Chp 3 questions
Your Answer
Which of the following components form part of a company's macro-
environment?
legal/regulatory conditions
ancillary communications
sociocultural forces
political factors
historical incentives
Correct Answer
legal/regulatory conditions
sociocultural forces
political factors
Your Answer
Which of the following concepts are analytic tools for assessing a company's
industry and competitive environment?
the value net
driving forces
strategic group mapping
share ratio transfer
Correct Answer
the value net
driving forces
strategic group mapping
Your Answer
Which of the following are outlined in the five forces model of competition?
government regulation
supplier bargaining power
competition from rival sellers
customer bargaining power
Correct Answer
supplier bargaining power
competition from rival sellers
customer bargaining power
Your Answer
Which conditions increase rivalry among competing sellers?
Reason:
This is not one of the forces in the five forces framework.
correct
correct
correct
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When buyer demand is growing slowly.
When buyer demand is growing rapidly.
When the cost of switching brands is low.
When buyer demand is growing slowly.
When the cost of switching brands is low.
Your Answer
Which of the following are types of marketing tactics?
sales promotions
rebates
tariffs
per capita offers
sales promotions
rebates
Your Answer
All companies operate in a broad
-environment that is made up of six
components, including political factors and technological factors.
micro
meso
para
macro
macro
Your Answer
The threat of
increases competitive pressure on incumbent firms.
new complementary products
a firm's departure from an industry
a new entrant in an industry
industry-wide regulation
a new entrant in an industry
Correct Answer
Correct Answer
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Reason:
Higher demand for products typically results in lower rivalry, as there is
enough new business for all industry members to grow without having to
draw customers away from rivals.
Reason:
When buyer demand is slow-growing or shrinking, companies can only
increase sales volumes at the expense of competitors.
correct
correct
correct
Your Answer
Which of the following are concepts or analytic tools for assessing a
company's industry and competitive environment?
multitiered analytics
competitor analysis
the five forces framework
local dynamics
Correct Answer
competitor analysis
the five forces framework
Your Answer
Examples of substitute products that lead to competitive pressure between
industries include
contact lenses and nonprescription sunglasses.
sugar and Sweet 'N Low.
Netflix movie services and Honda lawn mowers.
newspapers and cable news
Correct Answer
sugar and Sweet 'N Low.
newspapers and cable news
Your Answer
The most powerful tool for diagnosing the principal competitive pressure in a
market is known as the
KSF approach.
five forces model of competition.
diagnostic triangle.
seven-point competitive analysis.
Correct Answer
five forces model of competition.
Your Answer
The suppliers of any given industry must have sufficient
Blank 1
Blank 1
bargaining , Correct Unavailable power in order to influence the terms of
supply in their favor.
Correct Answer
Blank 1: bargaining
Your Answer
correct
correct
correct
correct
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Which of the following are factors that affect the intensity of rivalry among
competing sellers within an industry? (Check all that apply.)
Substitutes
Suppliers
Government regulation
New entrants
Correct Answer
Substitutes
Suppliers
New entrants
Your Answer
The ability of sellers to raise prices without losing sales is restricted by
buyer price sensitivity.
the advertising effect.
growing consumer demand.
customer promotions.
Correct Answer
buyer price sensitivity.
Your Answer
Which of the following are ways by which rival sellers try to differentiate their
products from those of competitors? (Check all that apply.)
Providing improved customer service
Reducing knowledge and skill framework levels
Building higher-performance products
Introducing new products less frequently
Correct Answer
Providing improved customer service
Building higher-performance products
Your Answer
When all five types of competitive forces are exerting strong pressure on an
industry, the industry is said to be
over-regulated.
competitively unattractive.
insufficiently fluid.
Reason:
When the five types of competitive forces are strong, the industry
profitability is low, making it unattractive.
Reason:
In many cases, growing consumer demand would allow sellers to raise prices
without losing revenue.
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financially over-determined.
Correct Answer
competitively unattractive.
