Question 1

In seeking to predict the next moves of close or key rivals, it is useful to consider such questions as:

Accepted Answer

A)  Which rivals badly need to increase their unit sales and market share? 
B)  Are there predictable trends in the timing of rivals' new-product launches or marketing promotions? 
C)  Which rivals have a strong incentive, along with the resources, to make major strategic changes? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings? 
E)  All of these 
A)  Which rivals badly need to increase their unit sales and market share? 
B)  Are there predictable trends in the timing of rivals' new-product launches or marketing promotions? 
C)  Which rivals have a strong incentive, along with the resources, to make major strategic changes? 
D)  Which rivals are likely to enter new geographic markets or expand their product offerings? 
E)  All of these

Question 2

Competitive pressures stemming from buyer bargaining power tend to be weaker when

Accepted Answer

A)  the number of buyers is small, such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers are well informed about sellers' products, prices, and costs. 
E)  the buyer group consists of a few large buyers and the seller group consists of numerous small firms. 
A)  the number of buyers is small, such that each customer's business tends to be particularly important to a seller. 
B)  buyer demand is growing slowly or maybe even declining. 
C)  the costs incurred by buyers in switching to competing brands or to substitute products are relatively high. 
D)  buyers are well informed about sellers' products, prices, and costs. 
E)  the buyer group consists of a few large buyers and the seller group consists of numerous small firms.

Question 3

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

Accepted Answer

A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Ups and downs in the economy and in interest rates 
E)  New government regulations or significant changes in government policy toward the industry 
A)  Changes in the long-term industry growth rate 
B)  Increasing globalization of the industry 
C)  Product innovation and technological change 
D)  Ups and downs in the economy and in interest rates 
E)  New government regulations or significant changes in government policy toward the industry

Question 4

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Accepted Answer

A)  How many companies in the industry have good track records for revenue growth and profitability? 
B)  What strategic moves are rivals likely to make next? 
C)  What are the key factors for future competitive success? 
D)  Does the outlook for the industry offer good prospects for profitability? 
E)  What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? 
A)  How many companies in the industry have good track records for revenue growth and profitability? 
B)  What strategic moves are rivals likely to make next? 
C)  What are the key factors for future competitive success? 
D)  Does the outlook for the industry offer good prospects for profitability? 
E)  What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?

Question 5

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist 
A)  When incumbent firms are unable or unwilling to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When industry members are struggling to earn good profits 
C)  When entry barriers are relatively low 
D)  When existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence 
E)  When newcomers can expect to earn attractive profits and a number of outsiders have the expertise and resources to hurdle whatever entry barriers exist

Question 6

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

Accepted Answer

A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage. 
C)  makes it hard for industry members to pursue a differentiation strategy. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs. 
A)  lacks powerful driving forces. 
B)  gives each industry competitor the best potential for building sustainable competitive advantage. 
C)  makes it hard for industry members to pursue a differentiation strategy. 
D)  is conducive to industry members earning attractive profits. 
E)  requires that industry members have low costs.

Question 7

A company's "macro-environment" refers to

Accepted Answer

A)  the industry and competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets being served. 
C)  all the relevant forces and factors outside a company's boundaries-general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry. 
A)  the industry and competitive arena in which the company operates. 
B)  general economic conditions plus the factors driving change in the markets being served. 
C)  all the relevant forces and factors outside a company's boundaries-general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation. 
D)  the competitive market environment that exists between a company and its competitors. 
E)  the dominant economic features of a company's industry.

Question 8

The state of competition in an industry is a function of

Accepted Answer

A)  the competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these 
A)  the competitive pressures associated with rivalry among competing sellers to attract customers. 
B)  competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. 
C)  competitive pressures associated with the threat of new entrants into the marketplace. 
D)  competitive pressures associated with the bargaining power of suppliers and customers. 
E)  All of these

Question 9

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

Accepted Answer

A)  whether most buyers possess roughly equal or varying degrees of bargaining power. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether buyer demand is strong or declining. 
A)  whether most buyers possess roughly equal or varying degrees of bargaining power. 
B)  how many buyers are engaged in collaborative partnerships with sellers. 
C)  whether entry barriers are high or low. 
D)  whether the overall quality of the items being furnished by industry members is rising or falling. 
E)  whether buyer demand is strong or declining.

