BUS 496

The competition within each strategic group is: - more intense than is the competition between strategic groups. - less intense than is the competition between strategic groups. - typically very low. - an unknown factor in the analysis of competitive practices within a firm's strategic group.

- more intense than is the competition between strategic groups.

The relative bargaining power of buyers depends on: - The size and concentration of buyers relative to suppliers - A buyer's access to information about products and costs - The ability or threat to integrate vertically - All of the above

All of the above

The deregulation for certain industry usually ____ the entry barriers, so the threats of potential entrants will be _____.

Decrease, Increased

An attractive industry is characterized by high entry barriers, suppliers and buyers with strong bargaining power, low threats from substitute products, and low rivalry among firms. True or False?

False

Bargaining power of supplier is one of the building blocks of entry barrier for potential entrants. True or False?

False

Complementary products are products that typically have a negative impact on the value of a firm's own products or services. True or False?

False

Economies of scale refers that "cost of producing a joint set of products is less than cost of producing separately in separate firms". True or False?

False

Generally, the stronger the competitive forces (i.e. all five forces have strong bargaining power), the higher the profit potential of an industry. True or False?

False

If the number of your buyers decreased, your firm's relative bargaining powers over buyers will be increased. True or False?

False

In general, the Internet and digital technologies suppress the bargaining power of buyers (i.e. individual customers) by providing them with more information to make buying decisions. True or False?

False

Industry analysis (5-Force Analysis) will determine the performance of the specific individual firm within the industry. True or False?

False

Low entry barrier and high exit barrier are best for incumbents (i.e., firms already operating in the industry). True or False?

False

Profitable industry is always attractive for potential entrants. True or False?

False

Rivalry is most intense when there are high exit barriers and high industry growth. True or False?

False

Strategic groups are firms in different industries following the same or similar strategies (e.g. low-cost strategy). True or False?

False

Suppliers are powerful when there are satisfactory substitutes available. True or False?

False

The higher CR ratio indicates that the market is more close to perfect competition (i.e., severe competition). True or False?

False

If the buyers are financially strong and buy a large portion of the manufacturing firm's outputs, the bargaining power of buyers is ____.

High

If the function, availability, and cost of substitutes are better than those of the core firms, the threat of substitutes is ____.

High

If the price of complement or increases, the threat from this price effect is ____.

High

If the suppliers' CR is larger than that of buyer firms, the bargaining power of suppliers is ____.

High

If the CR4 (concentration ratio) of an industry is high, the level of rivalry is ____,

Low

If the degree of differentiation of an industry is high, the level of rivalry among existing competitors is ____.

Low

If the growth rate of an industry is high, the level of rivalry is ____.

Low

If the price of substitutes increases, the threat from this price effect is ____.

Low

If the capital requirement of entering an industry is low, the entry barrier is ____, and the threat from the potential entrants is____.

Low, High

If the level of specialized assets or fixed cost to exit is low, the exit barrier is ____, and the level of rivalry is ____.

Low, Low

f the consumer loyalty of an industry is low (thus, switching cost is ____) the entry barrier is ____, and the threat of the potential entrant is____.

Low, Low, High

____are group-specific entry barriers that restrict shifting strategic position from one strategic group to another. - Entry barriers - Exit barriers - Strategic barriers - Mobility barriers

Mobility barriers

According to ____ perspective, motivation for engaging in CSR should be ethical consideration. - Normative - Instrumental - Institutional - Descriptive

Normative

Which one of the following statement is NOT true? - Social enterprises pursue more than a single goal; each goal has equal importance. - Social entrepreneurs can drive institutional changes. - Social entrepreneurship is motivated by social benefit. - Successful social entrepreneurship usually works against market mechanism.

Successful social entrepreneurship usually works against market mechanism.

A high concentration ratio (CR) is typical of oligopolistic industries, dominated by a few large players. True or False?

True

Buyers tend have greater power if suppliers provide undifferentiated or standard products. True or False?

True

Competition tends to be more intense among firms within a strategic group than between strategic groups. True or False?

True

Economies of scale, absolute cost advantages, high capital start-up costs, and access to channels of distribution are all examples of "barriers to entry". True or False?

True

Five forces analysis implicitly assumes a zero sum game. True or False?

True

High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing so is questionable. True or False?

True

Industries characterized by high economies of scale typically attract fewer new entrants. True or False?

True

Industry environment, rather than general environment, have more direct influences on firms. True or False?

True

Low entry barrier and low exist barrier is good for new (or potential) entrants. True or False?

True

Suppliers are more powerful when there are high switching costs (i.e., moving from one supplier to another). True or False?

True

Suppliers are powerful when no satisfactory substitutes are available, the selling industry is relatively more concentrated than the purchasing industry, and buyer's switching costs are high. True or False?

True

The five forces model expands the arena of competitive analysis beyond direct competitors (i.e., rivals) to include buyers and suppliers who may also be a source of competition. True or False?

True

When buyers are more price-sensitive, the buyer firms have greater bargaining power. True or False?

True

Porter's 5 Forces model is intended to be: - Used as an alternative to the earlier PEST model - Used primarily as an academic tool - Used in conjunction with PEST and other models - Used to analyze industries in the 1980's and 1990's

Used in conjunction with PEST and other models

There are different ethical views. ____ perspective suggests that "a good society creates the greatest good for the greatest number of people". - Utilitarianism - Human Rights - Liberty - Ethics of care

Utilitarianism

Frequent-guest rates offered by hotel chains are an attempt to - decrease competitors' access to distribution channels. - develop a cost advantage independent of scale. - increase customers' switching costs. - overcome the perishability of the hotel "product".

increase customers' switching costs.

New entrants to an industry are more likely when (all other things being equal) - it is difficult to gain access to distribution channels. - economies of scale are high. - product differentiation is low. - capital requirements are high.

product differentiation is low.

A firm's primary customers, suppliers, host communities, and unions representing the workforce are examples of ____ stakeholders. - capital market - product market - organizational - general public

product market