Question 1

To gain an understanding of how each market works within an industry we ask:

Accepted Answer

A)  What is the size of key market segments? 
B)  What is the factor-controller's decision process? 
C)  How homogenous is the market? 
D)  What is the proximity level of the market?

Question 2

In carrying out a competitive positioning analysis of an industry it is important to:

Accepted Answer

A)  find groups of competitors that use the same approach 
B)  find groups of competitors that use different approaches 
C)  use uncorrelated axes 
D)  use correlated axes

Question 3

'Analysis of the macro-environment is a waste of time and effort for all but the largest corporations.' Discuss the relevance of this observation.

Accepted Answer

The answer of 'Analysis of the macro-environment is a waste...

Question 4

Industry analysis aims to answer the question:

Accepted Answer

A)  What are the forces within an industry that determine its size? 
B)  Based on these forces, what is the current and likely future number of firms in the industry? 
C)  How are the forces changing and expected to change, over time? 
D)  How will those changes affect the future size of the industry?

Question 5

Extension of the 'five forces' framework moves it towards:

Accepted Answer

A)  a business system framework 
B)  a value chain framework 
C)  both of the above 
D)  none of the above

Question 6

A 'five forces' analysis will suggest that profitability should be high when:

Accepted Answer

A)  all five forces are high 
B)  all five forces are low 
C)  the two 'powers' cancel out the two 'threats' 
D)  industry rivalry is intense

Question 7

Porter's 'diamond' model of international competitiveness does NOT include:

Accepted Answer

A)  absence of related industries and infrastructure 
B)  favourable factor (supply) conditions 
C)  government support 
D)  chance events

Question 8

A local council can be treated as a geographic monopoly in competition with other geographic monopoly councils for funds from the common provider.

Accepted Answer

A) True 
 B)False

Question 9

Pensions are one of the largest costs to government and they are expected to decrease dramatically over time.

Accepted Answer

A) True 
 B)False

Question 10

An industry is defined as a group of organisations producing close substitutes.

Accepted Answer

A) True 
 B)False

Question 11

Porter's 'five forces' do NOT include:

Accepted Answer

A)  threat of new entrants 
B)  threat of substitutes 
C)  buyer power 
D)  threat of complementary products

Question 12

A piece of information that Hubbard,Rice and Galvin do NOT recommend gathering about a competitor is:

Accepted Answer

A)  its business strategy 
B)  its key stakeholders 
C)  its capabilities 
D)  the gaps between its strategy and the industry environment

Question 13

In understanding key customers,it is NOT relevant to know:

Accepted Answer

A)  what they use the product for 
B)  what the product's key benefits are to them 
C)  what the product's buying features are for them 
D)  what they will recommend to others (word of mouth)

Exam 3: Analysing the external environment

To gain an understanding of how each market works within an industry we ask:

In carrying out a competitive positioning analysis of an industry it is important to:

'Analysis of the macro-environment is a waste of time and effort for all but the largest corporations.' Discuss the relevance of this observation.

Industry analysis aims to answer the question:

Extension of the 'five forces' framework moves it towards:

A 'five forces' analysis will suggest that profitability should be high when:

Porter's 'diamond' model of international competitiveness does NOT include:

A local council can be treated as a geographic monopoly in competition with other geographic monopoly councils for funds from the common provider.

Pensions are one of the largest costs to government and they are expected to decrease dramatically over time.

An industry is defined as a group of organisations producing close substitutes.

Porter's 'five forces' do NOT include:

A piece of information that Hubbard,Rice and Galvin do NOT recommend gathering about a competitor is:

In understanding key customers,it is NOT relevant to know: