Question 1

Which of the following would be considered part of a firm's general environment?

Accepted Answer

A)  decreased entry barriers 
B)  higher unemployment rates 
C)  increased bargaining power of the firm's suppliers 
D)  increased competitive intensity 
A)  decreased entry barriers 
B)  higher unemployment rates 
C)  increased bargaining power of the firm's suppliers 
D)  increased competitive intensity

Question 2

The bargaining power of the buyer is greater than that of the supplier when __________.

Accepted Answer

A)  volume of purchase is low 
B)  threat of backward integration by buyers is low 
C)  cost savings from the supplier's product are minimal 
D)  the buyer's profit margin is low 
A)  volume of purchase is low 
B)  threat of backward integration by buyers is low 
C)  cost savings from the supplier's product are minimal 
D)  the buyer's profit margin is low

Question 3

A supplier group would be most powerful when _________.

Accepted Answer

A)  there are many suppliers 
B)  there are few substitute products 
C)  there is a low differentiation of products supplied 
D)  there is a high threat of backward integration by the buyers 
A)  there are many suppliers 
B)  there are few substitute products 
C)  there is a low differentiation of products supplied 
D)  there is a high threat of backward integration by the buyers

Question 4

The most intense rivalry results from _____________.

Accepted Answer

A)  numerous equally balanced competitors, slow industry growth, high fixed or storage costs 
B)  few competitors, slow industry growth, lack of differentiation, high fixed or storage costs 
C)  numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers 
D)  a high level of differentiation 
A)  numerous equally balanced competitors, slow industry growth, high fixed or storage costs 
B)  few competitors, slow industry growth, lack of differentiation, high fixed or storage costs 
C)  numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers 
D)  a high level of differentiation

Question 5

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

Accepted Answer

A) True 
 B)False

Question 6

A major sociocultural trend in the United States is the increased educational attainment by women.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an example of corporate competitive analysis?

Accepted Answer

A)  Banks tracking home loans 
B)  Airlines changing hundreds of fares daily in response to competitor tactics 
C)  Car manufacturers offering sales incentives based on rival offers 
D)  Consumers comparing product offers online 
A)  Banks tracking home loans 
B)  Airlines changing hundreds of fares daily in response to competitor tactics 
C)  Car manufacturers offering sales incentives based on rival offers 
D)  Consumers comparing product offers online

Question 8

A soft trend is a projection based on measureable facts,events,or objects.It is something that will happen.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about strategic groups is FALSE?

Accepted Answer

A)  Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. 
B)  Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. 
C)  Strategic groups help chart the future directions of firm strategies. 
D)  Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole. 
A)  Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. 
B)  Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. 
C)  Strategic groups help chart the future directions of firm strategies. 
D)  Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.

Question 10

Threat of substitute products comes from ____________.

Accepted Answer

A)  other companies in the same industry 
B)  foreign companies which can use cheap labor in their countries 
C)  firms in other industries that produce products or services that satisfy the same customer need 
D)  new companies in the same industry 
A)  other companies in the same industry 
B)  foreign companies which can use cheap labor in their countries 
C)  firms in other industries that produce products or services that satisfy the same customer need 
D)  new companies in the same industry

Question 11

In the general environment,many relationships exist among the various elements.General environmental trends can have positive and negative impacts on various industries.For example,the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry.These are called _____________ impacts.

Accepted Answer

A)  negative; positive; demographic 
B)  positive; negative; technological 
C)  negative; positive; sociocultural 
D)  positive; negative; demographic 
A)  negative; positive; demographic 
B)  positive; negative; technological 
C)  negative; positive; sociocultural 
D)  positive; negative; demographic

Question 12

Explain the important barriers to entry in an industry.Provide examples.

Accepted Answer

Barriers to entry in an industry refer t

Question 13

A hard trend is something that might happen and for which the probability that it might happen can be estimated.

Accepted Answer

A) True 
 B)False

Question 14

What value is the strategic group concept as a tool in analyzing an industry?

