1|Page
MNGT 4800 Adams Test 2 Questions with 100% Correct
Answers
The Pestel Framework - ANSWER Managers mitigate threats
and exploit opportunities by analyzing the external
environmental forces, factors are interdependent, framework to
scan, monitor, and evaluate important external factors/trends
impacting a firm in its quest for competitive advantage
Industry - ANSWER a group of incumbent firms that face the
same set of suppliers and buyers
Industry analysis - ANSWER identifies the industry's profit
potential, derive implications for a firm's strategic position
within an industry
Strategic position - ANSWER a firm's ability to create value (V)
for customers while containing costs (C)
The Threat of Entry - ANSWER Incumbent firms can benefit
from several important sources of entry barriers
, 2|Page
Powerful suppliers - ANSWER can demand higher prices for
their inputs, capture part (sometimes a large part) of the
economic value created
Powerful buyers - ANSWER can demand a lower price or higher
product quality and can reduce industry profit potential
The threat of substitutes - ANSWER this threat derives from
products/services fulfilling the needs of current customers from
outside the industry, substitutes limit the price that industry
competitors can charge for their products/services
Complement - ANSWER a product, service, or competency that
adds value when used in tandem with the original product
offering
Complementor - ANSWER a firm that provides a good/service
that leads customers to value your firm's offering more when
the two are combined
Co-opetition - ANSWER cooperation by competitors to achieve a
strategic objective
MNGT 4800 Adams Test 2 Questions with 100% Correct
Answers
The Pestel Framework - ANSWER Managers mitigate threats
and exploit opportunities by analyzing the external
environmental forces, factors are interdependent, framework to
scan, monitor, and evaluate important external factors/trends
impacting a firm in its quest for competitive advantage
Industry - ANSWER a group of incumbent firms that face the
same set of suppliers and buyers
Industry analysis - ANSWER identifies the industry's profit
potential, derive implications for a firm's strategic position
within an industry
Strategic position - ANSWER a firm's ability to create value (V)
for customers while containing costs (C)
The Threat of Entry - ANSWER Incumbent firms can benefit
from several important sources of entry barriers
, 2|Page
Powerful suppliers - ANSWER can demand higher prices for
their inputs, capture part (sometimes a large part) of the
economic value created
Powerful buyers - ANSWER can demand a lower price or higher
product quality and can reduce industry profit potential
The threat of substitutes - ANSWER this threat derives from
products/services fulfilling the needs of current customers from
outside the industry, substitutes limit the price that industry
competitors can charge for their products/services
Complement - ANSWER a product, service, or competency that
adds value when used in tandem with the original product
offering
Complementor - ANSWER a firm that provides a good/service
that leads customers to value your firm's offering more when
the two are combined
Co-opetition - ANSWER cooperation by competitors to achieve a
strategic objective
