CH3 Strategy MGT 4302 Exam With
Complete Solutions
Of the following questions, which would not be used to assess a company's
industry and competitive environment? - ANSWER Which financial objectives
should be used to measure company performance?
Which of the following are factors in a company's macro-environment? -
ANSWER a. technological factors
b. regulatory factors
c. economic conditions
Which of the following competitive forces affect an industry's attractiveness? -
ANSWER a. Competitive pressures associated with the threat of new entrants
into the market
b. Competitive pressures stemming from buyer bargaining power
c. Competitive pressures stemming from supplier bargaining power
From one industry to another, competitive forces - ANSWER are never the same
Buyer bargaining power is strong when - ANSWER demand is weak
Which of the following strategic questions can be used to assess a company's
industry and competitive environment? - ANSWER a. What are the key factors of
competitive success?
b. Does the industry outlook offer good prospects for profitability?
c. What strategic moves are rivals likely to make next?
A PESTEL analysis can be used to assess the strategic relevance of the
components of a company's - ANSWER micro-enviromental
The competitive force of substitute products is strong when - ANSWER
substitutes are attractively priced.
After understanding an industry's general economic characteristics, industry
and competitive analysis should focus on the _____competitive_____ dynamics of
the industry. - ANSWER competitive
According to the five-forces model of competition, the competitive forces
affecting industry attractivenes - ANSWER go beyond rivalry among competing
sellers
, Buyers with strong bargaining power can limit the industry profitability by -
ANSWER a. demanding price concessions.
b. demanding additional features and services.
c. demanding better payment terms.
When suppliers have sufficient _________ power, they can influence the terms
and conditions of what they supply to producers. - ANSWER bargaining
The competitive force of new entrants into an industry is strong when - ANSWER
entry barriers are low or can be readily hurdled by entry candidates
When consumers view the products of two companies as good _________ , the
companies engage in competition - ANSWER Substitute
Of the five competitive forces, the strongest is almost always - ANSWER the
rivalry of competing sellers
As suppliers gain strong bargaining power, they can undermine industry
profitability by doing which of the following? - ANSWER a. limiting industry
member access to better deals
b. charging industry members higher prices
c. passing on costs to industry members
All members of an industry are able to grow when - ANSWER demand is high
The competitive force of new entrants into an industry is weak when - ANSWER
industry members will strongly contest the efforts of new entrants to gain
market share
As the collective impact of the five competitive forces increases, the combined
profitability of industry participants - ANSWER decreases
The goal of the strategy formulation is craft a strategy that - ANSWER produces
a competitive edge
The most powerful industry change agents are called - ANSWER driving forces
According to the five-forces model of competition, the competitive forces
affecting industry attractiveness - ANSWER go beyond rivalry among competing
sellers
Which of the following steps are part of driving forces analysis? - ANSWER a.
Identify what the driving forces are
b. Determine what strategy changes are needed to prepare for the impact of the
driving forces
Complete Solutions
Of the following questions, which would not be used to assess a company's
industry and competitive environment? - ANSWER Which financial objectives
should be used to measure company performance?
Which of the following are factors in a company's macro-environment? -
ANSWER a. technological factors
b. regulatory factors
c. economic conditions
Which of the following competitive forces affect an industry's attractiveness? -
ANSWER a. Competitive pressures associated with the threat of new entrants
into the market
b. Competitive pressures stemming from buyer bargaining power
c. Competitive pressures stemming from supplier bargaining power
From one industry to another, competitive forces - ANSWER are never the same
Buyer bargaining power is strong when - ANSWER demand is weak
Which of the following strategic questions can be used to assess a company's
industry and competitive environment? - ANSWER a. What are the key factors of
competitive success?
b. Does the industry outlook offer good prospects for profitability?
c. What strategic moves are rivals likely to make next?
A PESTEL analysis can be used to assess the strategic relevance of the
components of a company's - ANSWER micro-enviromental
The competitive force of substitute products is strong when - ANSWER
substitutes are attractively priced.
After understanding an industry's general economic characteristics, industry
and competitive analysis should focus on the _____competitive_____ dynamics of
the industry. - ANSWER competitive
According to the five-forces model of competition, the competitive forces
affecting industry attractivenes - ANSWER go beyond rivalry among competing
sellers
, Buyers with strong bargaining power can limit the industry profitability by -
ANSWER a. demanding price concessions.
b. demanding additional features and services.
c. demanding better payment terms.
When suppliers have sufficient _________ power, they can influence the terms
and conditions of what they supply to producers. - ANSWER bargaining
The competitive force of new entrants into an industry is strong when - ANSWER
entry barriers are low or can be readily hurdled by entry candidates
When consumers view the products of two companies as good _________ , the
companies engage in competition - ANSWER Substitute
Of the five competitive forces, the strongest is almost always - ANSWER the
rivalry of competing sellers
As suppliers gain strong bargaining power, they can undermine industry
profitability by doing which of the following? - ANSWER a. limiting industry
member access to better deals
b. charging industry members higher prices
c. passing on costs to industry members
All members of an industry are able to grow when - ANSWER demand is high
The competitive force of new entrants into an industry is weak when - ANSWER
industry members will strongly contest the efforts of new entrants to gain
market share
As the collective impact of the five competitive forces increases, the combined
profitability of industry participants - ANSWER decreases
The goal of the strategy formulation is craft a strategy that - ANSWER produces
a competitive edge
The most powerful industry change agents are called - ANSWER driving forces
According to the five-forces model of competition, the competitive forces
affecting industry attractiveness - ANSWER go beyond rivalry among competing
sellers
Which of the following steps are part of driving forces analysis? - ANSWER a.
Identify what the driving forces are
b. Determine what strategy changes are needed to prepare for the impact of the
driving forces
