Smartbook2

Drag and drop specific forces described by Porter (on the left) against their corresponding analysis for the airline industry (on the right).

Buyer power --High because customers have many airlines to choose from Supplier Power --High because there are limited plane and engine manufacturers to choose from Threat of substitute products or services ----High because of alternatives, such as videoconferencing and virtual meetings Threat of new entrants ---High because new airlines are continuously entering the market Rivalry among existing competitors --High because of the existence of websites such as Travelocity.com that force competition based solely on price

Match the support value activity on the left with its correct definition on the right

Firm infrastructure ---- Includes the company format or departmental structures, environment, and systems. Includes the company format or departmental structures, environment, and systems. Human resource management ---- Provides employee training, hiring, and compensation. Provides employee training, hiring, and compensation. Technology development --- Applies MIS to processes to add value. Applies MIS to processes to add value. Procurement ----Purchases inputs such as raw materials, resources, equipment, and supplies.

Match the primary value activity on the left with its correct definition on the right.

Inbound logistics ---- Acquires raw materials and resources and distributes to manufacturing as required. Operations ----Transforms raw materials or inputs into goods and services. Outbound logistics --- distributes goods and services to customers marketing and sales --- promotes, prices, and sells products to customers Service --- provides customer support after the sale of goods and services

Select the four common tools managers use to analyze competitive intelligence and develop competitive advantages. a) Competitive chain strategies b) The three generic strategies c) SWOT Analysis d) Customer loyalty strategies e) The Five Forces Model f) Value chain analysis g) Porter's Vision Strategy

- SWOT Analysis - The three generic strategies - Value chain analysis - The five Forces Model

Select the four common tools managers use to analyze competitive intelligence and develop competitive advantages.

- SWOT Analysis- The three generic strategies- Value chain analysis- The five Forces Model

Match each description on the right with the correct term on the left.

Potential Internal Strengths matches --- Identify new or innovative services and special expertise or experience Identify new or innovative services and special expertise or experience Potential Internal Weaknesses ---- Identify all key areas that require improvement Identify all key areas that require improvement Potential External Opportunities ---- Identify new markets, additional customer groups, and innovative technologies Identify new markets, additional customer groups, and innovative technologies Potential External Threats -----Identify new market entrants, substitute products, and adverse changes in regulations Identify new market entrants, substitute products, and adverse changes in regulations

Select three pressures that Michael Porter identified as threat to the potential sales of a company.

Substitute products can steal customers. New market entrants can steal potential investment capital. Influential suppliers can drive down profits by charging higher prices for supplies.

What is the suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services)?

Supplier power

Which is used by Amazon to create product differentiation? a) Customer profiling b) Switching costs c) Entry barriers d) Supplier power

a) Customer profiling

Select two support value activities. a) Firm infrastructure b) Outbound logistics c) Technology development d) Marketing and sales

a) Firm infrastructure c) Technology development

Which company is using a broad market and high cost strategy? a) Neiman Marcus b) Tiffany & Co. c) Payless Shoes d) Walmart

a) Neiman Marcus

Which company is using a narrow market and low cost strategy? a) Payless Shoes b) Neiman Marcus c) Tiffany & Co. d) Walmart

a) Payless Shoes

A(n) ________ analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies. (Use the acronym) a) SWOT b) Five Forces c) Three Generic Strategies

a) SWOT

Select three pressures that Michael Porter identified as threat to the potential sales of a company. a) Substitute products can steal customers. b) New market entrants can steal potential investment capital. c) Influential suppliers can drive down profits by charging higher prices for supplies. d) Knowledgeable employees can force down prices by pitting rivals against each other.

a) Substitute products can steal customers. b) New market entrants can steal potential investment capital. c) Influential suppliers can drive down profits by charging higher prices for supplies.

Which company is using a narrow market and high cost strategy? a) Tiffany & Co. b) Payless Shoes c) Walmart d) Neiman Marcus

a) Tiffany & Co.

Select the two substitutes you could choose instead of taking an airplane to attend a meeting in another country. a) Videoconferencing b) Walking meeting c) Blogging d) Virtual meetings

a) Videoconferencing d) Virtual meetings

Which company is using a broad market and low cost strategy? a) Walmart b) Neiman Marcus c) Tiffany & Co. d) Payless Shoes

a) Walmart

A competitive ______ is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors. a) advantage b) customer c) sale

a) advantage

The threat of new entrants is _______ when it is easy for new competitors to enter a market and _______ when there are significant entry barriers to joining a market. a) high; low b) high; higher c) low; lower c) low; high

a) high; low

Competitive __________ is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. a) intelligence b) advantage c) loyalty d) mover

a) intelligence

Select the three things a supplier can do to influence an industry if it has high supplier power. a) limiting quality or services b) increasing product differentiation c) decreasing customer loyalty d) charging higher prices e) shifting costs to industry participants

a) limiting quality or services d) charging higher prices e) shifting costs to industry participants

