BUSN 495 CH 3 EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2025-2026
Which of the following is not one of the questions that needs to be answered in thinking strategically
about a company's external environment? - AnswersWhat are the company's competitively valuable
resources and capabilities that can be used to form the foundation of its competitive approach?
In identifying a company's broader macro-environment, the following have strategic significance
_______________ - Answersgeneral economic conditions, societal values and cultural norms, political
and legal/regulatory factors, technological factors, and ecological considerations.
Which of the following is not a relevant factor in conducting a PESTEL analysis? - Answershow often
sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item
being purchased is a good or a service, and whether buyers buy frequently or infrequently.
Based on both the chapter discussion and the summary in Figure 3.4, competitive pressures stemming
from substitute products are weaker when _______________ - Answerssubstitutes are higher-priced,
buyers don't believe substitute products have equal or better features, and buyers' costs of switching to
substitutes are relatively high.
Which of the following is not a factor in determining whether the suppliers to an industry are a source of
strong, moderate, or weak competitive pressures? - AnswersWhether the industry supply chain is global
or mostly national, whether suppliers have a wide or narrow product line, and whether industry
members place orders frequently or infrequently with suppliers.
Which of the following is not a reason that industry rivals are often motivated to enter into strategic
partnerships with key suppliers? - AnswersTo reduce the bargaining power they face from buyers of
their products.
According to both the text discussion and the summary in Figure 3.6, competitive pressures associated
with the threat of new entrants grow stronger when _______________ - Answersindustry members are
looking to expand their market reach by entering product segments or geographic areas where they
currently do not have a presence, when current industry members are unable or unwilling to strongly
contest the entry of newcomers, and when a newcomer can reasonably expect to earn attractive profits.
Which of the following conditions generally raise the barriers to entering an industry? - AnswersHigh
capital requirements, difficulties in building a network of distributors-retailers and securing adequate
space on retailers' shelves, and the likelihood that industry incumbents will strongly contest the efforts
of new entrants to gain a market foothold
According to both the text discussion and the summary in Figure 3.7, which of the following is not
among the factors that determine whether competitive rivalry among industry members is strong,
moderate, or weak? - AnswersWhether industry members are vertically integrated and whether the
industry is characterized by significant scale economies and rapid technological change.
Which of the following is not one of the questions that needs to be answered in thinking strategically
about a company's external environment? - AnswersWhat are the company's competitively valuable
resources and capabilities that can be used to form the foundation of its competitive approach?
In identifying a company's broader macro-environment, the following have strategic significance
_______________ - Answersgeneral economic conditions, societal values and cultural norms, political
and legal/regulatory factors, technological factors, and ecological considerations.
Which of the following is not a relevant factor in conducting a PESTEL analysis? - Answershow often
sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item
being purchased is a good or a service, and whether buyers buy frequently or infrequently.
Based on both the chapter discussion and the summary in Figure 3.4, competitive pressures stemming
from substitute products are weaker when _______________ - Answerssubstitutes are higher-priced,
buyers don't believe substitute products have equal or better features, and buyers' costs of switching to
substitutes are relatively high.
Which of the following is not a factor in determining whether the suppliers to an industry are a source of
strong, moderate, or weak competitive pressures? - AnswersWhether the industry supply chain is global
or mostly national, whether suppliers have a wide or narrow product line, and whether industry
members place orders frequently or infrequently with suppliers.
Which of the following is not a reason that industry rivals are often motivated to enter into strategic
partnerships with key suppliers? - AnswersTo reduce the bargaining power they face from buyers of
their products.
According to both the text discussion and the summary in Figure 3.6, competitive pressures associated
with the threat of new entrants grow stronger when _______________ - Answersindustry members are
looking to expand their market reach by entering product segments or geographic areas where they
currently do not have a presence, when current industry members are unable or unwilling to strongly
contest the entry of newcomers, and when a newcomer can reasonably expect to earn attractive profits.
Which of the following conditions generally raise the barriers to entering an industry? - AnswersHigh
capital requirements, difficulties in building a network of distributors-retailers and securing adequate
space on retailers' shelves, and the likelihood that industry incumbents will strongly contest the efforts
of new entrants to gain a market foothold
According to both the text discussion and the summary in Figure 3.7, which of the following is not
among the factors that determine whether competitive rivalry among industry members is strong,
moderate, or weak? - AnswersWhether industry members are vertically integrated and whether the
industry is characterized by significant scale economies and rapid technological change.
