Question 1

A danger of forecasting discussed in the text is that _____________.

Accepted Answer

A)   in most cases, the expense of collecting the necessary data exceeds the benefit
B)   the retrospective nature of forecasting provides little information about the future
C)   managers may view uncertainty as black and white while ignoring important gray areas
D)   it can create legal problems for the firm if regulators discover the company is making forecastsE) B) and C)
F) B) and D)

Question 2

Michael Porter's Five-Forces Analysis is a dynamic tool for analyzing industry attractiveness.

Accepted Answer

A) True 
 B)False

Question 3

The aging of the population is a hard trend.

Accepted Answer

A) True 
 B)False

Question 4

The more attractive the price/performance ratio of substitute products,the tighter it constrains the ability of an industry to charge high prices.

Accepted Answer

A) True 
 B)False

Question 5

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry.
E. Porter describes the competitive environment in terms of five basic competitive forces that affect the ability of a firm to compete in a given market. Together, they determine the profit potential for a particular industry.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the six segments of the general environment.Provide examples of how they might be related.

Accepted Answer

The six segments of the general environm...

Question 7

In general,the threat of substitutes is heightened because the Internet ____________.

Accepted Answer

A)   introduces new ways to accomplish the same task
B)   lowers switching costs
C)   lowers barriers to entry
D)   increases output per unit of costE) A) and B)
F) None of the above

Question 8

The use of the strategic group concept is generally not helpful in charting the future directions of the strategies of a firm.

Accepted Answer

A) True 
 B)False

Question 9

Exit barriers do not arise from ________.

Accepted Answer

A)   specialized assets with no alternative use
B)   governmental and social pressures
C)   strategic interrelationships with other business units within the same company
D)   flexible costs of exitE) B) and C)
F) A) and B)

Question 10

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

Accepted Answer

There are several factors that can cause...

Question 11

SWOT analysis is a framework for analyzing the internal and external environment of a company.It consists of strengths,weaknesses,opportunities,and threats.According to a SWOT analysis,which of the following is not an aspect that the strategy of the firm must follow?

Accepted Answer

A)   build on its weaknesses
B)   remedy the weaknesses or work around them
C)   take advantage of the opportunities presented by the environment
D)   protect the firm from the threatsE) A) and B)
F) A) and C)

Question 12

Incumbent firms may enjoy increased bargaining power because the Internet ___________.

Accepted Answer

A)   focuses marketing efforts on end users
B)   diminishes the power of many distribution channel intermediaries
C)   increases channel conflict
D)   has reduced the number of wholesalers and distributorsE) B) and D)
F) B) and C)

Question 13

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a ______________.

Accepted Answer

A)   threat of entry
B)   backward integration
C)   forward integration
D)   threat of substitute productsE) All of the above
F) A) and D)

Question 14

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Question 15

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Accepted Answer

A) True 
 B)False

Question 16

The threat of new entrants is high when there are _______.

Accepted Answer

A)   low economies of scale
B)   high capital requirements
C)   high switching costs
D)   high differentiation among competitors products and servicesE) B) and C)
F) A) and B)

Question 17

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

Accepted Answer

A)   decreases the threat of new entrants
B)   increases the threat of new entrants
C)   makes it easier to build customer loyalty
D)   increases supplier powerE) B) and C)
F) A) and B)

Question 18

Which of the following firms would likely pose the least competitive threat?

Accepted Answer

A)   a firm in the same industry and in the same strategic group
B)   a firm that produces substitute goods to your product line
C)   a competitor to your product where a high switching cost exists
D)   a firm in the same industry and in the nearest strategic group looking to join your groupE) B) and D)
F) B) and C)

Question 19

Explain how the value net analysis adds to the five-forces analysis.Be sure to include examples from at least two industries.

Accepted Answer

The value net analysis adds to the five-...

Question 20

PPG Industries,the Pittsburgh-based manufacturer of paints,coatings,optical products,specialty materials,chemicals,glass,and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers.It used a technique to help it identify possible future strategies.What was it?

