Question 1

Which one of the following is not a factor that affects the strength of supplier bargaining power?

Accepted Answer

A)  Whether needed inputs are in short or ample supply 
B)  Whether industry members are a strong threat to integrate backward into the business of suppliers 
C)  Whether industry members are struggling to make good profits because of slow-growing market demand 
D)  Whether the costs of industry members to switch their purchases to alternative suppliers or substitutes are high or low 
E)  Whether the item being supplied is a commodity that is readily available from many suppliers 
A)  Whether needed inputs are in short or ample supply 
B)  Whether industry members are a strong threat to integrate backward into the business of suppliers 
C)  Whether industry members are struggling to make good profits because of slow-growing market demand 
D)  Whether the costs of industry members to switch their purchases to alternative suppliers or substitutes are high or low 
E)  Whether the item being supplied is a commodity that is readily available from many suppliers C

Question 2

In which one of the following instances is supplier bargaining power and leverage not weakened?

Accepted Answer

A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply 
A)  When industry members pose a credible threat of backward integration into the business of suppliers 
B)  When the cost of switching from one supplier to another is low 
C)  When the buying firms purchase in large quantities and thus are important customers of the suppliers 
D)  When the item being supplied is a commodity 
E)  When the items purchased from suppliers are in short supply E

Question 3

The best test of whether potential entry is a strong or weak competitive force is

Accepted Answer

A)  the strength of buyer loyalty to existing brands. 
B)  whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C)  whether the strategies of industry members are well matched to the industry's key success factors. 
D)  whether the industry offers an opportunity for a blue ocean strategy. 
E)  to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates. 
A)  the strength of buyer loyalty to existing brands. 
B)  whether the industry's driving forces make it harder or easier for new entrants to be successful. 
C)  whether the strategies of industry members are well matched to the industry's key success factors. 
D)  whether the industry offers an opportunity for a blue ocean strategy. 
E)  to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates. E

Question 4

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

Accepted Answer

A)  Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions 
B)  How many strategic groups the industry has and which ones are most profitable and least profitable 
C)  The number and sizes of buyers, the number of rivals, and the pace of product innovation 
D)  The pace of technological change 
E)  The current industry position in its life cycle to reveal the industry's growth prospects 
A)  Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions 
B)  How many strategic groups the industry has and which ones are most profitable and least profitable 
C)  The number and sizes of buyers, the number of rivals, and the pace of product innovation 
D)  The pace of technological change 
E)  The current industry position in its life cycle to reveal the industry's growth prospects

Question 5

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

Accepted Answer

A)  pressures associated with rivalry among sellers to attract buyer patronage. 
B)  threat that firms outside the industry will decide to enter the market. 
C)  attempts of companies in other industries to win buyers over to their own substitute products. 
D)  competitive pressures stemming from the bargaining power of both suppliers and buyers. 
E)  All of these. 
A)  pressures associated with rivalry among sellers to attract buyer patronage. 
B)  threat that firms outside the industry will decide to enter the market. 
C)  attempts of companies in other industries to win buyers over to their own substitute products. 
D)  competitive pressures stemming from the bargaining power of both suppliers and buyers. 
E)  All of these.

Question 6

A strategic group consists of those firms in an industry that

Accepted Answer

A)  are subject to the same driving forces. 
B)  are placing about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares. 
A)  are subject to the same driving forces. 
B)  are placing about the same emphasis on each distribution channel. 
C)  use the same key success factors to differentiate their products. 
D)  employ similar competitive approaches and occupy similar positions in the market. 
E)  have similar size market shares.

Question 7

As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces,

Accepted Answer

A)  the stronger are the industry's driving forces. 
B)  the lower the combined profitability of industry members. 
C)  the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  the larger the number of competitive advantage opportunities for industry members. 
E)  the greater the number of industry key success factors. 
A)  the stronger are the industry's driving forces. 
B)  the lower the combined profitability of industry members. 
C)  the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader. 
D)  the larger the number of competitive advantage opportunities for industry members. 
E)  the greater the number of industry key success factors.

