Question 1

The competitive structure of an industry refers to the:

Accepted Answer

A) number of market segments in the industry. 
B) number and size distribution of companies in the industry. 
C) number of consumers in the industry. 
D) number of manufacturing plants in the industry. 
E) number of products produced in the industry. 
A) number of market segments in the industry. 
B) number and size distribution of companies in the industry. 
C) number of consumers in the industry. 
D) number of manufacturing plants in the industry. 
E) number of products produced in the industry.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true of growth industries?

Accepted Answer

A) They typically have high barriers to entry. 
B) They tend to be characterized by weak rivalry. 
C) They are characterized by low demands. 
D) They increase prices because customers are more aware of the industry's product. 
E) They inhibit the development of distribution channels. 
A) They typically have high barriers to entry. 
B) They tend to be characterized by weak rivalry. 
C) They are characterized by low demands. 
D) They increase prices because customers are more aware of the industry's product. 
E) They inhibit the development of distribution channels.

Question 4

Starbucks and an independent local cafe are different in terms of their business techniques.They both sell coffee, and therefore belong to the same strategic group.

Accepted Answer

A) True 
 B)False

Question 5

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company, and then redefmed competition in the beer industry with its introduction oflow-calorie beer (Miller Lite).This health trend represents a force.

Accepted Answer

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

Question 6

Which of the following statements is true about government regulations in the context of entry barriers of an industry?

Accepted Answer

A) Goverrnnent deregulation in an industry results in significant reduction in competition. 
B) Goverrunent regulation has not constituted a major entry barrier for many industries. 
C) Falling entry barriers due to goverrnnent deregulation results in higher competition and lower industry profit rates. 
D) The threat of new entrants reduces when the goverrunent deregulates an industry. 
E) Companies that enjoy brand loyalty and have significant scale economies are the ones who face major threat of competition due to goverrnnent deregulation. 
A) Goverrnnent deregulation in an industry results in significant reduction in competition. 
B) Goverrunent regulation has not constituted a major entry barrier for many industries. 
C) Falling entry barriers due to goverrnnent deregulation results in higher competition and lower industry profit rates. 
D) The threat of new entrants reduces when the goverrunent deregulates an industry. 
E) Companies that enjoy brand loyalty and have significant scale economies are the ones who face major threat of competition due to goverrnnent deregulation.

Question 7

A company's closest competitors are those in its strategic group, not those in other strategic groups in the industry.

Accepted Answer

A) True 
 B)False

Question 8

When the value of the dollar is low compared to the value of other currencies, products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

Accepted Answer

A) True 
 B)False

Question 9

An industry can be defmed as a group of:

Accepted Answer

A) companies offering products or services that are close substitutes for each other. 
B) manufacturing plants of a single company. 
C) different kinds of companies that are based in the same geographic location. 
D) companies that are different but generate similar amounts of revenues. 
E) brands that offer different products but are owned by a single finn. 
A) companies offering products or services that are close substitutes for each other. 
B) manufacturing plants of a single company. 
C) different kinds of companies that are based in the same geographic location. 
D) companies that are different but generate similar amounts of revenues. 
E) brands that offer different products but are owned by a single finn.

Question 10

Goverrnnent deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true about the complementors?

Accepted Answer

A) Their impact on industries was first recognized by Porter's five forces model. 
B) They have little importance in high-technology industries. 
C) They have the power to impact the sales of the industry to which they supply complement products. 
D) They tend to increase the sales of the industry they are supplying complements to by producing fewer low­ quality complement products. 
E) They cannot gain enough power to extract profits from the industry to which they supply complement products. 
A) Their impact on industries was first recognized by Porter's five forces model. 
B) They have little importance in high-technology industries. 
C) They have the power to impact the sales of the industry to which they supply complement products. 
D) They tend to increase the sales of the industry they are supplying complements to by producing fewer low­ quality complement products. 
E) They cannot gain enough power to extract profits from the industry to which they supply complement products.

Question 12

A consolidated industry structure:

Accepted Answer

A) consists of a large number of small companies. 
B) can be seen in agriculture, dry cleaning, health clubs, and real estate brokerage. 
C) consists of few companies that are in a position to determine industry price. 
D) provides no scope for oligopoly to exist. 
E) is characterized by low-entry barriers and commodity-type products. 
A) consists of a large number of small companies. 
B) can be seen in agriculture, dry cleaning, health clubs, and real estate brokerage. 
C) consists of few companies that are in a position to determine industry price. 
D) provides no scope for oligopoly to exist. 
E) is characterized by low-entry barriers and commodity-type products.