Question 10

The competitive pressures from substitute products tend to be stronger when

Accepted Answer

A)  buyers are relatively comfortable with the quality and performance of substitutes and the costs to buyers of switching over to the substitutes are low. 
B)  there are more than 10 sellers of substitute products. 
C)  substitutes exhibit the latest in technological innovation. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  demand for the industry's product is not very price sensitive. 
A)  buyers are relatively comfortable with the quality and performance of substitutes and the costs to buyers of switching over to the substitutes are low. 
B)  there are more than 10 sellers of substitute products. 
C)  substitutes exhibit the latest in technological innovation. 
D)  buyers have high psychic costs in severing existing brand relationships and establishing new ones. 
E)  demand for the industry's product is not very price sensitive.

Question 11

Which one of the following is not a common type of driving force?

Accepted Answer

A)  Entry or exit of major firms 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across more companies and more countries 
D)  Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  Technological change and manufacturing process innovation 
A)  Entry or exit of major firms 
B)  Changing societal concerns, attitudes, and lifestyles 
C)  Diffusion of technical know-how across more companies and more countries 
D)  Increasing efforts on the part of industry members to collaborate closely with their suppliers 
E)  Technological change and manufacturing process innovation

Question 12

A strategic group

Accepted Answer

A)  consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B)  includes all rival firms having comparable profitability. 
C)  is a cluster of industry rivals that have similar competitive approaches and market positions. 
D)  consists of those firms whose market shares are about the same size. 
E)  is made up of those firms having comparable profit margins. 
A)  consists of those industry members that are growing at about the same rate and have similar product line breadth. 
B)  includes all rival firms having comparable profitability. 
C)  is a cluster of industry rivals that have similar competitive approaches and market positions. 
D)  consists of those firms whose market shares are about the same size. 
E)  is made up of those firms having comparable profit margins.

Question 13

Industry conditions change

Accepted Answer

A)  because of such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B)  because of newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C)  because new industry key success factors emerge. 
D)  because forces create pressures or incentives for industry participants (competitors, customers, suppliers) to alter their actions in important ways. 
E)  chiefly because of changes in the barriers to entry and the degree of competition from substitute products. 
A)  because of such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. 
B)  because of newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. 
C)  because new industry key success factors emerge. 
D)  because forces create pressures or incentives for industry participants (competitors, customers, suppliers) to alter their actions in important ways. 
E)  chiefly because of changes in the barriers to entry and the degree of competition from substitute products.

Question 14

The rivalry among competing firms tends to be more intense

Accepted Answer

A)  when demand for the product is growing slowly, one or maybe several industry members become dissatisfied with their market position, buyers have low switching costs, and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share. 
B)  when the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares. 
A)  when demand for the product is growing slowly, one or maybe several industry members become dissatisfied with their market position, buyers have low switching costs, and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share. 
B)  when the products/services of rival sellers are strongly differentiated and buyer demand is strong. 
C)  when rivals are relatively content with their market position. 
D)  when there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members. 
E)  the smaller the number of firms in the industry and the more unequal their market shares.

Question 15

Just how strong the competitive pressures are from substitute products depends on

Accepted Answer

A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing. 
A)  whether the available substitutes are strongly or weakly differentiated and whether buyers make purchases frequently or infrequently. 
B)  whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. 
C)  whether the available substitutes are products or services. 
D)  whether the producers of substitutes have ample budgets for new product R&D. 
E)  the speed with which buyer needs and expectations are changing.

Question 16

Which one of the following is not a reason industry members are often motivated to enter into collaborative partnerships with key suppliers?

Accepted Answer

A)  To reduce the costs of switching suppliers 
B)  To speed the availability of next-generation components 
C)  To enhance the quality of parts and components being supplied and reduce defect rates 
D)  To squeeze out important cost savings for both themselves and their suppliers 
E)  To reduce inventory and logistics costs 
A)  To reduce the costs of switching suppliers 
B)  To speed the availability of next-generation components 
C)  To enhance the quality of parts and components being supplied and reduce defect rates 
D)  To squeeze out important cost savings for both themselves and their suppliers 
E)  To reduce inventory and logistics costs

Question 17

Which of the following is not a good example of a marketing-related key success factor?

