External analysis chapter 4

Which of the following statements are true about developing a competitive map

It is a step in the external analysis it should be developed by the entrepreneurs it's purpose is to better understand competitors and the capabilities

Reliable industry specific information can be found in which of the following sources

Magazines The Internet journals

Which one statement about fragmented markets is true

Most entrepreneurial business is competing in a fragmented market

naics is an acronym meaning which of the following

North American industry classification system

Which of the following statements regarding exact or direct competitors are correct

Often direct competitors are geographically local Direct competitors can easily be found in the local telephone book identifying direct competitors is easy when entrepreneurs are clear regarding their customers needs

Which of the following are criteria that should be considered in developing a competitive map

Quality and availability of parking pricing of products facility square footage

A product that customers are willing to pay virtually any price for has a very inelastic demand

A competitive map is an analytical tool that organizes information about direct competitors and all points of competition

What is a key to effective opportunity recognition by entrepreneur

A detailed understanding of the external environment

What are the following is a good example of a source where an opportunity may come from

A personal frustration New technological advancement A vacancy at the perfect location for a business

Investments and businesses that are not easy recovered or considered

An exit barrier

An example of substitute for playing soccer might be which of the following

Boating playing tennis playing handball

Elasticity of high demand is

Customer's response to price changes

When entrepreneurs can easily exit in industry the intensity of an industry competition tends to

Decrease in the threat posed by new entrance is reduced

Which of the following is the first step in understanding the nature of external environment

Defined the business industry

in developing a competitive map entrepreneur should

Determine key competitive factors they wish to understand

Customer to shop online

Don't really care where they order things from

Identify critical steps in examining the nature of an external environment of a business

Draw a set of competitive maps research the competitors within the industry that one expects to do business research the industry and which one expects to do business

A reasonable distance is determined by

The entrepreneur

Which of the following is the first step in understanding the nature of the external environment

To find a business industry

An important part of competitors analysis is getting an understanding of the industry

Trends