Question 1

Industries characterized by high economies of scale typically attract fewer new entrants.

Accepted Answer

A) True 
 B)False  True

Question 2

In the value-net analysis,complementors are

Accepted Answer

A)  firms that produce substitute products. 
B)  customers who compliment the company for their good products and services. 
C)  firms that produce products or services that have a positive impact on the value of a firm's products or services. 
D)  firms that supply critical inputs to a company. 
A)  firms that produce substitute products. 
B)  customers who compliment the company for their good products and services. 
C)  firms that produce products or services that have a positive impact on the value of a firm's products or services. 
D)  firms that supply critical inputs to a company. C

Question 3

According to the text,Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

Barriers to entry are factors

Question 5

_____ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Accepted Answer

A)  Environmental scanning 
B)  Environmental monitoring 
C)  Environmental surveying 
D)  Competitive intelligence 
A)  Environmental scanning 
B)  Environmental monitoring 
C)  Environmental surveying 
D)  Competitive intelligence

Question 6

Emerging sociocultural changes in the environment include

Accepted Answer

A)  changes in the ethnic composition. 
B)  the increasing educational attainment of women in the past decade. 
C)  progressively less disposable income by consumers. 
D)  changes in the geographic distribution of the population. 
A)  changes in the ethnic composition. 
B)  the increasing educational attainment of women in the past decade. 
C)  progressively less disposable income by consumers. 
D)  changes in the geographic distribution of the population.

Question 7

In some industries,high switching costs can act as an important barrier to entry.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Two key inputs to developing forecasts discussed in the text are

Accepted Answer

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

Question 10

Using the Canadian beer as an example,explain how an industry or competitive environment might be defined and analyzed.

Accepted Answer

The Canadian beer industry is complex wi

Question 11

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 12

Strategic groups consist of

Accepted Answer

A)  a group of top executives who make strategies for a company. 
B)  a group of firms within an industry that follow similar strategies. 
C)  a group of executives drawn from different companies within an industry that makes decisions on industry standards. 
D)  a group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits. 
A)  a group of top executives who make strategies for a company. 
B)  a group of firms within an industry that follow similar strategies. 
C)  a group of executives drawn from different companies within an industry that makes decisions on industry standards. 
D)  a group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits.

Question 13

The threat of new entrants is high when there are

Accepted Answer

A)  low economies of scale. 
B)  high capital requirements. 
C)  high switching costs. 
D)  high differentiation among competitors' products and services. 
A)  low economies of scale. 
B)  high capital requirements. 
C)  high switching costs. 
D)  high differentiation among competitors' products and services.

Question 14

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

Accepted Answer

A) True 
 B)False

Question 15

A large fabricator of building components purchased a steel company to provide raw materials for its production process.This is an example of

Accepted Answer

A)  backward integration. 
B)  economies of scale. 
C)  forward integration. 
D)  product differentiation. 
A)  backward integration. 
B)  economies of scale. 
C)  forward integration. 
D)  product differentiation.

Question 16

Gathering "competitive intelligence"

Accepted Answer

A)  is good business practice. 
B)  is illegal. 
C)  is considered unethical. 
D)  minimizes the need to obtain information in the public domain. 
A)  is good business practice. 
B)  is illegal. 
C)  is considered unethical. 
D)  minimizes the need to obtain information in the public domain.

Question 17

Rivalry between the firms Air Canada and WestJet

Accepted Answer

A)  is characterized as distractive. 
B)  includes allegations that Air Canada set up a screen-scraper program to automatically lift data. 
C)  includes allegations that Westjet sent investigators to pilfer an Air Canada Executive's garbage looking for data. 
D)  is an example of a low level of competitive rivalry. 
A)  is characterized as distractive. 
B)  includes allegations that Air Canada set up a screen-scraper program to automatically lift data. 
C)  includes allegations that Westjet sent investigators to pilfer an Air Canada Executive's garbage looking for data. 
D)  is an example of a low level of competitive rivalry.

Question 18

Buyer power will be greater when

Accepted Answer

A)  the products purchased are highly differentiated. 
B)  there are high switching costs. 
C)  the industry's product is very important to the quality of the buyer's end products or services. 
D)  it is concentrated on purchasing large volumes relative to seller sales. 
A)  the products purchased are highly differentiated. 
B)  there are high switching costs. 
C)  the industry's product is very important to the quality of the buyer's end products or services. 
D)  it is concentrated on purchasing large volumes relative to seller sales.

Question 19

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

Question 20

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Industries characterized by high economies of scale typically attract fewer new entrants.

In the value-net analysis,complementors are

According to the text,Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

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

_____ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Emerging sociocultural changes in the environment include

In some industries,high switching costs can act as an important barrier to entry.

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

Two key inputs to developing forecasts discussed in the text are

Using the Canadian beer as an example,explain how an industry or competitive environment might be defined and analyzed.

Technological innovations can create entirely new industries and alter the boundaries of industries.

Strategic groups consist of

The threat of new entrants is high when there are

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

A large fabricator of building components purchased a steel company to provide raw materials for its production process.This is an example of

Gathering "competitive intelligence"

Rivalry between the firms Air Canada and WestJet

Buyer power will be greater when

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.

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

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

Industries characterized by high economies of scale typically attract fewer new entrants.

In the value-net analysis,complementors are

According to the text,Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

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

_____ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Emerging sociocultural changes in the environment include

In some industries,high switching costs can act as an important barrier to entry.

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

Two key inputs to developing forecasts discussed in the text are

Using the Canadian beer as an example,explain how an industry or competitive environment might be defined and analyzed.

Technological innovations can create entirely new industries and alter the boundaries of industries.

Strategic groups consist of

The threat of new entrants is high when there are

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

A large fabricator of building components purchased a steel company to provide raw materials for its production process.This is an example of

Gathering "competitive intelligence"

Rivalry between the firms Air Canada and WestJet

Buyer power will be greater when

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.

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

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

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.