Question 1

The likelihood of entry of new competitors is affected by ______ and ______.

Accepted Answer

A)  barriers to entry; expected retaliation of current industry organizations 
B)  the power of existing suppliers; buyers 
C)  the profitability of the industry; the market share of its leading firm 
D)  the demand for the product; the profitability of the competitors 
A)  barriers to entry; expected retaliation of current industry organizations 
B)  the power of existing suppliers; buyers 
C)  the profitability of the industry; the market share of its leading firm 
D)  the demand for the product; the profitability of the competitors

Question 2

The next critical technological opportunity for organizations is predicted to be:

Accepted Answer

A)  the Internet. 
B)  multiphasic interventions. 
C)  biological engineering. 
D)  wireless communications. 
A)  the Internet. 
B)  multiphasic interventions. 
C)  biological engineering. 
D)  wireless communications.

Question 3

The political/legal segment of an environment represents:

Accepted Answer

A)  the political preferences of different ethnic groups in the society. 
B)  the technological values of different political entities in society. 
C)  how organizations and governments mutually try to influence each other. 
D)  the system of regulations governments at all levels place on businesses. 
A)  the political preferences of different ethnic groups in the society. 
B)  the technological values of different political entities in society. 
C)  how organizations and governments mutually try to influence each other. 
D)  the system of regulations governments at all levels place on businesses.

Question 4

The Department of Defense buys aircraft from U.S. companies for national security reasons.  This is an example of a ______ barrier to entry.

Accepted Answer

A)  cost disadvantage independent of scale 
B)  government policy 
C)  capital requirements 
D)  product differentiation 
A)  cost disadvantage independent of scale 
B)  government policy 
C)  capital requirements 
D)  product differentiation

Question 5

When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:

Accepted Answer

A)  an industry with low exit barriers. 
B)  increasing economies of scale. 
C)  slow industry growth. 
D)  high bargaining power among buyers. 
A)  an industry with low exit barriers. 
B)  increasing economies of scale. 
C)  slow industry growth. 
D)  high bargaining power among buyers.

Question 6

A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for the project. Which of the following statements is most likely to be true?

Accepted Answer

A)  The cost of the marble will be expensive because of the bargaining power of the supplier. 
B)  The cost of the marble will be moderate because of the bargaining power of the buyer. 
C)  The cost of the marble will be moderate because of economies of scale. 
D)  The cost of the marble will be expensive because of the high strategic stakes involved. 
A)  The cost of the marble will be expensive because of the bargaining power of the supplier. 
B)  The cost of the marble will be moderate because of the bargaining power of the buyer. 
C)  The cost of the marble will be moderate because of economies of scale. 
D)  The cost of the marble will be expensive because of the high strategic stakes involved.

Question 7

Which of the following explains, in part, why rivalry among McDonald's, Wendy's, and Burger King is intense?

Accepted Answer

A)  There is low geographic saturation of the market. 
B)  There is high differentiation among competing products. 
C)  The threat of supplier forward integration is low. 
D)  These companies are trying to find ways to differentiate their products. 
A)  There is low geographic saturation of the market. 
B)  There is high differentiation among competing products. 
C)  The threat of supplier forward integration is low. 
D)  These companies are trying to find ways to differentiate their products.

Question 8

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

Accepted Answer

1) Threat of new entrants: New entrants

Question 9

When Google studies the internet user privacy policies of various nations, it is engaged in the forecasting component of the environmental analysis process.

Accepted Answer

A) True 
 B)False

Question 10

The economic environment refers to:

Accepted Answer

A)  the nature and direction of the economy in which a firm competes or may compete. 
B)  the economic outlook of the world provided by the World Bank. 
C)  an analysis of how the environmental movement and world economy interact. 
D)  an analysis of how new environmental regulations will affect the U.S. economy. 
A)  the nature and direction of the economy in which a firm competes or may compete. 
B)  the economic outlook of the world provided by the World Bank. 
C)  an analysis of how the environmental movement and world economy interact. 
D)  an analysis of how new environmental regulations will affect the U.S. economy.

Question 11

The process of competitor analysis should examine the competitors' future objectives, current strategy, assumptions, and capabilities.

Accepted Answer

A) True 
 B)False

Question 12

A competitor analysis includes all of the following about competitors EXCEPT:

Accepted Answer

A)  future objectives. 
B)  current strategy. 
C)  assumptions. 
D)  traditions. 
A)  future objectives. 
B)  current strategy. 
C)  assumptions. 
D)  traditions.

Question 13

In recent times, business leaders have become more confident in the ability of economists to provide valid and reliable predictions about the world's economic environment.

