Question 1

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

Accepted Answer

A)  capital requirements. 
B)  product differentiation. 
C)  switching costs. 
D)  economies of scale. 
E)  access to distribution. 
A)  capital requirements. 
B)  product differentiation. 
C)  switching costs. 
D)  economies of scale. 
E)  access to distribution.

Question 2

Extrapolation rests on the assumption that the world is relatively dynamic and changes quickly in the short run.

Accepted Answer

A) True 
 B)False

Question 3

To succeed in a hypercompetitive industry,companies must be willing to

Accepted Answer

A)  cut prices below marginal costs. 
B)  pursue market share instead of profits. 
C)  operate in the ethical gray zone. 
D)  cannibalize their successful product lines. 
E)  reduce spending on research and development. 
A)  cut prices below marginal costs. 
B)  pursue market share instead of profits. 
C)  operate in the ethical gray zone. 
D)  cannibalize their successful product lines. 
E)  reduce spending on research and development.

Question 4

According to Porter's model,a strong or high force is likely to reduce profits and can be regarded as a(n)

Accepted Answer

A)  benefit. 
B)  opportunity. 
C)  advantage. 
D)  threat. 
E)  risk. 
A)  benefit. 
B)  opportunity. 
C)  advantage. 
D)  threat. 
E)  risk.

Question 5

Which of the following is not descriptive of the threat of substitute products or services?

Accepted Answer

A)  Substitute products appear to be different, but satisfy the same need as another product. 
B)  If the cost of switching is low, substitutes may have a strong effect on an industry. 
C)  Identifying substitutes is relatively easy since they look similar. 
D)  Possible substitute products or services may not appear to be easily substitutable. 
E)  Substitutes limit the potential returns of an industry. 
A)  Substitute products appear to be different, but satisfy the same need as another product. 
B)  If the cost of switching is low, substitutes may have a strong effect on an industry. 
C)  Identifying substitutes is relatively easy since they look similar. 
D)  Possible substitute products or services may not appear to be easily substitutable. 
E)  Substitutes limit the potential returns of an industry.

Question 6

Faulty underlying assumptions are the most frequent cause of forecasting errors.

Accepted Answer

A) True 
 B)False

Question 7

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

Accepted Answer

A)  rivalry among existing firms 
B)  switching costs 
C)  capital requirements 
D)  product differentiation 
E)  access to distribution channels 
A)  rivalry among existing firms 
B)  switching costs 
C)  capital requirements 
D)  product differentiation 
E)  access to distribution channels

Question 8

Today's organizations must scan the natural environment for factors that might previously have been taken for granted.

Accepted Answer

A) True 
 B)False

Question 9

A buyer may be powerful when changing suppliers costs a great deal.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not descriptive of a high level of bargaining powers of buyers?

Accepted Answer

A)  Changing suppliers costs very little. 
B)  Alternative suppliers are plentiful because of standardization of the product. 
C)  The purchased product represents a high percentage of buyer's costs. 
D)  The buyer buys a large proportion of the seller's product or service. 
E)  A buyer earns high profits and is very insensitive to costs and service differences. 
A)  Changing suppliers costs very little. 
B)  Alternative suppliers are plentiful because of standardization of the product. 
C)  The purchased product represents a high percentage of buyer's costs. 
D)  The buyer buys a large proportion of the seller's product or service. 
E)  A buyer earns high profits and is very insensitive to costs and service differences.

Question 11

A fragmented industry is dominated by a few large firms,each of which struggles to differentiate its products from the competition.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not descriptive of intense rivalry among firms?

Accepted Answer

A)  slow industry growth 
B)  high fixed costs 
C)  high exit barriers 
D)  few competitors or competitors that are roughly equal in size and power 
E)  product offerings that are highly differentiated 
A)  slow industry growth 
B)  high fixed costs 
C)  high exit barriers 
D)  few competitors or competitors that are roughly equal in size and power 
E)  product offerings that are highly differentiated

Question 13

According to Porter,the corporation is most concerned with

Accepted Answer

A)  the intensity of competition within its industry. 
B)  the aggregate level of demand for a product line. 
C)  a market's position on its life cycle. 
D)  the amount of pressure from the societal environment. 
E)  the level of government action in an industry. 
A)  the intensity of competition within its industry. 
B)  the aggregate level of demand for a product line. 
C)  a market's position on its life cycle. 
D)  the amount of pressure from the societal environment. 
E)  the level of government action in an industry.

