Exam 1 Chap 3

Increasing globalization, changes in long-term industry growth rates, market and product innovation, as well as changes in societal concerns, attitudes, and lifestyles are all examples of:

Driving Forces

The power of the buyers is high when:

Each buyer purchases large quantities relative to the size of a single industry member.

The recent market collapse has been fueled to a significant extent by the large drop in oil prices - below $28 per barrel this week. The price drop has been driven by over-supply, which is only going to get worse this week when ________ oil returns to the world market.

Iranian

Exit barriers are obstacles that determine how easily a firm can leave the industry. When exit barriers are high, what happens to industry attractiveness?

It decreases

____________ define(s) what a company needs to have, be, or be good at in order to be competitive in a given industry.

Key success factors

The environmental analysis that looks at the natural environment plus aspects of the societal environment is called the _____________________.

PESTEL analysis

Suppliers are powerful when which of the following happens?

They offer a credible threat of forward integration

An appropriate substitute for a Coke would be _____________.

a candy bar

With a limited marketing budget, I need to know which of my industry rivals I most need to concentrate my negative advertising on. Generally, this will be the one(s) trying to get the same customers I'm trying to get, and in pretty much the same way. One tool that I can use to make this determination would be:

a strategic group map

A high level of competition (rivalry) within an industry can be viewed as:

all of the above

The macro-environmental PESTEL analysis considers the effects of forces on ____________.

an entire industry

Competitive rivalry is the strongest between firms that _________________________.

are in the same strategic group

Labor unions were formed specifically to increase the ____________________.

bargaining power of suppliers

If I want to determine which products/services would be considered substitutes for the product/service offered by a particular company, I would best consults its:

business model

In looking to buy a new personal computer, many feel much more confident in the purchase if they see the "Intel inside" sticker on the box. In this regard, Intel would be considered a _______________ to the computer industry.

co-opetition

Scope of competitive rivalry represents one of an industry's ___________.

dominant economic characteristics

If Wal-Mart were to decide to enter the automobile distributor business, this would represent a monumental shift in that industry and over time would fundamentally change its competitive landscape. Wal-Mart's entry into this market would represent a ____________________ originating from the ________________ environment for the automobile distributor's industry.

driving force, competitive

Currency exchange rates would be considered part of the macro environment's _____________ factors:

economic

Rivalry among competitors is likely to be strongest when the industry is in the ____________ stage of its lifecycle.

growth

Congress passed the Clean Air Act in response to the public's newfound environmental concerns and outrage over what it (the public) perceived to be unrestrained corporate pollution. In response, a number of industries such as utilities and automobile manufacturers have had to make dramatic changes in the technology used in the creation and operation of their products. These industries are responding to changes in the ________________ environment that ultimately brought about changes in the ________________ environment.

legal, sociocultural

Industry attractiveness can be determined by all of the following except:

none of the above

The pharmaceuticals lobby has been quite effective in helping to shape the healthcare debate that's been raging in Washington for the last five years. As such, they would be considered a ____________ force for the healthcare industry.

political

The aging of the U.S. population would represent a(n) _______________________ for a business seeking to understand their business environment.

sociocultural force

Having economies of scale as a key success factor in an industry usually represents _____________.

A barrier to entry for a small start-up hoping to break into the industry

____________________ help(s) a company anticipate what its competitors are likely to do next.

Competitive intelligence