Ent. Final 5

A(n) ________ industry is an industry that is experiencing significant international sales. A) global B) mature C) fragmented D) declining E) emerging

A

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size. A) fragmented B) mature C) declining D) emerging E) global

A

Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's ________ competitors. A) direct B) indirect C) future D) impending E) potential

A

Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important ________ trend. A) environmental B) business C) commerce D) statutory E) competitive

A

Many firms benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign countries. This trend is referred to in the textbook as a(n) ________ trend. A) business B) environmental C) commerce D) statutory E) economic

A

Terry Washington recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Terry was doing is called ________ analysis. A) industry B) sector C) commercial D) business E) target market

A

WriteLab, the company profiled in the opening feature of Chapter 5, believes it has created a barrier to entry to enable it to maintain a leadership position in the education industry. Its barrier to entry is ________. A) the price-point of its product B) the strength of its brand C) its social mission D) its economies of scale E) that Donald McQuade, one of its co-founders, is well-established in the writing community

A

Generally, industries are more attractive when the threat of substitutes is ________. A) high B) low C) neutral (neither high or low) D) high for manufacturing firms and low for service firms E) high for service firms and low for manufacturing firms

B

In the context of competitor analysis, businesses that offer identical or similar products are referred to as ________ competitors. A) immediate B) direct C) indirect D) straight E) urgent

B

In various studies, researchers have found that from ________ percent of the variation in firm profitability is directly attributable to the industry in which a firm competes. A) 4 to 12 B) 8 to 30 C) 18 to 42 D) 22 to 56 E) 34 to 70

B

The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy. A) inclusive; multidomestic B) multidomestic; global C) multidomestic; worldwide D) inclusive; global E) home; worldwide

B

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs? A) Threat of New Entrants B) Rivalry Among Existing Firms C) Threat of Substitutes D) Bargaining Power of Buyers E) Bargaining Power of Suppliers

B

A(n) ________ industry is an industry that is experiencing slow or no increase in demand. A) declining B) global C) mature D) emerging E) fragmented

C

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries. A) fragmented B) emerging C) declining D) global E) mature

C

According to the textbook, the five competitive forces included in the Five Forces model determine the average ________. A) rate of new business starts in an industry B) growth rate for the firms in an industry C) rate of return for the firms in an industry D) sales for the firms in an industry E) failure rate for the firms in an industry

C

Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid she lists her firm along with her major competitors. Along the vertical axis of the grid she lists the main competitive factors in her industry. Amy is completing a ________. A) strategic analysis spreadsheet B) tactical analysis framework C) competitive analysis grid D) strategic analysis grid E) behavioral analysis spreadsheet

C

Brain Sentry is starting a firm in the small industry that helps football teams discern whether a player has suffered a concussion. This industry is still so new that no standard operating procedures have been developed. The industry Brain Sentry is entering is an example of a(n) ________ industry. A) mature B) declining C) emerging D) global E) fragmented

C

Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market. A) inclusive B) universal C) multidomestic D) contemporary E) worldwide

C

In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water. A) occasional B) infrequent C) indirect D) direct E) future

C

In the context of competitor analysis, ________ competitors offer close substitutes to the product sold by the firm completing the analysis. A) potential B) direct C) indirect D) impending E) future

C

Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis. A) business B) industry C) competitor D) strategic E) market

C

One of the firms profiled in the Savvy Entrepreneurial Firm feature is The Muse. The Muse is in the ________ industry. A) education B) literary writing C) competitive recruitment and placement D) music E) book publishing

C

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries. A) mature B) emerging C) declining D) fragmented E) global

C

Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as ________. A) government and legal barriers B) capital requirements C) product differentiation D) cost advantages independent of size E) access to distribution channels

C

The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are ________. A) local Chambers of Commerce, trade journals, and networking events B) Facebook, industry-related e-mail listservs, and trade shows C) trade associations, trade shows, and trade journals D) networking events, blogs, and Facebook E) local Chambers of Commerce, city or university-sponsored incubators, and trade association

C

The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high? A) Rivalry Among Existing Firms B) Threat of New Entrants C) Threat of Substitutes D) Bargaining Power of Buyers E) Bargaining Power of Suppliers

C

Which of Porter's five forces is most closely associated with the concept "barrier to entry"? A) Bargaining Power of Suppliers B) Rivalry Among Existing Firms C) Threat of New Entrants D) Bargaining Power of Buyers E) Threat of Substitutes

