Question 1

Driving forces analysis

Accepted Answer

A)  involves identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes a company may need to make to prepare for the impact of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain) the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change. 
A)  involves identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes a company may need to make to prepare for the impact of the driving forces. 
B)  identifies which strategic group is the most powerful. 
C)  helps managers identify which industry member is likely to become (or remain) the industry leader and why. 
D)  helps managers identify which key success factors are most likely to help their company gain a competitive advantage. 
E)  helps managers identify which of the five competitive forces will be the strongest driver of industry change.

Question 2

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

Accepted Answer

A)  the forces driving change in the industry. 
B)  the dominant economic features of the industry in which the company operates. 
C)  the kinds and strengths of competitive forces industry members are facing. 
D)  the key factors of success in the industry. 
E)  All of the above. 
A)  the forces driving change in the industry. 
B)  the dominant economic features of the industry in which the company operates. 
C)  the kinds and strengths of competitive forces industry members are facing. 
D)  the key factors of success in the industry. 
E)  All of the above.

Question 3

Not all positions on a strategic group map are equally attractive because

Accepted Answer

A)  entry and exit barriers are different for each strategic group. 
B)  key success factors are usually quite different for differently positioned industry participants. 
C)  small strategic groups are always less profitable than large strategic groups. 
D)  across-group rivalry is strongest at the outer edges of the strategic group map. 
E)  industry driving forces and competitive pressures favor some companies or groups and hurt others and the profit potential of different strategic groups varies because of strengths and weaknesses in each strategic group's position. 
A)  entry and exit barriers are different for each strategic group. 
B)  key success factors are usually quite different for differently positioned industry participants. 
C)  small strategic groups are always less profitable than large strategic groups. 
D)  across-group rivalry is strongest at the outer edges of the strategic group map. 
E)  industry driving forces and competitive pressures favor some companies or groups and hurt others and the profit potential of different strategic groups varies because of strengths and weaknesses in each strategic group's position.

Question 4

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?

Accepted Answer

A)  When buyer demand is growing rapidly 
B)  When buyers are relatively well informed about sellers' products, prices, and costs 
C)  When buyers pose a major threat to integrate backward into the product market of sellers 
D)  When sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands 
E)  When buyers have considerable discretion over whether and when they purchase the product 
A)  When buyer demand is growing rapidly 
B)  When buyers are relatively well informed about sellers' products, prices, and costs 
C)  When buyers pose a major threat to integrate backward into the product market of sellers 
D)  When sellers' products are weakly differentiated, making it easy for buyers to switch to competing brands 
E)  When buyers have considerable discretion over whether and when they purchase the product

Question 5

Which of the following is a good example of a manufacturing-related key success factor?

Accepted Answer

A)  Global distribution capabilities 
B)  High labor productivity (especially if the production process has high labor content) 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability 
A)  Global distribution capabilities 
B)  High labor productivity (especially if the production process has high labor content) 
C)  Low distribution costs 
D)  Accurate filling of buyer orders 
E)  Short delivery time capability

Question 6

An industry's driving forces

Accepted Answer

A)  are generally determined by competitive pressures, the sizes of strategic groups, and the power of rival firms' competitive strategies. 
B)  generally act in ways that will strengthen or weaken market demand, make competition more or less intense, and lead to higher or lower industry profitability. 
C)  frequently cause a leveling off of industry growth and a reduction in the bargaining power of buyers. 
D)  are normally triggered by ups and downs in the economy, higher or lower inflation rates, higher or lower interest rates, or important new strategic alliances. 
E)  can be triggered by such factors as growing competitive pressures from substitute products, greater seller-supplier collaboration, and the efforts of rival firms to employ new or different offensive strategies. 
A)  are generally determined by competitive pressures, the sizes of strategic groups, and the power of rival firms' competitive strategies. 
B)  generally act in ways that will strengthen or weaken market demand, make competition more or less intense, and lead to higher or lower industry profitability. 
C)  frequently cause a leveling off of industry growth and a reduction in the bargaining power of buyers. 
D)  are normally triggered by ups and downs in the economy, higher or lower inflation rates, higher or lower interest rates, or important new strategic alliances. 
E)  can be triggered by such factors as growing competitive pressures from substitute products, greater seller-supplier collaboration, and the efforts of rival firms to employ new or different offensive strategies.

Question 7

Which of the following conditions acts to weaken buyer bargaining power?

