Bartkoski B AD 4013 Final || with Complete Solutions.
Environmental Segments correct answers Political/legal, economic, demographic,
sociocultural, technological, physical and global environment
political/legal segment correct answers - political processes/legislation, employee regulations,
tax policies, trade restrictions, tariffs, consumer protection and labor training laws
Economic segment correct answers Interest and inflation rates, GDP, unemployment rates,
levels of disposable income, movement of the economy
Demographic segment correct answers population size, age structure, ethnic mix, geographic
and income distribution
Sociocultural segment correct answers Attitudes, Cultural values, lifestyles
Technological segment correct answers Product innovations, increases in automation,
applications of knowledge, private and gov. R&D expenditures, communication technologies
Global segment correct answers important international political events, increasing global
trade, trade agreements
physical environment correct answers - business practices intended to respond to the changes
in the physical environment
- natural disasters, weather patterns, climate change, reduction of environmental impact
Porters five forces correct answers Threat of entry, buyers, suppliers, rivals, and substitutes
Threat of entry correct answers - Economies of scale, product differentiation, capital
requirements, shipping costs
- access to shipping channels, cost advantages independent to scale, gov. policy, expected
retaliation
Threat of rivalry correct answers - numerous or equally balanced competitors, industry
growth, high fixed or storage costs
- lack of differentiation or switching costs, capacity added in large increments, high exit
costs, product is perishable
- products/services within the same industry that compete against each other. Ex. coke and
pepsi
Threat of substitutes correct answers - Goods from outside the industry that provide similar or
the same functions
- low switching costs, substitute has lower price, close substitutes
- products/services outside the industry that fulfill the same needs. Ex. hot dogs v. burgers
, Threat of suppliers correct answers - few large suppliers, few substitutes, industry is not a
significant customer of supplier, suppliers goods are important to the industry
- high switching costs, suppliers goods are differentiated, supplier may integrate into focal
industry
Threat of buyers correct answers - Few buyers or large volume purchases, buyer industry
earns low profits, industry's goods are unimportant to buyer's output
- few switching costs, industry's goods are undifferentiated, buyer may integrate backward
into focal industry
Internal analysis correct answers
VRIN Framework correct answers - Valuable, rare, imitability, non-substitutability
Valuable correct answers - allows the firm to exploit an opportunity or neutralize a threat
- allow the firm to reduce costs or increase revenue?
Rarity correct answers - Do other firms possess the resource?
- If other firms do, are there few enough in the industry that allow for a competitive
advantage
imitability correct answers - Physical uniqueness, path dependence, casual ambiguity, social
complexity,
Physical uniqueness correct answers - difficult to copy, unique location, mineral rights,
*Patents*
Path dependence correct answers - resources built up due to a set of events, method of
creation is difficult to accelerate, sequential investments over time, "historical accidents"
Casual ambiguity correct answers - Difficult for competitors to copy because they don't
understand how the competencies work together to create a comp. adv.
- Difficult to discern the valuable resource or how to create it
- speaks to Porter's idea of fit
Social complexity correct answers - Based on complex social interactions and maybe a
specific individual
- interpersonal relationships, trust, friendship, culture
Nonsubstitutability correct answers - Competitors can't find alternative ways to gain the
benefit of the resource
Environmental Segments correct answers Political/legal, economic, demographic,
sociocultural, technological, physical and global environment
political/legal segment correct answers - political processes/legislation, employee regulations,
tax policies, trade restrictions, tariffs, consumer protection and labor training laws
Economic segment correct answers Interest and inflation rates, GDP, unemployment rates,
levels of disposable income, movement of the economy
Demographic segment correct answers population size, age structure, ethnic mix, geographic
and income distribution
Sociocultural segment correct answers Attitudes, Cultural values, lifestyles
Technological segment correct answers Product innovations, increases in automation,
applications of knowledge, private and gov. R&D expenditures, communication technologies
Global segment correct answers important international political events, increasing global
trade, trade agreements
physical environment correct answers - business practices intended to respond to the changes
in the physical environment
- natural disasters, weather patterns, climate change, reduction of environmental impact
Porters five forces correct answers Threat of entry, buyers, suppliers, rivals, and substitutes
Threat of entry correct answers - Economies of scale, product differentiation, capital
requirements, shipping costs
- access to shipping channels, cost advantages independent to scale, gov. policy, expected
retaliation
Threat of rivalry correct answers - numerous or equally balanced competitors, industry
growth, high fixed or storage costs
- lack of differentiation or switching costs, capacity added in large increments, high exit
costs, product is perishable
- products/services within the same industry that compete against each other. Ex. coke and
pepsi
Threat of substitutes correct answers - Goods from outside the industry that provide similar or
the same functions
- low switching costs, substitute has lower price, close substitutes
- products/services outside the industry that fulfill the same needs. Ex. hot dogs v. burgers
, Threat of suppliers correct answers - few large suppliers, few substitutes, industry is not a
significant customer of supplier, suppliers goods are important to the industry
- high switching costs, suppliers goods are differentiated, supplier may integrate into focal
industry
Threat of buyers correct answers - Few buyers or large volume purchases, buyer industry
earns low profits, industry's goods are unimportant to buyer's output
- few switching costs, industry's goods are undifferentiated, buyer may integrate backward
into focal industry
Internal analysis correct answers
VRIN Framework correct answers - Valuable, rare, imitability, non-substitutability
Valuable correct answers - allows the firm to exploit an opportunity or neutralize a threat
- allow the firm to reduce costs or increase revenue?
Rarity correct answers - Do other firms possess the resource?
- If other firms do, are there few enough in the industry that allow for a competitive
advantage
imitability correct answers - Physical uniqueness, path dependence, casual ambiguity, social
complexity,
Physical uniqueness correct answers - difficult to copy, unique location, mineral rights,
*Patents*
Path dependence correct answers - resources built up due to a set of events, method of
creation is difficult to accelerate, sequential investments over time, "historical accidents"
Casual ambiguity correct answers - Difficult for competitors to copy because they don't
understand how the competencies work together to create a comp. adv.
- Difficult to discern the valuable resource or how to create it
- speaks to Porter's idea of fit
Social complexity correct answers - Based on complex social interactions and maybe a
specific individual
- interpersonal relationships, trust, friendship, culture
Nonsubstitutability correct answers - Competitors can't find alternative ways to gain the
benefit of the resource
