Bus189 1-3** mc

Competitive intensity will increase when all of the following happen EXCEPT: A. Proprietary technology is a core capability. B. Rivals are similar in size and capability. C. Buyers switching costs are low. D. Exit barriers are high.

A

Exit barriers are obstacles that determine how easily a firm can leave the industry. When exit barriers are high, what happens to industry attractiveness? A. It decreases. B. It increases. C. It becomes a complement. D. It has no impact.

A

Which of the following would NOT indicate that sellers are a strong competitive force? A. Substitutes exist for their components. B. They can supply the component for a cheaper cost than industry makers can produce it. C. The buyers of their component are not important customers. D. The component that they supply affects buyer product quality.

A

Competitive rivalry will get weaker when all of the following happen EXCEPT: A. Demand is growing. B. Exit barriers are low. C. Products are differentiated. D. One firm's actions will have little direct impact on a rival.

B

Mr. Smith was looking to buy a car but decided to buy a motorcycle instead. The motorcycle is a _______ and comes from outside the original industry. A. complement B. substitute C. convergence D. complementor

B

The soft drink industry has been one of the most profitable industries for years. There are two key competitors, Coke and Pepsi, who compete on product innovation and lifestyle advertising. Additionally, barriers to entry are high and supplier power is weak. Michael Porter calls this industry: A. A positive-sum industry B. A "five star" industry C. A shining star industry D. A complementary industry

B

When a buyer has a credible threat of backward integration, what happens to their power in the industry? A. It decreases. B. It increases. C. It converges. D. It has no impact.

B

Which of the following would NOT indicate that buyers are a strong competitive force? A. They can integrate backward. B. They can purchase from several sellers. C. They are reliant on the industry's product. D. They buy in large quantities.

C

The competitive threat of potential entry is NOT strong when _____________. A. there will be expected competitive retaliation B. there are sizable economies of scale C. there are strong brand preferences and customers are loyal D. All of these

D

An ideal competitive environment from a profit-making standpoint is when: A. Rivalry is moderate, and high entry barriers and good substitutes do not exist. B. Rivalry is high, entry barriers are low, and there are many substitutes. C. Rivalry is high, buyers and sellers have strong bargaining power, and entry barriers are low. D. Rivalry is moderate, entry and exit barriers are low, and there are many substitutes.

a

Strategic __________ is staking out a unique and valuable spot that allows the firm to meet customer demands. A. Positioning B. Advantage C. Goal D. Segmentation

a

The __________ environment affects a firm's industry environment. A. macro B. stakeholder C. internal D. supplier

a

The never-ending cycle of analysis, formulation, implementation, and feedback is called what? A. The strategic management process B. A sustained competitive advantage C. The cycle of the bottom of the pyramid D. The interaction of firm and industry effects

a

All of the following are aspects of sociocultural factors influencing industry attractiveness EXCEPT: A. The growth rate of the population B. The age distribution of the population C. Environmental protection laws D. Lifestyle changes

c

Strategy is primarily about ____________. A. Maximizing firm profits B. Deriving operation effectiveness C. Creating superior value D. Competitive benchmarking

c

Suppliers are powerful when which of the following happens? A. Satisfactory substitutes are available. B. They sell a commodity. C. They offer a credible threat of forward integration. D. They are part of a highly fragmented industry.

c

The innovations in process efficiencies such as Six Sigma, the Internet, and biotechnology are all elements of which macro environmental force? A. Political factors B. Sociocultural factors C. Technological factors D. Economic factors

c

Which of the following is NOT one of Porter's five forces? A. Substitutes B. Suppliers C. Complements D. Buyers

c

When a supplier has a credible threat of forward integration, what happens to their power in the industry? A. It decreases. B. It has no impact. C. It converges. D. It increases.

d

_______________ assesses whether a good business opportunity exists or not. A. A structure-conduct-performance (SCP) analysis B. A five forces industry environmental analysis C. A PESTEL model analysis D. All of these

d

Applying the five forces model to the airline and soft drink industries demonstrates all EXCEPT which of the following? A. The soft drink industry has fairly low forces. B. The airline industry has a high level of forces. C. The profit level should be higher in the soft drink industry than the airline industry. D. The macro environmental forces are similar between the airline and soft drink industries.

D

John Connelly went to the grocery store to buy some butter. As he was looking at the butter offerings, he noticed that Pam cooking spray was advertised as $1.00 less for the same amount of product. John purchased the spray. The spray is considered to be a what? A. A complement B. A mobility product C. A replacement D. A substitute

D

One of the consequences of the five forces analysis is that a firm must ask itself what? A. Is the company in a strategic group? B. Does the company strategy match the competitive landscape? C. Is the company in an oligopoly or monopolistic competition? D. Is the company engaged in co-opetition?

b

The objective of Porter's five forces model is to: A. Assess firm profitability. B. Assess the potential for profits within an industry. C. Emphasize the intensity of rivalry within an industry. D. Analyze the economic conditions of the industry.

b

When firms that provide key raw materials to an industry can frequently negotiate for higher prices, the: A. Bargaining power of buyers is high. B. Bargaining power of suppliers is high. C. Barriers to entry are low. D. Bargaining power of suppliers is low.

b

A firm can use its knowledge of the five forces to strengthen its competitive position through ___________. A. product differentiation B. leveraging complements C. backward integrating to reduce supplier power D. All of these

d

JCPenney and Neiman Marcus these firms have different business strategies. They both accomplish this by providing value to their customers while controlling costs. This is known as __________. A. Co-opetition B. Complementary business models C. A competitive advantage D. Differential strategic positioning

d

The level of entry barriers is only relevant to potential competitors because: A. Firms that are established in an industry have already overcome the barriers to entry. B. The existence of high entry barriers has little impact on overall industry profitability. C. Competitive markets are dynamic, so established firms expect that there will always be new entrants. D. The level of entry barriers is relevant to both existing and potential firms due to the competitive consequences for both.

d

Given its size and industry influence, Walmart would be a powerful buyer. Which of the following is NOT an indication of Walmart's strength as a buyer? A. Three suppliers merge together to gain economy of scale. B. Suppliers locate very near Walmart's corporate headquarters. C. Walmart switches from Rubbermaid to another vendor for containers. D. Walmart decides to start manufacturing its own clothes to sell.

A

What is the sixth force of industry attractiveness? A. Substitutes B. Economic growth rates C. Complements D. Technological innovation

C

When the collective strength of the five forces works against an industry: A. Individual firms should compete on price. B. Individual firms should move from one strategic group to another. C. The profit potential is weak. D. There is a high degree of profit potential.

C

Which of the following is NOT a major consideration of barriers to entry? A. Capital requirements B. Brand identity C. Positive growth rate D. Economies of scale

C

A firm's six PESTEL environmental forces include ______________. A. political, trade secrets, legal, and technological B. product, environmental, political, and technological C. political, economic, legal, and technological D. environmental, product, ecological, and technological

c