Question 1

Strategic groups consist of firms that are more _____ to each other than firms that are not.

Accepted Answer

A)   familiar
B)   similar
C)   friendly
D)   usefulE) A) and B)
F) A) and C)

Question 2

Perceptual acuity can be improved by sitting alone and not consulting others.

Accepted Answer

A) True 
 B)False

Question 3

Environmental forecasting does not involve plausible projections about the ________ of environmental change.

Accepted Answer

A)   direction
B)   scope
C)   speed
D)   lack of intensityE) A) and B)
F) B) and D)

Question 4

Even with all of 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 5

Banks and airlines are examples of two industries that track competitor offers continually.This is called the process of gathering

Accepted Answer

A)   consumer responses.
B)   competitive intelligence.
C)   past decisions.
D)   mainline information.E) A) and C)
F) C) and D)

Question 6

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) A) and C)
F) B) and C)

Question 7

Corporate retreats do not

Accepted Answer

A)   permit companies to discuss larger marketplace trends.
B)   guarantee positive consumer response to new products.
C)   give companies an opportunity to look beyond their own industries.
D)   oblige management to automatically change strategy.E) C) and D)
F) B) and C)

Question 8

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, BMWE) A) and D)
F) A) and B)

Question 9

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 10

Scanning the general environment would identify information on

Accepted Answer

A)   substitute goods.
B)   the aging population and ethnic shifts.
C)   customer and firm bargaining power.
D)   competitive rivalry.E) None of the above
F) B) and C)

Question 11

Strategic groupings help a firm identify barriers to mobility that protect a group from attacks by other groups.

Accepted Answer

A) True 
 B)False

Question 12

An industry is composed of a set of firms that produce similar products or services,sell to similar customers,and use similar methods of production.

Accepted Answer

A) True 
 B)False

Question 13

Scenario planning is usually concerned with short-term forecasts.

Accepted Answer

A) True 
 B)False

Question 14

Five-forces analysis implicitly assumes a zero-sum game,a perspective that can be short-sighted.

Accepted Answer

A) True 
 B)False

Question 15

Gathering competitive intelligence

Accepted Answer

A)   is good business practice.
B)   is illegal.
C)   is considered unethical.
D)   minimizes the need to obtain information in the public domain.E) None of the above
F) A) and D)

Question 16

Rivalry is not always cutthroat; sometimes,it can be gentlemanly.

Accepted Answer

A) True 
 B)False

Question 17

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Accepted Answer

A)   by shifting customers away from issues of price
B)   by consolidating the marketing message that consumers use to make a purchase decision
C)   by making competitors in cyberspace seem less equally balanced
D)   by highlighting unique selling advantages of a firmE) B) and C)
F) A) and D)

Question 18

There is generally a weak relationship between equity markets (e.g.,New York Stock Exchange)and economic indicators.

Accepted Answer

A) True 
 B)False

Question 19

Crowdsourcing is used by companies to develop products.

Accepted Answer

A) True 
 B)False

Question 20

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the largest in terms of breadth of product line?

Accepted Answer

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

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

Crowdsourcing is used by companies to develop products.

Correct AnswerverifiedShow Answer

Even with all of 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

An industry is composed of a set of firms that produce similar products or services,sell to similar customers,and use similar methods of production.

Correct AnswerverifiedShow Answer

Five-forces analysis implicitly assumes a zero-sum game,a perspective that can be short-sighted.

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

Strategic groups consist of firms that are more _____ to each other than firms that are not.

Correct AnswerverifiedShow Answer

There is generally a weak relationship between equity markets (e.g.,New York Stock Exchange)and economic indicators.

Correct AnswerverifiedShow Answer

How do infomediaries and consumer information websites increase the intensity of competitive rivalry?

Correct AnswerverifiedShow Answer

Strategic groupings help a firm identify barriers to mobility that protect a group from attacks by other groups.

Correct AnswerverifiedShow Answer

Banks and airlines are examples of two industries that track competitor offers continually.This is called the process of gathering

Correct AnswerverifiedShow Answer

Perceptual acuity can be improved by sitting alone and not consulting others.

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

Rivalry is not always cutthroat; sometimes,it can be gentlemanly.

Correct AnswerverifiedShow Answer

Scenario planning is usually concerned with short-term forecasts.

Correct AnswerverifiedShow Answer

Environmental forecasting does not involve plausible projections about the ________ of environmental change.

Correct AnswerverifiedShow Answer

Gathering competitive intelligence

Correct AnswerverifiedShow Answer

Scanning the general environment would identify information on

Correct AnswerverifiedShow Answer

Referring to the textbook Exhibit 2.7 The World Automobile Industry: Strategic Groups,which strategic group is the largest in terms of breadth of product line?

Correct AnswerverifiedShow Answer

Product differentiation by incumbents act as an entry barrier because

Correct AnswerverifiedShow Answer

Corporate retreats do not

Correct AnswerverifiedShow Answer

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