Accepted Answer

A)  When buyers are unlikely to integrate backward into the business of sellers 
B)  When buyers are well informed about sellers' products, prices, and costs 
C)  When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D)  When buyers have the ability to postpone purchases if they don't like the prices offered by sellers 
E)  When buyers are few in number and/or often purchase in large quantities 
A)  When buyers are unlikely to integrate backward into the business of sellers 
B)  When buyers are well informed about sellers' products, prices, and costs 
C)  When the costs incurred by buyers in switching to competing brands or to substitute products are relatively low 
D)  When buyers have the ability to postpone purchases if they don't like the prices offered by sellers 
E)  When buyers are few in number and/or often purchase in large quantities

Question 8

Which of the following is generally not considered as a barrier to entry?

Accepted Answer

A)  Rapid market growth 
B)  Sizable capital requirements and an array of regulatory requirements 
C)  Strong buyer loyalty to existing brands 
D)  Sizable economies of scale in production 
E)  Difficulties in gaining access to distribution and securing adequate space of retailers' shelves 
A)  Rapid market growth 
B)  Sizable capital requirements and an array of regulatory requirements 
C)  Strong buyer loyalty to existing brands 
D)  Sizable economies of scale in production 
E)  Difficulties in gaining access to distribution and securing adequate space of retailers' shelves

Question 9

Which one of the following increases the competitive pressures associated with the threat of entry?

Accepted Answer

A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When buyers have a high degree of loyalty to the brands and product offerings of existing industry members 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and resources to hurdle whatever entry barriers exist 
E)  When newcomers can expect to earn attractive profits 
A)  When incumbent firms are likely to launch competitive initiatives to strongly contest the entry of newcomers 
B)  When buyers have a high degree of loyalty to the brands and product offerings of existing industry members 
C)  When buyer demand for the product is growing fairly slowly 
D)  When few outsiders have the expertise and resources to hurdle whatever entry barriers exist 
E)  When newcomers can expect to earn attractive profits

Question 10

Which of the following is not one of the five typical sources of competitive pressures?

Accepted Answer

A)  The power and influence of industry driving forces 
B)  The bargaining power of suppliers and seller-supplier collaboration 
C)  The threat of new entrants into the market 
D)  The attempts of companies in other industries to win customers over to their own substitute products 
E)  The market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry 
A)  The power and influence of industry driving forces 
B)  The bargaining power of suppliers and seller-supplier collaboration 
C)  The threat of new entrants into the market 
D)  The attempts of companies in other industries to win customers over to their own substitute products 
E)  The market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry

Question 11

Factors that cause the rivalry among competing sellers to be weak include

Accepted Answer

A)  low buyer switching costs and rival sellers that are relatively equal in size and capability. 
B)  rapid growth in buyer demand and high buyer switching costs. 
C)  a recent acquisition of a weak rivals by an industry outsider with the intent of turning the acquisition into a major contender. 
D)  low barriers to entry and weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand and strongly differentiated products. 
A)  low buyer switching costs and rival sellers that are relatively equal in size and capability. 
B)  rapid growth in buyer demand and high buyer switching costs. 
C)  a recent acquisition of a weak rivals by an industry outsider with the intent of turning the acquisition into a major contender. 
D)  low barriers to entry and weakly differentiated products among rival sellers. 
E)  slow growth in buyer demand and strongly differentiated products.

Question 12

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

Accepted Answer

A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high brand loyalty. 
D)  offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable. 
A)  is competitively unattractive from the standpoint of earning good profits. 
B)  offers little ability to build a sustainable competitive advantage. 
C)  is highly conducive to achieving strong product differentiation and high brand loyalty. 
D)  offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage. 
E)  requires that industry members have a strongly differentiated product offering in order to be profitable.

Question 13

An industry's key success factors

Accepted Answer

A)  are a function of market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  can be determined through identifying an industry's dominant economic characteristics, assessing the five competitive forces, considering the impacts of the driving forces, comparing the market positions of industry members, and forecasting the likely next moves of industry rivals. 
D)  can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E)  depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack. 
A)  are a function of market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability. 
B)  vary according to whether an industry has high or low long-term attractiveness. 
C)  can be determined through identifying an industry's dominant economic characteristics, assessing the five competitive forces, considering the impacts of the driving forces, comparing the market positions of industry members, and forecasting the likely next moves of industry rivals. 
D)  can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies. 
E)  depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.

Question 14

The most powerful of the five competitive forces is usually

Accepted Answer

A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise. 
A)  the competitive pressures that stem from the ready availability of attractively priced substitute products. 
B)  the competitive pressures associated with rivalry among competing sellers in the industry for buyer patronage. 
C)  the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. 
D)  the competitive pressures associated with the potential entry of new competitors. 
E)  the bargaining power and leverage that large customers are able to exercise.

Question 15

The competitive threat that outsiders will enter a market is weaker when

Accepted Answer

A)  financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the pool of entry candidates is large and some have resources that would make them formidable market contenders. 
C)  the industry's market growth is rapid. 
D)  newcomers can be expected to earn attractive profits. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members. 
A)  financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers. 
B)  the pool of entry candidates is large and some have resources that would make them formidable market contenders. 
C)  the industry's market growth is rapid. 
D)  newcomers can be expected to earn attractive profits. 
E)  buyers have little loyalty to the brands and product offerings of existing industry members.

