Question 1

What is the impact of shifting industry boundaries on firms within the industry?

Accepted Answer

A) Higher exit barriers 
B) More competitors 
C) Reduced threat of substitutes 
D) Greater bargaining power of suppliers 
E) Lesser bargaining power of buyers 
A) Higher exit barriers 
B) More competitors 
C) Reduced threat of substitutes 
D) Greater bargaining power of suppliers 
E) Lesser bargaining power of buyers

Question 2

Which of the following is not one of Porter's five forces,as proposed in his original model?

Accepted Answer

A) Threat of complementors 
B) Bargaining power of suppliers 
C) Rivalry among established companies 
D) Threat of new entrants 
E) Threat of market changes 
A) Threat of complementors 
B) Bargaining power of suppliers 
C) Rivalry among established companies 
D) Threat of new entrants 
E) Threat of market changes

Question 3

The competitive structure of an industry refers to the

Accepted Answer

A) number of segments in the industry. 
B) number and size distribution of companies in the industry. 
C) the number of consumers in the industry. 
D) number of competing products in the industry. 
E) form that competition in the industry takes. 
A) number of segments in the industry. 
B) number and size distribution of companies in the industry. 
C) the number of consumers in the industry. 
D) number of competing products in the industry. 
E) form that competition in the industry takes.

Question 4

Entry barriers in the embryonic stage are frequently based on

Accepted Answer

A) brand loyalty. 
B) economies of scale. 
C) absolute cost advantages. 
D) economies of scope. 
E) technological know-how. 
A) brand loyalty. 
B) economies of scale. 
C) absolute cost advantages. 
D) economies of scope. 
E) technological know-how.

Question 5

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 6

The competitive force of substitute products tends to be stronger when

Accepted Answer

A) buyers view the prices of substitutes as too high. 
B) the costs that buyers face in switching over to substitutes are low. 
C) the quality and performance of substitutes are relatively low. 
D) substitutes do not embody many characteristics that are similar to those of products already serving the market. 
E) none of these choices. 
A) buyers view the prices of substitutes as too high. 
B) the costs that buyers face in switching over to substitutes are low. 
C) the quality and performance of substitutes are relatively low. 
D) substitutes do not embody many characteristics that are similar to those of products already serving the market. 
E) none of these choices.

Question 7

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 8

Demand reaches total saturation in the ____ stage of the industry life cycle.

Accepted Answer

A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline 
A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

Accepted Answer

A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline 
A) embryonic 
B) growth 
C) shakeout 
D) maturity 
E) decline

Question 11

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

Accepted Answer

A) True 
 B)False

Question 12

As an industry enters the shakeout stage,

Accepted Answer

A) rivalry among companies declines. 
B) demand is still growing at a high rate. 
C) prices rise. 
D) excess capacity emerges. 
E) new entrants come into the market. 
A) rivalry among companies declines. 
B) demand is still growing at a high rate. 
C) prices rise. 
D) excess capacity emerges. 
E) new entrants come into the market.

Question 13

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Accepted Answer

All of these concepts are useful in term

Question 14

Mobility barriers

Accepted Answer

A) prevent movement within a strategic group. 
B) inhibit the movement of companies between strategic groups in an industry. 
C) inhibit the movement of a company from one industry to another. 
D) include exit barriers of the strategic group that a company wants to enter. 
E) are low when exit barriers in the strategic group that a company is a member of are high. 
A) prevent movement within a strategic group. 
B) inhibit the movement of companies between strategic groups in an industry. 
C) inhibit the movement of a company from one industry to another. 
D) include exit barriers of the strategic group that a company wants to enter. 
E) are low when exit barriers in the strategic group that a company is a member of are high.

Question 15

The risk of a price war is greatest in which of the following circumstances?

Accepted Answer

A) A high-growth industry 
B) An industry characterized by falling demand,high exit barriers,and excess productive capacity 
C) An industry characterized by a commodity-type product,strong demand,and low exit barriers 
D) A mature industry during an economic upturn 
E) An industry characterized by tacit price agreements 
A) A high-growth industry 
B) An industry characterized by falling demand,high exit barriers,and excess productive capacity 
C) An industry characterized by a commodity-type product,strong demand,and low exit barriers 
D) A mature industry during an economic upturn 
E) An industry characterized by tacit price agreements

Question 16

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 choices 
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 choices

Question 17

The personal computer industry is uniquely dependent upon a powerful supplier.

Accepted Answer

A) True 
 B)False

Question 18

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Accepted Answer

A) True 
 B)False

Question 19

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

Accepted Answer

A) True 
 B)False

Question 20

Sales of complementors' products tend to

Accepted Answer

A) increase sales of the industry's product. 
B) decrease sales of the industry's product. 
C) have no effect on sales of the industry's product. 
D) increase sales of substitute products. 
E) decrease sales of substitute products. 
A) increase sales of the industry's product. 
B) decrease sales of the industry's product. 
C) have no effect on sales of the industry's product. 
D) increase sales of substitute products. 
E) decrease sales of substitute products.

What is the impact of shifting industry boundaries on firms within the industry?

Which of the following is not one of Porter's five forces,as proposed in his original model?

The competitive structure of an industry refers to the

Entry barriers in the embryonic stage are frequently based on

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

The competitive force of substitute products tends to be stronger when

Demand reaches total saturation in the ____ stage of the industry life cycle.

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

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

As an industry enters the shakeout stage,

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Mobility barriers

The risk of a price war is greatest in which of the following circumstances?

An industry's buyers have high bargaining power when

The personal computer industry is uniquely dependent upon a powerful supplier.

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

Sales of complementors' products tend to

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

What is the impact of shifting industry boundaries on firms within the industry?

Which of the following is not one of Porter's five forces,as proposed in his original model?

The competitive structure of an industry refers to the

Entry barriers in the embryonic stage are frequently based on

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

The competitive force of substitute products tends to be stronger when

Demand reaches total saturation in the ____ stage of the industry life cycle.

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

The threat from new entrants is greatest in the ____ stage of the industry life cycle.

Opportunities arise when a company takes advantage of conditions in its environment to formulate and implement strategies that allow it to be more profitable.

As an industry enters the shakeout stage,

Define and then relate the concepts of sectors,industries,market segments,and strategic groups.

Mobility barriers

The risk of a price war is greatest in which of the following circumstances?

An industry's buyers have high bargaining power when

The personal computer industry is uniquely dependent upon a powerful supplier.

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

One of the defining characteristics of the mature stage of the industry life cycle is that growth is low or zero.

Sales of complementors' products tend to

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