BA 453 FINAL EVALUATION QUESTIONS WITH SOLUTIONS
2025 GRADED A+
✔✔Ecological Variables - ✔✔-global warming
-sustainable economic growth
-carbon footprint
-fossil fuel consumption
-pollution of air and water
-toxins in food and products
✔✔Legal Variables - ✔✔-anti trust regulations
-tort reform
-environmental protection laws
-hiring and promotion laws
-americans with disabilities act
-sarbanes-oxley act
✔✔Perfect Competition - ✔✔-many small firms
-commodity products
-firms are price takers
-low entry barriers
-fragmented (low profits)
-ex: pet supply stores
✔✔Monopolistic Competition - ✔✔-many firms
-differentiated products
-some pricing power
-medium entry barriers
-ex: computer hardware, organic foods
✔✔Oligopoly - ✔✔-few large firms
-interdependent
-some pricing power
-high entry barriers
-ex: express mail, soft drinks
✔✔Monopoly - ✔✔-one supplier
-often government approved
-considerable pricing power
-very high entry barriers
-consolidated (high profits)
-ex: utilities for electricity, gas,
and water
✔✔Rivalry Framework - ✔✔-Potential competitors
, -Buyer power
-Substitutes
-Supplier power
✔✔Threat of New Entrants
Factors & How It Works - ✔✔Brand Loyalty
-few established brands or if branding not important
Switching Costs
-low switching costs such that new products don't require investments by customers
Capital Requirements
-little capital required
Access to Distribution Channels
-open distribution channels, easy to obtain space or create new
Learning Curve
-flat learning curve with little proprietary technology such that new entrants will not face
a cost disadv.
✔✔Threat of Substitutes
Factors & How It Works - ✔✔Price/Performance
-good trade off, this can threaten a whole industry (generics)
Switching Costs
-low switching costs makes substitutes more likely
Brand Loyalty
-low brand loyalty will make substitutes more attractive
✔✔Supplier Bargaining Power
Factors & How It Works - ✔✔High concentration of suppliers
-each supplier will have more power
Low differentiation
-if few unique input features, then firm will be more likely to compare alternatives, giving
suppliers less power
Input Critical to Success
-if inputs are essential to your downstream products, then suppliers have more power
Switching Costs
-the higher the cost to switch suppliers, the more the power the supplier has
Threat of Forward Integration
2025 GRADED A+
✔✔Ecological Variables - ✔✔-global warming
-sustainable economic growth
-carbon footprint
-fossil fuel consumption
-pollution of air and water
-toxins in food and products
✔✔Legal Variables - ✔✔-anti trust regulations
-tort reform
-environmental protection laws
-hiring and promotion laws
-americans with disabilities act
-sarbanes-oxley act
✔✔Perfect Competition - ✔✔-many small firms
-commodity products
-firms are price takers
-low entry barriers
-fragmented (low profits)
-ex: pet supply stores
✔✔Monopolistic Competition - ✔✔-many firms
-differentiated products
-some pricing power
-medium entry barriers
-ex: computer hardware, organic foods
✔✔Oligopoly - ✔✔-few large firms
-interdependent
-some pricing power
-high entry barriers
-ex: express mail, soft drinks
✔✔Monopoly - ✔✔-one supplier
-often government approved
-considerable pricing power
-very high entry barriers
-consolidated (high profits)
-ex: utilities for electricity, gas,
and water
✔✔Rivalry Framework - ✔✔-Potential competitors
, -Buyer power
-Substitutes
-Supplier power
✔✔Threat of New Entrants
Factors & How It Works - ✔✔Brand Loyalty
-few established brands or if branding not important
Switching Costs
-low switching costs such that new products don't require investments by customers
Capital Requirements
-little capital required
Access to Distribution Channels
-open distribution channels, easy to obtain space or create new
Learning Curve
-flat learning curve with little proprietary technology such that new entrants will not face
a cost disadv.
✔✔Threat of Substitutes
Factors & How It Works - ✔✔Price/Performance
-good trade off, this can threaten a whole industry (generics)
Switching Costs
-low switching costs makes substitutes more likely
Brand Loyalty
-low brand loyalty will make substitutes more attractive
✔✔Supplier Bargaining Power
Factors & How It Works - ✔✔High concentration of suppliers
-each supplier will have more power
Low differentiation
-if few unique input features, then firm will be more likely to compare alternatives, giving
suppliers less power
Input Critical to Success
-if inputs are essential to your downstream products, then suppliers have more power
Switching Costs
-the higher the cost to switch suppliers, the more the power the supplier has
Threat of Forward Integration
