Question 1

The political environment can have a significant influence on consumer confidence.

Accepted Answer

A) True 
 B)False

Question 2

Supplier power is reduced when firms in a focal industry present a threat of backward integration.

Accepted Answer

A) True 
 B)False

Question 3

In a monopoly, ________.

Accepted Answer

A)  there is only one seller in the market 
B)  the industry is characterized as concentrated 
C)  firms are typically regulated 
D)  the industry is characterized as fragmented 
A)  there is only one seller in the market 
B)  the industry is characterized as concentrated 
C)  firms are typically regulated 
D)  the industry is characterized as fragmented

Question 4

Explain the factors that affect supplier power.

Accepted Answer

Suppliers experience greater power when

Question 5

The concentration ratio represents the combined revenues of the largest industry participants as a ratio of total industry sales.

Accepted Answer

A) True 
 B)False

Question 6

What are the four categories of factors that managers can examine to determine if their industry has globalized or is in the process of globalizing?

Accepted Answer

A number of factors can be examined to b

Question 7

The stability of the political environment is particularly important for companies entering new markets.

Accepted Answer

A) True 
 B)False

Question 8

An industry segment may simultaneously play the roles of complementor and competitor.

Accepted Answer

A) True 
 B)False

Question 9

Barriers to entry include all of the following except ________.

Accepted Answer

A)  perfect competition 
B)  strong brands 
C)  differentiated products 
D)  government regulations 
A)  perfect competition 
B)  strong brands 
C)  differentiated products 
D)  government regulations

Question 10

Findings that can result in a firm deciding to globalize include all but which of the following?

Accepted Answer

A)  wages are significantly lower in another location 
B)  logistics to bring raw materials to the firm's location are difficult 
C)  a pool of skilled workers is available elsewhere 
D)  it is more cost effective to use local labor 
A)  wages are significantly lower in another location 
B)  logistics to bring raw materials to the firm's location are difficult 
C)  a pool of skilled workers is available elsewhere 
D)  it is more cost effective to use local labor

Question 11

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?

Accepted Answer

A)  dominant religions 
B)  age and lifespan demographics 
C)  leisure time activities 
D)  unemployment rates 
A)  dominant religions 
B)  age and lifespan demographics 
C)  leisure time activities 
D)  unemployment rates

Question 12

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

Accepted Answer

A)  losses 
B)  profits 
C)  costs 
D)  sales 
A)  losses 
B)  profits 
C)  costs 
D)  sales

Question 13

Factors that tend to increase rivalry include attributes about firms within the industry and attributes about the products or markets.

Accepted Answer

A) True 
 B)False

Question 14

Commodization occurs when sales depend less on unique product features and more on prices.

Accepted Answer

A) True 
 B)False

Question 15

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

Accepted Answer

A) True 
 B)False

Question 16

Coke and PepsiCo have increased market share by about 11% since the mid-1960s. Much of this profitability can be explained by all except ________.

Accepted Answer

A)  exclusive sources of ingredients 
B)  entry barriers created by large market shares 
C)  tremendous brand equity 
D)  ownership or control of regional bottlers 
A)  exclusive sources of ingredients 
B)  entry barriers created by large market shares 
C)  tremendous brand equity 
D)  ownership or control of regional bottlers

Question 17

Using the carbonated beverage industry, describe the industry value chain.

Accepted Answer

The value-chain activities that bring ca

Question 18

The insights that help managers analyze an industry originate in a discipline called ________.

Accepted Answer

A)  microeconomics 
B)  macroeconomics 
C)  industrial organization economics 
D)  domestic and international economics 
A)  microeconomics 
B)  macroeconomics 
C)  industrial organization economics 
D)  domestic and international economics

Question 19

Industry concentration affects the intensity of competition in an industry.

Accepted Answer

A) True 
 B)False

Question 20

The external environment in which firms compete exerts a strong influence on firms' profitability.

Accepted Answer

A) True 
 B)False

The political environment can have a significant influence on consumer confidence.

Supplier power is reduced when firms in a focal industry present a threat of backward integration.

In a monopoly, ________.

Explain the factors that affect supplier power.

The concentration ratio represents the combined revenues of the largest industry participants as a ratio of total industry sales.

What are the four categories of factors that managers can examine to determine if their industry has globalized or is in the process of globalizing?

The stability of the political environment is particularly important for companies entering new markets.

An industry segment may simultaneously play the roles of complementor and competitor.

Barriers to entry include all of the following except ________.

Findings that can result in a firm deciding to globalize include all but which of the following?

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?

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

Factors that tend to increase rivalry include attributes about firms within the industry and attributes about the products or markets.

Commodization occurs when sales depend less on unique product features and more on prices.

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

Coke and PepsiCo have increased market share by about 11% since the mid-1960s. Much of this profitability can be explained by all except ________.

Using the carbonated beverage industry, describe the industry value chain.

The insights that help managers analyze an industry originate in a discipline called ________.

Industry concentration affects the intensity of competition in an industry.

The external environment in which firms compete exerts a strong influence on firms' profitability.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters

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

The political environment can have a significant influence on consumer confidence.

Supplier power is reduced when firms in a focal industry present a threat of backward integration.

In a monopoly, ________.

Explain the factors that affect supplier power.

The concentration ratio represents the combined revenues of the largest industry participants as a ratio of total industry sales.

What are the four categories of factors that managers can examine to determine if their industry has globalized or is in the process of globalizing?

The stability of the political environment is particularly important for companies entering new markets.

An industry segment may simultaneously play the roles of complementor and competitor.

Barriers to entry include all of the following except ________.

Findings that can result in a firm deciding to globalize include all but which of the following?

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?

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

Factors that tend to increase rivalry include attributes about firms within the industry and attributes about the products or markets.

Commodization occurs when sales depend less on unique product features and more on prices.

The primary focus of PESTEL analysis is the current impact of macro environmental factors.

Coke and PepsiCo have increased market share by about 11% since the mid-1960s. Much of this profitability can be explained by all except ________.

Using the carbonated beverage industry, describe the industry value chain.

The insights that help managers analyze an industry originate in a discipline called ________.

Industry concentration affects the intensity of competition in an industry.

The external environment in which firms compete exerts a strong influence on firms' profitability.

Introducing Strategic Management

Leading Strategically Through Effective Vision and Mission

Examining the Internal Environment: Resources

Creating Business Strategies

Crafting Business Strategy of Dynamic Contexts

Developing Corporate Strategy

Looking at International Strategies

Understanding Alliances and Cooperative Strategies

Studying Merges and Acquisitions

Organizational Structure, Systems, and Processes

Considering New Ventures and Corporate Renewal

Corporate Governance in the Twenty-First Century

Filters