BUS 401 M1 Possible Questions
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
30+
Solutions
VERIFIED ANSWERS
Question 1
What is the main purpose of Porter's Five Forces Model?
A) Decide which products to launch
B) Manage product portfolios
C) Inform investment appraisal decisions
D) Analyze competition in a market
Correct Answer
D. Analyze competition in a market
Question 2
According to porter, which of the following is most important to achieving a competitive advantage?
A) Serving all customers equally, rather than targeting the most profitable
B) Operating at a lower cost, commanding a premium price, or both
C) Focusing on becoming the most competitive business within the sector/market
D) Outsourcing activities that enhance/refine your competitive advantage
Correct Answer
C. Focusing on becoming the most competitive business within the sector/market
Question 3
According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?
A) a used car dealership in New York
B) a convenience store that sells retail products
C) a firm that sells the only drug for a disease
D) corner latte shops in Atlanta
Correct Answer
C. a firm that sells the only drug for a disease
Question 4
2) Porter's five forces model is used to assess ________.
A) industry structure
B) market share
C) internal competition
D) lifecycles of products
Correct Answer
B) market share
, Question 5
Can you identify which of the following forces does not form part of Porter's Five Forces Model?
A) Threat of new entry
B) Supplier power
C) Risk of losses
D) Buyer power
Correct Answer
C) Risk of losses
Question 6
What is likely to happen if many new businesses enter a market?
A) Competitive rivalry will intensify
B) Barriers to entry will rise
C) Industry capacity will fall
D) Industry profits will increase
Correct Answer
C) Industry capacity will fall
Question 7
A market will usually be more difficult to enter if there is:
A) Low brand loyalty
B) Wide access to distribution channels
C) Common technology
D) Patented or proprietary know-how
Correct Answer
D) Patented or proprietary know-how
Question 8
Which of these situations is likely to cause high bargaining power of suppliers?
A) Resource inputs are not essential to product quality
B) A few large suppliers dominate the market supply
C) Many alternative sources of supply
D) Many customers with low brand loyalty
Correct Answer
B) A few large suppliers dominate the market supply
Question 9
According to Porter's five forces model, which of the following would be most affected by the threat of substitutes?
A) Microsoft Windows OS
B) Boeing jets
C) Southwest Airlines
D) Google Adwords
Correct Answer
C) Southwest Airlines
Trusted by thousands of students and professionals worldwide Page 2 of 8
(Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
30+
Solutions
VERIFIED ANSWERS
Question 1
What is the main purpose of Porter's Five Forces Model?
A) Decide which products to launch
B) Manage product portfolios
C) Inform investment appraisal decisions
D) Analyze competition in a market
Correct Answer
D. Analyze competition in a market
Question 2
According to porter, which of the following is most important to achieving a competitive advantage?
A) Serving all customers equally, rather than targeting the most profitable
B) Operating at a lower cost, commanding a premium price, or both
C) Focusing on becoming the most competitive business within the sector/market
D) Outsourcing activities that enhance/refine your competitive advantage
Correct Answer
C. Focusing on becoming the most competitive business within the sector/market
Question 3
According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?
A) a used car dealership in New York
B) a convenience store that sells retail products
C) a firm that sells the only drug for a disease
D) corner latte shops in Atlanta
Correct Answer
C. a firm that sells the only drug for a disease
Question 4
2) Porter's five forces model is used to assess ________.
A) industry structure
B) market share
C) internal competition
D) lifecycles of products
Correct Answer
B) market share
, Question 5
Can you identify which of the following forces does not form part of Porter's Five Forces Model?
A) Threat of new entry
B) Supplier power
C) Risk of losses
D) Buyer power
Correct Answer
C) Risk of losses
Question 6
What is likely to happen if many new businesses enter a market?
A) Competitive rivalry will intensify
B) Barriers to entry will rise
C) Industry capacity will fall
D) Industry profits will increase
Correct Answer
C) Industry capacity will fall
Question 7
A market will usually be more difficult to enter if there is:
A) Low brand loyalty
B) Wide access to distribution channels
C) Common technology
D) Patented or proprietary know-how
Correct Answer
D) Patented or proprietary know-how
Question 8
Which of these situations is likely to cause high bargaining power of suppliers?
A) Resource inputs are not essential to product quality
B) A few large suppliers dominate the market supply
C) Many alternative sources of supply
D) Many customers with low brand loyalty
Correct Answer
B) A few large suppliers dominate the market supply
Question 9
According to Porter's five forces model, which of the following would be most affected by the threat of substitutes?
A) Microsoft Windows OS
B) Boeing jets
C) Southwest Airlines
D) Google Adwords
Correct Answer
C) Southwest Airlines
Trusted by thousands of students and professionals worldwide Page 2 of 8