Question 14

The only factor used to determine whether an industry will be primarily multi-domestic or primarily global is the pressure for local responsiveness.

Accepted Answer

A) True 
 B)False

Question 15

To combat the increasing theft of company secrets,the U.S.government passed the Economic Espionage Act in 1996.

Accepted Answer

A) True 
 B)False

Question 16

The growing health consciousness is an example of a political-legal force.

Accepted Answer

A) True 
 B)False

Question 17

One of the possible barriers to entry is product differentiation.

Accepted Answer

A) True 
 B)False

Question 18

Over ________ of large companies use trend extrapolation for forecasting.

Accepted Answer

A)  20% 
B)  30% 
C)  40% 
D)  50% 
E)  70% 
A)  20% 
B)  30% 
C)  40% 
D)  50% 
E)  70%

Question 19

Which of the following is an example of an industry in which companies manufacture and sell the same products,with only minor adjustments made for individual countries around the world?

Accepted Answer

A)  retailing 
B)  banking 
C)  tires 
D)  insurance 
E)  health care 
A)  retailing 
B)  banking 
C)  tires 
D)  insurance 
E)  health care

Question 20

The origin of competitive advantage lies in the ability to identify and respond to environmental change well in advance of competition.

Accepted Answer

A) True 
 B)False

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

Extrapolation rests on the assumption that the world is relatively dynamic and changes quickly in the short run.

To succeed in a hypercompetitive industry,companies must be willing to

According to Porter's model,a strong or high force is likely to reduce profits and can be regarded as a(n)

Which of the following is not descriptive of the threat of substitute products or services?

Faulty underlying assumptions are the most frequent cause of forecasting errors.

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

Today's organizations must scan the natural environment for factors that might previously have been taken for granted.

A buyer may be powerful when changing suppliers costs a great deal.

Which of the following is not descriptive of a high level of bargaining powers of buyers?

A fragmented industry is dominated by a few large firms,each of which struggles to differentiate its products from the competition.

Which of the following is not descriptive of intense rivalry among firms?

According to Porter,the corporation is most concerned with

The only factor used to determine whether an industry will be primarily multi-domestic or primarily global is the pressure for local responsiveness.

To combat the increasing theft of company secrets,the U.S.government passed the Economic Espionage Act in 1996.

The growing health consciousness is an example of a political-legal force.

One of the possible barriers to entry is product differentiation.

Over ________ of large companies use trend extrapolation for forecasting.

Which of the following is an example of an industry in which companies manufacture and sell the same products,with only minor adjustments made for individual countries around the world?

The origin of competitive advantage lies in the ability to identify and respond to environmental change well in advance of competition.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 4: Environmental Scanning and Industry Analysis

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

Extrapolation rests on the assumption that the world is relatively dynamic and changes quickly in the short run.

To succeed in a hypercompetitive industry,companies must be willing to

According to Porter's model,a strong or high force is likely to reduce profits and can be regarded as a(n)

Which of the following is not descriptive of the threat of substitute products or services?

Faulty underlying assumptions are the most frequent cause of forecasting errors.

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

Today's organizations must scan the natural environment for factors that might previously have been taken for granted.

A buyer may be powerful when changing suppliers costs a great deal.

Which of the following is not descriptive of a high level of bargaining powers of buyers?

A fragmented industry is dominated by a few large firms,each of which struggles to differentiate its products from the competition.

Which of the following is not descriptive of intense rivalry among firms?

According to Porter,the corporation is most concerned with

The only factor used to determine whether an industry will be primarily multi-domestic or primarily global is the pressure for local responsiveness.

To combat the increasing theft of company secrets,the U.S.government passed the Economic Espionage Act in 1996.

The growing health consciousness is an example of a political-legal force.

One of the possible barriers to entry is product differentiation.

Over ________ of large companies use trend extrapolation for forecasting.

Which of the following is an example of an industry in which companies manufacture and sell the same products,with only minor adjustments made for individual countries around the world?

The origin of competitive advantage lies in the ability to identify and respond to environmental change well in advance of competition.

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters