Question 1

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Accepted Answer

A)  Ferrari,Lamborghini,Porsche
B)  Toyota,Ford,General Motors,Chrysler,Honda,Nissan
C)  Chery,Geely,Tata Motors
D)  Mercedes,BMW,AudiE) A) and B)
F) B) and D)

Question 2

Product differentiation by incumbents act as an entry barrier because

Accepted Answer

A)  new entrants cannot differentiate their products.
B)  incumbents will take legal action if new entrants do not differentiate their products.
C)  it helps a firm to derive greater economies of scale.
D)  new entrants will have to spend heavily to overcome existing customer loyalties.E) B) and C)
F) C) and D)

Question 3

Heightened concern with fitness might be a threat to some companies and an opportunity to others.In the SWOT framework,these are ________ environmental factors.

Accepted Answer

A)  internal
B)  external
C)  both internal and external
D)  not relevant externalE) A) and B)
F) None of the above

Question 4

The bargaining power of suppliers increases as

Accepted Answer

A)  threat of forward integration by suppliers increases.
B)  importance of buyers to supplier group increases.
C)  switching costs for buyers decrease.
D)  more suppliers enter the market.E) A) and B)
F) A) and C)

Question 5

In most industries,new entrants will not be a threat because the Internet lowers entry barriers.

Accepted Answer

A) True 
 B)False

Question 6

Even with all the advances in recent years,forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

Accepted Answer

A) True 
 B)False

Question 7

Because the Internet lowers barriers to entry in most industries,it

Accepted Answer

A)  decreases the threat of new entrants.
B)  increases supplier power.
C)  makes it easier to build customer loyalty.
D)  increases the threat of new entrants.E) None of the above
F) B) and C)

Question 8

Companies that are able to spot key trends in the environment know their business and most importantly know their

Accepted Answer

A)  suppliers.
B)  employees.
C)  customers.
D)  competitors.E) A) and B)
F) A) and C)

Question 9

________ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Accepted Answer

A)  Environmental scanning
B)  Environmental monitoring
C)  Environmental surveying
D)  Competitive intelligenceE) All of the above
F) B) and D)

Question 10

It is important to question the reliability of forecasts because

Accepted Answer

A)  if predictions are too low,a company like Motel 6 might build too many units and thus have a surplus of capacity.
B)  uncertainty is black and white,and therefore the gray areas are unimportant.
C)  underestimating uncertainty can lead to good competitive strategies.
D)  the growth new industries,such as that of telecommunications,cannot be predicted.E) None of the above
F) All of the above

Question 11

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Accepted Answer

A)  indicators of emerging trends.
B)  accidental changes in behavior.
C)  supplier preferences.
D)  company management trends.E) B) and C)
F) A) and B)

Question 12

The value net is a game-theoretic approach that

Accepted Answer

A)  extends the value chain analysis.
B)  uses network analysis to understand the relationships among different companies.
C)  helps us to understand the evolution of the five forces over time.
D)  is a way to analyze how the interactions of all the players in a game affect the firm.E) B) and D)
F) B) and C)

Question 13

Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms.These firms paid a royalty to Nintendo for each copy of the game sold.This is an example of Nintendo using ________ products.

Accepted Answer

A)  substitute
B)  complement
C)  unrelated
D)  differentiatedE) A) and C)
F) None of the above

Question 14

Supplier power has increased because of the Internet for all the following reasons except

Accepted Answer

A)  the growth of new web-based businesses has created more outlets for suppliers to sell to.
B)  software that links buyers to a supplier's website has created rapid,low-cost order capabilities.
C)  the process of disintermediation makes it possible for some suppliers to reach end users directly.
D)  some suppliers have created web-based purchasing systems that encourage switching.E) B) and C)
F) A) and D)

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Even with all the advances in recent years,forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

Correct Answer
verified

It is important to question the reliability of forecasts because

Correct Answer
verified

Heightened concern with fitness might be a threat to some companies and an opportunity to others.In the SWOT framework,these are ________ environmental factors.

Correct Answer
verified

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Correct Answer
verified

Because the Internet lowers barriers to entry in most industries,it

Correct Answer
verified

The value net is a game-theoretic approach that

Correct Answer
verified

Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms.These firms paid a royalty to Nintendo for each copy of the game sold.This is an example of Nintendo using ________ products.

Correct Answer
verified

________ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Correct Answer
verified

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Correct Answer
verified

In most industries,new entrants will not be a threat because the Internet lowers entry barriers.

Correct Answer
verified

Product differentiation by incumbents act as an entry barrier because

Correct Answer
verified

The bargaining power of suppliers increases as

Correct Answer
verified

Supplier power has increased because of the Internet for all the following reasons except

Correct Answer
verified

Companies that are able to spot key trends in the environment know their business and most importantly know their

Correct Answer
verified

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Even with all the advances in recent years,forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

Correct AnswerverifiedShow Answer

It is important to question the reliability of forecasts because

Correct AnswerverifiedShow Answer

Heightened concern with fitness might be a threat to some companies and an opportunity to others.In the SWOT framework,these are ________ environmental factors.

Correct AnswerverifiedShow Answer

When investors examine the performance of beauty products like Olay moisturizers and CoverGirl cosmetics,they are looking for

Correct AnswerverifiedShow Answer

Because the Internet lowers barriers to entry in most industries,it

Correct AnswerverifiedShow Answer

The value net is a game-theoretic approach that

Correct AnswerverifiedShow Answer

Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms.These firms paid a royalty to Nintendo for each copy of the game sold.This is an example of Nintendo using ________ products.

Correct AnswerverifiedShow Answer

________ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Correct AnswerverifiedShow Answer

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group consists of firms high in product pricing/quality and average in their product-line breadth?

Correct AnswerverifiedShow Answer

In most industries,new entrants will not be a threat because the Internet lowers entry barriers.

Correct AnswerverifiedShow Answer

Product differentiation by incumbents act as an entry barrier because

Correct AnswerverifiedShow Answer

The bargaining power of suppliers increases as

Correct AnswerverifiedShow Answer

Supplier power has increased because of the Internet for all the following reasons except

Correct AnswerverifiedShow Answer

Companies that are able to spot key trends in the environment know their business and most importantly know their

Correct AnswerverifiedShow Answer

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