Question 1

The best industry to enter is an industry where the threat of each of Porter's five forces is high.

Accepted Answer

A) True 
 B)False

Question 2

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

Question 3

In the context of competitor analysis, ________ competitors 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 
B)  roundabout 
C)  impending 
D)  approximate 
E)  future 
A)  stable 
B)  roundabout 
C)  impending 
D)  approximate 
E)  future

Question 4

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

Accepted Answer

A)  Product differentiation 
B)  Capital requirements 
C)  Buyer group concentration 
D)  Access to distribution channels 
E)  Government and legal barriers 
A)  Product differentiation 
B)  Capital requirements 
C)  Buyer group concentration 
D)  Access to distribution channels 
E)  Government and legal barriers

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 so 
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 so 
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 7

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

Accepted Answer

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 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

In general, industries are more attractive when the ________.

Accepted Answer

A)  majority of the threats are high 
B)  majority of the threats are low 
C)  threat of each of the forces is neutral-neither low nor high 
D)  threat of each of the five forces is high 
E)  threat of each of the five forces is low 
A)  majority of the threats are high 
B)  majority of the threats are low 
C)  threat of each of the forces is neutral-neither low nor high 
D)  threat of each of the five forces is high 
E)  threat of each of the five forces is low

Question 12

Which of the following was not identified in the textbook as a nontraditional barrier to entry?

Accepted Answer

A)  Strength of management team 
B)  First-mover advantage 
C)  Unique business model 
D)  Product differentiation 
E)  Internet domain name 
A)  Strength of management team 
B)  First-mover advantage 
C)  Unique business model 
D)  Product differentiation 
E)  Internet domain name

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

Accepted Answer

An emerging industry is a new industry i

Question 15

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

Accepted Answer

A) True 
 B)False

Question 16

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

Accepted Answer

A)  Threat of new entrants 
B)  Rivalry among existing firms 
C)  Threat of substitutes 
D)  Bargaining power of buyers 
E)  Bargaining power of suppliers 
A)  Threat of new entrants 
B)  Rivalry among existing firms 
C)  Threat of substitutes 
D)  Bargaining power of buyers 
E)  Bargaining power of suppliers

Question 17

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

Accepted Answer

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

Question 18

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________.

Accepted Answer

A)  unique business model 
B)  strength of management team 
C)  access to distribution channels 
D)  Internet domain name 
E)  first-mover advantage 
A)  unique business model 
B)  strength of management team 
C)  access to distribution channels 
D)  Internet domain name 
E)  first-mover advantage

Question 19

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

Accepted Answer

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

Question 20

According to the textbook, Justin's in peanut butter, Pure Fix Cycles in bicycles, and Flings Bins in trash bags are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

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

The best industry to enter is an industry where the threat of each of Porter's five forces is high.

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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

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

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

The primary opportunity existing for startups in emerging industries is to ________.

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

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

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

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

In general, industries are more attractive when the ________.

Which of the following was not identified in the textbook as a nontraditional barrier to entry?

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

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

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

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________.

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

According to the textbook, Justin's in peanut butter, Pure Fix Cycles in bicycles, and Flings Bins in trash bags are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Writing a Business Plan

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

The best industry to enter is an industry where the threat of each of Porter's five forces is high.

According to the textbook, Chipotle Mexican Grill in fast-casual restaurants and 1-800-GOT_JUNK? in junk removal are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

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

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

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

The primary opportunity existing for startups in emerging industries is to ________.

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

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

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

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

In general, industries are more attractive when the ________.

Which of the following was not identified in the textbook as a nontraditional barrier to entry?

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

What is an emerging industry? What is the primary opportunity available to entrepreneurial firms in emerging industries? Name three examples of firms in emerging industries.

In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.

Which of Porter's five forces is most directly influenced by the number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?

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

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as ________.

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

According to the textbook, Justin's in peanut butter, Pure Fix Cycles in bicycles, and Flings Bins in trash bags are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Writing a Business Plan

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