C

Which of the following is NOT one of the major sources of barriers to entry? A) Product Differentiation B) Capital Requirements C) Buyer Group Concentration D) Access to Distribution Channels E) Government and Legal Barriers

C

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, airlines, or smartphone apps. A) cluster B) division C) sector D) industry E) network

D

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________. A) unique business model B) strength of management team C) access to distribution channels D) Internet domain name E) first-mover advantage

D

According to the textbook, Justin's in peanut butter, Rover.com in dog care, and Zagster in bike sharing are examples of entrepreneurial firms who are exploiting opportunities in ________ industries. A) emerging B) fragmented C) declining D) mature E) consolidated

D

According to the textbook, the three different types of competitors a business will face are ________. A) potential, direct, and upcoming B) indirect, fleeting, and future C) serious, cautious, and future D) direct, indirect, and future E) potential, fleeting, and indirect

D

If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n) ________. A) unique business model B) aggressive supremacy C) competitive superiority D) first-mover advantage E) aggressive tactical advantage

D

Katherine Chapman recently launched a firm in the clothing industry, targeting 13-17 year olds. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy. A) universal B) multidomestic C) contemporary D) global E) home

D

The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries as ________. A) they have effectively differentiated themselves from their competitors and have captured a first-mover advantage B) they have passionate leaders and run savvy promotional campaigns C) they have captured a first-mover advantage and have unique business models D) they create meaningful value for customers at a fair price and have differentiated themselves from their competitors E) they are low-cost leaders and run savvy promotional campaigns

D

The primary opportunity existing for startups in emerging industries is to ________. A) consolidate the industry and establish industry leadership as a result of doing so B) win customers by placing an emphasis on service and process innovation C) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation D) capture a first-mover advantage E) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation

D

Which of the following was NOT identified in the textbook as a nontraditional barrier to entry? A) Strength of management team B) First-mover advantage C) Unique business model D) Product differentiation E) Internet domain name

D

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries. A) global B) declining C) mature D) emerging E) fragmented

E

According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability? A) They switch industries if the forces are too compelling. B) They focus on one force intently and excel by overcoming that force. C) They overcome each of the forces. D) They ignore the forces. E) They try to position their firms in a way that avoids or diminishes the forces.

E

According to the textbook, the Five Forces model can be used in the following two ways: ________. A) first, to help a firm determine whether it should enter an industry in an aggressive or a conservative manner, and second, to help a firm determine whether to compete in international markets in that industry. B) first, to help a firm determine if it should enter a single or multiple niches in an industry, and second, to help a firm determine whether it can be competitive in that industry C) first, to help a firm determine what industry it is best equipped to compete in, and second, to help a firm determine whether to compete in international markets in that industry D) first, to help a firm determine what niche to enter within an industry, and second, to help a firm determine whether it can be competitive in that industry E) first, to help a firm determine whether it should enter a particular industry, and second, to help a firm discern whether it can carve out an attractive position in that industry

E

According to the textbook, the first step in a competitor analysis is to ________. A) develop a marketing plan B) develop the strategic plan C) study the strength of the industry D) study the external environment E) determine who the competition is

E

In general, industries are more attractive when the ________. A) majority of the threats are high B) majority of the threats are low C) threat of each of the forces is neutral-neither low nor high D) threat of each of the five forces is high E) threat of each of the five forces is low

E

In the context of competitor analysis, ________ competitors are companies that are not yet direct or indirect competitors but could move into one of these roles at any time. A) stable B) roundabout C) impending D) approximate E) future

E

Kellen West recently launched a firm in the fruit drink industry, and has already exported his fruit drinks to 11 different countries. One thing that Kellen's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country-by-country basis to meet the demands of the local markets. Kellen's firm is pursuing a ________ strategy. A) global B) home C) universal D) contemporary E) multidomestic

E

Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on ________. A) threat of new entrants B) bargaining power of buyers C) rivalry among existing firms D) threat of substitutes E) bargaining power of suppliers

E

The information that is gathered by a firm to learn about its competitors is referred to as ________. A) a feasibility appraisal B) a workable appraisal C) a practical assessment D) a viable assessment E) competitive intelligence

E

The primary opportunity existing for startups in fragmented industries is to ________. A) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation B) win customers by placing an emphasis on service and process innovation C) capture a first-mover advantage D) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation E) consolidate the industry and establish industry leadership as a result of doing so

E