Quiz 3

Suppliers with strong bargaining power can erode industry profitability by _____________ charging industry members exceedingly high prices. passing costs to industry members. limiting industry members' opportunities to find a better deal. influencing the terms and conditions of supply in their favor. All of these are correct.

All of these are correct.

Which of the following statements is accurate about competitive pressures created by the rivalry among competing sellers? Rivalry is usually stronger in slow-growing markets and weaker in fast-growing markets. Rivalry intensifies when competing sellers regularly launch fresh actions to boost their market standing and business performance. Rivalry is usually weaker in industries comprised of vast numbers of small rivals; likewise, it is often weak when there are fewer than five competitors. Rivalry is stronger in industries where competitors are equal in size and capability All of these are correct.

All of these are correct.

Which of the following is/are true of a company's macro-environment? The impact of the macro-environment on a company's strategy can be big or small. Some factors in the macro-environment could change slowly or have a low impact on the company's business situation. Managers should always scan the environment and pay attention to relevant macro-environmental factors. A PESTEL analysis can be used to assess the strategic relevance of the macro-environment. All of these.

All of these.

Which of the following is a good example of a manufacturing-related key success factor? Efficient distribution capabilities Low marketing expenses High levels of customer service Short delivery time capability High capacity utilization

High capacity utilization

Which is the following is a benefit of good competitive intelligence? It helps managers to avoid the damage to sales and profits that comes from being caught napping by the surprise moves of rivals. It points to those things that every firm in the industry needs to attend to in order to retain customers and weather the competition. It enables more accurate predictions about how long it will take a particular rival to copy most of what the strategy leader is doing. It helps determine whether a rival is gaining or losing market share. It entails concluding which companies seem destined to struggle because of their position.

It helps managers to avoid the damage to sales and profits that comes from being caught napping by the surprise moves of rivals.

Which of the following is not a purpose of using a strategic group map as an analytical tool? Strategic group map analysis entails drawing conclusions about where on the map is the best place to be and why. Strategic group maps reveal which companies have the highest profit margins. Strategic group maps help managers understand why some parts of the map are better than others. Strategic group maps determine which companies seem destined to struggle because of their position. Strategic group maps reveal which companies are close competitors and which are distant competitors.

Strategic group maps reveal which companies have the highest profit margins.

Which are among the primary factors that determine whether competitive pressures from substitute products are strong, moderate, or weak? Whether substitutes are readily available and whether the costs that buyers incur in switching to the substitutes are low or high. Whether substitutes are readily available and whether substitutes exceed the quality of competitive products. Whether buyers view the substitutes as attractively priced in relation to their quality, performance, and other relevant attributes and whether the substitutes target a small customer group or the mass market. Whether the costs that buyers incur in switching to the substitutes are low or high and whether the substitutes target a small customer group or the mass market. Whether substitutes are priced lower than competitive products and whether the buyer loyalty in the market is high or low.

Whether substitutes are readily available and whether the costs that buyers incur in switching to the substitutes are low or high.

Supplier bargaining power is weaker when ___________________________________ suppliers are not dependent on the industry for a large portion of their revenues. supplier services are critical to industry members' production process. industry members have the potential to integrate backward and self-manufacture their own requirements. the supplier industry is more concentrated than the industry it sells to. supplier products are differentiated and short in supply.

industry members have the potential to integrate backward and self-manufacture their own requirements.

As a part of the macro-environment, __________ include the societal values, attitudes, cultural factors, and lifestyles that impact businesses, as well as demographic factors such as the population size, growth rate and age distribution. political factors legal & regulatory factors economic conditions sociocultural forces environmental forces

sociocultural forces

Rivalry can be considered fierce to strong__________________ when the battle for market share is so vigorous that the profit margins of most industry members are squeezed to bare-bones levels. when companies are highly distinctive in their strategic approaches. when most companies in the industry are relatively well satisfied with their sales growth and market share and rarely undertake offensives to steal customers away from one another. when the maneuvering among industry members, while lively and healthy, still allows most industry members to earn acceptable profits. when competitors engage in protracted price wars or habitually employ other aggressive tactics that are mutually destructive to profitability.

when the battle for market share is so vigorous that the profit margins of most industry members are squeezed to bare-bones levels.