Question 1

A fragmented industry is one that is characterized by a small number of firms or approximately equal size.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Which of the following is not one of the major sources of barriers to entry?

Accepted Answer

A)  economies of scale 
B)  cost advantages independent of size 
C)  buyer group concentration 
D)  access to distribution channels 
E)  government and legal barriers 
A)  economies of scale 
B)  cost advantages independent of size 
C)  buyer group concentration 
D)  access to distribution channels 
E)  government and legal barriers

Question 4

Henry Jones recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Henry thinks he has accomplished is producing products that have universal appeal, so he will not vary his approach from country to country. Henry 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 5

Which of the 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 6

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 7

Each quarter, Tammy Anderson, who owns a chain of floral shops, does a detailed analysis of her firm's competitors. This analysis is called:

Accepted Answer

A)  competitor analysis 
B)  challenger analysis 
C)  strategic analysis 
D)  participant analysis 
E)  industry analysis 
A)  competitor analysis 
B)  challenger analysis 
C)  strategic analysis 
D)  participant analysis 
E)  industry analysis

Question 8

In the context of competitor analysis, businesses that offer identical or similar products are referred to as:

Accepted Answer

A)  immediate competitors 
B)  direct competitors 
C)  indirect competitors 
D)  straight competitors 
E)  urgent competitors 
A)  immediate competitors 
B)  direct competitors 
C)  indirect competitors 
D)  straight competitors 
E)  urgent competitors

Question 9

According to the textbook, Sprig Toys in toys, Tesla Motors in automobiles, 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 
E)  emerging 
A)  emerging. 
B)  fragmented 
C)  declining 
D)  mature 
E)  emerging

Question 10

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

Accepted Answer

The information that is gathered by a fi

Question 11

The primary opportunity existing for startups in emerging industries is to:

Accepted Answer

A)  consolidate the industry and establish industry leadership as a result of doing do 
B)  win customers by placing an emphasis on service and process innovation 
C)  pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation 
D)  capture a first-mover advantage 
E)  pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation 
A)  consolidate the industry and establish industry leadership as a result of doing do 
B)  win customers by placing an emphasis on service and process innovation 
C)  pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation 
D)  capture a first-mover advantage 
E)  pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation

Question 12

The three different types of competitors a business will face are direct competitors, indirect competitors, and:

Accepted Answer

A)  future competitors 
B)  nonstop competitors 
C)  occasional competitors 
D)  fragmented competitors 
E)  irregular competitors 
A)  future competitors 
B)  nonstop competitors 
C)  occasional competitors 
D)  fragmented competitors 
E)  irregular competitors

Question 13

The primary opportunity available to firms in fragmented industries is consolidation.

Accepted Answer

A) True 
 B)False

Question 14

According to the textbook, the first step in a competitor analysis is to:

Accepted Answer

A)  develop a marketing plan 
B)  develop the strategic plan 
C)  study the strength of the industry 
D)  study the external environment 
E)  determine who the competition is 
A)  develop a marketing plan 
B)  develop the strategic plan 
C)  study the strength of the industry 
D)  study the external environment 
E)  determine who the competition is

Question 15

Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm, he spent considerable time doing research on the potential of the snack food industry. The research that Andrew was doing is called:

Accepted Answer

A)  industry analysis 
B)  sector analysis 
C)  network analysis 
D)  business analysis 
E)  division analysis 
A)  industry analysis 
B)  sector analysis 
C)  network analysis 
D)  business analysis 
E)  division analysis

Question 16

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?

Accepted Answer

A)  They switch industries if the forces are too compelling. 
B)  They focus on one force intently and excel by overcoming that force. 
C)  They overcome each of the forces. 
D)  They ignore the forces. 
E)  They try to position their firms in a way that avoids or diminishes the forces. 
A)  They switch industries if the forces are too compelling. 
B)  They focus on one force intently and excel by overcoming that force. 
C)  They overcome each of the forces. 
D)  They ignore the forces. 
E)  They try to position their firms in a way that avoids or diminishes the forces.

Question 19

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

Accepted Answer

A)  stable competitors 
B)  roundabout competitors 
C)  impending competitors 
D)  approximate competitors 
E)  future competitors 
A)  stable competitors 
B)  roundabout competitors 
C)  impending competitors 
D)  approximate competitors 
E)  future competitors

Question 20

In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.

Accepted Answer

A)  4 to 12 percent 
B)  8 to 30 percent 
C)  18 to 42 percent 
D)  22 to 56 percent 
E)  34 to 70 percent 
A)  4 to 12 percent 
B)  8 to 30 percent 
C)  18 to 42 percent 
D)  22 to 56 percent 
E)  34 to 70 percent

A fragmented industry is one that is characterized by a small number of firms or approximately equal size.

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 not one of the major sources of barriers to entry?

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

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

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Each quarter, Tammy Anderson, who owns a chain of floral shops, does a detailed analysis of her firm's competitors. This analysis is called:

In the context of competitor analysis, businesses that offer identical or similar products are referred to as:

According to the textbook, Sprig Toys in toys, Tesla Motors in automobiles, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

The primary opportunity existing for startups in emerging industries is to:

The three different types of competitors a business will face are direct competitors, indirect competitors, and:

The primary opportunity available to firms in fragmented industries is consolidation.

According to the textbook, the first step in a competitor analysis is to:

Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm, he spent considerable time doing research on the potential of the snack food industry. The research that Andrew was doing is called:

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

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

According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.

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 Venture's 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

A fragmented industry is one that is characterized by a small number of firms or approximately equal size.

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 not one of the major sources of barriers to entry?

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

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

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Each quarter, Tammy Anderson, who owns a chain of floral shops, does a detailed analysis of her firm's competitors. This analysis is called:

In the context of competitor analysis, businesses that offer identical or similar products are referred to as:

According to the textbook, Sprig Toys in toys, Tesla Motors in automobiles, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

What is competitive intelligence? What are some of the ways that a firm can ethically obtain information about its competitors?

The primary opportunity existing for startups in emerging industries is to:

The three different types of competitors a business will face are direct competitors, indirect competitors, and:

The primary opportunity available to firms in fragmented industries is consolidation.

According to the textbook, the first step in a competitor analysis is to:

Andrew Banks recently started a new firm in the snack food industry. Prior to starting his firm, he spent considerable time doing research on the potential of the snack food industry. The research that Andrew was doing is called:

Business trends include economic trends, social trends, technological advances, and political and regulatory changes.

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

According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?

In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.

In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.

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 Venture's 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