Question 1

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 2

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 3

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 4

Using the five-forces model of competition to determine the character and strength of the competitive forces within a given industry involves

Accepted Answer

A) building the picture of competition in two steps: (1)determining which rival has the biggest competitive advantage and (2)assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
B) building the picture of competition in three steps: (1)identify the different parties involved,along with specific factors that bring about competitive pressures; (2)evaluate how strong the pressures stemming from each of the five forces are (strong,moderate or weak);and (3)determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
C) gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage. 
D) assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E) evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. 
A) building the picture of competition in two steps: (1)determining which rival has the biggest competitive advantage and (2)assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. 
B) building the picture of competition in three steps: (1)identify the different parties involved,along with specific factors that bring about competitive pressures; (2)evaluate how strong the pressures stemming from each of the five forces are (strong,moderate or weak);and (3)determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. 
C) gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage. 
D) assessing whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. 
E) evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors.

Question 5

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 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 interest rates 
E) New government regulations or significant changes in government policy toward the industry

Question 6

A competitive environment in which 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 7

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 8

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 9

Based on an analysis of the five forces that increase or decrease competitive pressures in an industry,in which of the following industries is profitability likely to be highest?

Accepted Answer

A) Video streaming services 
B) Supermarkets 
C) Commercial airlines 
D) Electric and gas utilities 
E) Tire manufacturing 
A) Video streaming services 
B) Supermarkets 
C) Commercial airlines 
D) Electric and gas utilities 
E) Tire manufacturing

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

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

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 12

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 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

A company's broad macroenvironment 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 strategically significant 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 strategically significant 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 15

Which of the following factors represents the strategically relevant political factors in the macroenvironment that will influence the performance of all firms across the board?

Accepted Answer

A) the strength of the federal banking system 
B) the exogenous forces related to the general environmental demand 
C) social factors that could fuel a political agenda and create greater transparency 
D) bailouts and energy policies that are industry-specific 
E) tax policy,fiscal policy,and tariffs providing impetus for antitrust matters 
A) the strength of the federal banking system 
B) the exogenous forces related to the general environmental demand 
C) social factors that could fuel a political agenda and create greater transparency 
D) bailouts and energy policies that are industry-specific 
E) tax policy,fiscal policy,and tariffs providing impetus for antitrust matters

Question 16

Rivalry among competing sellers tends to be less intense when

Accepted Answer

A) industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B) buyer demand is weak and many sellers have excess capacity and/or inventory. 
C) industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D) rivals have diverse strategies and objectives,and are located in different countries. 
E) rival sellers have weakly differentiated products. 
A) industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales. 
B) buyer demand is weak and many sellers have excess capacity and/or inventory. 
C) industry rivals are not particularly aggressive in drawing sales and market share away from rivals. 
D) rivals have diverse strategies and objectives,and are located in different countries. 
E) rival sellers have weakly differentiated products.

Question 17

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 18

Which one of the following is not a factor that affects the strength of suppliers' 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

Question 19

Increasing globalization can be a driving force in an industry because

Accepted Answer

A) market growth rates go up,product innovation speeds up,and new firms are likely to enter the industry. 
B) companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities. 
C) foreign producers typically have lower costs,greater technological expertise,and more product innovation capabilities than domestic firms. 
D) the products and services of foreign competitors are nearly always cheaper or of better quality than those of domestic companies. 
E) it results in companies having fewer competitors and a strategic group map with fewer circles. 
A) market growth rates go up,product innovation speeds up,and new firms are likely to enter the industry. 
B) companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities. 
C) foreign producers typically have lower costs,greater technological expertise,and more product innovation capabilities than domestic firms. 
D) the products and services of foreign competitors are nearly always cheaper or of better quality than those of domestic companies. 
E) it results in companies having fewer competitors and a strategic group map with fewer circles.

Question 20

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 rival 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 rival 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.

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

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

Rivalry among competing sellers is generally more intense when

Using the five-forces model of competition to determine the character and strength of the competitive forces within a given industry involves

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

A competitive environment in which 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

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

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

Based on an analysis of the five forces that increase or decrease competitive pressures in an industry,in which of the following industries is profitability likely to be highest?

The bargaining leverage of suppliers is greater when

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

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

Industry conditions change

A company's broad macroenvironment refers to

Which of the following factors represents the strategically relevant political factors in the macroenvironment that will influence the performance of all firms across the board?

Rivalry among competing sellers tends to be less intense when

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

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

Increasing globalization can be a driving force in an industry because

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

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

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Exam 3: Evaluating a Companys External Environment

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

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

Rivalry among competing sellers is generally more intense when

Using the five-forces model of competition to determine the character and strength of the competitive forces within a given industry involves

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

A competitive environment in which 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

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

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

Based on an analysis of the five forces that increase or decrease competitive pressures in an industry,in which of the following industries is profitability likely to be highest?

The bargaining leverage of suppliers is greater when

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

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

Industry conditions change

A company's broad macroenvironment refers to

Which of the following factors represents the strategically relevant political factors in the macroenvironment that will influence the performance of all firms across the board?

Rivalry among competing sellers tends to be less intense when

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

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

Increasing globalization can be a driving force in an industry because

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

Strategy,business Models,and Competitive Advantage

Strategy Formulation,execution,and Governance

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 Executionanother Path to Competitive Advantage

Filters