Question 1

Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and generally are

Accepted Answer

A)   determined by the sizes of strategic groups and the power of rival firms' competitive strategies.
B)   defined in ways that will strengthen or weaken market demand, competition, and industry profitability in future years.
C)   the cause of a reduction in the bargaining power of buyers.
D)   triggered by movement in the economy, higher or lower interest rates, or important new strategic alliances.
E)   triggered by such factors as growing competitive pressures from substitute products, and the efforts of rival firms to employ new or different offensive strategies.F) A) and E)
G) A) and B)

Question 2

Which of the following conditions acts to weaken buyer bargaining power?

Accepted Answer

A)   when buyers are unlikely to integrate backward into the business of sellers
B)   when buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs
C)   when the costs incurred by buyers in switching to competing brands or to substitute products are relatively low
D)   when the products of rival sellers are weakly differentiated and buyers have considerable discretion over whether and when they purchase the product
E)   when buyers are few in number and/or often purchase in large quantitiesF) C) and D)
G) C) and E)

Question 3

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

Accepted Answer

A)   incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable.
B)   a large pool of potential entrants exists, some of which have the capabilities to overcome high entry barriers.
C)   entry barriers are relatively low and buyer demand for the product is growing rapidly, and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents.
D)   existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence.
E)   customers have low brand preferences and low degrees of loyalty to seller.F) A) and E)
G) A) and C)

Question 4

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

Accepted Answer

A)   The costs to buyers of switching over to the substitutes are low.
B)   Buyers are dubious about using substitutes.
C)   The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements.
D)   Buyer brand loyalty is weak.
E)   Substitutes are readily available at competitive prices.F) B) and E)
G) A) and B)

Question 5

Identify at least three benefits of constructing a strategic group map.

Accepted Answer

A strategic group consists of those indu...

Question 6

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

Accepted Answer

A)   What are the industry product R&D capabilities and expertise in product design?
B)   On what basis do buyers choose between the competing brands of sellers?
C)   What product attributes and service characteristics are crucial?
D)   What resources must a company have to be competitive?
E)   What shortcomings are almost certain to put a company at a significant disadvantage?F) A) and E)
G) B) and E)

Question 7

Which of the following is NOT a common type of driving force?

Accepted Answer

A)   reductions in uncertainty and business risk
B)   changing societal concerns, attitudes, and lifestyles
C)   diffusion of technical know-how across companies and countries
D)   increasing efforts to collaborate closely with suppliers
E)   advances in technology and manufacturing process innovationF) None of the above
G) C) and E)

Question 8

A rival's strategic moves and countermoves are

Accepted Answer

A)   indicators for the visualization of strategic mapping techniques.
B)   enabled and constrained by the set of capabilities they have at hand.
C)   measured by the extent to which they can unveil financial objectives.
D)   responses to the broader definition of the industry opportunities.
E)   signs of the competitive pressures from the industry.F) B) and D)
G) D) and E)

Question 9

Identify three conditions that tend to make potential entry a potentially potent competitive force.

Accepted Answer

Threat of entry is a stronger force when...

Question 10

What is the strategy-making value of identifying an industry's key success factors?

Accepted Answer

KSFs by their very nature are so importa...

Question 11

Rivalry among competing sellers decreases

Accepted Answer

A)   when buyer demand is growing rapidly.
B)   as it becomes less costly for buyers to switch brands.
C)   as the products of rival sellers become commoditized.
D)   when there is excess production relative to demand.
E)   as the number of competitors increases.F) D) and E)
G) All of the above

Question 12

Which of the following does NOT exemplify the impact of the macro-environment on a company's strategic opportunities?

Accepted Answer

A)   Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products.
B)   Consumer confidence in Volkswagen drops precipitously because of falsified emissions data.
C)   Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry.
D)   Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products.
E)   Sales of FitBit surge on account of a new feature that monitors users' blood pressure.F) C) and E)
G) A) and B)

Question 13

The task of driving-forces analysis is to

Accepted Answer

A)   develop a comprehensive list of all the potential causes of changing industry conditions.
B)   predict which new driving forces will emerge next.
C)   determine which of the five competitive forces is the biggest driver of industry change.
D)   identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces.
E)   learn what the industry key success factors are and how they might change in the future.F) C) and D)
G) A) and B)

Question 14

Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft?

Accepted Answer

A)   Yellow Cab company launches mobile app campaigns for community-connect and awareness.
B)   Amazon launches a mobile delivery service via drones.
C)   Apple launches a global network of driverless cars, buses, and trucks on demand via mobile app.
D)   Tesla and ZipCar announce a joint venture for electric automobile sharing services.
E)   Greyhound develops and markets a mobile app for customers to purchase inter-city bus tickets.F) B) and C)
G) A) and E)

Question 15

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Accepted Answer

An industry's key success factors (KSFs)...