Accepted Answer

A)   crowdsourcing
B)   scenario analysis
C)   competitive intelligence
D)   monitoringE) All of the above
F) None of the above

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

Michael Porter's Five-Forces Analysis is a dynamic tool for analyzing industry attractiveness.

Correct Answer
verified

Correct Answer
verified

SWOT analysis is a framework for analyzing the internal and external environment of a company.It consists of strengths,weaknesses,opportunities,and threats.According to a SWOT analysis,which of the following is not an aspect that the strategy of the firm must follow?

Correct Answer
verified

Correct Answer
verified

Explain how the value net analysis adds to the five-forces analysis.Be sure to include examples from at least two industries.

Correct Answer
Answered by ExamLex AI
The value net analysis adds to the five-...
View Answer

A danger of forecasting discussed in the text is that _____________.

Correct Answer
verified

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct Answer
verified

Exit barriers do not arise from ________.

Correct Answer
verified

The use of the strategic group concept is generally not helpful in charting the future directions of the strategies of a firm.

Correct Answer
verified

Incumbent firms may enjoy increased bargaining power because the Internet ___________.

Correct Answer
verified

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

Correct Answer
verified

Which of the following firms would likely pose the least competitive threat?

Correct Answer
verified

The aging of the population is a hard trend.

Correct Answer
verified

The threat of new entrants is high when there are _______.

Correct Answer
verified

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Correct Answer
verified

The more attractive the price/performance ratio of substitute products,the tighter it constrains the ability of an industry to charge high prices.

Correct Answer
verified

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a ______________.

Correct Answer
verified

In general,the threat of substitutes is heightened because the Internet ____________.

Correct Answer
verified

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

Correct Answer
Answered by ExamLex AI
There are several factors that can cause...
View Answer

Discuss the six segments of the general environment.Provide examples of how they might be related.

Correct Answer
Answered by ExamLex AI
The six segments of the general environm...
View Answer

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

Michael Porter's Five-Forces Analysis is a dynamic tool for analyzing industry attractiveness.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

SWOT analysis is a framework for analyzing the internal and external environment of a company.It consists of strengths,weaknesses,opportunities,and threats.According to a SWOT analysis,which of the following is not an aspect that the strategy of the firm must follow?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Explain how the value net analysis adds to the five-forces analysis.Be sure to include examples from at least two industries.

Correct AnswerAnswered by ExamLex AIThe value net analysis adds to the five-...View AnswerShow Answer

A danger of forecasting discussed in the text is that _____________.

Correct AnswerverifiedShow Answer

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct AnswerverifiedShow Answer

Exit barriers do not arise from ________.

Correct AnswerverifiedShow Answer

The use of the strategic group concept is generally not helpful in charting the future directions of the strategies of a firm.

Correct AnswerverifiedShow Answer

Incumbent firms may enjoy increased bargaining power because the Internet ___________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following firms would likely pose the least competitive threat?

Correct AnswerverifiedShow Answer

The aging of the population is a hard trend.

Correct AnswerverifiedShow Answer

The threat of new entrants is high when there are _______.

Correct AnswerverifiedShow Answer

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Correct AnswerverifiedShow Answer

The more attractive the price/performance ratio of substitute products,the tighter it constrains the ability of an industry to charge high prices.

Correct AnswerverifiedShow Answer

New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a ______________.

Correct AnswerverifiedShow Answer

In general,the threat of substitutes is heightened because the Internet ____________.

Correct AnswerverifiedShow Answer

What are some of the factors that would cause a supplier group to become powerful? Illustrate.

Correct AnswerAnswered by ExamLex AIThere are several factors that can cause...View AnswerShow Answer

Discuss the six segments of the general environment.Provide examples of how they might be related.

Correct AnswerAnswered by ExamLex AIThe six segments of the general environm...View AnswerShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The value net analysis adds to the five-...
View Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
There are several factors that can cause...
View Answer

Correct Answer
Answered by ExamLex AI
The six segments of the general environm...
View Answer