A ______ chain consists of all parties involved, directly or indirectly, in obtaining raw materials or a product. a) supply b) buyer c) switching d) loyalty

a) supply

Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy. a) Buying power b) Decreasing costs c) Attracting new customers d) Supply chain power e) Increasing sales

b) Decreasing costs c) Attracting new customers e) Increasing sales

Select the three generic business strategies Porter identified for entering a new market. a) Focused leadership b) Focused strategy c) Broad cost leadership d) Broad differentiation e) Product differentiation

b) Focused strategy c) Broad cost leadership d) Broad differentiation

Select three ways that companies duplicate competitive advantages. a) Remove key employees b) Hire key employees c) Copy business operations d) Acquire new technology e) Increase customer loyalty

b) Hire key employees c) Copy business operations d) Acquire new technology

Select two competitive advantage decisions a company can make after completing a value chain analysis. a) Target low value-adding activities to decrease their value b) Target high value-adding activities to further enhance their value c) Target low value-adding activities to increase their value

b) Target high value-adding activities to further enhance their value c) Target low value-adding activities to increase their value

Rivalry among existing competitors is _____ when competition is fierce in a market and ______ when competitors are more complacent. a) low; high b) average; high c) high; low d) low; average

c) high; low

Porter's Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in a(n) _________. a) process b) department c) industry d) company

c) industry

Who is a person or group that has an interest or concern in an organization? a) company b) organization c) stakeholder d) MIS skills guide

c) stakeholder

________ costs are costs that make customers reluctant to switch to another product or service. a) Production b) Supplier c) Consumer d) Switching

d) Switching

Competitive __________ is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. a) advantage b) loyalty c) mover d) intelligence

d) intelligence

Competitive __________ is the process of gathering information about the competitive environment, including competitors' plans, activities, and products, to improve a company's ability to succeed. a) mover b) advantage c) loyalty d) intelligence

d) intelligence

What is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market? a) Rivalry among existing competitors b) Supplier power c) Threat of substitute products or services d) Buyer power e) Threat of new entrants

e) Threat of new entrants

Select the components in a SWOT analysis. (Select all that apply)

internal weaknesses internal strengths external opportunities external threats

The first-mover advantage occurs when a company can _____.

significantly increase its market share by being first with a new competitive advantage

What views a firm as a series of business processes that each add value to the product or service? a) Three generic strategies b) Value chain analysis c) Porter's Five Forces Model

b) Value chain analysis

In business, supplier power is the ability suppliers have to ______. a) influence their customers' hiring decisions. b) control the prices they charge customers. c) shape public opinion. d) introduce new technology in their industry.

b) control the prices they charge customers.

A feature of a product or service that customers have come to expect and entering competitors must also offer is a(n) ______. a) loyalty program b) entry barrier c) substitute product d) switching cost

b) entry barrier

Broad strategies reach a large market segment, whereas ______ strategies target a niche or unique market. a) differentiated b) focused c) broad

b) focused

Competitive advantages are typically ___________. a) permanent b) temporary c) individual

b) temporary

Select all the factors used to appraise supplier power in an industry. a) size of region served b) uniqueness of supplier services c) number of suppliers d) availability of substitute products

b) uniqueness of supplier services c) number of suppliers d) availability of substitute products

_______ power is the ability of buyers to affect the price they must pay for an item. a) Rivalry b) Customer c) Buyer d) Supplier

c) Buyer

What is a feature of a product or service on which customers place a greater value than they do on similar offerings from competitors? a) Competitive intelligence b) First-mover advantage c) Competitive advantage

c) Competitive advantage

What occurs when a company can significantly increase its market share by being first with a new competitive advantage? a) Competitive intelligence b) Loyalty program c) First-mover advantage d) Business strategy

c) First-mover advantage

What rewards customers based on their spending? a) Switching costs b) Supplier programs c) Loyalty programs d) Supply chain

c) Loyalty programs

What are generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service? a) Value chain analysis b) Porter's five forces model c) Porter's three generic strategies

c) Porter's three generic strategies

What acquires raw materials to manufacture, deliver, market, sell, and provide after-sales services? a) Cost leadership value activities b) Support value activities c) Primary value activities

c) Primary value activities

A(n) ________ analysis evaluates an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies. (Use the acronym) a) Five Forces b) Three Generic Strategies c) SWOT

c) SWOT

Select the factors used to assess buyer power. a) Size of suppliers b) Differences between employees c) Sensitivity to price c) Number of customers d) Size of orders

c) Sensitivity to price c) Number of customers d) Size of orders

What characteristic is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose? a) Rivalry of existing competitors b) Threat of new entrants c) Threat of substitute products or services d) Supplier power

c) Threat of substitute products or services

Product __________ occurs when a company develops unique differences in its products or services with the intent to influence demand. a) supply chain b) barriers c) differentiation d) supply

c) differentiation

If buyer power is ______, customers can force a company and its competitors to compete on price, which typically drives prices down. a) low b) zero c) high

c) high