Question 1

The threat of new entrants is high when there are

Accepted Answer

A)   high capital requirements.
B)   low economies of scale.
C)   high switching costs.
D)   high differentiation among competitor products and services.E) A) and C)
F) A) and D)

Question 2

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

Question 3

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends.This is an example of how to improve

Accepted Answer

A)   stakeholder management.
B)   perceptual acuity.
C)   internal scanning.
D)   financial returns.E) A) and C)
F) A) and B)

Question 4

Elements of the five forces can be quantified.This is important for analyzing industry structure.Which of the following is not an example of an element that can be quantified?

Accepted Answer

A)   the percentage of the buyer total cost accounted for by the industry product
B)   the percentage of industry sales required to fill a plant or operate a logistical network to efficient scale
C)   the buyer switching cost
D)   the governmental regulatory policyE) A) and B)
F) B) and C)

Question 5

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, BMW, AudiE) C) and D)
F) A) and B)

Question 6

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

Accepted Answer

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

Question 7

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Accepted Answer

A) True 
 B)False

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) All of the above
F) A) and B)

Question 9

The bargaining power of the buyer is greater than that of the supplier when

Accepted Answer

A)   volume of purchase is low.
B)   the buyer profit margin is low.
C)   cost savings from the supplier's product are minimal.
D)   threat of backward integration by buyers is low.E) A) and B)
F) A) and C)

Question 10

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

Question 11

Which of the following is not an input process to develop forecasts?

Accepted Answer

A)   environmental scanning
B)   competitor intelligence
C)   stakeholder management
D)   environmental monitoringE) B) and D)
F) C) and D)

Question 12

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

Question 13

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) C) and D)
F) None of the above

Question 14

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Accepted Answer

A) True 
 B)False

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

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Correct Answer
verified

Which of the following is not an input process to develop forecasts?

Correct Answer
verified

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends.This is an example of how to improve

Correct Answer
verified

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 Answer
verified

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

Correct Answer
verified

It is important to question the reliability of forecasts because

Correct Answer
verified

Corporate retreats do not

Correct Answer
verified

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

Correct Answer
verified

The bargaining power of the buyer is greater than that of the supplier when

Correct Answer
verified

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Correct Answer
verified

Elements of the five forces can be quantified.This is important for analyzing industry structure.Which of the following is not an example of an element that can be quantified?

Correct Answer
verified

The threat of new entrants is high when there are

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Environmental scanning and competitor intelligence provide important inputs for forecasting activities.

Correct AnswerverifiedShow Answer

Which of the following is not an input process to develop forecasts?

Correct AnswerverifiedShow Answer

Two non-competing global firms meet quarterly to discuss multiple perspectives on world trends.This is an example of how to improve

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

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

Correct AnswerverifiedShow Answer

It is important to question the reliability of forecasts because

Correct AnswerverifiedShow Answer

Corporate retreats do not

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The bargaining power of the buyer is greater than that of the supplier when

Correct AnswerverifiedShow Answer

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S.businesses.

Correct AnswerverifiedShow Answer

Elements of the five forces can be quantified.This is important for analyzing industry structure.Which of the following is not an example of an element that can be quantified?

Correct AnswerverifiedShow Answer

The threat of new entrants is high when there are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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