Your Answer
What factors determine how serious the threat of entry is for a particular
market?
the value-price-cost framework
the PESTEL factor
the effect of barriers to entry
the likelihood that existing firms will retaliate against new entrants
Correct Answer
the effect of barriers to entry
the likelihood that existing firms will retaliate against new entrants
Your Answer
To develop a sound business strategy to combat competitive conditions,
companies must
identify competitive pressures.
circumvent or violate legal barriers.
prioritize the eight substrategies.
gauge the strength of the five competitive forces.
Correct Answer
identify competitive pressures.
gauge the strength of the five competitive forces.
Your Answer
When two industries are closely related to one another, companies can be
threatened by the competitive pressure produced by
products.
complementary
substitute
regulated
differential
Correct Answer
substitute
Your Answer
The
Blank 1
Blank 1 value , Correct Unavailable
Blank 2
Blank 2 net , Correct
Unavailable framework includes cooperative interactions among industry
participants and introduces the category of "complementors." (Enter one
word in each blank.)
correct
correct
correct
correct
Blank 1: value or value net
Blank 2: net
Your Answer
Powerful
can end up eroding industry profitability by
higher
prices.
new entrants; introducing
buyers; paying
suppliers; charging
government agencies; negotiating
suppliers; charging
Your Answer
The change agents with the biggest influences in reshaping an industry
landscape are known as
Blank 1
Blank 1 driving , Correct Unavailableforces.
(Enter one word in the blank.)
Blank 1: driving
Your Answer
Buyers with strong bargaining power can exert strong
pressures and
reduce industry profitability by demanding price concessions and additional
features.
legal
competitive
regulatory
macro
competitive
Your Answer
What forces drive change within an industry?
Market stability
Product innovation
Shifts in who buys products
Technological advancement
Product innovation
Shifts in who buys products
Correct Answer
Correct Answer
Correct Answer
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correct
correct
correct
correct
Technological advancement
Your Answer
Intense competitive pressure from
of the five competitive forces is
sufficient to destroy the conditions for good profitability.
at least two
just one
at least three
all five
just one
Your Answer
True or false: In a given industry, all the driving forces push change in the
same direction but by different amounts.
True
False
Correct Answer
False
Your Answer
To match a business strategy to prevailing competitive conditions, companies
must initiate actions that alter the underlying factors driving the
five competitive forces.
six market segments.
four "golden" principles.
SEPTEL.
Correct Answer
five competitive forces.
Your Answer
When undertaking the third step in a strategic analysis of industry dynamics,
managers must decide what strategy adjustments are needed to deal with
the effects of
suppliers.
driving forces.
new entrants.
Reason:
Recall that different driving forces may work against each other.
Correct Answer
Reason:
It is easier to destroy the conditions for good profitability; all five competitive
forces are far more than sufficient in destroying these conditions.
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the macro-environment.
Correct Answer
driving forces.
Your Answer
Companies that make products that enhance the value of a focal firm's
products when those products are used together are called
competitors.
KSFs.
complementors.
suppliers.
Correct Answer
complementors.
Your Answer
When evaluating strategy options, companies must determine whether a
competitive
exists where competitors are able to create and capture
new demand.
"headwind"
"blue ocean"
"product vacuum"
"white space"
Correct Answer
"white space"
Your Answer
List the three steps of driving-forces analysis in order, from the first step to
the last.
Position 1 of 3 Identify what the driving forces are. correct toggle button
unavailable
Identify what the driving forces are.
Position 2 of 3 Assess whether the driving forces are acting to make an
industry more or less attractive. correct toggle button unavailable
Assess whether the driving forces are acting to make an industry more or
less attractive.
Position 3 of 3 Determine what strategy changes are needed to prepare for
the effects of the driving forces. correct toggle button unavailable
Determine what strategy changes are needed to prepare for the effects of
the driving forces.
Correct Answer
1.
Identify what the driving forces are.
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2.
Assess whether the driving forces are acting to make an industry more
or less attractive.
3.
