Question 1

The Internet is an example of a:

Accepted Answer

A) technological force. 
B) social force. 
C) macroeconomic force. 
D) demographic force. 
E) global force. 
A) technological force. 
B) social force. 
C) macroeconomic force. 
D) demographic force. 
E) global force. A

Question 2

The risk of entry by potential competitors is a function of the height of the barriers to entry.

Accepted Answer

A) True 
 B)False  True

Question 3

The more commodity-like an industry's product is, the lower the intensity of any price war that may develop.

Accepted Answer

A) True 
 B)False  False

Question 4

Market segments are distinct groups of customers within a market that can be differentiated from each other on the basis of their individual attributes and specific demands.

Accepted Answer

A) True 
 B)False

Question 5

The threat from potential competitors 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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) the supply industry is fragmented. 
B) switching costs are minimal for companies because oflittle difference among products offered by different suppliers. 
C) the industry buys in large quantities. 
D) the product that suppliers sell has many substitutes and is not vital to the companies. 
E) the industry is not an important customer to the suppliers. 
A) the supply industry is fragmented. 
B) switching costs are minimal for companies because oflittle difference among products offered by different suppliers. 
C) the industry buys in large quantities. 
D) the product that suppliers sell has many substitutes and is not vital to the companies. 
E) the industry is not an important customer to the suppliers.

Question 8

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

Accepted Answer

A) Industry competitive structure 
B) Demand conditions 
C) The cost structure of firms in an industry 
D) Exit barriers 
E) The power of buyers 
A) Industry competitive structure 
B) Demand conditions 
C) The cost structure of firms in an industry 
D) Exit barriers 
E) The power of buyers

Question 9

Due to a recent relaxation in the pollution control laws by the government, Alpha Motors has reduced the production of its electric-powered cars.The company is responding to a change in which of the following macroenvironmental forces?

Accepted Answer

A) J\!Iacroeconomic 
B) Demographic 
C) Political and legal 
D) Social 
E) Global 
A) J\!Iacroeconomic 
B) Demographic 
C) Political and legal 
D) Social 
E) Global

Question 10

As a barrier to new entry, absolute cost advantages can be based on:

Accepted Answer

A) continuous advertising of brand and company names, and product innovation achieved through research and development. 
B) high product quality, service-oriented innovations, and good after-sales service. 
C) cost reductions that arise from the mass production of standardized output. 
D) the unique ability of established companies to spread fixed costs over a large volume. 
E) superior production operations and processes due to accumulated experience, patents, or trade secrets. 
A) continuous advertising of brand and company names, and product innovation achieved through research and development. 
B) high product quality, service-oriented innovations, and good after-sales service. 
C) cost reductions that arise from the mass production of standardized output. 
D) the unique ability of established companies to spread fixed costs over a large volume. 
E) superior production operations and processes due to accumulated experience, patents, or trade secrets.

Question 11

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices.Tyrone's preference for Eastern Clothing Company demonstrates:

Accepted Answer

A) lack of demand. 
B) bargaining power. 
C) risk of entry. 
D) brand loyalty. 
E) lack of economies of scale 
A) lack of demand. 
B) bargaining power. 
C) risk of entry. 
D) brand loyalty. 
E) lack of economies of scale

Question 12

Which of the following statements is true about potential competitors in an industry?

Accepted Answer

A) They threaten the profitability of established companies. 
B) They are usually encouraged by established companies. 
C) They find it easier to enter an industry when the entry barriers are high. 
D) They find it easier to enter an industry when established companies have economies of scale. 
E) They usually have an absolute cost advantage over established companies. 
A) They threaten the profitability of established companies. 
B) They are usually encouraged by established companies. 
C) They find it easier to enter an industry when the entry barriers are high. 
D) They find it easier to enter an industry when established companies have economies of scale. 
E) They usually have an absolute cost advantage over established companies.

Question 13

Due to advances in medicine, Americans are currently living longer now than in the past.As a result, the sale of products that meet the needs of older individuals, such as devices that assist in walking and movement, have increased.In the context of an industry's macroenvironment, age is considered a:

Accepted Answer

A) technological force. 
B) demographic force. 
C) social force. 
D) political force. 
E) legal force. 
A) technological force. 
B) demographic force. 
C) social force. 
D) political force. 
E) legal force.

Question 14

Substitute products are not a threat if a company is the market leader.

