Question 1

The five forces framework is based on the S-C-P model and identifies the five most common threats facing firms from their local competitive environment and the conditions under which these threats are more or less likely to be present.

Accepted Answer

A) True 
 B)False

Question 2

Which type of competition is characterized by a large number of firms, heterogeneous products and low cost of entry and exit?

Accepted Answer

A)  Perfect competition 
B)  Monopolistic competition 
C)  Oligopoly 
D)  Monopoly

Question 3

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone, the other firm is considered to be a

Accepted Answer

A)  competitor. 
B)  complementor. 
C)  rival. 
D)  substitute.

Question 4

Culture is the values, beliefs and norms that guide a behavior in a society, and culture is largely the same across the world.

Accepted Answer

A) True 
 B)False

Question 5

________ industries are newly created, or newly recreated industries formed by technological innovations, changes in demand, or the emergence of new customer needs.

Accepted Answer

A)  Mature 
B)  Emerging 
C)  Fragmented 
D)  Declining

Question 6

The major opportunity facing firms in fragmented industries is the implementation of strategies that begin to consolidate the industry into a smaller number of firms.

Accepted Answer

A) True 
 B)False

Question 7

________ make a wide variety of raw materials, labor and other critical assets available to firms.

Accepted Answer

A)  Buyers 
B)  Rivals 
C)  Suppliers 
D)  Substitutes

Question 8

Identify the four types of competition, the attributes of each type and the expected performance under each.

Accepted Answer

The answer of Identify the four types of competition, the...

Question 9

An emerging industry is an industry in which a large number of small or medium-sized firms operate and no small set of firms has a dominant market share or creates dominant technologies.

Accepted Answer

A) True 
 B)False

Question 10

In the S-C-P model, ________ refers to the strategies that firms in an industry implement.

Accepted Answer

A)  structure 
B)  strategy 
C)  conduct 
D)  performance

Question 11

In the structure-conduct-performance model, the term "performance" refers solely to the performance of individual firms.

Accepted Answer

A) True 
 B)False

Question 12

If Hickory Divine were to open its own chain of furniture stores, this would be an example of

Accepted Answer

A)  complementors. 
B)  backward vertical integration. 
C)  consolidation. 
D)  forward vertical integration.

Question 13

All divestments are caused by industry decline.

Accepted Answer

A) True 
 B)False

Question 14

It is possible for a single firm to be a complementor of one firm and a competitor of another.

Accepted Answer

A) True 
 B)False

Question 15

Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of

Accepted Answer

A)  high power of buyers. 
B)  high threat of entry. 
C)  high levels of rivalry. 
D)  high threat of substitutes.

Question 16

In a perfectly competitive industry,

Accepted Answer

A)  there are relatively few firms operating in the industry. 
B)  the products and services sold by firms in the industry are very different from each other. 
C)  it is very costly for firms to enter the industry. 
D)  it is not very costly for firms to exit the industry.

Question 17

A(n) ________ is any individual, group, or organization outside a firm that seeks to reduce the level of that firm's performance.

Accepted Answer

A)  environmental threat 
B)  environmental opportunity 
C)  environmental equalizer 
D)  competitive advantage

Question 18

First movers that invest only in technology usually obtain sustained competitive advantages, even if they do not tie up strategically valuable resources in an industry before their full value is widely understood.

Accepted Answer

A) True 
 B)False

Question 19

Consolidation strategy is a good option in what type of industry?

Accepted Answer

A)  Mature 
B)  Emerging 
C)  Fragmented 
D)  Declining

Question 20

In general, it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time.

Accepted Answer

A) True 
 B)False

Exam 2: Evaluating a Firms External Environment

The five forces framework is based on the S-C-P model and identifies the five most common threats facing firms from their local competitive environment and the conditions under which these threats are more or less likely to be present.

Which type of competition is characterized by a large number of firms, heterogeneous products and low cost of entry and exit?

If your customers value your products more when they have your product and another firm's product rather than when they have your product alone, the other firm is considered to be a

Culture is the values, beliefs and norms that guide a behavior in a society, and culture is largely the same across the world.

________ industries are newly created, or newly recreated industries formed by technological innovations, changes in demand, or the emergence of new customer needs.

The major opportunity facing firms in fragmented industries is the implementation of strategies that begin to consolidate the industry into a smaller number of firms.

________ make a wide variety of raw materials, labor and other critical assets available to firms.

Identify the four types of competition, the attributes of each type and the expected performance under each.

An emerging industry is an industry in which a large number of small or medium-sized firms operate and no small set of firms has a dominant market share or creates dominant technologies.

In the S-C-P model, ________ refers to the strategies that firms in an industry implement.

In the structure-conduct-performance model, the term "performance" refers solely to the performance of individual firms.

If Hickory Divine were to open its own chain of furniture stores, this would be an example of

All divestments are caused by industry decline.

It is possible for a single firm to be a complementor of one firm and a competitor of another.

Frequent price cutting by firms in an industry, frequent introduction of new products by firms in an industry and intense advertising campaigns are indications of

In a perfectly competitive industry,

A(n) ________ is any individual, group, or organization outside a firm that seeks to reduce the level of that firm's performance.

First movers that invest only in technology usually obtain sustained competitive advantages, even if they do not tie up strategically valuable resources in an industry before their full value is widely understood.

Consolidation strategy is a good option in what type of industry?

In general, it is rarely the case that all five forces in the five forces framework will be equally threatening at the same time.