Accepted Answer

A) True 
 B)False

Question 14

Suppliers are powerful when:

Accepted Answer

A)  satisfactory substitutes are available. 
B)  they sell a commodity product. 
C)  they offer a credible threat of forward integration. 
D)  they are in a highly fragmented industry. 
A)  satisfactory substitutes are available. 
B)  they sell a commodity product. 
C)  they offer a credible threat of forward integration. 
D)  they are in a highly fragmented industry.

Question 15

The industry environment directly influences a firm and its competitive actions and responses.

Accepted Answer

A) True 
 B)False

Question 16

Competitor analysis is focused on the factors and conditions influencing an industry's profitability potential.

Accepted Answer

A) True 
 B)False

Question 17

Describe the factors that raise the competitive nature of an industry's rivalry.

Accepted Answer

The competitive rivalry in an industry c

Question 18

Competitor analysis focuses on:

Accepted Answer

A)  firms with which the company competes directly. 
B)  firms that produce products that are substitutes. 
C)  all firms in the industry. 
D)  companies that might enter the industry. 
A)  firms with which the company competes directly. 
B)  firms that produce products that are substitutes. 
C)  all firms in the industry. 
D)  companies that might enter the industry.

Question 19

Competitor intelligence could ethically come from all of the following EXCEPT:

Accepted Answer

A)  court records. 
B)  financial reports. 
C)  trade show discussions. 
D)  eavesdropping. 
A)  court records. 
B)  financial reports. 
C)  trade show discussions. 
D)  eavesdropping.

Question 20

One popular approach to taking care of the physical environment is:

Accepted Answer

A)  producing and selling additional green products. 
B)  lobbying the government to reduce environmental regulations. 
C)  making donations to the Sierra Club and other environmental organizations. 
D)  increasing health benefits for employees. 
A)  producing and selling additional green products. 
B)  lobbying the government to reduce environmental regulations. 
C)  making donations to the Sierra Club and other environmental organizations. 
D)  increasing health benefits for employees.

The likelihood of entry of new competitors is affected by and .

The next critical technological opportunity for organizations is predicted to be:

The political/legal segment of an environment represents:

The Department of Defense buys aircraft from U.S. companies for national security reasons. This is an example of a ______ barrier to entry.

When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:

Which of the following explains, in part, why rivalry among McDonald's, Wendy's, and Burger King is intense?

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

When Google studies the internet user privacy policies of various nations, it is engaged in the forecasting component of the environmental analysis process.

The economic environment refers to:

The process of competitor analysis should examine the competitors' future objectives, current strategy, assumptions, and capabilities.

A competitor analysis includes all of the following about competitors EXCEPT:

In recent times, business leaders have become more confident in the ability of economists to provide valid and reliable predictions about the world's economic environment.

Suppliers are powerful when:

The industry environment directly influences a firm and its competitive actions and responses.

Competitor analysis is focused on the factors and conditions influencing an industry's profitability potential.

Describe the factors that raise the competitive nature of an industry's rivalry.

Competitor analysis focuses on:

Competitor intelligence could ethically come from all of the following EXCEPT:

One popular approach to taking care of the physical environment is:

Strategic Management and Strategic Competitiveness

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The likelihood of entry of new competitors is affected by ______ and ______.

The next critical technological opportunity for organizations is predicted to be:

The political/legal segment of an environment represents:

The Department of Defense buys aircraft from U.S. companies for national security reasons. This is an example of a ______ barrier to entry.

When rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:

Which of the following explains, in part, why rivalry among McDonald's, Wendy's, and Burger King is intense?

Identify the five forces that underlie the five forces model of competition. Explain briefly how they affect industry profit potential.

When Google studies the internet user privacy policies of various nations, it is engaged in the forecasting component of the environmental analysis process.

The economic environment refers to:

The process of competitor analysis should examine the competitors' future objectives, current strategy, assumptions, and capabilities.

A competitor analysis includes all of the following about competitors EXCEPT:

In recent times, business leaders have become more confident in the ability of economists to provide valid and reliable predictions about the world's economic environment.

Suppliers are powerful when:

The industry environment directly influences a firm and its competitive actions and responses.

Competitor analysis is focused on the factors and conditions influencing an industry's profitability potential.

Describe the factors that raise the competitive nature of an industry's rivalry.

Competitor analysis focuses on:

Competitor intelligence could ethically come from all of the following EXCEPT:

One popular approach to taking care of the physical environment is:

Strategic Management and Strategic Competitiveness

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

The likelihood of entry of new competitors is affected by and .