MGMT 4513 QUESTIONS & VERIFIED ANSWERS
TRUE OR FALSE:
Demographic, economic, political/legal, sociocultural, technological, and global are the
six elements compromising the industry environment. - Answers - False
TRUE OR FALSE: The five forces model (buyers/suppliers/new
entrants/substitutes/rivalry) is a firm-level analytical model. - Answers - False
TRUE OR FALSE: Switching costs, access to distribution channels, economies of scale,
large numbers of competing firms, and slow industry growth are some of the entry
barriers that may affect the threat of new entrants to an industry. - Answers - False
TRUE OR FALSE: Suppliers are powerful when no satisfactory substitutes are
available, selling the industry is relatively more concentrated, and switching costs are
high. - Answers - True
TRUE OR FALSE: An attractive industry is one that is characterized by high entry
barriers, suppliers and buyers with strong bargaining power, low threats from substitute
products, and low rivalry among firms - Answers - False
TRUE OR FALSE: Typically, fast industry growth increases an industry's rivalry -
Answers - False
The aging of the population, changes in ethnic composition, and effects of the baby
boom are: - Answers - Demographic changes
A group of firms producing products that are close substitutes - Answers - An industry
_____ refers to the belief by customers that a product is unique - Answers - Product
differentiation
Which of the following is NOT an entry barrier to an industry: - Answers - bargaining
power of suppliers
The threat of new entrants is increased if: - Answers - product differentiation in the
industry is low
Suppliers are powerful when: - Answers - they offer a credible threat of forward
integration
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the
TRUE OR FALSE:
Demographic, economic, political/legal, sociocultural, technological, and global are the
six elements compromising the industry environment. - Answers - False
TRUE OR FALSE: The five forces model (buyers/suppliers/new
entrants/substitutes/rivalry) is a firm-level analytical model. - Answers - False
TRUE OR FALSE: Switching costs, access to distribution channels, economies of scale,
large numbers of competing firms, and slow industry growth are some of the entry
barriers that may affect the threat of new entrants to an industry. - Answers - False
TRUE OR FALSE: Suppliers are powerful when no satisfactory substitutes are
available, selling the industry is relatively more concentrated, and switching costs are
high. - Answers - True
TRUE OR FALSE: An attractive industry is one that is characterized by high entry
barriers, suppliers and buyers with strong bargaining power, low threats from substitute
products, and low rivalry among firms - Answers - False
TRUE OR FALSE: Typically, fast industry growth increases an industry's rivalry -
Answers - False
The aging of the population, changes in ethnic composition, and effects of the baby
boom are: - Answers - Demographic changes
A group of firms producing products that are close substitutes - Answers - An industry
_____ refers to the belief by customers that a product is unique - Answers - Product
differentiation
Which of the following is NOT an entry barrier to an industry: - Answers - bargaining
power of suppliers
The threat of new entrants is increased if: - Answers - product differentiation in the
industry is low
Suppliers are powerful when: - Answers - they offer a credible threat of forward
integration
A certain marble quarry provides a unique type of marble that is richly colored and
strikingly veined. It has been used for churches and public buildings throughout the
