bus4500 exam 3
Which of the following is true about strategic groups?
A strategic group consists of a set of industry competitors that have similar characteristics to each other but differ in important ways from the members of other groups.
One of the following statements does NOT address why the environment matters. The environment provides resources an organization needs to create goods and services. The environment shapes strategic decisions Business always shapes the environment The environment is a source of opportunities The environment is a source of threats
Business always shapes the environment.
The five forces analysis differs from the PESTEL analysis in that the five forces analysis is used for:
analyzing how much profit potential exists in an industry.
Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:
buyers have the ability to become a new entrant to the industry if they wish
The industry, a component of the environment of an organization, is also called the _____.
competitive environment
Which of the following components of the environment consists of organizations with which an organization interacts regularly, such as its suppliers, rivals, and customers?
competitive environment
_____________________ consists of multiple organizations that collectively compete with one another by providing similar goods, services, or both.
competitive environment
Which of the following is NOT a trend within the general environment? Economic Conditions Demographics Competitors providing similar goods or services Social Trends Technological Trends
competitors providing similar goods or services
The likelihood of new entrants joining an industry is low if differentiation among existing competitors is high because:
each incumbent has a group of loyal customers that enjoy its unique features
Which of the following is NOT one of the segments within a PESTEL analysis? social economic technological political educational
educational
New entrants are more likely to join an industry if:
expected retaliation from existing competitors is low.
Profit potential of an industry is one of the five forces proposed by Michael Porter in his five forces analysis.
false
The economic segment of the general environment includes elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.
false
Rivalry between competitors of an industry tends to be fierce when:
fixed costs in the industry are high
PESTEL analysis is an important tool:
for organizing factors within the general environment and identifying how these factors influence industries and the firms within them.
Which of the following is true about fragmented industries? They do not offer similar products in the same city at the same time. Over time, some firms will try to steal customers from other firms. A competitive move by one firm will be typically ignored by others. Rivalry between competitors tends to be polite. Their advertising does not lampoon each other.
over time, some firms will try to steal customers from other firms
Some hospital executives have noted that illegal immigrants put a strain on the health care system because immigrants seldom can pay for medical services and hospitals cannot, by law, turn them away from emergency rooms. For these hospitals, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.
political
Which of the following is one of the five forces of Michael Porter's five forces analysis? Geographic origin of an industry Potential new entrants to an industry Cultural and social trends affecting an industry Governmental regulations Economic elements
potential new entrants to an industry
Increasing participation of women in the paid workforce has benefited organizations like daycares. This example represents the _____ segment of PESTEL analysis.
social
Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:
suppliers have the ability to enter the industry if they wish.
Moore's Law is an example of a concept within which segment of a PESTEL analysis? technological economic social environmental political
technological
Which of the following is also called the macro-environment of a business?
the general environment
The environment is a source of opportunities and threats for an organization.
true
Which of the following is NOT a factor within the social segment of a PESTEL analysis? unemployment rate cultural trends consumer activism ethnicity population size
unemployment rate