MAN 4720 LATEST EXAMS SCRIPT TIPS QUESTIONS
AND ANSWERS SURE A+
✔✔Segments and elements of the general (macro) environment - ✔✔-demographic
-economic
-political/legal
-sociocultural
-technological
-global
-physical
✔✔Parts of the external environment - ✔✔-scanning
-monitoring
-forecasting
-assessing
✔✔External environment analysis enables firms to identify - ✔✔opportunities and
threats
✔✔The Five Forces of Competition Model - ✔✔
✔✔Economies of Scale - ✔✔-marginal improvements in efficiency that a firm
experiences as it incrementally increases its size
, ✔✔Factors (advantages and disadvantages) related to large and small-scale entry
include - ✔✔-flexibility in pricing and market share
-costs related to scale economies
-competitor retaliation
✔✔Barriers to entry - ✔✔-product differentiation
-capital requirements
-switching costs
-distribution channel access
-cost disadvantages independent of scale
-government policy
-expected retaliation
✔✔Supplier bargaining power increases when - ✔✔-suppliers are large and few in
number
-suitable substitute products are not available
-individual buyers are not large customers of suppliers and there are many of them
-suppliers' goods are critical to the buyers' marketplace success
-suppliers' products create high switching costs
-suppliers pose a threat to integrate forward into buyers' industry
✔✔Buyer bargaining power increases when - ✔✔-buyers are large and few in number
-buyers purchase a large portion of an industry's total output
-buyers' purchases are a significant portion of a supplier's annual revenues
-buyer's switching costs are low
-buyers can pose threat to integrate backward into the sellers' industry
✔✔The threat of substitute products increases when - ✔✔-buyers face few switching
costs
-the substitute product's price is lower
-substitute product's quality and performance are equal to or greater than the existing
product
-differentiated industry products that are values by customers reduce this threat
✔✔Unattractive Industry - ✔✔
✔✔Attractive Industry - ✔✔High entry barriers
Suppliers and buyers have weak positions
few threats from substitute products
moderate rivalry among competitors
✔✔Strategic Group - ✔✔-a set of firms emphasizing similar strategic dimensions and
using similar strategies
AND ANSWERS SURE A+
✔✔Segments and elements of the general (macro) environment - ✔✔-demographic
-economic
-political/legal
-sociocultural
-technological
-global
-physical
✔✔Parts of the external environment - ✔✔-scanning
-monitoring
-forecasting
-assessing
✔✔External environment analysis enables firms to identify - ✔✔opportunities and
threats
✔✔The Five Forces of Competition Model - ✔✔
✔✔Economies of Scale - ✔✔-marginal improvements in efficiency that a firm
experiences as it incrementally increases its size
, ✔✔Factors (advantages and disadvantages) related to large and small-scale entry
include - ✔✔-flexibility in pricing and market share
-costs related to scale economies
-competitor retaliation
✔✔Barriers to entry - ✔✔-product differentiation
-capital requirements
-switching costs
-distribution channel access
-cost disadvantages independent of scale
-government policy
-expected retaliation
✔✔Supplier bargaining power increases when - ✔✔-suppliers are large and few in
number
-suitable substitute products are not available
-individual buyers are not large customers of suppliers and there are many of them
-suppliers' goods are critical to the buyers' marketplace success
-suppliers' products create high switching costs
-suppliers pose a threat to integrate forward into buyers' industry
✔✔Buyer bargaining power increases when - ✔✔-buyers are large and few in number
-buyers purchase a large portion of an industry's total output
-buyers' purchases are a significant portion of a supplier's annual revenues
-buyer's switching costs are low
-buyers can pose threat to integrate backward into the sellers' industry
✔✔The threat of substitute products increases when - ✔✔-buyers face few switching
costs
-the substitute product's price is lower
-substitute product's quality and performance are equal to or greater than the existing
product
-differentiated industry products that are values by customers reduce this threat
✔✔Unattractive Industry - ✔✔
✔✔Attractive Industry - ✔✔High entry barriers
Suppliers and buyers have weak positions
few threats from substitute products
moderate rivalry among competitors
✔✔Strategic Group - ✔✔-a set of firms emphasizing similar strategic dimensions and
using similar strategies
