Question 1

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

Accepted Answer

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

Question 2

Globalization provides opportunities to access larger potential markets and a narrow base of production factors such as raw materials,labor,skilled managers,and technical professionals.

Accepted Answer

A) True 
 B)False  False

Question 3

The Nintendo success story in the early 1990s was a result of its ability to manage its relationship with its complementors,such as the licensee rights given to outside firms to develop games using the Nintendo game console.

Accepted Answer

A) True 
 B)False  True

Question 4

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Accepted Answer

A) True 
 B)False

Question 5

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp.,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

Accepted Answer

A)  overestimation of uncertainty. 
B)  excellent forecasting. 
C)  underestimation of uncertainty. 
D)  good prediction skills. 
A)  overestimation of uncertainty. 
B)  excellent forecasting. 
C)  underestimation of uncertainty. 
D)  good prediction skills.

Question 6

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a

Accepted Answer

A)  threat of entry. 
B)  backward integration. 
C)  threat of substitute products. 
D)  forward integration. 
A)  threat of entry. 
B)  backward integration. 
C)  threat of substitute products. 
D)  forward integration.

Question 7

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Accepted Answer

A) True 
 B)False

Question 8

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Accepted Answer

A) True 
 B)False

Question 9

Competitor Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 10

Boards of directors use outsiders to critique their strategy.This is necessary to improve mostly

Accepted Answer

A)  financial returns. 
B)  organizational hierarchy. 
C)  perceptual acuity. 
D)  employee relations. 
A)  financial returns. 
B)  organizational hierarchy. 
C)  perceptual acuity. 
D)  employee relations.

Question 11

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

Accepted Answer

A) True 
 B)False

Question 12

The Internet is a leading component in the rising emergence of digital technology.

Accepted Answer

A) True 
 B)False

Question 13

Consider the example of Salemi Industries and the launch of its product,Cell Zone,in 2005.Although it tried to carefully analyze its potential market,it misread the market demand for the product and paid a steep price for its mistake.This is an example of internal forecasting.

Accepted Answer

A) True 
 B)False

Question 14

Two of the key inputs to developing forecasts discussed in the text are

Accepted Answer

A)  environmental scanning and stakeholder identification. 
B)  assessing internal strengths and environmental scanning. 
C)  environmental scanning and competitive intelligence. 
D)  environmental scanning and a SWOT analysis. 
A)  environmental scanning and stakeholder identification. 
B)  assessing internal strengths and environmental scanning. 
C)  environmental scanning and competitive intelligence. 
D)  environmental scanning and a SWOT analysis.

Question 15

Competition tends to be more intense among firms within a strategic group than between strategic groups.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Environmental monitoring is not an input to forecasting.

Accepted Answer

A) True 
 B)False

Question 18

The value net is a game-theoretic approach that

Accepted Answer

A)  extends the value chain analysis. 
B)  uses network analysis to understand the relationships among different companies. 
C)  helps us to understand the evolution of the five forces over time. 
D)  is a way to analyze how the interactions of all the players in a game affect the firm. 
A)  extends the value chain analysis. 
B)  uses network analysis to understand the relationships among different companies. 
C)  helps us to understand the evolution of the five forces over time. 
D)  is a way to analyze how the interactions of all the players in a game affect the firm.

Question 19

Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________.

Accepted Answer

A)  competitors; customers 
B)  customers; competitors 
C)  existing customers; existing competitors 
D)  traditional competitors; new competitors 
A)  competitors; customers 
B)  customers; competitors 
C)  existing customers; existing competitors 
D)  traditional competitors; new competitors

Question 20

The strategic groups concept is valuable for identifying groups with _______ competitive positions.

Accepted Answer

A)  marginal 
B)  exceptional 
C)  healthy 
D)  poor 
A)  marginal 
B)  exceptional 
C)  healthy 
D)  poor

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

Globalization provides opportunities to access larger potential markets and a narrow base of production factors such as raw materials,labor,skilled managers,and technical professionals.

The Nintendo success story in the early 1990s was a result of its ability to manage its relationship with its complementors,such as the licensee rights given to outside firms to develop games using the Nintendo game console.

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp.,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Competitor Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Boards of directors use outsiders to critique their strategy.This is necessary to improve mostly

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

The Internet is a leading component in the rising emergence of digital technology.

Consider the example of Salemi Industries and the launch of its product,Cell Zone,in 2005.Although it tried to carefully analyze its potential market,it misread the market demand for the product and paid a steep price for its mistake.This is an example of internal forecasting.

Two of the key inputs to developing forecasts discussed in the text are

Competition tends to be more intense among firms within a strategic group than between strategic groups.

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

Environmental monitoring is not an input to forecasting.

The value net is a game-theoretic approach that

Executives must be careful to avoid spending so much time and effort tracking the actions of _ that they ignore __.

The strategic groups concept is valuable for identifying groups with _______ competitive positions.

Strategic Management: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

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

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

Globalization provides opportunities to access larger potential markets and a narrow base of production factors such as raw materials,labor,skilled managers,and technical professionals.

The Nintendo success story in the early 1990s was a result of its ability to manage its relationship with its complementors,such as the licensee rights given to outside firms to develop games using the Nintendo game console.

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

In 1977,Kenneth H.Olsen,then president of Digital Equipment Corp.,announced that there was no reason for individuals to have a computer in their home.Long since disproven,this is an example of

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a

Environmental monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process.

Rivalry will be most intense when there is a lack of differentiation or switching costs.

Competitor Intelligence (CI)is a tool that can provide management with early warnings about both threats and opportunities.

Boards of directors use outsiders to critique their strategy.This is necessary to improve mostly

Although changes in the general environment may often adversely or favorably impact a firm,they seldom alter an entire industry.

The Internet is a leading component in the rising emergence of digital technology.

Consider the example of Salemi Industries and the launch of its product,Cell Zone,in 2005.Although it tried to carefully analyze its potential market,it misread the market demand for the product and paid a steep price for its mistake.This is an example of internal forecasting.

Two of the key inputs to developing forecasts discussed in the text are

Competition tends to be more intense among firms within a strategic group than between strategic groups.

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

Environmental monitoring is not an input to forecasting.

The value net is a game-theoretic approach that

Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________.

The strategic groups concept is valuable for identifying groups with _______ competitive positions.

Strategic Management: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Creating Effective Organizational Designs

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Executives must be careful to avoid spending so much time and effort tracking the actions of _ that they ignore __.