Question 8

Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

Accepted Answer

A)  Whether the number of buyers is small or if a customer is particularly important to the seller 
B)  Whether buyers are relatively well informed about sellers' products, prices, and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether buyer demand is weak or strong and rapidly growing 
E)  Whether buyers pose a credible threat of integrating backward into the business of sellers 
A)  Whether the number of buyers is small or if a customer is particularly important to the seller 
B)  Whether buyers are relatively well informed about sellers' products, prices, and costs 
C)  Whether buyer needs and expectations are changing rapidly or slowly 
D)  Whether buyer demand is weak or strong and rapidly growing 
E)  Whether buyers pose a credible threat of integrating backward into the business of sellers

Question 9

The steps involved in driving forces analysis are

Accepted Answer

A)  developing a comprehensive list of all the potential causes of changing industry conditions. 
B)  predicting which new driving forces will emerge next. 
C)  determining which of the five competitive forces is the biggest driver of industry change. 
D)  identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes are needed to prepare for the impact of the driving forces. 
E)  All of these. 
A)  developing a comprehensive list of all the potential causes of changing industry conditions. 
B)  predicting which new driving forces will emerge next. 
C)  determining which of the five competitive forces is the biggest driver of industry change. 
D)  identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes are needed to prepare for the impact of the driving forces. 
E)  All of these.

Question 10

The bargaining leverage of suppliers is greater when

Accepted Answer

A)  only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  it makes good economic sense for industry members to vertically integrate backward. 
E)  the supplier industry is composed of a large number of relatively small suppliers. 
A)  only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes. 
B)  industry members incur low costs in switching their purchases from one supplier to another. 
C)  industry members purchase in large quantities and thus are important customers of the suppliers. 
D)  it makes good economic sense for industry members to vertically integrate backward. 
E)  the supplier industry is composed of a large number of relatively small suppliers.

Question 11

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

Accepted Answer

A)  The costs to buyers of switching over to the substitutes are low 
B)  Buyers are dubious about using substitutes 
C)  The quality and performance of the substitutes is well matched to what buyers need to meet their requirements 
D)  Buyer brand loyalty is weak 
E)  Substitutes are readily available at competitive prices 
A)  The costs to buyers of switching over to the substitutes are low 
B)  Buyers are dubious about using substitutes 
C)  The quality and performance of the substitutes is well matched to what buyers need to meet their requirements 
D)  Buyer brand loyalty is weak 
E)  Substitutes are readily available at competitive prices

Question 12

Which of the following are most unlikely to qualify as driving forces?

Accepted Answer

A)  Changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications, new government regulations, and significant changes in government policy toward the industry 
D)  Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances 
E)  Changes in who buys the industry's product and how they use it 
A)  Changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency 
B)  Increasing globalization of the industry and product innovation 
C)  New Internet technology applications, new government regulations, and significant changes in government policy toward the industry 
D)  Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances 
E)  Changes in who buys the industry's product and how they use it

Question 13

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

Accepted Answer

A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be quantitative, qualitative, or discrete and defined in terms of distinct classes and combinations. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group. 
A)  The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace. 
B)  The variables chosen as axes for the map can be quantitative, qualitative, or discrete and defined in terms of distinct classes and combinations. 
C)  The variables chosen as axes for the map should be highly correlated. 
D)  Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members. 
E)  The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Question 14

Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

Accepted Answer

A)  whether the profits of suppliers are relatively high or low. 
B)  the number of suppliers that each seller/industry member purchases from on average. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  the extent to which suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling. 
A)  whether the profits of suppliers are relatively high or low. 
B)  the number of suppliers that each seller/industry member purchases from on average. 
C)  how aggressively rival industry members are trying to differentiate their products. 
D)  the extent to which suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry. 
E)  whether the prices of the items being furnished by the suppliers are rising or falling.

