Question 1

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

Accepted Answer

A)  bargaining power of suppliers 
B)  rivalry among existing firms 
C)  threat of new entrants 
D)  bargaining power of buyers 
E)  threat of substitutes 
A)  bargaining power of suppliers 
B)  rivalry among existing firms 
C)  threat of new entrants 
D)  bargaining power of buyers 
E)  threat of substitutes

Question 2

Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.

Accepted Answer

A) True 
 B)False

Question 3

Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid, she lists her firm along with her major competitors. Along the vertical axis of the grid, she lists the main competitive factors in her industry. Amy is completing a:

Accepted Answer

A)  strategic analysis spreadsheet 
B)  tactical analysis framework 
C)  competitive analysis grid 
D)  strategic analysis grid 
E)  behavioral analysis spreadsheet 
A)  strategic analysis spreadsheet 
B)  tactical analysis framework 
C)  competitive analysis grid 
D)  strategic analysis grid 
E)  behavioral analysis spreadsheet

Question 4

The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.

Accepted Answer

A) True 
 B)False

Question 5

According to the textbook, the five competitive forces included in the five-forces model determine:

Accepted Answer

A)  the average rate of new business starts in an industry 
B)  the average growth rate for the firms in an industry 
C)  the average rate of return for the firms in an industry 
D)  the average sales for the firms in an industry 
E)  the average failure rate for the firms in an industry 
A)  the average rate of new business starts in an industry 
B)  the average growth rate for the firms in an industry 
C)  the average rate of return for the firms in an industry 
D)  the average sales for the firms in an industry 
E)  the average failure rate for the firms in an industry

Question 6

In the context of competitor analysis, ________ offer close substitutes to the product sold by the firm completing the analysis.

Accepted Answer

A)  potential competitors 
B)  direct competitors 
C)  indirect competitors 
D)  impending competitors 
E)  future competitors 
A)  potential competitors 
B)  direct competitors 
C)  indirect competitors 
D)  impending competitors 
E)  future competitors

Question 7

According to the textbook, the three different types of competitors a business will face are:

Accepted Answer

A)  potential, direct, and upcoming 
B)  indirect, fleeting, and future 
C)  serious, cautious, and future 
D)  direct, indirect, and future 
E)  potential, fleeting, and indirect 
A)  potential, direct, and upcoming 
B)  indirect, fleeting, and future 
C)  serious, cautious, and future 
D)  direct, indirect, and future 
E)  potential, fleeting, and indirect

Question 8

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, electronic games, or computers.

Accepted Answer

A)  cluster 
B)  division 
C)  sector 
D)  industry 
E)  network 
A)  cluster 
B)  division 
C)  sector 
D)  industry 
E)  network

Question 9

According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

A)  emerging 
B)  fragmented 
C)  declining 
D)  mature 
A)  emerging 
B)  fragmented 
C)  declining 
D)  mature

Question 10

Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.

Accepted Answer

A)  universal 
B)  multidomestic 
C)  contemporary 
D)  global 
E)  home 
A)  universal 
B)  multidomestic 
C)  contemporary 
D)  global 
E)  home

Question 11

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

Accepted Answer

A) True 
 B)False

Question 12

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Accepted Answer

A) True 
 B)False

Question 13

Industry analysis is business research that focuses on the potential of an industry.

Accepted Answer

A) True 
 B)False

Question 14

The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of an industry-level factor as opposed to a firm-level factor?

Accepted Answer

A)  a firm's assets 
B)  a firm's culture 
C)  the teamwork among a firm's employees 
D)  a firm's products 
E)  threat of substitutes 
A)  a firm's assets 
B)  a firm's culture 
C)  the teamwork among a firm's employees 
D)  a firm's products 
E)  threat of substitutes

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.

The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.

According to the textbook, the five competitive forces included in the five-forces model determine:

In the context of competitor analysis, ________ offer close substitutes to the product sold by the firm completing the analysis.

According to the textbook, the three different types of competitors a business will face are:

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, electronic games, or computers.

According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Industry analysis is business research that focuses on the potential of an industry.

The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.

Which of the following is an example of an industry-level factor as opposed to a firm-level factor?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 5: Industry and Competitor Analysis

Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.

The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.

According to the textbook, the five competitive forces included in the five-forces model determine:

In the context of competitor analysis, ________ offer close substitutes to the product sold by the firm completing the analysis.

According to the textbook, the three different types of competitors a business will face are:

A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, electronic games, or computers.

According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.

The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.

A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.

Industry analysis is business research that focuses on the potential of an industry.

The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.

Which of the following is an example of an industry-level factor as opposed to a firm-level factor?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Developing an Effective Business Model

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New Venture Team

Getting Financing or Funding

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters