Question 1

Which of the following would be considered part of a firm's general environment?

Accepted Answer

A)   Decreased entry barriers
B)   Increased trade deficit
C)   Increased bargaining power of the firm's suppliers
D)   Increased competitive intensityE) A) and B)
F) C) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Accepted Answer

A) True 
 B)False

Question 4

Threat of substitute products comes from

Accepted Answer

A)   other companies in the same industry.
B)   foreign companies which can use cheap labour in their countries.
C)   firms in other industries that produce products or services that satisfy the same customer need.
D)   partners and affiliates.E) A) and D)
F) None of the above

Question 5

An independent group of suppliers,such as farmers,gather to form a cooperative to sell their products to buyers directly,replacing their former distributor.This is an example of

Accepted Answer

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

Question 6

Competitor Intelligence (CI)is a tool that can provide management with "early warnings" about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 7

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)   forecasting's retrospective nature provides little information about the future
C)   managers may view uncertainty as "black and white" while ignoring important "grey areas"
D)   it can create legal problems for the firm if regulators discover the company is making forecastE) All of the above
F) A) and B)

Question 8

A SWOT analysis includes listing

Accepted Answer

A)   strategies, opportunities, and tactics
B)   strategies, opportunities, and threats
C)   strengths, opportunities, and tactics
D)   strengths, opportunities, and threatsE) A) and C)
F) A) and B)

Question 9

The use of the strategic groups concept is generally not helpful in charting the future directions of firms' strategies.

Accepted Answer

A) True 
 B)False

Question 10

Many indicators of the macroeconomic environment such as GNP,interest rates,savings rates,trade and budget deficits/surplus,and so forth,are interrelated.Explain.

Accepted Answer

Due to globalization...

Question 11

The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years.

Accepted Answer

A) True 
 B)False

Question 12

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Increasingly larger numbers of women entering the work force since the early 1970s is an example of

Accepted Answer

A)   demographic changes.
B)   political and legal environmental changes.
C)   sociocultural changes.
D)   technological developments.E) A) and B)
F) A) and C)

Question 15

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

Accepted Answer

Suppliers may become powerful when the s...

Question 16

The bargaining power of suppliers increases as

Accepted Answer

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

Question 17

Discuss and provide examples of factors that would lead to greater buyer power.

Accepted Answer

Buyer power is high when,the buyer is th...

Question 18

Rival airlines,Air Canada and West Jet are battling over allegations of corporate espionage.

Accepted Answer

A) True 
 B)False

Question 19

In Porter's Five Forces model,conditions under which a supplier group can be powerful include all the following except

Accepted Answer

A)   lack of importance of the buyer to the supplier group.
B)   high differentiation by the supplier.
C)   dominance by a few suppliers.
D)   readily available substitute products.E) A) and D)
F) All of the above

Question 20

Delayed marriages,fewer people in relevant age groups,and rising interest rates dampening demand for houses illustrates

Accepted Answer

A)   that more than one segment of the general environment may affect an industry.
B)   that the global environment is not as powerful an influence as thought.
C)   that macroeconomic forces dominate the general environment.
D)   that the competitive environment often has a strong influence on the general environment.E) A) and D)
F) None of the above

Exam 2: Analyzing the External Environment of the Firm

The bargaining power of suppliers increases as

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Discuss and provide examples of factors that would lead to greater buyer power.

Correct AnswerverifiedBuyer power is high when,the buyer is th...View AnswerShow Answer

Competitive intelligence generally does not benefit very much from gathering information on competitors from sources in the public domain.

Correct AnswerverifiedShow Answer

Threat of substitute products comes from

Correct AnswerverifiedShow Answer

Which of the following would be considered part of a firm's general environment?

Correct AnswerverifiedShow Answer

Many indicators of the macroeconomic environment such as GNP,interest rates,savings rates,trade and budget deficits/surplus,and so forth,are interrelated.Explain.

Correct AnswerverifiedDue to globalization...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Correct AnswerverifiedShow Answer

An independent group of suppliers,such as farmers,gather to form a cooperative to sell their products to buyers directly,replacing their former distributor.This is an example of

Correct AnswerverifiedShow Answer

Increasingly larger numbers of women entering the work force since the early 1970s is an example of

Correct AnswerverifiedShow Answer

Delayed marriages,fewer people in relevant age groups,and rising interest rates dampening demand for houses illustrates

Correct AnswerverifiedShow Answer

In Porter's Five Forces model,conditions under which a supplier group can be powerful include all the following except

Correct AnswerverifiedShow Answer

A danger of forecasting discussed in the text is that

Correct AnswerverifiedShow Answer

The use of the strategic groups concept is generally not helpful in charting the future directions of firms' strategies.

Correct AnswerverifiedShow Answer

Competitor Intelligence (CI)is a tool that can provide management with "early warnings" about both threats and opportunities.

Correct AnswerverifiedShow Answer

Rival airlines,Air Canada and West Jet are battling over allegations of corporate espionage.

Correct AnswerverifiedShow Answer

The strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedSuppliers may become powerful when the s...View AnswerShow Answer

A SWOT analysis includes listing

Correct AnswerverifiedShow Answer

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Buyer power is high when,the buyer is th...
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Due to globalization...
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Suppliers may become powerful when the s...
View Answer

Correct Answer
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