Determine what strategy changes are needed to prepare for the effects
of the driving forces.
Your Answer
On a map of strategic groups, why are some groups more favorably
positioned than others?
The position of some strategic groups leaves them facing stronger
competitive forces.
Industry driving forces favor some strategic groups and hurt others.
The position of some strategic groups protects them from the macro
environment.
The position of some strategic groups requires that they apply for
government subsidies.
Industry driving forces favor some strategic groups and hurt others.
Your Answer
How do product innovations affect the pattern of competition within an
industry?
Products from various companies tend to become more alike.
The industry tends to grow less rapidly.
More first-time buyers become interested in the products.
Companies are forced to revise their vision statements.
Correct Answer
More first-time buyers become interested in the products.
Your Answer
Which indicators of a rival's potential strategic moves are found in the SOAR
Framework for Competitor Analysis?
resources and capabilities
driving forces
current profit
Reason:
Driving forces is not one of the four indicators of a rival's potential strategic
moves in the framework.
Correct Answer
Reason:
The need for government subsidies is not a reason for some strategic groups
to be more favorably positioned.
Reason:
The purpose of the strategic group mapping is to identify industry rivals.
correct
correct
correct
substitute products
resources and capabilities
Your Answer
Understanding the
of driving forces requires looking at the effects of
each factor separately.
collective impact
ATF
minor determinants
changing uncertainty
collective impact
Your Answer
The competitive factors that most affect industry members' ability to prosper
in the marketplace are known as
factors.
priority
key success
competitive-value
profit-margin
key success
Your Answer
When analyzing industry dynamics, before taking action to prepare for
industry and competitive changes, companies must first diagnose
stock-market volatility.
R&D possibilities.
the forces driving industry change.
short-term profit opportunities.
the forces driving industry change.
Correct Answer
Correct Answer
Reason:
Although these factors indicate the effects of competition, "competitive-
value" is not the correct term.
Correct Answer
Reason:
It is understood that the effect and strength of driving forces may change,
but changing uncertainty is not what one must understand.
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Reason:
Current strategy is found in the Framework for Competitor Analysis.
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Your Answer
What are some of the most important factors for determining a company's
prospects for competitive success and attractive profits?
whether the PESTEL ratio is high enough to outstrip competition
if there are multiple macro-environments into which a company can expand
how well the company's strategy delivers on the industry key success factors
whether troublesome complementors can be halted from increasing
competitive pressure
whether the company occupies a stronger market position than rivals
how well the company's strategy delivers on the industry key success factors
whether the company occupies a stronger market position than rivals
Your Answer
Industry members with similar competitive approaches and positions in the
market are known as a(n)
Blank 1
Blank 1 strategic , Correct Unavailable group.
Blank 1: strategic or strategic group
Your Answer
In the retail industry, competition between
is more intense than the
rivalry among
.
Gucci and Walmart; suppliers
Walmart and Target; high-end fashion retailers
Versace and Prada; large retailers
Walmart and Target; high-end fashion retailers
Your Answer
The SOAR Framework for Competitor Analysis was developed by
.
Samuel Walton
Friedrich Hayek
Michael Porter
Edoardo Fendi
Michael Porter
Your Answer
True or false: Key success factors are so important that all firms in a given
industry must pay attention to them or else jeopardize their competitive
success.
Correct Answer
Correct Answer
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correct
correct
correct
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True
False
True
Your Answer
The final step in evaluating an industry and competitive environment is to
combine the results of each analytic framework to determine its prospects.
apply the PESTEL approach to determine the driving forces.
make certain that the strategy group does not negate the competitor
analysis.
use the macro-environment to analyze the micro-environment.
Correct Answer
combine the results of each analytic framework to determine its prospects.
Reason:
Using the PESTEL approach to determine driving forces is an earlier step in
evaluating an industry and competitive environment.
Correct Answer
Reason:
Recall that key success factors are so important to competitive success that
all firms in an industry must pay close attention to them or risk becoming an
industry laggard or failure.
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