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BUAD 453 EXAM 1 2025| ACTUAL EXAM
QUESTIONS WITH 100% VERIFIED ANSWERS
commitment - CORRECT-ANSWER-Logan is an entrepreneur with a new idea for a
software product. His start-up company grows quickly to a team of about 25. A
new federal law recently passed by Congress will cause the software to become
obsolete without a major change in the programming. The investment in the
programming is going to be costly, and the company faces some hard choices.
Logan announces that he will get back to his roots as a programmer to work
alongside the software development team, taking the salary of a programmer, to
ensure that the newest version of the software will be compliant with the new
law. Which of these characteristics of an effective leader is Logan demonstrating
the most?
- risk of entry by a potential competitor
- closeness of substitutes to an industry's products
- bargaining power of suppliers - CORRECT-ANSWER-The extended competitive
forces model includes all of the following forces that shape competition within an
industry:
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areas of threat and areas of opportunity that can serve as the basis of strategy
formulation and implementation. - CORRECT-ANSWER-An analysis using the
competitive forces model of an industry can indicate:
bargaining power of buyers - CORRECT-ANSWER-An industrial tool manufacturer
relies on a distributor network with the largest online outlet and store network
aimed at construction workers. The distributor network is seeking a manufacturer
to provide them with private label products. They've decided they will offer only
their own product line and not any other brand in this category of industrial tools.
Now, the industrial tool company must decide whether or not to agree to this
proposition or lose this company as a customer. This is an example of which of the
competitive forces at play in this industry?
Production costs are high and require high volumes to achieve profitability. -
CORRECT-ANSWER-Potential competitors may enter an industry and begin to
take market share from existing companies. What would be one of the largest
challenges a new entrant would need to overcome to be successful when entering
the industry?
identifying an industry by the customers that it serves and the needs it fulfills
rather than by the products it sells and staying focused on ensuring its products
meet those needs. - CORRECT-ANSWER-Companies can reduce the impact of the
substitute products force in the competitive forces model by:
, 3|Page
customer switching costs - CORRECT-ANSWER-Through research and
development, a cable company has found a way to use its existing network lines
to serve customers with a new product offering - home security systems. The
company is offering the service for a lower monthly fee than most security
companies. However, the sales force didn't see a lot of interest among its
customers who had an existing security system from a competitor until they ran a
promotion for reduced prices on equipment and free installation. Which of the
competitive forces is at play?
a company would experience switching costs if it chose to utilize a different
supplier because the current supplier's products are unique. - CORRECT-ANSWER-
Suppliers are most powerful when:
suffer from excess capacity and price wars - CORRECT-ANSWER-Industry
competitive structure identifies the number and size of companies. Fragmented
industries often:
Utilize an intensive advertising campaign to build brand loyalty. - CORRECT-
ANSWER-Jonathan's mobile communications device company is conducting an
industry analysis as it considers new strategies for its five-year strategic plan. The
analysis reveals that recent government deregulation has reduced the barriers to
entry and several start-ups are entering the industry. Which of these strategies
could be a part of the plan to counteract this?
BUAD 453 EXAM 1 2025| ACTUAL EXAM
QUESTIONS WITH 100% VERIFIED ANSWERS
commitment - CORRECT-ANSWER-Logan is an entrepreneur with a new idea for a
software product. His start-up company grows quickly to a team of about 25. A
new federal law recently passed by Congress will cause the software to become
obsolete without a major change in the programming. The investment in the
programming is going to be costly, and the company faces some hard choices.
Logan announces that he will get back to his roots as a programmer to work
alongside the software development team, taking the salary of a programmer, to
ensure that the newest version of the software will be compliant with the new
law. Which of these characteristics of an effective leader is Logan demonstrating
the most?
- risk of entry by a potential competitor
- closeness of substitutes to an industry's products
- bargaining power of suppliers - CORRECT-ANSWER-The extended competitive
forces model includes all of the following forces that shape competition within an
industry:
,2|Page
areas of threat and areas of opportunity that can serve as the basis of strategy
formulation and implementation. - CORRECT-ANSWER-An analysis using the
competitive forces model of an industry can indicate:
bargaining power of buyers - CORRECT-ANSWER-An industrial tool manufacturer
relies on a distributor network with the largest online outlet and store network
aimed at construction workers. The distributor network is seeking a manufacturer
to provide them with private label products. They've decided they will offer only
their own product line and not any other brand in this category of industrial tools.
Now, the industrial tool company must decide whether or not to agree to this
proposition or lose this company as a customer. This is an example of which of the
competitive forces at play in this industry?
Production costs are high and require high volumes to achieve profitability. -
CORRECT-ANSWER-Potential competitors may enter an industry and begin to
take market share from existing companies. What would be one of the largest
challenges a new entrant would need to overcome to be successful when entering
the industry?
identifying an industry by the customers that it serves and the needs it fulfills
rather than by the products it sells and staying focused on ensuring its products
meet those needs. - CORRECT-ANSWER-Companies can reduce the impact of the
substitute products force in the competitive forces model by:
, 3|Page
customer switching costs - CORRECT-ANSWER-Through research and
development, a cable company has found a way to use its existing network lines
to serve customers with a new product offering - home security systems. The
company is offering the service for a lower monthly fee than most security
companies. However, the sales force didn't see a lot of interest among its
customers who had an existing security system from a competitor until they ran a
promotion for reduced prices on equipment and free installation. Which of the
competitive forces is at play?
a company would experience switching costs if it chose to utilize a different
supplier because the current supplier's products are unique. - CORRECT-ANSWER-
Suppliers are most powerful when:
suffer from excess capacity and price wars - CORRECT-ANSWER-Industry
competitive structure identifies the number and size of companies. Fragmented
industries often:
Utilize an intensive advertising campaign to build brand loyalty. - CORRECT-
ANSWER-Jonathan's mobile communications device company is conducting an
industry analysis as it considers new strategies for its five-year strategic plan. The
analysis reveals that recent government deregulation has reduced the barriers to
entry and several start-ups are entering the industry. Which of these strategies
could be a part of the plan to counteract this?
