Exam 4: Exploring the External Environment: Macro Industry and Dynamics

Industrial organization (I/O) economics is a discipline that helps managers analyze an industry.

Differentiation of inputs, threat of forward integration, and switching costs of firms in the industry are some of the elements in the five-forces factor of ________.

The PESTEL analysis is a tool for assessing the political, economic, sociocultural, technological, environmental, and ________ contexts in which a firm operates.

A viable substitute for Coke and Pepsi's industry would be ________.

In market economies where monopolies are allowed, firms should be able to earn only "normal" profits.

If the industry analysis is too exclusive, important threats may be omitted.

Sociocultural factors include all but which of the following?

The concentration ratio is a useful tool that represents the combined revenues of the largest industry participants as a ratio of total industry ________.

According to the ________ approach, a firm's appropriate strategy, key assets, and requisite skills are dictated by industry characteristics.

The objective of mapping strategic groups is to identify ________.

As price competition increases, average prices increase as well, resulting in higher levels of profitability.

Complementors are an increasingly critical industry force that has been added to the five-forces model.

Businesses are faced with varying social and cultural influences. Depending on the type of business a firm operates, the critical factors to success could include all but which of the following?

There are four major categories of factors that reveal whether an industry has globalized. They are market, cost, government, and ________.

Why are barriers to exit high in the airline industry?

One of the value-chain activities that brings carbonated beverages to market is profit.