Question 1

In an oligopoly, ________.

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 2

Industry analysis includes all of a firm's key external stakeholders.

Accepted Answer

A) True 
 B)False

Question 3

When a firm in one industry provides products that tend to increase sales in another industry, it is called a ________.

Accepted Answer

A)  supplier 
B)  new entrant 
C)  rival 
D)  complementor 
A)  supplier 
B)  new entrant 
C)  rival 
D)  complementor

Question 4

Three economic factors have a strong bearing on strategy as it relates to where to locate disparate business functions and facilities. Which of the following is not a factor?

Accepted Answer

A)  unemployment rates 
B)  cost of medical benefits 
C)  availability of critical labor 
D)  local labor costs 
A)  unemployment rates 
B)  cost of medical benefits 
C)  availability of critical labor 
D)  local labor costs

Question 5

Why are barriers to exit high in the airline industry?

Accepted Answer

The exit barriers in the airline industr

Question 6

What are three of the entry barriers in the carbonated beverage industry?

Accepted Answer

Entry barriers in the carbonat

Question 7

When industry profits fall below normal levels, competition usually decreases.

Accepted Answer

A) True 
 B)False

Question 8

PESTEL is an acronym for what?

Accepted Answer

PESTEL is an acronym for polit

Question 9

Which of the following is not one of the steps involved in the PESTEL analysis?

Accepted Answer

A)  Managers should think through the relevance of each of the factors in their particular context. 
B)  Managers should identify and categorize the information that applies to these factors. 
C)  Managers should conduct a thorough stakeholder analysis. 
D)  Managers should analyze the data collected on the factors and draw conclusions. 
A)  Managers should think through the relevance of each of the factors in their particular context. 
B)  Managers should identify and categorize the information that applies to these factors. 
C)  Managers should conduct a thorough stakeholder analysis. 
D)  Managers should analyze the data collected on the factors and draw conclusions.

Question 10

Many popular U.S. brands have benefited from increasing levels of consumerism in other countries.

Accepted Answer

A) True 
 B)False

Question 11

Perfect competition is characterized by perfect information, no barriers to entry, and ________.

Accepted Answer

A)  limited sellers 
B)  limited buyers 
C)  heterogeneous products 
D)  no monopolies 
A)  limited sellers 
B)  limited buyers 
C)  heterogeneous products 
D)  no monopolies

Question 12

Price competition tends to be more fierce in industries that are ________.

Accepted Answer

A)  new to the marketplace 
B)  well-established 
C)  growing rapidly 
D)  growing slowly 
A)  new to the marketplace 
B)  well-established 
C)  growing rapidly 
D)  growing slowly

Question 13

In the model of industry analysis, the force that may increase profits by increasing demand for an industry's products is ________.

Accepted Answer

A)  complementors 
B)  threats of substitutes 
C)  supplier power 
D)  buyer power 
A)  complementors 
B)  threats of substitutes 
C)  supplier power 
D)  buyer power

Question 14

Suppliers are considered to be powerful when they control factors that include all but which of the following?

Accepted Answer

A)  postpurchase service 
B)  fuel prices 
C)  payment terms 
D)  minimum orders 
A)  postpurchase service 
B)  fuel prices 
C)  payment terms 
D)  minimum orders

Question 15

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

Accepted Answer

A)  P/L 
B)  Q/A 
C)  I/O 
D)  P/R 
A)  P/L 
B)  Q/A 
C)  I/O 
D)  P/R

Question 16

Concentration ratios teach us that industry dynamics are predominantly similar across various sectors of the same industry.

Accepted Answer

A) True 
 B)False

Question 17

What are the fundamental characteristics of an industry?

Accepted Answer

The fundamental characteristic

Question 18

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

Accepted Answer

A) True 
 B)False

Question 19

Rivalry is the intensity of competition within an industry.

Accepted Answer

A) True 
 B)False

Question 20

The threat of new entrants is greater when there are no switching costs.

Accepted Answer

A) True 
 B)False

In an oligopoly, ________.

Industry analysis includes all of a firm's key external stakeholders.

When a firm in one industry provides products that tend to increase sales in another industry, it is called a ________.

Three economic factors have a strong bearing on strategy as it relates to where to locate disparate business functions and facilities. Which of the following is not a factor?

Why are barriers to exit high in the airline industry?

What are three of the entry barriers in the carbonated beverage industry?

When industry profits fall below normal levels, competition usually decreases.

PESTEL is an acronym for what?

Which of the following is not one of the steps involved in the PESTEL analysis?

Many popular U.S. brands have benefited from increasing levels of consumerism in other countries.

Perfect competition is characterized by perfect information, no barriers to entry, and ________.

Price competition tends to be more fierce in industries that are ________.

In the model of industry analysis, the force that may increase profits by increasing demand for an industry's products is ________.

Suppliers are considered to be powerful when they control factors that include all but which of the following?

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

Concentration ratios teach us that industry dynamics are predominantly similar across various sectors of the same industry.

What are the fundamental characteristics of an industry?

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

Rivalry is the intensity of competition within an industry.

The threat of new entrants is greater when there are no switching costs.

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

In an oligopoly, ________.

Industry analysis includes all of a firm's key external stakeholders.

When a firm in one industry provides products that tend to increase sales in another industry, it is called a ________.

Three economic factors have a strong bearing on strategy as it relates to where to locate disparate business functions and facilities. Which of the following is not a factor?

Why are barriers to exit high in the airline industry?

What are three of the entry barriers in the carbonated beverage industry?

When industry profits fall below normal levels, competition usually decreases.

PESTEL is an acronym for what?

Which of the following is not one of the steps involved in the PESTEL analysis?

Many popular U.S. brands have benefited from increasing levels of consumerism in other countries.

Perfect competition is characterized by perfect information, no barriers to entry, and ________.

Price competition tends to be more fierce in industries that are ________.

In the model of industry analysis, the force that may increase profits by increasing demand for an industry's products is ________.

Suppliers are considered to be powerful when they control factors that include all but which of the following?

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

Concentration ratios teach us that industry dynamics are predominantly similar across various sectors of the same industry.

What are the fundamental characteristics of an industry?

It is important for managers to draw industry boundaries in a way that enables them to understand the dynamics of competition.

Rivalry is the intensity of competition within an industry.

The threat of new entrants is greater when there are no switching costs.

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