Question 16

Competitive intelligence can be gleaned from

Accepted Answer

A)   company press releases, company websites, management presentations, and annual reports and 10-K filings.
B)   SWOT analysis, PESTLE analysis, KSF analysis, and driving forces analysis.
C)   strategic group maps, Value Net analysis, and five force analysis.
D)   financial ratio analysis, KSF analysis, driving forces analysis, and five forces analysis.
E)   KSF analysis, Value Net analysis, and driving forces analysis.F) B) and D)
G) D) and E)

Question 17

Which of the following is most UNLIKELY to qualify as driving forces?

Accepted Answer

A)   changes in the long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency
B)   increasing globalization of the industry and product innovation
C)   new Internet technology applications, new government regulations, and significant changes in government policy toward the industry
D)   increasing efforts to collaborate with suppliers via strategic alliances and partnerships, escalating risk levels and normalization of cost and efficiency in the industry
E)   marketing innovations and changes in who buys the industry's product and how they use itF) A) and B)
G) A) and C)

Question 18

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does NOT involve a consideration of which of the following factors?

Accepted Answer

A)   the industry's growth potential and whether competitive pressures will likely grow stronger or weaker, and whether strong competitive forces are squeezing industry profitability to subpar levels
B)   whether the company occupies a stronger market position than rivals
C)   whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces
D)   the severity of the macro-environment problems confronting the industry
E)   whether the industry's product is strongly or weakly differentiatedF) None of the above
G) A) and C)

Question 19

In analyzing driving forces, the strategist's role is to

Accepted Answer

A)   identify the driving forces and evaluate their impact on (1)  demand for the industry's product, (2)  the intensity of competition, and (3)  industry profitability.
B)   predict future marketing innovations and how fast the industry is likely to globalize.
C)   evaluate what stage of the life cycle the industry is in and when it is likely to move to the next stage.
D)   determine who is likely to exit the industry and what changes can be expected in the industry's strategic group map.
E)   forecast fluctuations in product demand and how buyer needs will most likely change.F) C) and D)
G) A) and E)

Question 20

The stronger the collective impact of competitive pressures associated with the five competitive forces,

Accepted Answer

A)   the stronger are the industry's driving forces.
B)   the greater number of companies that can achieve a competitive advantage via differentiation.
C)   the larger the number of competitive advantage opportunities for industry members.
D)   the greater the number of industry key success factors.
E)   the fewer companies that can achieve a competitive advantage via anything other than being the industry's low-cost leader.F) A) and B)
G) All of the above

Exam 3: Evaluating a Companys External Environment

Identify at least three benefits of constructing a strategic group map.

Correct AnswerverifiedA strategic group consists of those indu...View AnswerShow Answer

A rival's strategic moves and countermoves are

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Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and generally are

Correct AnswerverifiedShow Answer

Which of the following conditions acts to weaken buyer bargaining power?

Correct AnswerverifiedShow Answer

Rivalry among competing sellers decreases

Correct AnswerverifiedShow Answer

Competitive pressures associated with the threat of entry are greater in all of the following situations, EXCEPT when

Correct AnswerverifiedShow Answer

In evaluating whether the industry and competitive environment presents sufficiently attractive prospects for both competitive success and attractive profits usually does NOT involve a consideration of which of the following factors?

Correct AnswerverifiedShow Answer

Which of the following does NOT exemplify the impact of the macro-environment on a company's strategic opportunities?

Correct AnswerverifiedShow Answer

The task of driving-forces analysis is to

Correct AnswerverifiedShow Answer

Which of the following is NOT a common type of driving force?

Correct AnswerverifiedShow Answer

Identify four factors that affect whether an industry does or does not present a company with a good business opportunity.

Correct AnswerverifiedAn industry's key success factors (KSFs)...View AnswerShow Answer

Which of the following is most UNLIKELY to qualify as driving forces?

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In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?

Correct AnswerverifiedShow Answer

What is the strategy-making value of identifying an industry's key success factors?

Correct AnswerverifiedKSFs by their very nature are so importa...View AnswerShow Answer

Identify three conditions that tend to make potential entry a potentially potent competitive force.

Correct AnswerverifiedThreat of entry is a stronger force when...View AnswerShow Answer

In analyzing driving forces, the strategist's role is to

Correct AnswerverifiedShow Answer

Which of the following is NOT a question asked to deduce a marketing-related key success factor?

Correct AnswerverifiedShow Answer

Competitive intelligence can be gleaned from

Correct AnswerverifiedShow Answer

Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft?

Correct AnswerverifiedShow Answer

The stronger the collective impact of competitive pressures associated with the five competitive forces,

Correct AnswerverifiedShow Answer

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A strategic group consists of those indu...
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An industry's key success factors (KSFs)...
View Answer

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KSFs by their very nature are so importa...
View Answer

Correct Answer
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Threat of entry is a stronger force when...
View Answer

Correct Answer
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