BUAD 453 Exam 1 UTK Questions and
Answers
2 cents - ANS-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
positive - ANS-You are a competitor and your industry has high entry barriers. On
average, positive or negative for your industry?
a. negative
b. positive
price wars - ANS-Overcapacity in an industry can lead to ...
a. high entry barriers
b. price increases
c. more hiring
d. price wars
rivalry - ANS-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
products/services from another industry that are similar to your industry - ANS-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
sociocultural - ANS-The increase in the average age in Japan is an example of which
STEEP aspect.
a. economic
b. technological
c. sociocultural
d. environmental
, economic - ANS-Amusement parks are cynical, there their executives keep their eyes
on which STEEP?
a. ecological
b. technological
c. economic
d. sociocultural
can suppliers become our buyers? - ANS-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?
low switching costs - ANS-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
c. buyers could get into grocery industry
d. unionized buyers
focus on lowering prices - ANS-Which feature below is NOT a feature of an oligopoly
(like express package industry, traditionally)?
a. usually at maturity in industry life cycle
b. focus on lowering prices
c. usually a price leader in industry emerges
d. usually compete on branding and advertising
fragmented industries - ANS-High rivalry (rivalry as a powerful force) is more likely to be
found in ...
a. oligopolies
b. concentrated industries
c. monopolistic industries
d. fragmented industries
judgement - ANS-(different modes of choices)
Choices based on intuition or gut feel
a. systems thinking
b. judgement
c. bargaining
d. satisficing
rational analysis - ANS-(different modes of choices)
Linear, step-by-step analysis leading to a choice
a. systems thinking
Answers
2 cents - ANS-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
positive - ANS-You are a competitor and your industry has high entry barriers. On
average, positive or negative for your industry?
a. negative
b. positive
price wars - ANS-Overcapacity in an industry can lead to ...
a. high entry barriers
b. price increases
c. more hiring
d. price wars
rivalry - ANS-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
products/services from another industry that are similar to your industry - ANS-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
sociocultural - ANS-The increase in the average age in Japan is an example of which
STEEP aspect.
a. economic
b. technological
c. sociocultural
d. environmental
, economic - ANS-Amusement parks are cynical, there their executives keep their eyes
on which STEEP?
a. ecological
b. technological
c. economic
d. sociocultural
can suppliers become our buyers? - ANS-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?
low switching costs - ANS-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
c. buyers could get into grocery industry
d. unionized buyers
focus on lowering prices - ANS-Which feature below is NOT a feature of an oligopoly
(like express package industry, traditionally)?
a. usually at maturity in industry life cycle
b. focus on lowering prices
c. usually a price leader in industry emerges
d. usually compete on branding and advertising
fragmented industries - ANS-High rivalry (rivalry as a powerful force) is more likely to be
found in ...
a. oligopolies
b. concentrated industries
c. monopolistic industries
d. fragmented industries
judgement - ANS-(different modes of choices)
Choices based on intuition or gut feel
a. systems thinking
b. judgement
c. bargaining
d. satisficing
rational analysis - ANS-(different modes of choices)
Linear, step-by-step analysis leading to a choice
a. systems thinking