Accepted Answer

A)  High utilization of fixed assets 
B)  A well-known and well-respected brand name 
C)  Breadth of product line and product selection 
D)  Clever advertising 
E)  Courteous, personalized customer service 
A)  High utilization of fixed assets 
B)  A well-known and well-respected brand name 
C)  Breadth of product line and product selection 
D)  Clever advertising 
E)  Courteous, personalized customer service

Question 18

The payoff of good scouting reports on rivals is improved ability to

Accepted Answer

A)  predict what strategic moves rivals are likely to make next, thereby allowing a company to prepare defensive countermoves and develop strategies to exploit rivals' missteps. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share, whether rivals are increasing or decreasing R&D spending, and what new marketing promotions are in the works. 
E)  determine whether a rival has the best strategy and is the industry leader. 
A)  predict what strategic moves rivals are likely to make next, thereby allowing a company to prepare defensive countermoves and develop strategies to exploit rivals' missteps. 
B)  determine which rivals are in the best strategic group. 
C)  figure out how many key success factors a rival has. 
D)  determine whether a rival is gaining or losing market share, whether rivals are increasing or decreasing R&D spending, and what new marketing promotions are in the works. 
E)  determine whether a rival has the best strategy and is the industry leader.

Question 19

Which of the following is not a factor that causes buyer bargaining power to be stronger?

Accepted Answer

A)  Some buyers are a threat to integrate backward into the business of sellers 
B)  The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities 
C)  Buyers have considerable discretion over whether and when they purchase the product 
D)  Buyers are well informed about sellers' products, prices, and costs 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
A)  Some buyers are a threat to integrate backward into the business of sellers 
B)  The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities 
C)  Buyers have considerable discretion over whether and when they purchase the product 
D)  Buyers are well informed about sellers' products, prices, and costs 
E)  The costs incurred by buyers in switching to competing brands or to substitute products are relatively low

Question 20

The "driving forces" in an industry

Accepted Answer

A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product, the outbreak of price-cutting, and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products. 
A)  are usually triggered by changing technology or stronger learning/experience curve effects. 
B)  usually are spawned by growing demand for the product, the outbreak of price-cutting, and big reductions in entry barriers. 
C)  are major underlying causes of change in industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. 
D)  appear when an industry begins to mature but are seldom present during early stages of the industry life cycle. 
E)  are usually triggered by shifting buyer needs and expectations or by the appearance of new substitute products.

In seeking to predict the next moves of close or key rivals, it is useful to consider such questions as:

Competitive pressures stemming from buyer bargaining power tend to be weaker when

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

A company's "macro-environment" refers to

The state of competition in an industry is a function of

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

The competitive pressures from substitute products tend to be stronger when

Which one of the following is not a common type of driving force?

A strategic group

Industry conditions change

The rivalry among competing firms tends to be more intense

Just how strong the competitive pressures are from substitute products depends on

Which one of the following is not a reason industry members are often motivated to enter into collaborative partnerships with key suppliers?

Which of the following is not a good example of a marketing-related key success factor?

The payoff of good scouting reports on rivals is improved ability to

Which of the following is not a factor that causes buyer bargaining power to be stronger?

The "driving forces" in an industry

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

Exam 3: Evaluating a Companys External Environment

In seeking to predict the next moves of close or key rivals, it is useful to consider such questions as:

Competitive pressures stemming from buyer bargaining power tend to be weaker when

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

Which one of the following does not intensify the competitive pressures associated with the threat of entry?

A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

A company's "macro-environment" refers to

The state of competition in an industry is a function of

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

The competitive pressures from substitute products tend to be stronger when

Which one of the following is not a common type of driving force?

A strategic group

Industry conditions change

The rivalry among competing firms tends to be more intense

Just how strong the competitive pressures are from substitute products depends on

Which one of the following is not a reason industry members are often motivated to enter into collaborative partnerships with key suppliers?

Which of the following is not a good example of a marketing-related key success factor?

The payoff of good scouting reports on rivals is improved ability to

Which of the following is not a factor that causes buyer bargaining power to be stronger?

The "driving forces" in an industry

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