Question 1

Describe four scenarios that help to predict the likelihood that fierce rivalry will erupt between an industry's competitors.

Accepted Answer

Students may choose any four of the following five scenarios.
Competition is likely to be fierce between an industry's competitors if:
-the growth rate of demand for the industry's offerings is low, because a lack of new customers forces firms to compete more for existing customers.
-fixed costs in the industry are high, because firms will fight to have enough customers to cover these costs.
-competitors are not differentiated from each other, because this forces firms to compete based on price rather than based on the uniqueness of their offerings
-exit barriers in the industry are high, because firms do not have the option of leaving the industry gracefully.
-the industry in question is fragmented and the largest rivals control just a small fraction of the business.

Question 2

New entrants are more likely to join an industry if:

Accepted Answer

A) differentiation among existing competitors is low. 
B) access to distribution channels is limited. 
C) switching costs for consumers are high. 
D) capital requirements to enter the industry are high. 
E) expected retaliation from existing competitors is high. 
A) differentiation among existing competitors is low. 
B) access to distribution channels is limited. 
C) switching costs for consumers are high. 
D) capital requirements to enter the industry are high. 
E) expected retaliation from existing competitors is high. A

Question 3

Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and tariffs?

Accepted Answer

A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental 
A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental A

Question 4

When unemployment rises, discretionary income plummets.That hurts businesses selling costly but non-essential goods.This example represents the _____ segment of PESTEL analysis.

Accepted Answer

A) political 
B) economic 
C) social 
D) technological 
E) environmental 
A) political 
B) economic 
C) social 
D) technological 
E) environmental

Question 5

A strategy that involves a supplier entering the industry that it supplies inputs to is referred to as:

Accepted Answer

A) forward horizontal integration. 
B) backward vertical integration. 
C) horizontal diversification. 
D) backward horizontal integration. 
E) forward vertical integration. 
A) forward horizontal integration. 
B) backward vertical integration. 
C) horizontal diversification. 
D) backward horizontal integration. 
E) forward vertical integration.

Question 6

PESTEL reflects the names of the six segments of the general environment: political, _____, environmental, and legal.

Accepted Answer

A) ecological, strategic, technical 
B) ecological, social, technological 
C) economic, strategic, technical 
D) economic, social, technological 
E) ecological, strategic, technological 
A) ecological, strategic, technical 
B) ecological, social, technological 
C) economic, strategic, technical 
D) economic, social, technological 
E) ecological, strategic, technological

Question 7

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Accepted Answer

A) there are relatively few firms supplying the industry compared to the number of buyers. 
B) the good or service purchased by the buyers represents a high percentage of the buyer's costs. 
C) the industry's goods or services are highly differentiated. 
D) buyers face high switching costs in changing vendors. 
E) the good or service is of significant importance to the quality or price of the buyer's offerings. 
A) there are relatively few firms supplying the industry compared to the number of buyers. 
B) the good or service purchased by the buyers represents a high percentage of the buyer's costs. 
C) the industry's goods or services are highly differentiated. 
D) buyers face high switching costs in changing vendors. 
E) the good or service is of significant importance to the quality or price of the buyer's offerings.

Question 8

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Accepted Answer

A) differentiation among existing suppliers is high. 
B) the suppliers' industry is highly fragmented. 
C) existing suppliers lack economies of scale. 
D) the suppliers' industry is dominated by a few companies. 
E) cost advantages independent of size are negligible. 
A) differentiation among existing suppliers is high. 
B) the suppliers' industry is highly fragmented. 
C) existing suppliers lack economies of scale. 
D) the suppliers' industry is dominated by a few companies. 
E) cost advantages independent of size are negligible.

Question 9

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Accepted Answer

A) differentiation among existing suppliers is high. 
B) the suppliers' industry is highly fragmented. 
C) existing suppliers lack economies of scale. 
D) suppliers' goods or services cannot be substituted effectively. 
E) cost advantages independent of size are negligible. 
A) differentiation among existing suppliers is high. 
B) the suppliers' industry is highly fragmented. 
C) existing suppliers lack economies of scale. 
D) suppliers' goods or services cannot be substituted effectively. 
E) cost advantages independent of size are negligible.

Question 10

Rivalry tends to be fierce among an industry's competitors if the growth rate of demand for the industry's offerings is high.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following groups consists of a set of industry competitors that have similar characteristics to each other but differ in important ways from the members of other groups?

Accepted Answer

A) collaborative 
B) PESTEL 
C) strategic 
D) SWOT 
E) niche 
A) collaborative 
B) PESTEL 
C) strategic 
D) SWOT 
E) niche

Question 12

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Accepted Answer

A) there are relatively few firms supplying the industry compared to the number of buyers. 
B) the good or service purchased by the buyers represents a negligible percentage of the buyer's costs. 
C) the industry's goods or services are standardized or undifferentiated. 
D) buyers face high switching costs in changing vendors. 
E) the good or service is of significant importance to the quality or price of the buyer's offerings. 
A) there are relatively few firms supplying the industry compared to the number of buyers. 
B) the good or service purchased by the buyers represents a negligible percentage of the buyer's costs. 
C) the industry's goods or services are standardized or undifferentiated. 
D) buyers face high switching costs in changing vendors. 
E) the good or service is of significant importance to the quality or price of the buyer's offerings.

