Question 1

The SWOT analysis framework leads to a conceptually simple approach to identifying the important factors that constrain strategic choices without sacrificing analytical rigor.

Accepted Answer

A) True 
 B)False  True

Question 2

In most industries, new entrants will not be a threat because the Internet lowers entry barriers.

Accepted Answer

A) True 
 B)False  False

Question 3

In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts.

Accepted Answer

A)  negative; positive; demographic
B)  positive; negative; technological
C)  negative; positive; sociocultural
D)  positive; negative; demographic B

Question 4

Strategic groups are clusters of firms that share __________ strategies.

Accepted Answer

A)  differing
B)  the same
C)  similar
D)  new

Question 5

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.
E. Porter describes the competitive environment in terms of five basic competitive forces that affect the ability of a firm to compete in a given market. Together, they determine the profit potential for a particular industry.

Accepted Answer

A) True 
 B)False

Question 6

In the value net analysis, complementors are

Accepted Answer

A)  firms that produce substitute products.
B)  firms that produce products that have a positive impact on company product value.
C)  customers who compliment the company for their good products and services.
D)  firms that supply critical inputs to a company.

Question 7

An automobile manufacturer acquires a rental car company. This is an example of

Accepted Answer

A)  backward integration.
B)  forward integration.
C)  economies of scale.
D)  product differentiation.

Question 8

Research shows that many immigrants to the United States are prodigious job creators. This supports legislative battles to increase the number of H-1B visas for foreign workers.

Accepted Answer

A) True 
 B)False

Question 9

In the general environment, which of the following is not a demographic trend?

Accepted Answer

A)  aging population
B)  greater disparities in income levels
C)  more women in the workforce
D)  changes in ethnic composition

Question 10

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Accepted Answer

A) True 
 B)False

Question 11

In the SWOT framework, Opportunities and Threats are environmental conditions internal to the firm.

Accepted Answer

A) True 
 B)False

Question 12

The impact of a demographic trend varies across industries.

Accepted Answer

A) True 
 B)False

Question 13

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Accepted Answer

A)  by shifting customers away from issues of price
B)  by consolidating the marketing message that consumers use to make a purchase decision
C)  by making competitors in cyberspace seem less equally balanced
D)  by highlighting unique selling advantages of a firm

Question 14

Switching costs for an end user are likely to be much higher because of the Internet.

Accepted Answer

A) True 
 B)False

Question 15

The value net is a game-theoretic approach that

Accepted Answer

A)  extends the value chain analysis.
B)  uses network analysis to understand the relationships among different companies.
C)  helps us to understand the evolution of the five forces over time.
D)  is a way to analyze how the interactions of all the players in a game affect the firm.

Question 16

An industry is composed of a set of firms that produce similar products or services, sell to similar customers, and use similar methods of production.

Accepted Answer

A) True 
 B)False

Question 17

The more attractive the price/performance ratio of substitute products, the tighter it constrains the ability of an industry to charge high prices.

Accepted Answer

A) True 
 B)False

Question 18

The bargaining power of suppliers increases as

Accepted Answer

A)  threat of forward integration by suppliers increases.
B)  importance of buyers to supplier group increases.
C)  switching costs for buyers decrease.
D)  more suppliers enter the market.

Question 19

Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting.

Accepted Answer

A)  basic
B)  fundamental
C)  in-depth
D)  superficial

Question 20

Reintermediation is responsible for an overall reduction in business opportunities.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

The SWOT analysis framework leads to a conceptually simple approach to identifying the important factors that constrain strategic choices without sacrificing analytical rigor.

In most industries, new entrants will not be a threat because the Internet lowers entry barriers.

Strategic groups are clusters of firms that share __________ strategies.

In the value net analysis, complementors are

An automobile manufacturer acquires a rental car company. This is an example of

Research shows that many immigrants to the United States are prodigious job creators. This supports legislative battles to increase the number of H-1B visas for foreign workers.

In the general environment, which of the following is not a demographic trend?

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

In the SWOT framework, Opportunities and Threats are environmental conditions internal to the firm.

The impact of a demographic trend varies across industries.

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Switching costs for an end user are likely to be much higher because of the Internet.

The value net is a game-theoretic approach that

An industry is composed of a set of firms that produce similar products or services, sell to similar customers, and use similar methods of production.

The more attractive the price/performance ratio of substitute products, the tighter it constrains the ability of an industry to charge high prices.

The bargaining power of suppliers increases as

Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting.

Reintermediation is responsible for an overall reduction in business opportunities.