Question 1

As an industry enters the decline stage:

Accepted Answer

A)  growth becomes negative.
B)  rivalry among established companies usually decreases.
C)  competitive pressures abate.
D)  capacity reduces.
E)  demand remains the same.

Question 2

Successful innovation cannot transform the nature of industry competition.

Accepted Answer

A) True 
 B)False

Question 3

Economies of scale can arise from:

Accepted Answer

A)  cost reductions gained through decreased production.
B)  high prices on bulk purchases of raw material inputs and component parts.
C)  an advantage gained by spreading fixed production costs over a large production volume.
D)  increased spending on marketing and advertising activities. 
E)  poor production operations.

Question 4

As an industry enters the shakeout stage:

Accepted Answer

A)  rivalry among companies declines.
B)  demand grows at a high rate.
C)  prices of products increase.
D)  excess productive capacity emerges.
E)  new entrants come into the market.

Question 5

Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.

Accepted Answer

A) True 
 B)False

Question 6

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n) :

Accepted Answer

A)  substitute.
B)  market segment.
C)  service provider.
D)  regulator.
E)  industry.

Question 7

In growth industries:

Accepted Answer

A)  the intensity of rivalry is very high.
B)  technological expertise is the most important entry barrier.
C)  threat from potential competitors is typically highest.
D)  distribution channels are poorly developed.
E)  buyers are not familiar with the industry's products.

Question 8

Common exit barriers include:

Accepted Answer

A)  minimal investment in assets like specific machines.
B)  emotional attachments to an industry.
C)  low fixed costs associated with leaving an industry.
D)  the lack of bankruptcy regulations. 
E)  economic independence of a company

Question 9

The extent of rivalry among established companies is lowest when:

Accepted Answer

A)  the industry's product is a commodity.
B)  demand is growing rapidly.
C)  exit barriers are substantial.
D)  the industry is entering a decline stage.
E)  the fixed costs are high.

Question 10

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following industry structures consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price?

Accepted Answer

A)  Fragmented industry
B)  Consolidated industry
C)  Oligopoly
D)  Monopoly 
E)  Sector

Question 12

High-teclrnology industries are dependent on complementary products for their mutual success.

Accepted Answer

A) True 
 B)False

Question 13

An industry's buyers have high bargaining power when:

Accepted Answer

A)  they purchase in small quantities.
B)  switching costs are low.
C)  it is economically impossible for them to purchase an input from several companies at once.
D)  the supply industry depends upon buyers for a very small percentage of its total orders.
E)  the industry is a monopoly.

Question 14

Consider the macroenvironment facing a large, international airline headquartered in the United States (such as American or United).Give at least three examples of important trends or events from each of the five segments of the airline's macroenvirornnent (macroeconomic, technological, demographic, social, political, and legal), and explain whether each represents a threat or an opportunity for the firm.

Accepted Answer

Students don't need to conduct research ...

Question 15

Suppliers are most powerful when the products that they sell have many substitutes.

Accepted Answer

A) True 
 B)False

Question 16

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n) :

Accepted Answer

A)  mature industry.
B)  stakeout industry.
C)  embryonic industry.
D)  growth industry.
E)  declining industry.

Question 17

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Accepted Answer

A) True 
 B)False

Question 18

Define and then relate the concepts of sectors, industries, and market segments.

Accepted Answer

All of these concepts are useful in term...

Question 19

Describe one major limitation of each of the following models for competitive analysis: the five forces model, the strategic groups model, and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Accepted Answer

Ali three of these models fail to accoun...

Question 20

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

Accepted Answer

A)  its inability to counter brand loyalty that customers have for established companies in the industry.
B)  the inferior quality of its products.
C)  its inability to match the innovation of the established finn.
D)  its inability to produce in sufficient volume to match the cost advantages of established producers.
E)  its inability to get buyers to switch to its product.

Exam 2: External Analysis: The Identification of Opportunities and Threats

The extent of rivalry among established companies is lowest when:

Correct Answer
verified

Successful innovation cannot transform the nature of industry competition.

Correct Answer
verified

An industry's buyers have high bargaining power when:

Correct Answer
verified

Describe one major limitation of each of the following models for competitive analysis: the five forces model, the strategic groups model, and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Correct Answer
verified
Ali three of these models fail to accoun...
View Answer

As an industry enters the shakeout stage:

Correct Answer
verified

In growth industries:

Correct Answer
verified

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Correct Answer
verified

High-teclrnology industries are dependent on complementary products for their mutual success.

Correct Answer
verified

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n) :

Correct Answer
verified

Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.

Correct Answer
verified

Suppliers are most powerful when the products that they sell have many substitutes.

Correct Answer
verified

Which of the following industry structures consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price?

Correct Answer
verified

Economies of scale can arise from:

Correct Answer
verified

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n) :

Correct Answer
verified

As an industry enters the decline stage:

Correct Answer
verified

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

Correct Answer
verified

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

Correct Answer
verified

Define and then relate the concepts of sectors, industries, and market segments.

Correct Answer
verified
All of these concepts are useful in term...
View Answer

Common exit barriers include:

Correct Answer
verified

Correct Answer
verified
Students don't need to conduct research ...
View Answer

Exam 2: External Analysis: The Identification of Opportunities and Threats

The extent of rivalry among established companies is lowest when:

Correct AnswerverifiedShow Answer

Successful innovation cannot transform the nature of industry competition.

Correct AnswerverifiedShow Answer

An industry's buyers have high bargaining power when:

Correct AnswerverifiedShow Answer

Describe one major limitation of each of the following models for competitive analysis: the five forces model, the strategic groups model, and the industry life cycle model.Does the existence of these limitations mean that the models are not useful? Why or why not?

Correct AnswerverifiedAli three of these models fail to accoun...View AnswerShow Answer

As an industry enters the shakeout stage:

Correct AnswerverifiedShow Answer

In growth industries:

Correct AnswerverifiedShow Answer

Deregulation of the mortgage industry is an example of how political and legal forces can impact an industry.

Correct AnswerverifiedShow Answer

High-teclrnology industries are dependent on complementary products for their mutual success.

Correct AnswerverifiedShow Answer

A group of firms manufactures writing implements such as pens, pencils, and markers.This group should be referred to as a(n) :

Correct AnswerverifiedShow Answer

Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.

Correct AnswerverifiedShow Answer

Suppliers are most powerful when the products that they sell have many substitutes.

Correct AnswerverifiedShow Answer

Which of the following industry structures consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price?

Correct AnswerverifiedShow Answer

Economies of scale can arise from:

Correct AnswerverifiedShow Answer

In the late 1800s, when the automobile was first manufactured, the automobile industry would have been considered a(n) :

Correct AnswerverifiedShow Answer

As an industry enters the decline stage:

Correct AnswerverifiedShow Answer

If economies of scale are an industry's primary entry barrier, a new entrant's major concern is:

Correct AnswerverifiedShow Answer

In Porter's framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.

Correct AnswerverifiedShow Answer

Define and then relate the concepts of sectors, industries, and market segments.

Correct AnswerverifiedAll of these concepts are useful in term...View AnswerShow Answer

Common exit barriers include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedStudents don't need to conduct research ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Ali three of these models fail to accoun...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
All of these concepts are useful in term...
View Answer

Correct Answer
verified

Correct Answer
verified
Students don't need to conduct research ...
View Answer