MGT498 - Strategic Management

A Blank______ is a product or service that adds value to the original product offering.

complement

In the PESTEL model, political factors are those that relate to Blank______.

government bodies

A(n) _______ group is a set of companies within a specific industry that seek to achieve competitive advantage in similar ways.

strategic

Select all that apply Managers are able to influence which of the following types of external forces?

strategic group composition the structure of their industry

Select all that apply When a new firm enters an industry, which of the following often occur?

Incumbent firms spend more to satisfy customers. Incumbent firms lower prices. Industry profit potential declines.

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 reduces profit margins for air carriers?

Large corporate customers contracting with the U.S. airline industry

Select all that apply Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry?

Leverage existing assets Establishing a niche Reconfiguring value chains

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

bargaining power of suppliers

The power of Blank______ is the pressure they can put on the margins of producers in the industry by demanding a lower price or higher product quality.

buyers

Production costs can increase when Blank______.

buyers demand higher quality and more service

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

ecological

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

economic

Industry-specific factors known as Blank______ separate one strategic group from another.

mobility barriers

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

suppliers buyers the threat of substitutes

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

threat of entry

Select all that apply What are the three aspects of mapping strategic groups?

graphing the firms in the strategic group and indicating each firm's market share identifying the most important strategic dimensions choosing two key dimensions for the horizontal and vertical axes

Select all that apply Which of the following are examples of sociocultural factors?

increased number of health-conscious consumers growth of the Hispanic population

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

interdependent

Select all that apply Which of the following are examples of economic factors in the firm's general environment?

interest rates price stability growth rates

Which of the following is an example of a major innovation in process technology?

lean manufacturing

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

legal

Which of the following tend to result from strong competitive rivalry?

limits to the industry's profit potential

Select all that apply Which of the following contribute to consumer buying power?

low switching costs real time, accurate price comparisons

When managers understand the forces in the external environment, they are better able to Blank______.

mitigate threats and leverage opportunities

Select all that apply Which of the following statements about industry dynamics is true?

Over time, industry structures are not stable. The five forces model is a static model.

Click and drag on elements in order Place the three frameworks used in industry analysis in the order they should be used, with the first at the top.

PESTEL analysis Porter's five forces Strategic group mapping

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

Presenting a well-designed website Ensuring a smooth transaction between hosts and guests

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

Regulatory changes tend to affect entire industries at once.

Select all that apply Which of the following are characteristics of the companies in a strategic group?

The companies differ in important dimensions from companies in other strategic groups. The companies pursue similar strategies. The companies form part of a specific industry.

What is true about the external forces called technological factors?

They capture the application of knowledge to create new process and products.

Sociocultural factors are constantly in flux and also differ across groups.

True

Select all that apply Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully?

What type of entry should be made? When to enter? Who are the players? How to enter?

Many drivers find a GPS navigation system useful. Because installing a GPS system in an automobile adds value to the vehicle, the system functions as Blank______.

a complement

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

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 Blank______.

an industry

The most rigorous means of investigating the profit potential within a specific industry is to conduct Blank______.

an industry analysis

In the five forces model, threat of entry refers to the risk Blank______.

of potential competitors entering the industry

Although the five forces model is useful in understanding an industry's profit potential, it provides only a Blank______.

point-in-time snapshot of a moving target

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

political

When suppliers can demand higher prices for their inputs or reduce the quality of the input factor delivered, they demonstrate that they are Blank______.

powerful

Select all that apply Which of the following are important strategic dimensions in mapping strategic groups?

product and service offerings expenditures on research and development cost structure

The intensity with which companies in an industry jockey for market share and profitability is known as Blank______.

rivalry

The threat of Blank______ is one of the five forces and can be exemplified by the threat that videoconferencing presents to business travel.

substitutes

The Blank______ is the idea that products or services available from outside the given industry will come close to meeting the needs of current customers.

threat of substitutes

In the airline industry, the Blank______ involved in offering international routes restricts movement between hub-and-spoke and point-to-point airlines.

mobility barrier