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