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In the grocery industry, the average net profit margin (or for every $1 in sales, how
many coins)?
a. a quarter
b. 10 cents
c. 5 cents
d. 2 cents - ✔✔2 cents
You are a competitor and your industry has high entry barriers. On average, positive or
negative for your industry?
a. negative
b. positive - ✔✔positive
Overcapacity in an industry can lead to ...
a. high entry barriers
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,b. price increases
c. more hiring
d. price wars - ✔✔price wars
Which of the five forces is most affected by industry growth?
a. bargaining/negotiating power of the suppliers
b. rivalry
c. substitutes
d. bargaining/ negotiating power of the buyers - ✔✔rivalry
In a five forces analysis, substitutes are ...
a. competitors in the industry of analysis
b. reflective of buyer preferences
c. products/services from another industry that are similar to your industry
d. from the same NAICS code - ✔✔products/services from another industry that are
similar to your industry
The increase in the average age in Japan is an example of which STEEP aspect.
a. economic
b. technological
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, c. sociocultural
d. environmental - ✔✔sociocultural
Amusement parks are cynical, there their executives keep their eyes on which STEEP?
a. ecological
b. technological
c. economic
d. sociocultural - ✔✔economic
To judge the power of suppliers for an industry, which question below does NOT fit in
the EP assessment?
a. can suppliers forward vertically integrate to do what our industry does?
b. is the main supplier industry more or less concentrated than our industry?
c. how easy is it for us to switch among suppliers?
d. can suppliers become our buyers? - ✔✔can suppliers become our buyers?
Grocery industry buyers are you and me - customers. Which ONE below gives some
credible strength to buyer power?
a. low switching costs
b. buying in volume
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