MGMT 4513 MIDTERM QUESTIONS & VERIFIED
ANSWERS
The hierarchy of organizational goals is in this order - Answers - mission statements,
vision statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on
earth" (Disney), and "restoring patients to full life" (Medtronic) - Answers - False
Organizational goals and objectives should be vague in order to allow changes in
strategy - Answers - false
Increasingly larger numbers of women are entering the workforce since the early 1970's
is an example of? - Answers - sociocultural changes
An industry is defined as - Answers - a group of firms producing products that are close
substitutes
The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm level
analytical model which explains difference in performance between the firms that
compete in one industry. T/F - Answers - false
Which is considered a force in the 5 forces model?
- rivalry among competing firms
- recent technological innovation
- the threat of gov. Intervention
- increased deregulation - Answers - rivalry among competing firms
Because the internet lowers the barriers to entry in most industries, it...? - Answers -
increases the threat of new entrants
Which of the following is NOT an entry barrier to an industry?
- customer product loyalty
- bargaining power of suppliers
- expected competitor retaliation
- economies of scale - Answers - bargaining power of suppliers
Industries characterized by high economies of scale typically attract fewer new entrants.
T/F - Answers - true
Which of the following firms would likely pose the least competitive threat?
- a form in the same industry and in the nearest strategic group looking to join your
group
ANSWERS
The hierarchy of organizational goals is in this order - Answers - mission statements,
vision statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on
earth" (Disney), and "restoring patients to full life" (Medtronic) - Answers - False
Organizational goals and objectives should be vague in order to allow changes in
strategy - Answers - false
Increasingly larger numbers of women are entering the workforce since the early 1970's
is an example of? - Answers - sociocultural changes
An industry is defined as - Answers - a group of firms producing products that are close
substitutes
The five forces model (buyers/suppliers/new entrants/substitutes/rivalry) is a firm level
analytical model which explains difference in performance between the firms that
compete in one industry. T/F - Answers - false
Which is considered a force in the 5 forces model?
- rivalry among competing firms
- recent technological innovation
- the threat of gov. Intervention
- increased deregulation - Answers - rivalry among competing firms
Because the internet lowers the barriers to entry in most industries, it...? - Answers -
increases the threat of new entrants
Which of the following is NOT an entry barrier to an industry?
- customer product loyalty
- bargaining power of suppliers
- expected competitor retaliation
- economies of scale - Answers - bargaining power of suppliers
Industries characterized by high economies of scale typically attract fewer new entrants.
T/F - Answers - true
Which of the following firms would likely pose the least competitive threat?
- a form in the same industry and in the nearest strategic group looking to join your
group
