the more limited the ability of established companies to raise prices and earn greater profits.

Due to a recent relaxation in pollution standards,Ford Motors is withdrawing its electric-powered cars from sales in the U.S.market.Ford is responding to a change in which of the following macroenvironmental forces?

Strategic groups within an industry compete amongst themselves even though their business models may vary greatly.

Starbucks and an independent local café both sell coffee and therefore belong to the same strategic group.

Rivalry refers to

A market segment is a group of

United Airlines,Amtrak,and Greyhound are all companies in the transportation

Even when entry barriers are very high,new firms may still enter an industry if they perceive that the benefits outweigh the costs of entry.

Which of the following is not a barrier to entry?

An industry's buyers have high bargaining power when

Unfortunately,successful innovation cannot transform the nature of industry competition.

Cosmetics makers focus on the unique needs of customers of different ages.The cosmetics makers recognize the importance of

Beverage makers are finding that water sales are increasing due to consumers' preferences for healthy drinks.Which part of the macroenvironment does this represent?

Historically,government reputation has

Interest rates have an impact on the sale of autos,appliances,and capital equipment and thus represent a macoeconomic force.

In general,the more that an industry's product is like a commodity,the lower the intensity of any price war that may develop.

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

Switching costs may arise when

Eventually most industries enter a decline stage where

In Porter's framework,the stronger the five forces,the more limited the ability of established companies to raise prices and earn greater profits.

Due to a recent relaxation in pollution standards,Ford Motors is withdrawing its electric-powered cars from sales in the U.S.market.Ford is responding to a change in which of the following macroenvironmental forces?

Strategic groups within an industry compete amongst themselves even though their business models may vary greatly.

Starbucks and an independent local café both sell coffee and therefore belong to the same strategic group.

Rivalry refers to

A market segment is a group of

United Airlines,Amtrak,and Greyhound are all companies in the transportation

Even when entry barriers are very high,new firms may still enter an industry if they perceive that the benefits outweigh the costs of entry.

Which of the following is not a barrier to entry?

An industry's buyers have high bargaining power when

Unfortunately,successful innovation cannot transform the nature of industry competition.

Cosmetics makers focus on the unique needs of customers of different ages.The cosmetics makers recognize the importance of

Beverage makers are finding that water sales are increasing due to consumers' preferences for healthy drinks.Which part of the macroenvironment does this represent?

Historically,government reputation has

Interest rates have an impact on the sale of autos,appliances,and capital equipment and thus represent a macoeconomic force.

In general,the more that an industry's product is like a commodity,the lower the intensity of any price war that may develop.

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