Question 13

Julian was asked to examine the demographic forces facing his employer, a clothing manufacturer.Which of the following factors is Julian most likely to examine?

Accepted Answer

A) Government regulations 
B) Inflation 
C) Manufacturing technology 
D) Age of the population 
E) Society's growing interest in exercise 
A) Government regulations 
B) Inflation 
C) Manufacturing technology 
D) Age of the population 
E) Society's growing interest in exercise

Question 14

Threats arise when conditions in the external envirornnent endanger the integrity and profitability of the company's business.

Accepted Answer

A) True 
 B)False

Question 15

Porter's Five Forces model did not recognize one force, which is:

Accepted Answer

A) the power of complement providers. 
B) the risk of entry by potential competitors. 
C) the intensity of rivalry among established companies within an industry. 
D) the bargaining power of suppliers. 
E) the threat of substitutes. 
A) the power of complement providers. 
B) the risk of entry by potential competitors. 
C) the intensity of rivalry among established companies within an industry. 
D) the bargaining power of suppliers. 
E) the threat of substitutes.

Question 16

Interest rates have an impact on the sale of autos, appliances, and capital equipment, and thus represent a
macroeconomic force.

Accepted Answer

A) True 
 B)False

Question 17

The level of industry demand:

Accepted Answer

A) has little effect on competition in the industry. 
B) is one of the determinants of the intensity of rivalry in the industry. 
C) increases when customers exit a marketplace. 
D) does not impact the market share that established companies hold. 
E) decreases the rivalry among established companies, when in decline. 
A) has little effect on competition in the industry. 
B) is one of the determinants of the intensity of rivalry in the industry. 
C) increases when customers exit a marketplace. 
D) does not impact the market share that established companies hold. 
E) decreases the rivalry among established companies, when in decline.

Question 18

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's
macroenvironment.

Accepted Answer

A) True 
 B)False

Question 19

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 20

arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

Accepted Answer

A) Overhead costs 
B) Incremental costs 
C) Marginal costs 
D) Opportunity costs 
E) Switching costs 
A) Overhead costs 
B) Incremental costs 
C) Marginal costs 
D) Opportunity costs 
E) Switching costs

The competitive structure of an industry refers to the:

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

Which of the following is true of growth industries?

Starbucks and an independent local cafe are different in terms of their business techniques.They both sell coffee, and therefore belong to the same strategic group.

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company, and then redefmed competition in the beer industry with its introduction oflow-calorie beer (Miller Lite).This health trend represents a force.

Which of the following statements is true about government regulations in the context of entry barriers of an industry?

A company's closest competitors are those in its strategic group, not those in other strategic groups in the industry.

When the value of the dollar is low compared to the value of other currencies, products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

An industry can be defmed as a group of:

Goverrnnent deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

Which of the following statements is true about the complementors?

A consolidated industry structure:

Julian was asked to examine the demographic forces facing his employer, a clothing manufacturer.Which of the following factors is Julian most likely to examine?

Threats arise when conditions in the external envirornnent endanger the integrity and profitability of the company's business.

Porter's Five Forces model did not recognize one force, which is:

Interest rates have an impact on the sale of autos, appliances, and capital equipment, and thus represent a macroeconomic force.

The level of industry demand:

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.

Which of the following is NOT a barrier to entry?

arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

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 competitive structure of an industry refers to the:

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

Which of the following is true of growth industries?

Starbucks and an independent local cafe are different in terms of their business techniques.They both sell coffee, and therefore belong to the same strategic group.

Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company, and then redefmed competition in the beer industry with its introduction oflow-calorie beer (Miller Lite).This health trend represents a force.

Which of the following statements is true about government regulations in the context of entry barriers of an industry?

A company's closest competitors are those in its strategic group, not those in other strategic groups in the industry.

When the value of the dollar is low compared to the value of other currencies, products made in the United States are relatively inexpensive and products made overseas are relatively expensive.

An industry can be defmed as a group of:

Goverrnnent deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.

Which of the following statements is true about the complementors?

A consolidated industry structure:

Julian was asked to examine the demographic forces facing his employer, a clothing manufacturer.Which of the following factors is Julian most likely to examine?

Threats arise when conditions in the external envirornnent endanger the integrity and profitability of the company's business.

Porter's Five Forces model did not recognize one force, which is:

Interest rates have an impact on the sale of autos, appliances, and capital equipment, and thus represent a macroeconomic force.

The level of industry demand:

Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.

Which of the following is NOT a barrier to entry?

arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.

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