Accepted Answer

The strategic group concept is a valuabl

Question 15

The aging of the population,changes in ethnic composition,and effects of the baby boom are ____.

Accepted Answer

A)  macroeconomic changes 
B)  demographic changes 
C)  global changes 
D)  sociocultural changes 
A)  macroeconomic changes 
B)  demographic changes 
C)  global changes 
D)  sociocultural changes

Question 16

Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Accepted Answer

A)  positive; negligible 
B)  negative; negligible 
C)  negative; positive 
D)  positive; negative 
A)  positive; negligible 
B)  negative; negligible 
C)  negative; positive 
D)  positive; negative

Question 17

Discuss and provide examples of factors that would lead to greater buyer power.

Accepted Answer

Buyer power refers to the ability of cus

Question 18

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Accepted Answer

A) True 
 B)False

Question 19

Supplier power tends to be highest in industries where products are vital to buyers,where switching from one supplier to another is very costly,and where there are many suppliers.

Accepted Answer

A) True 
 B)False

Question 20

Rivalry is most intense when there are high exit barriers and high industry growth.

Accepted Answer

A) True 
 B)False

Which of the following would be considered part of a firm's general environment?

The bargaining power of the buyer is greater than that of the supplier when __________.

A supplier group would be most powerful when _________.

The most intense rivalry results from _____________.

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

A major sociocultural trend in the United States is the increased educational attainment by women.

Which of the following is not an example of corporate competitive analysis?

A soft trend is a projection based on measureable facts,events,or objects.It is something that will happen.

Which of the following statements about strategic groups is FALSE?

Threat of substitute products comes from ____________.

Explain the important barriers to entry in an industry.Provide examples.

A hard trend is something that might happen and for which the probability that it might happen can be estimated.

What value is the strategic group concept as a tool in analyzing an industry?

The aging of the population,changes in ethnic composition,and effects of the baby boom are ____.

Interest-rate increases have a impact on the residential home construction industry and a effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Discuss and provide examples of factors that would lead to greater buyer power.

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Supplier power tends to be highest in industries where products are vital to buyers,where switching from one supplier to another is very costly,and where there are many suppliers.

Rivalry is most intense when there are high exit barriers and high industry growth.

Strategic Management: Creating Competitiveadvantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Business-Level Strategy: Creating Andsustaining Competitive Advantages

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters

Exam 2: Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages

Which of the following would be considered part of a firm's general environment?

The bargaining power of the buyer is greater than that of the supplier when __________.

A supplier group would be most powerful when _________.

The most intense rivalry results from _____________.

Because of the Internet and digital technologies,it is very difficult for suppliers to create purchasing techniques that lower switching costs.

A major sociocultural trend in the United States is the increased educational attainment by women.

Which of the following is not an example of corporate competitive analysis?

A soft trend is a projection based on measureable facts,events,or objects.It is something that will happen.

Which of the following statements about strategic groups is FALSE?

Threat of substitute products comes from ____________.

Explain the important barriers to entry in an industry.Provide examples.

A hard trend is something that might happen and for which the probability that it might happen can be estimated.

What value is the strategic group concept as a tool in analyzing an industry?

The aging of the population,changes in ethnic composition,and effects of the baby boom are ____.

Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Discuss and provide examples of factors that would lead to greater buyer power.

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Supplier power tends to be highest in industries where products are vital to buyers,where switching from one supplier to another is very costly,and where there are many suppliers.

Rivalry is most intense when there are high exit barriers and high industry growth.

Strategic Management: Creating Competitiveadvantages

Assessing the Internal Environmentof the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources

Business-Level Strategy: Creating Andsustaining Competitive Advantages

Corporate-Level Strategy: Creatingvalue Through Diversification

International Strategy: Creating Valuein Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporategovernance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fosteringcorporate Entrepreneurship

Filters

Interest-rate increases have a impact on the residential home construction industry and a effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.