MGT 8803 SUPPLY CHAIN EXAM {LATEST
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT - Georgia
Institute Of Technology
Match the framework to the characteristic or purpose that best describes it:
A measure of an industry's fragmentation - correct answer HHI Index
Match the framework to the characteristic or purpose that best describes it:
The typically non-product related costs that a business or consumer incurs as a result
of changing suppliers. - correct answer Switching costs
Match the framework to the characteristic or purpose that best describes it:
,When a firm purchases its own supplier - correct answer Backward integration
Match the framework to the characteristic or purpose that best describes it:
When a firm purchases its own distributor - correct answer Forward integration
Consider both Statements:
- Statement 1: In the structure- conduct-performance (SCP) model industries with
many competitors (fragmented) tend to have lower profits than industries with fewer
competitors (concentrated).
- Statement 2: An oligopoly is an industry where a relatively few competitors control
the majority of the industry market share. - correct answer Both statements are true
,True/False: All PESTEL forces except technological are outside management's ability
to influence. So, at best, for these forces, management can anticipate (predict) then
determine if an opportunity or threat exists. - correct answer False
Which characterization of industry structure would have the lowest HHI?
- perfect competition
- oligopoly
- monopoly
- monopolistic competition - correct answer perfect competition
True/False: In the porter 5 forces model, the stronger the force, the greater the
downward pressure on the industry average profits. - correct answer True
Consider both statements:
, - Statement 1: The more substitutes a product has and the greater the propensity for a
buyer to substitute, the more elastic its demand curve will be.
- Statement 2: A complement tends to increase the demand for an industry's product -
correct answer Both statments are true
True/False: The popularity of the Trader Joe's brand among Trader Joe's customers
has resulted in a lower threat of substitutes and has reduced competitive rivalry
between Trader Joe's and its competitors. - correct answer True
Firms that have difficulty in differentiating their products from their competitors'
products will often try to introduce loyalty programs to ___.
- increase supplier switching costs
- increase buyer switching costs
- reduce the number of competitors
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT - Georgia
Institute Of Technology
Match the framework to the characteristic or purpose that best describes it:
A measure of an industry's fragmentation - correct answer HHI Index
Match the framework to the characteristic or purpose that best describes it:
The typically non-product related costs that a business or consumer incurs as a result
of changing suppliers. - correct answer Switching costs
Match the framework to the characteristic or purpose that best describes it:
,When a firm purchases its own supplier - correct answer Backward integration
Match the framework to the characteristic or purpose that best describes it:
When a firm purchases its own distributor - correct answer Forward integration
Consider both Statements:
- Statement 1: In the structure- conduct-performance (SCP) model industries with
many competitors (fragmented) tend to have lower profits than industries with fewer
competitors (concentrated).
- Statement 2: An oligopoly is an industry where a relatively few competitors control
the majority of the industry market share. - correct answer Both statements are true
,True/False: All PESTEL forces except technological are outside management's ability
to influence. So, at best, for these forces, management can anticipate (predict) then
determine if an opportunity or threat exists. - correct answer False
Which characterization of industry structure would have the lowest HHI?
- perfect competition
- oligopoly
- monopoly
- monopolistic competition - correct answer perfect competition
True/False: In the porter 5 forces model, the stronger the force, the greater the
downward pressure on the industry average profits. - correct answer True
Consider both statements:
, - Statement 1: The more substitutes a product has and the greater the propensity for a
buyer to substitute, the more elastic its demand curve will be.
- Statement 2: A complement tends to increase the demand for an industry's product -
correct answer Both statments are true
True/False: The popularity of the Trader Joe's brand among Trader Joe's customers
has resulted in a lower threat of substitutes and has reduced competitive rivalry
between Trader Joe's and its competitors. - correct answer True
Firms that have difficulty in differentiating their products from their competitors'
products will often try to introduce loyalty programs to ___.
- increase supplier switching costs
- increase buyer switching costs
- reduce the number of competitors
