4490 Chapter 3

The ______ is a measure of the change in the amount of goods and services produced by a nation's economy

economic growth rate

Managers are able to influence which of the following types of external forces? (Check all that apply.)

strategic group composition the structure of their industry

True or false: Sociocultural factors tend to be fixed.

False

Which of the following are characteristics of a monopolistically competitive industry?

a differentiated product the ability to raise prices for differentiated products obstacles to entry

According to Michael Porter, the profit potential of an industry is ____

a function of five forces related to competition

A group of companies that deal with more or less the same set of suppliers and buyers make up ______

an industry

The pressures that industry suppliers can exert on an industry's profit potential, is also called the _____

bargaining power of suppliers

A rise in economic growth is reflected by

businesses expanding operations to satisfy demand

According to Porter's model, which of the following should be considered when analyzing a firm's competition?

buyers suppliers threat of substitutes

Global warming would be an example of ______ factor in a firm's external environment

ecological

Growth rates, interest rates, and levels of employment would be considered ______ factors in a firm's general environment

economic

Which of the following are examples of sociocultural factors?

the growth of the Hispanic population an increased demand by consumers for gluten-free products the widespread adoption of smart phones

An industry analysis provides which of the following?

the level of profitability that can be expected for the average firm in the industry insight into a firm's strategic position within an industry a rigorous way of identifying the industry's profit potential

Place the three frameworks used in industry analysis in the order they should be used, with the first at the top.

1. PESTEL 2. Porter 3.strategic group mapping

An example of a recent innovation in process technology is

lean manufacturing

Which of the following helped Airbnb develop a successful business in the peer-to-peer rental space? (Select all that apply.)

Presenting a well-designed website Ensuring a smooth transaction between hosts and guests Fortuitous timing that led to growing demand

The relationship between the natural environment and business organizations can best be described as

interdependent

factors result from the processes and actions of government bodies that influence the decisions and behavior of firms

political

The cost advantages that a firm obtains by increasing output, such as by spreading fixed costs over more units, are called economies of

scale

The risk that potential competitors will enter the industry is known as the

threat of entry

In addition to the static nature of the PESTEL, Porter's five forces, and strategic group mapping frameworks, what is their other shortcoming?

It does not help us understand why there are performance differences among firms in the same strategic group

Which of the following statements about Airbnb is correct?

It handles more accommodations than the three biggest hotel chains combined.

Which of the following statements about legal factors as an external force is true

Regulatory changes tend to affect entire industries at once

The external forces called technological factors

capture the application of knowledge to create new processes and products

Which of the following are important sources of entry barriers? (Check all that apply.)

economies of scale network effects government policy capital requirements credible threat of retaliation

Deregulation of industries leads to intensified competition and higher value at lower prices for consumers. This is an example of ______ factors influencing business.

legal