Question 1

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n):

Accepted Answer

A) substitute. 
B) market segment. 
C) service provider. 
D) regulator. 
E) industry. 
A) substitute. 
B) market segment. 
C) service provider. 
D) regulator. 
E) industry.

Question 2

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

Accepted Answer

All of these concepts are useful in term

Question 3

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

Accepted Answer

A) its inability to counter brand loyalty that customers have for established companies in the industry. 
B) the inferior quality of its products. 
C) its inability to match the innovation of the established finn. 
D) its inability to produce in sufficient volume to match the cost advantages of established producers. 
E) its inability to get buyers to switch to its product. 
A) its inability to counter brand loyalty that customers have for established companies in the industry. 
B) the inferior quality of its products. 
C) its inability to match the innovation of the established finn. 
D) its inability to produce in sufficient volume to match the cost advantages of established producers. 
E) its inability to get buyers to switch to its product.

Question 4

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 5

In growth industries:

Accepted Answer

A) the intensity of rivalry is very high. 
B) technological expertise is the most important entry barrier. 
C) threat from potential competitors is typically highest. 
D) distribution channels are poorly developed. 
E) buyers are not familiar with the industry's products. 
A) the intensity of rivalry is very high. 
B) technological expertise is the most important entry barrier. 
C) threat from potential competitors is typically highest. 
D) distribution channels are poorly developed. 
E) buyers are not familiar with the industry's products.

Question 6

Common exit barriers include:

Accepted Answer

A) minimal investment in assets like specific machines. 
B) emotional attachments to an industry. 
C) low fixed costs associated with leaving an industry. 
D) the lack of bankruptcy regulations. 
E) economic independence of a company 
A) minimal investment in assets like specific machines. 
B) emotional attachments to an industry. 
C) low fixed costs associated with leaving an industry. 
D) the lack of bankruptcy regulations. 
E) economic independence of a company

Question 7

Suppliers are most powerful when the products that they sell have many substitutes.

Accepted Answer

A) True 
 B)False

Question 8

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 macroenvirornnent (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 9

Which of the following industry structures consists of a large number of small or 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Economies of scale can arise from:

Accepted Answer

A) cost reductions gained through decreased production. 
B) high prices on bulk purchases of raw material inputs and component parts. 
C) an advantage gained by spreading fixed production costs over a large production volume. 
D) increased spending on marketing and advertising activities. 
E) poor production operations. 
A) cost reductions gained through decreased production. 
B) high prices on bulk purchases of raw material inputs and component parts. 
C) an advantage gained by spreading fixed production costs over a large production volume. 
D) increased spending on marketing and advertising activities. 
E) poor production operations.

Question 12

Successful innovation cannot transform the nature of industry competition.

Accepted Answer

A) True 
 B)False

Question 13

As an industry enters the shakeout stage:

Accepted Answer

A) rivalry among companies declines. 
B) demand grows at a high rate. 
C) prices of products increase. 
D) excess productive capacity emerges. 
E) new entrants come into the market. 
A) rivalry among companies declines. 
B) demand grows at a high rate. 
C) prices of products increase. 
D) excess productive capacity emerges. 
E) new entrants come into the market.

Question 14

An industry's buyers have high bargaining power when:

Accepted Answer

A) they purchase in small quantities. 
B) switching costs are low. 
C) it is economically impossible for them to purchase an input from several companies at once. 
D) the supply industry depends upon buyers for a very small percentage of its total orders. 
E) the industry is a monopoly. 
A) they purchase in small quantities. 
B) switching costs are low. 
C) it is economically impossible for them to purchase an input from several companies at once. 
D) the supply industry depends upon buyers for a very small percentage of its total orders. 
E) the industry is a monopoly.

Question 15

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

Ali three of these models fail to accoun

Question 16

The extent of rivalry among established companies is lowest when:

Accepted Answer

A) the industry's product is a commodity. 
B) demand is growing rapidly. 
C) exit barriers are substantial. 
D) the industry is entering a decline stage. 
E) the fixed costs are high. 
A) the industry's product is a commodity. 
B) demand is growing rapidly. 
C) exit barriers are substantial. 
D) the industry is entering a decline stage. 
E) the fixed costs are high.

Question 17

As an industry enters the decline stage:

Accepted Answer

A) growth becomes negative. 
B) rivalry among established companies usually decreases. 
C) competitive pressures abate. 
D) capacity reduces. 
E) demand remains the same. 
A) growth becomes negative. 
B) rivalry among established companies usually decreases. 
C) competitive pressures abate. 
D) capacity reduces. 
E) demand remains the same.

Question 18

High-teclrnology industries are dependent on complementary products for their mutual success.

Accepted Answer

A) True 
 B)False

Question 19

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

Accepted Answer

A) True 
 B)False

Question 20

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

Accepted Answer

A) mature industry. 
B) stakeout industry. 
C) embryonic industry. 
D) growth industry. 
E) declining industry. 
A) mature industry. 
B) stakeout industry. 
C) embryonic industry. 
D) growth industry. 
E) declining industry.

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n):

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

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

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

In growth industries:

Common exit barriers include:

Suppliers are most powerful when the products that they sell have many substitutes.

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

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

Economies of scale can arise from:

Successful innovation cannot transform the nature of industry competition.

As an industry enters the shakeout stage:

An industry's buyers have high bargaining power 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?

The extent of rivalry among established companies is lowest when:

As an industry enters the decline stage:

High-teclrnology industries are dependent on complementary products for their mutual success.

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

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

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n):

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

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

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

In growth industries:

Common exit barriers include:

Suppliers are most powerful when the products that they sell have many substitutes.

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

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

Economies of scale can arise from:

Successful innovation cannot transform the nature of industry competition.

As an industry enters the shakeout stage:

An industry's buyers have high bargaining power 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?

The extent of rivalry among established companies is lowest when:

As an industry enters the decline stage:

High-teclrnology industries are dependent on complementary products for their mutual success.

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n):

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