Accepted Answer

A) True 
 B)False

Question 15

A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters.The company is catering to different groups of customers known as:

Accepted Answer

A) investors. 
B) entrants. 
C) sectors. 
D) market segments. 
E) substitutes. 
A) investors. 
B) entrants. 
C) sectors. 
D) market segments. 
E) substitutes.

Question 16

Which of the following statements is true about rivalry in the context of established companies?

Accepted Answer

A) It significantly reduces the costs of established companies. 
B) It squeezes profits out of an industry. 
C) It enables companies to lower their spending on non-price-competitive strategies. 
D) It forces companies to reduce prices when it is less intense. 
E) It is unaffected by the demand conditions of an industry. 
A) It significantly reduces the costs of established companies. 
B) It squeezes profits out of an industry. 
C) It enables companies to lower their spending on non-price-competitive strategies. 
D) It forces companies to reduce prices when it is less intense. 
E) It is unaffected by the demand conditions of an industry.

Question 17

Why is it important to understand the external environment in order to think strategically?

Accepted Answer

Strategic thinking allows managers to se

Question 18

Members of a strategic group:

Accepted Answer

A) compete only with members of other strategic groups. 
B) are affected by Porter's five competitive forces in the same way and to the same degree as the members of other strategic groups. 
C) follow a business model that is similar to that pursued by other companies in the group. 
D) face no threat of product substitutes from other members. 
E) move easily between groups without barriers. 
A) compete only with members of other strategic groups. 
B) are affected by Porter's five competitive forces in the same way and to the same degree as the members of other strategic groups. 
C) follow a business model that is similar to that pursued by other companies in the group. 
D) face no threat of product substitutes from other members. 
E) move easily between groups without barriers.

Question 19

Which of the following is NOT one of the factors in the economic forces of the macroenvirornnent?

Accepted Answer

A) Interest rates 
B) Inflation 
C) Cultural changes 
D) Currency exchange rates 
E) Economic growth rate 
A) Interest rates 
B) Inflation 
C) Cultural changes 
D) Currency exchange rates 
E) Economic growth rate

Question 20

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Accepted Answer

A) True 
 B)False

The Internet is an example of a:

The risk of entry by potential competitors is a function of the height of the barriers to entry.

The more commodity-like an industry's product is, the lower the intensity of any price war that may develop.

Market segments are distinct groups of customers within a market that can be differentiated from each other on the basis of their individual attributes and specific demands.

The threat from potential competitors is greatest in the stage of the industry life cycle.

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

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

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

Due to a recent relaxation in the pollution control laws by the government, Alpha Motors has reduced the production of its electric-powered cars.The company is responding to a change in which of the following macroenvironmental forces?

As a barrier to new entry, absolute cost advantages can be based on:

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices.Tyrone's preference for Eastern Clothing Company demonstrates:

Which of the following statements is true about potential competitors in an industry?

Substitute products are not a threat if a company is the market leader.

A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters.The company is catering to different groups of customers known as:

Which of the following statements is true about rivalry in the context of established companies?

Why is it important to understand the external environment in order to think strategically?

Members of a strategic group:

Which of the following is NOT one of the factors in the economic forces of the macroenvirornnent?

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

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 Internet is an example of a:

The risk of entry by potential competitors is a function of the height of the barriers to entry.

The more commodity-like an industry's product is, the lower the intensity of any price war that may develop.

Market segments are distinct groups of customers within a market that can be differentiated from each other on the basis of their individual attributes and specific demands.

The threat from potential competitors is greatest in the stage of the industry life cycle.

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

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

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

Due to a recent relaxation in the pollution control laws by the government, Alpha Motors has reduced the production of its electric-powered cars.The company is responding to a change in which of the following macroenvironmental forces?

As a barrier to new entry, absolute cost advantages can be based on:

When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices.Tyrone's preference for Eastern Clothing Company demonstrates:

Which of the following statements is true about potential competitors in an industry?

Substitute products are not a threat if a company is the market leader.

A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters.The company is catering to different groups of customers known as:

Which of the following statements is true about rivalry in the context of established companies?

Why is it important to understand the external environment in order to think strategically?

Members of a strategic group:

Which of the following is NOT one of the factors in the economic forces of the macroenvirornnent?

A technological change, such as the rise of the Internet, can represent either an opportunity or a threat.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Analysis

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