Question 16

Having good competitive intelligence about rivals' strategies, latest actions and announcements, resource strengths and weaknesses, and moves to improve their situation is important because

Accepted Answer

A)  it identifies who the industry's current market share leaders are. 
B)  it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves. 
C)  good scouting reports help identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing. 
A)  it identifies who the industry's current market share leaders are. 
B)  it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves. 
C)  good scouting reports help identify which rival is in which strategic group. 
D)  it enables company managers to determine which rival has the worst strategy and how to avoid making the same strategy mistakes. 
E)  it enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing.

Question 17

The key success factors in an industry

Accepted Answer

A)  are the strategy elements, intangible assets, and competitive capabilities that most affect industry members' abilities to prosper in the marketplace. 
B)  are determined by the industry's driving forces. 
C)  hinge on how many different strategic groups the industry has. 
D)  depend on how many rivals are trying to move from one strategic group to another. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5%, and whether the business models being used are similar or diverse. 
A)  are the strategy elements, intangible assets, and competitive capabilities that most affect industry members' abilities to prosper in the marketplace. 
B)  are determined by the industry's driving forces. 
C)  hinge on how many different strategic groups the industry has. 
D)  depend on how many rivals are trying to move from one strategic group to another. 
E)  are a function of such considerations as how many firms are in the industry, how many have market shares above 5%, and whether the business models being used are similar or diverse.

Question 18

Which one of the following is not part of a company's macro-environment?

Accepted Answer

A)  Conditions in the economy at large 
B)  Population demographics and societal values and lifestyles 
C)  Technological factors 
D)  Governmental regulations and legislation 
E)  The company's resource strengths, resource weaknesses, and competitive capabilities 
A)  Conditions in the economy at large 
B)  Population demographics and societal values and lifestyles 
C)  Technological factors 
D)  Governmental regulations and legislation 
E)  The company's resource strengths, resource weaknesses, and competitive capabilities

Question 19

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Accepted Answer

A)  The industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors 
B)  An assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C)  Whether there are more than five key success factors and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product 
A)  The industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors 
B)  An assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor 
C)  Whether there are more than five key success factors and more than five barriers to entry 
D)  Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group 
E)  Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question 20

Which one of the following does not cause the rivalry among competing sellers to be weak?

Accepted Answer

A)  High buyer switching costs 
B)  Rapid growth in buyer demand 
C)  Industry members aren't aggressive in drawing sales and market share away from rivals 
D)  When one or more competitors become dissatisfied with their market position 
E)  Strongly differentiated products among rival sellers 
A)  High buyer switching costs 
B)  Rapid growth in buyer demand 
C)  Industry members aren't aggressive in drawing sales and market share away from rivals 
D)  When one or more competitors become dissatisfied with their market position 
E)  Strongly differentiated products among rival sellers

Driving forces analysis

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

Not all positions on a strategic group map are equally attractive because

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?

Which of the following is a good example of a manufacturing-related key success factor?

An industry's driving forces

Which of the following conditions acts to weaken buyer bargaining power?

Which of the following is generally not considered as a barrier to entry?

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following is not one of the five typical sources of competitive pressures?

Factors that cause the rivalry among competing sellers to be weak include

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

An industry's key success factors

The most powerful of the five competitive forces is usually

The competitive threat that outsiders will enter a market is weaker when

Having good competitive intelligence about rivals' strategies, latest actions and announcements, resource strengths and weaknesses, and moves to improve their situation is important because

The key success factors in an industry

Which one of the following is not part of a company's macro-environment?

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Which one of the following does not cause the rivalry among competing sellers to be weak?

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

Driving forces analysis

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

Not all positions on a strategic group map are equally attractive because

In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?

Which of the following is a good example of a manufacturing-related key success factor?

An industry's driving forces

Which of the following conditions acts to weaken buyer bargaining power?

Which of the following is generally not considered as a barrier to entry?

Which one of the following increases the competitive pressures associated with the threat of entry?

Which of the following is not one of the five typical sources of competitive pressures?

Factors that cause the rivalry among competing sellers to be weak include

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

An industry's key success factors

The most powerful of the five competitive forces is usually

The competitive threat that outsiders will enter a market is weaker when

Having good competitive intelligence about rivals' strategies, latest actions and announcements, resource strengths and weaknesses, and moves to improve their situation is important because

The key success factors in an industry

Which one of the following is not part of a company's macro-environment?

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?

Which one of the following does not cause the rivalry among competing sellers to be weak?

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