quiz 3

NAICS code

An industry classification system for which longer numbers reflect more specificity

economies or scale

An industry's incumbents are large, well-established, and produce products in bulk to reduce the per-unit cost of production. New entrants generally cannot afford to do this. Which barrier to entry does this exemplify?

General Environment

At what level of analysis is the PESTEL analysis framework?

industry

At what level of analysis is the Porter's Five Forces framework?

c. Theme Parks

Carnival Cruise Line has commissioned you to do a Porter's Five Forces analysis for the vacation cruise line industry. Which of the following would be the most reasonable substitute to include in your analysis? a. Princess Cruise Line b. End Users c. Theme Parks d. Food distribution

a. Agnostic to individual firms in the final analysis

Porter's Five Forces is... a. Agnostic to individual firms in the final analysis b. Specifically concerned with whether an industry is attractive to new entrants c. Specifically concerned with whether an industry is attractive to the specific company being analyzed d. Sensitive to the strategy of the firm being analyzed

Political, economic, social, technological, environmental, legal.

PESTEL analysis is a popular framework for understanding and organizing key factors and trends. Please indicate what the anagram PESTEL stands for.

political

The US midterm elections are in a few weeks. Analysts might suggest that there is a trend toward the election of candidates from one party over another and that this should persist for the foreseeable future. If they did, what kind of trend would this reflect?

b. Complements

This week we discussed three of the five forces in the Porter's Five Forces framework. Which of the following is not one of these forces? a. New Entrants b. Complements c. Substitutes d. Suppliers

To identify how much profit potential exists in an industry

What is the purpose of Porter's five forces analysis?

intellectual property

What strategic management concept is concerned with firms' ability to protect intangible goods such as movies, software, and video games from piracy?

d. A decrease to the concentration of your industry relative to your suppliers'.

Which of the following INCREASES the bargaining power of suppliers? a. A decrease to switching costs from one supplier to another. b. A decrease to perceived differentiation of the suppliers' products. c. A decrease to the likelihood of forward vertical integration. d. A decrease to the concentration of your industry relative to your suppliers'.

d. Relative industry concentration.

Which of the following does NOT directly impact the threat of substitutes? a. Consumers' (called 'Buyers' in your text) switching costs. b. Relative price of substitutes. c. Relative quality of substitutes. d. Relative industry concentration.

b. Comprised of companies competing using similar products

Which of the following is a defining characteristic of an industry? a. Comprised of target markets that may buy a particular product b. Comprised of companies competing using similar products c. Comprised of companies competing using similar strategies d. Comprised of companies competing in a particular region

a. Switching costs

Which of the following is characterized by a financial or psychological barrier to change from the consumption of one product to another? a. Switching costs b. Diversification c. Differentiation d. Economies of Scale

c. Differentiation

Which of the following is characterized by an industry where one firms' products are seen by buyers as being significantly different from other firms' products? a. Switching costs b. Diversification c. Differentiation d. Economies of Scale

General Environment

Which of the following is the highest (broadest) level of analysis of concern to strategic management?

b. Increases to the amount of capital required to launch a firm in the industry

Which of the following would DECREASE the threat of new entrants? a. Increases to new entrants' access to distribution channels b. Increases to the amount of capital required to launch a firm in the industry c. Decreased expectation of retaliation from industry incumbents d. Decreased differentiation in the industry's products

a. Audi producing an electric car for the first time

Which of the following would NOT be an example of new entry for the automotive industry? a. Audi producing an electric car for the first time b. IBM launching an electric car business c. An entrepreneur starting an electric car company called PrimoCar d. All of the above are examples of new entry from a Porter's 5 Forces perspective

a. A decrease in the cost of driving cars

Which of the following would most directly INCREASE the threat of substitutes to the commercial air travel industry? a. A decrease in the cost of driving cars b. An increase in the cost of driving cars c. Increased capital requirements to launch an airline d. Decreased capital requirements to launch an airline