Question 13

Which of the following is one of the five forces of Michael Porter's five forces analysis?

Accepted Answer

A) Economic elements 
B) Governmental regulations 
C) Cultural and social trends affecting an industry 
D) Geographic origin of an industry 
E) Suppliers to an industry 
A) Economic elements 
B) Governmental regulations 
C) Cultural and social trends affecting an industry 
D) Geographic origin of an industry 
E) Suppliers to an industry

Question 14

High industry concentration increases the chances of bitter rivalry between an industry's competitors.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following segments of PESTEL analysis is the "Moore's Law" associated with?

Accepted Answer

A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental 
A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental

Question 16

The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:

Accepted Answer

A) new entrants struggle to match incumbents' prices. 
B) this discourages customers from buying a new entrant's offerings. 
C) new entrants struggle to gather enough cash to get started. 
D) each incumbent has a group of loyal customers that enjoy its unique features. 
E) new entrants struggle to get their offerings to customers. 
A) new entrants struggle to match incumbents' prices. 
B) this discourages customers from buying a new entrant's offerings. 
C) new entrants struggle to gather enough cash to get started. 
D) each incumbent has a group of loyal customers that enjoy its unique features. 
E) new entrants struggle to get their offerings to customers.

Question 17

The general environment, a component of the environment of an organization, is also called the:

Accepted Answer

A) micro-environment. 
B) macro-environment. 
C) common environment. 
D) competitive environment. 
E) meso-environment. 
A) micro-environment. 
B) macro-environment. 
C) common environment. 
D) competitive environment. 
E) meso-environment.

Question 18

Farmers rely heavily on cheap labor provided by illegal immigrants.A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products.For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.

Accepted Answer

A) political 
B) economic 
C) social 
D) technological 
E) environmental 
A) political 
B) economic 
C) social 
D) technological 
E) environmental

Question 19

Which of the following segments of PESTEL analysis includes cultural trends such as attitudes toward obesity and consumer activism?

Accepted Answer

A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental 
A) Political 
B) Economic 
C) Social 
D) Technological 
E) Environmental

Question 20

The likelihood of new entrants joining an industry is high if differentiation among existing competitors is high.

Accepted Answer

A) True 
 B)False

Describe four scenarios that help to predict the likelihood that fierce rivalry will erupt between an industry's competitors.

New entrants are more likely to join an industry if:

Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and tariffs?

When unemployment rises, discretionary income plummets.That hurts businesses selling costly but non-essential goods.This example represents the _____ segment of PESTEL analysis.

A strategy that involves a supplier entering the industry that it supplies inputs to is referred to as:

PESTEL reflects the names of the six segments of the general environment: political, _____, environmental, and legal.

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Rivalry tends to be fierce among an industry's competitors if the growth rate of demand for the industry's offerings is high.

Which of the following groups consists of a set of industry competitors that have similar characteristics to each other but differ in important ways from the members of other groups?

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Which of the following is one of the five forces of Michael Porter's five forces analysis?

High industry concentration increases the chances of bitter rivalry between an industry's competitors.

Which of the following segments of PESTEL analysis is the "Moore's Law" associated with?

The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:

The general environment, a component of the environment of an organization, is also called the:

Which of the following segments of PESTEL analysis includes cultural trends such as attitudes toward obesity and consumer activism?

The likelihood of new entrants joining an industry is high if differentiation among existing competitors is high.

Mastering Strategy: Art and Science

Leading Strategically

Managing Company Resources

Selecting Business-Level Strategies

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters

Exam 3: Evaluating the External Environment

Describe four scenarios that help to predict the likelihood that fierce rivalry will erupt between an industry's competitors.

New entrants are more likely to join an industry if:

Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and tariffs?

When unemployment rises, discretionary income plummets.That hurts businesses selling costly but non-essential goods.This example represents the _____ segment of PESTEL analysis.

A strategy that involves a supplier entering the industry that it supplies inputs to is referred to as:

PESTEL reflects the names of the six segments of the general environment: political, _____, environmental, and legal.

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

Rivalry tends to be fierce among an industry's competitors if the growth rate of demand for the industry's offerings is high.

Which of the following groups consists of a set of industry competitors that have similar characteristics to each other but differ in important ways from the members of other groups?

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

Which of the following is one of the five forces of Michael Porter's five forces analysis?

High industry concentration increases the chances of bitter rivalry between an industry's competitors.

Which of the following segments of PESTEL analysis is the "Moore's Law" associated with?

The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:

The general environment, a component of the environment of an organization, is also called the:

Which of the following segments of PESTEL analysis includes cultural trends such as attitudes toward obesity and consumer activism?

The likelihood of new entrants joining an industry is high if differentiation among existing competitors is high.

Mastering Strategy: Art and Science

Leading Strategically

Managing Company Resources

Selecting Business-Level Strategies

Supporting the Business-Level Strategy: Competitive and Cooperative Moves

Competing in International Markets

Selecting Corporate-Level Strategies

Executing Strategy Through Organizational Design

Leading an Ethical Organization: Corporate Governance, Corporate Ethics, and Social Responsibility

Filters