Strategy 557 Final Exam Review
Questions And Correct Verified
Answers Guaranteed Pass 2025\2026-
8
Michael Porter's "Five Forces" framework (i.e. industry analysis) is a tool most effective for evaluating:
A) The effects of government regulations on a company's market share
B) The determinants of industry profitability
C) The quality of a company's logo
D) None of the above - correct answers B) The determinants of industry profitability
In order to understand the key success factors for an industry what question, or questions, must you
ask? A) Who are our customers?
B) What are our customer's preferences?
C) How does a company survive competition?
D) All of the above.
E) None of the above - correct answers D) All of the above.
An industry is considered more attractive the:
A) Greater the power of buyers
B) Lower the threat of entry
C) Greater the power of suppliers
D) All of the above. - correct answers B) Lower the threat of entry (yes - lower threat makes it more
attractive)
Decreasing product differentiation across products produced by companies in an industry leads to:
A) Increasing intensity of price competition
B) Decreasing threat of entry
, C) Increasing buyer power
D) A & B above.
E) B & C above.
F) A & C above. - correct answers F) A & C above.
A) Increasing intensity of price competition (yes, less differentiated means price becomesmore salient in
the competitive decision making - think homogenous good and perfectcompetition - it is all about price)
B) Deceasing threat of entry (opposite - now greater threat as less differentiation to overcome)
C) Increasing buyer power (yes, less differentiation means buyers perceive products fromdifferent
companies as more similar)
Which of the following is not one of the "Five Forces" in industry analysis:
A) Power of buyers.
B) Threat of entry.
C) Power of suppliers
D) Threat of redistribution - correct answers D) Threat of redistribution
In conducting an industry analysis for an industry it is impossible to reach an assessment in whichBuyer
Power, Supplier Power and Threat of Entry are all HIGH:
A) True.
B) False - correct answers B) False
In evaluating a strategy one should examine the following forms of consistency in a firm's strategic
choices
A) Internal consistency.
B) External consistency.
C) Dynamic consistency.
D) Adaptive consistency
E) A, B, and C.
F) A, B and D.
Questions And Correct Verified
Answers Guaranteed Pass 2025\2026-
8
Michael Porter's "Five Forces" framework (i.e. industry analysis) is a tool most effective for evaluating:
A) The effects of government regulations on a company's market share
B) The determinants of industry profitability
C) The quality of a company's logo
D) None of the above - correct answers B) The determinants of industry profitability
In order to understand the key success factors for an industry what question, or questions, must you
ask? A) Who are our customers?
B) What are our customer's preferences?
C) How does a company survive competition?
D) All of the above.
E) None of the above - correct answers D) All of the above.
An industry is considered more attractive the:
A) Greater the power of buyers
B) Lower the threat of entry
C) Greater the power of suppliers
D) All of the above. - correct answers B) Lower the threat of entry (yes - lower threat makes it more
attractive)
Decreasing product differentiation across products produced by companies in an industry leads to:
A) Increasing intensity of price competition
B) Decreasing threat of entry
, C) Increasing buyer power
D) A & B above.
E) B & C above.
F) A & C above. - correct answers F) A & C above.
A) Increasing intensity of price competition (yes, less differentiated means price becomesmore salient in
the competitive decision making - think homogenous good and perfectcompetition - it is all about price)
B) Deceasing threat of entry (opposite - now greater threat as less differentiation to overcome)
C) Increasing buyer power (yes, less differentiation means buyers perceive products fromdifferent
companies as more similar)
Which of the following is not one of the "Five Forces" in industry analysis:
A) Power of buyers.
B) Threat of entry.
C) Power of suppliers
D) Threat of redistribution - correct answers D) Threat of redistribution
In conducting an industry analysis for an industry it is impossible to reach an assessment in whichBuyer
Power, Supplier Power and Threat of Entry are all HIGH:
A) True.
B) False - correct answers B) False
In evaluating a strategy one should examine the following forms of consistency in a firm's strategic
choices
A) Internal consistency.
B) External consistency.
C) Dynamic consistency.
D) Adaptive consistency
E) A, B, and C.
F) A, B and D.
