Question 1

Buyer power will be greater when

Accepted Answer

A)   the products purchased are highly differentiated.
B)   there are high switching costs.
C)   the industry's product is very important to the quality of the buyer's end products or services.
D)   it is concentrated on purchasing large volumes relative to seller sales.E) B) and C)
F) C) and D)

Question 2

In the value-net analysis,complementors are

Accepted Answer

A)   firms that produce substitute products.
B)   customers who compliment the company for their good products and services.
C)   firms that produce products or services that have a positive impact on the value of a firm's products or services.
D)   firms that supply critical inputs to a company.E) C) and D)
F) A) and D) C

Question 3

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 4

According to the text,Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

Accepted Answer

A) True 
 B)False  True

Question 5

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

Accepted Answer

A) True 
 B)False

Question 6

Industries characterized by high economies of scale typically attract fewer new entrants.

Accepted Answer

A) True 
 B)False  True

Question 7

A large fabricator of building components purchased a steel company to provide raw materials for its production process.This is an example of

Accepted Answer

A)   backward integration.
B)   economies of scale.
C)   forward integration.
D)   product differentiation.E) B) and C)
F) A) and D)

Question 8

Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Accepted Answer

A)   positive; neutral
B)   negative; neutral
C)   negative; positive
D)   positive; negativeE) A) and D)
F) A) and C)

Question 9

The threat of new entrants is high when there are

Accepted Answer

A)   low economies of scale.
B)   high capital requirements.
C)   high switching costs.
D)   high differentiation among competitors' products and services.E) All of the above
F) A) and D)

Question 10

Two key inputs to developing forecasts discussed in the text are

Accepted Answer

A)   environmental scanning and stakeholder identification.
B)   environmental scanning and competitor intelligence.
C)   assessing internal strengths and environmental scanning.
D)   environmental scanning and a SWOT analysis.E) A) and B)
F) A) and C)

Question 11

Explain the important barriers to entry in an industry.Provide examples.

Accepted Answer

Barriers to entry are factors ...

Question 12

Rivalry is most intense when there are high exit barriers and high industry growth.

Accepted Answer

A) True 
 B)False

Question 13

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Question 14

Strategic groups consist of

Accepted Answer

A)   a group of top executives who make strategies for a company.
B)   a group of firms within an industry that follow similar strategies.
C)   a group of executives drawn from different companies within an industry that makes decisions on industry standards.
D)   a group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits.E) B) and D)
F) A) and C)

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) All of the above

Question 16

In some industries,high switching costs can act as an important barrier to entry.

Accepted Answer

A) True 
 B)False

Question 17

Using the Canadian beer as an example,explain how an industry or competitive environment might be defined and analyzed.

Accepted Answer

The Canadian beer industry is complex wi...

Question 18

Emerging sociocultural changes in the environment include

Accepted Answer

A)   changes in the ethnic composition.
B)   the increasing educational attainment of women in the past decade.
C)   progressively less disposable income by consumers.
D)   changes in the geographic distribution of the population.E) All of the above
F) C) and D)

Question 19

_____ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Accepted Answer

A)   Environmental scanning
B)   Environmental monitoring
C)   Environmental surveying
D)   Competitive intelligenceE) A) and B)
F) A) and C)

Question 20

Rivalry between the firms Air Canada and WestJet

Accepted Answer

A)   is characterized as distractive.
B)   includes allegations that Air Canada set up a screen-scraper program to automatically lift data.
C)   includes allegations that Westjet sent investigators to pilfer an Air Canada Executive's garbage looking for data.
D)   is an example of a low level of competitive rivalry.E) A) and B)
F) All of the above

Exam 2: Analyzing the External Environment of the Firm

Buyer power will be greater when

Correct AnswerverifiedShow Answer

In the value-net analysis,complementors are

Correct AnswerverifiedC

Technological innovations can create entirely new industries and alter the boundaries of industries.

Correct AnswerverifiedShow Answer

According to the text,Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

Correct AnswerverifiedTrue

Bombardier studies people's travel patterns to decide on the number of seats they should plan for future aircraft.

Correct AnswerverifiedShow Answer

Industries characterized by high economies of scale typically attract fewer new entrants.

Correct AnswerverifiedTrue

A large fabricator of building components purchased a steel company to provide raw materials for its production process.This is an example of

Correct AnswerverifiedShow Answer

Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Correct AnswerverifiedShow Answer

The threat of new entrants is high when there are

Correct AnswerverifiedShow Answer

Two key inputs to developing forecasts discussed in the text are

Correct AnswerverifiedShow Answer

Explain the important barriers to entry in an industry.Provide examples.

Correct AnswerverifiedBarriers to entry are factors ...View AnswerShow Answer

Rivalry is most intense when there are high exit barriers and high industry growth.

Correct AnswerverifiedShow Answer

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct AnswerverifiedShow Answer

Strategic groups consist of

Correct AnswerverifiedShow Answer

Gathering "competitive intelligence"

Correct AnswerverifiedShow Answer

In some industries,high switching costs can act as an important barrier to entry.

Correct AnswerverifiedShow Answer

Using the Canadian beer as an example,explain how an industry or competitive environment might be defined and analyzed.

Correct AnswerverifiedThe Canadian beer industry is complex wi...View AnswerShow Answer

Emerging sociocultural changes in the environment include

Correct AnswerverifiedShow Answer

_____ tracks the evolution of environmental trends,sequences of events,or streams of activities.

Correct AnswerverifiedShow Answer

Rivalry between the firms Air Canada and WestJet

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Interest rate increases have a _ impact on the residential home construction industry and a _ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Barriers to entry are factors ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Canadian beer industry is complex wi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified