Question 1

The punctuated equilibrium view can also be described as a freezing and unfreezing process in an industry's life cycle.

Accepted Answer

A) True 
 B)False

Question 2

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 choices 
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 choices

Question 3

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 4

In growth industries,

Accepted Answer

A) replacement demand is increasing rapidly. 
B) technological expertise is the most important entry barrier. 
C) rivalry is high. 
D) distribution channels are poorly developed. 
E) buyers are familiar with the industry's product. 
A) replacement demand is increasing rapidly. 
B) technological expertise is the most important entry barrier. 
C) rivalry is high. 
D) distribution channels are poorly developed. 
E) buyers are familiar with the industry's product.

Question 5

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 6

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Accepted Answer

All three of these models fail to accoun

Question 7

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

Accepted Answer

A) True 
 B)False

Question 8

Successful innovation can transform the nature of industry competition.

Accepted Answer

A) True 
 B)False

Question 9

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a determinant of the extent of rivalry among established companies?

Accepted Answer

A) The number and size distribution of companies in the industry 
B) Demand conditions 
C) The cost structure of firms in an industry 
D) Exit barriers 
E) The power of buyers 
A) The number and size distribution of companies in the industry 
B) Demand conditions 
C) The cost structure of firms in an industry 
D) Exit barriers 
E) The power of buyers

Question 11

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Accepted Answer

A) Fragmented industry 
B) Consolidated industry 
C) Oligopoly 
D) Monopoly 
E) Sector 
A) Fragmented industry 
B) Consolidated industry 
C) Oligopoly 
D) Monopoly 
E) Sector

Question 12

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

Accepted Answer

In the embryonic stage of the industry l

Question 13

Which of the following is not a force within the macroenvironment?

Accepted Answer

A) Level of interest rates 
B) Currency exchange rates 
C) Inflation 
D) Deflation 
E) Rates of social change 
A) Level of interest rates 
B) Currency exchange rates 
C) Inflation 
D) Deflation 
E) Rates of social change

Question 14

All of the companies in a strategic group are

Accepted Answer

A) pursuing different business models. 
B) of similar size. 
C) pursuing a similar business model. 
D) all of these choices. 
E) none of these choices 
A) pursuing different business models. 
B) of similar size. 
C) pursuing a similar business model. 
D) all of these choices. 
E) none of these choices

Question 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The demand for steel worldwide has surged in recent years,as have U.S.producers' profits.

Accepted Answer

A) True 
 B)False

The punctuated equilibrium view can also be described as a freezing and unfreezing process in an industry's life cycle.

Common exit barriers include

Suppliers in an industry are most powerful when

In growth industries,

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

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

Successful innovation can transform the nature of industry competition.

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Which of the following is not a determinant of the extent of rivalry among established companies?

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

Which of the following is not a force within the macroenvironment?

All of the companies in a strategic group are

Which of the following is not a barrier to entry?

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

Which of the following is currently an embryonic industry?

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

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

The demand for steel worldwide has surged in recent years,as have U.S.producers' profits.

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

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

The punctuated equilibrium view can also be described as a freezing and unfreezing process in an industry's life cycle.

Common exit barriers include

Suppliers in an industry are most powerful when

In growth industries,

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

Describe one major limitation of each of the following models for competitive analysis: the five forces model,the strategic groups model,and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

When buyers are in a weak bargaining position,companies in the supplying industry must lower their prices to increase profits.

Successful innovation can transform the nature of industry competition.

Government deregulation of telephone service lowered the barriers to entry and lowered industry profit margins.

Which of the following is not a determinant of the extent of rivalry among established companies?

Which of the following industry structures consists of a large number of small and medium-sized companies,none of which is in a position to determine industry price?

Using the industry life cycle model,explain how the threats and opportunities for existing firms in an industry change over time.

Which of the following is not a force within the macroenvironment?

All of the companies in a strategic group are

Which of the following is not a barrier to entry?

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

Which of the following is currently an embryonic industry?

Rapid growth in industry demand enables companies to expand their revenues and profits without taking market share away from competitors.

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

The demand for steel worldwide has surged in recent years,as have U.S.producers' profits.

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