Question 1

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

Accepted Answer

A)  conditions in the economy at large. 
B)  population demographics and societal values and lifestyles. 
C)  technological and ecological 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 and ecological factors. 
D)  governmental regulations and legislation. 
E)  the company's resource strengths,resource weaknesses,and competitive capabilities.

Question 2

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 3

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 4

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 5

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 6

Identify and briefly explain any three factors that lead to weak bargaining power on the part of suppliers.

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 7

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 8

Identify and briefly explain any three factors that lead to weak bargaining power on the part of buyers.

Accepted Answer

The answer of Identify and briefly explain any three factors...

Question 9

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

Accepted Answer

The answer of What is the analytical value of studying...

Question 10

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 11

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

Question 12

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.

Question 13

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 14

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 15

Explain the meaning and significance of each of the following:
a)Driving forces
b)PESTEL analysis
c)Strategic group mapping
d)Key success factors

Accepted Answer

a) Driving forces refer to the internal

Question 16

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 17

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 18

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 19

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 20

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

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

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

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

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

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

Identify and briefly explain any three factors that lead to weak bargaining power on the part of suppliers.

Industry conditions change

Identify and briefly explain any three factors that lead to weak bargaining power on the part of buyers.

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

The steps involved in driving forces analysis are

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

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

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

The bargaining leverage of suppliers is greater when

Explain the meaning and significance of each of the following: a)Driving forces b)PESTEL analysis c)Strategic group mapping d)Key success factors

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

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

Competitive pressures stemming from buyer bargaining power tend to be 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

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

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

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 part of a company's broad macro-environment?

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

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

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

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

Identify and briefly explain any three factors that lead to weak bargaining power on the part of suppliers.

Industry conditions change

Identify and briefly explain any three factors that lead to weak bargaining power on the part of buyers.

What is the analytical value of studying competitors and trying to predict what moves rivals will make next?

The steps involved in driving forces analysis are

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

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

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

The bargaining leverage of suppliers is greater when

Explain the meaning and significance of each of the following: a)Driving forces b)PESTEL analysis c)Strategic group mapping d)Key success factors

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

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

Competitive pressures stemming from buyer bargaining power tend to be 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

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

Strategy, Business Models, and Competitive Advantage

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

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position: Strategic Moves, Timing, and Scope of Operations

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Superior Strategy Execution-Another Path to Competitive Advantage

Filters