MGT 413 Exam 1

it must be compared to the RoIC of the competitors and/or industry

If a firm has 25% return on invested capital (RoIC), what do you need to know to determine if it has a competitive advantage

its inability to produce in sufficient volume to match the cost advantages of established products

If economies of scale are an industry's primary entry barrier, a new entrants major risk is

Economies of scale and control of key resources, high customer switching costs and brand loyalty (A and B, but not C)

High entry barriers can be attributed to

Online dating industry will be less attractive to potential entrants

If rivalry and buyer power on the online dating industry are going to increase in the future, which of the following statements is the most accurate?

This acquisition deal would decrease the industry competition because the number of competitors in the industry will reduce.

In 2015, the acquisition deal of Comcast - Time Warner for 45 billion was rejected by the Federal Commission. Which statement best describes the situation?

substitutes

In applying Porter's Five Force Model to the streaming industry, broadcast networks would be considered as:

Suppliers

In applying the Porter's 5 forces model to the streaming industry, Hollywood producers like Shonda Rhimes would be considered as:

the substitute product's price is lower than the industry's price

The threat from substitutes is high when

fragmented; low; high

Theory says that ______ industries have a _______ concentration ratio and therefore have a _____ intensity of rivalry.

strategy

A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Objective answers

A general environmental analysis can be expected to produce all of the following except:

low barriers to entry

According to the 5 force model, an attractive industry would have all the following characteristics EXCEPT:

low supplier power due to commodity inputs

According to the five force model, an attractive industry would include all EXCEPT:

conduct an analysis of the external environment

Acme Valves has been a successful player in the oil field supply industry in the last 15 years. Acme maintained its strategy and product characteristics over this time period. However, the company has experienced declines in sales and profits over the last 4 quarters. The CEO of Acme should

It is in the same strategic group

After amazon lowered the price on tablets, Samsung eventually lowered the price on its tablets. Samsung needed to do this because

attitudes and beliefs

All of the following are aspects of the political/legal segment of the general environment EXCEPT

a competitor's confidential memos

All of the following are ethical sources of data for external analysis EXCEPT:

fast industry growth

All of the following are forces that create high rivalry within an industry EXCEPT:

sociocultural

An analysis of society's attitudes and values would be conducted when studying the ________ segment of the general environment

income distribution

An analysis of the economic segment of the external environment would include all of the following EXCEPT:

Forward integration

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

complementors

Applications developed for iPhones make the phone more valuable to iPhone users. App developers are _____ to Apple

Access to distribution channels, brand loyalty, and proprietary know-how such as the "secret recipe" for making concentrate. (A, B, and C)

Barriers to enter the concentrate production business of Coke and Pepsi include:

switching costs are low

Buyers are powerful when:

sociocultural

Coke and Pepsi Co have been accused of contributing to the obesity problem in the United States. This acquisition comes from the _____ segment of the general environment

increase customers' switching costs

Customer loyalty programs such as airline frequent flyer miles are an attempt to

increases; decreases

Economies of scale refers to the fact that as the quantity of product produced in a given time period _____, the cost of manufacturing each unit ______

generic assets

Exit barriers to a firm include all of the following EXCEPT:

the microprocessors are critical for computer performance and have no close substitutes, and Intel and AMD are the two major microprocessor producers. On the other hand, there are quite a number of computer manufacturing companies that compete with each other fiercely. (Both A and B)

In the PC industry, microprocessor supplier such as Intel and AMD have significant bargaining power over computer manufacturing companies such as Dell and HP, because

substitutes

Media content has moved from paper, tape, and film to a digital world based on Internet technology. From the perspective of the 5 forces model, which of the following forces is MOST relevant here?

individuals, groups, and organization who have a stake in the success of the organization

Stakeholders are

They offer a credible threat of forward integration.

Suppliers are powerful when

False

T/F Supplier power tends to be highest in industries when products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.

False

T/F: Firms can directly control the elements of the seven segments of the general environment

False

T/F: Rivalry is most intense when there are high industry growth

True

T/F: Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

True

T/F: The firm's mission is more concrete than its vision

True

T/F: The power of buyers will be enhanced if they are able to maintain a credible threat of backward integration

False

T/F: age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concerns when studying the demographic segment of the general environment

It will make the airline industry more attractive because of decreased supplier power.

The aircraft industry has long been dominated by two large aircraft supplier, Boeing and Airbus. The demand for new aircrafts is low, and B&A aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry (southwest, american, delta, etc)

dominance by fewer suppliers

The bargaining power of suppliers is enhanced under the following market condition:

firms in other industries that produce products or services that satisfy the same customer need

Threat of substitutes comes from

high entry barriers, little competition

Which of the following industries is likely to be thee most profitable

Porters five forces model

Which of the following tools is the most useful in identifying a firm's industry environment?

higher unemployment rates

Which of the following would be considered part of a firm's general environment