Question 15

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

Accepted Answer

A)  The industry's growth potential 
B)  Whether competitive pressures will likely grow stronger or weaker 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The company's competitive position in the industry and its ability to perform industry key success factors 
E)  Whether the industry's product is strongly or weakly differentiated 
A)  The industry's growth potential 
B)  Whether competitive pressures will likely grow stronger or weaker 
C)  Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces 
D)  The company's competitive position in the industry and its ability to perform industry key success factors 
E)  Whether the industry's product is strongly or weakly differentiated

Question 16

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in who buys the product and how they use it, changes in the long-term industry growth rate, and changes in cost and efficiency 
B)  Entry or exit of major firms, product innovation, and marketing innovation 
C)  Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration 
D)  Diffusion of technical know-how and changing societal concerns, attitudes, and lifestyles 
E)  Changes in manufacturing processes brought on by technological change, increasing globalization of the industry, and new Internet capabilities 
A)  Changes in who buys the product and how they use it, changes in the long-term industry growth rate, and changes in cost and efficiency 
B)  Entry or exit of major firms, product innovation, and marketing innovation 
C)  Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration 
D)  Diffusion of technical know-how and changing societal concerns, attitudes, and lifestyles 
E)  Changes in manufacturing processes brought on by technological change, increasing globalization of the industry, and new Internet capabilities

Question 17

In identifying an industry's key success factors, strategists should

Accepted Answer

A)  try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B)  consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C)  consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D)  consider what it will take to overtake the company with the industry's overall best strategy. 
E)  focus their attention on what it will take to capitalize on impacts of the industry's driving forces. 
A)  try to single out all factors that play a major role in shaping whether buyer demand grows rapidly or slowly. 
B)  consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage. 
C)  consider whether the number of strategic groups is increasing or decreasing and whether the five competitive forces are powerful or relatively weak. 
D)  consider what it will take to overtake the company with the industry's overall best strategy. 
E)  focus their attention on what it will take to capitalize on impacts of the industry's driving forces.

Question 18

Rivalry among competing sellers is generally more intense when

Accepted Answer

A)  buyer demand is growing rapidly. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume. 
E)  barriers to entry are high and buyer switching costs are high. 
A)  buyer demand is growing rapidly. 
B)  the industry's driving forces are strong and rivals have strongly differentiated products. 
C)  barriers to entry are moderately high and the pool of likely entry candidates is small. 
D)  industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume. 
E)  barriers to entry are high and buyer switching costs are high.

Question 19

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

Accepted Answer

A)  The market size, growth rate and prospects 
B)  The scope of competitive rivalry including geographic area 
C)  The market demand-supply conditions 
D)  How strong driving forces and competitive forces are 
E)  The role and pace of technological change 
A)  The market size, growth rate and prospects 
B)  The scope of competitive rivalry including geographic area 
C)  The market demand-supply conditions 
D)  How strong driving forces and competitive forces are 
E)  The role and pace of technological change

Question 20

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

Accepted Answer

A)  Artificial sweetener as a substitute for sugar 
B)  Wireless phone service as a substitute for a landline telephone 
C)  Coca-Cola as a substitute for Pepsi 
D)  Digital cameras as substitutes for film cameras 
E)  Video-on-demand services as a substitute for renting movies from a movie rental store 
A)  Artificial sweetener as a substitute for sugar 
B)  Wireless phone service as a substitute for a landline telephone 
C)  Coca-Cola as a substitute for Pepsi 
D)  Digital cameras as substitutes for film cameras 
E)  Video-on-demand services as a substitute for renting movies from a movie rental store

Which one of the following is not a factor that affects the strength of supplier bargaining power?

In which one of the following instances is supplier bargaining power and leverage not weakened?

The best test of whether potential entry is a strong or weak competitive force is

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

A strategic group consists of those firms in an industry that

As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces,

Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

The steps involved in driving forces analysis are

The bargaining leverage of suppliers is greater when

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

Which of the following are most unlikely to qualify as driving forces?

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

In identifying an industry's key success factors, strategists should

Rivalry among competing sellers is generally more intense when

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Superior Strategy Execution-Another Path to Competitive Advantage

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Exam 3: Evaluating a Companys External Environment

Which one of the following is not a factor that affects the strength of supplier bargaining power?

In which one of the following instances is supplier bargaining power and leverage not weakened?

The best test of whether potential entry is a strong or weak competitive force is

Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the

A strategic group consists of those firms in an industry that

As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces,

Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

The steps involved in driving forces analysis are

The bargaining leverage of suppliers is greater when

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

Which of the following are most unlikely to qualify as driving forces?

Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

In identifying an industry's key success factors, strategists should

Rivalry among competing sellers is generally more intense when

Which of the following is not a factor to consider in identifying an industry's dominant economic features?

Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Superior Strategy Execution-Another Path to Competitive Advantage

Filters