MGMT - 4513 Strategic Management - Oklahoma
State University - Professor Aime: Quiz #1 with
Correct Answers
Which is considered a force in the "Five-Forces" model?
Rivalry among competing firms.
Because the Internet lowers barriers to entry in most industries, it
increases the threat of new entrants.
Which of the following is NOT an entry barrier to an industry?
bargaining power of suppliers
Organizational goals and objectives should be vague in order to allow changes in
strategy.
False
Which of the following firms would likely pose the least competitive threat?
A competitor to your product where a high switching cost exists.
An industry is defined as:
a group of firms producing products that are close substitutes.
The bargaining power of suppliers is enhanced under the following market
condition
dominance by a few suppliers.
, Industries characterized by high economies of scale typically attract fewer new entrants.
True
Upper limits on the prices a firm can charge are impacted by:
the cost of substitute products.
If you believed in a pure five forces model of above-average returns, which of the
following things is LEAST important?
analysis of resources, capabilities, and core competencies
Product differentiation by incumbents act as an entry barrier because
new entrants will have to spend heavily to overcome existing
customer loyalties.
Exit barriers arise from
all of these.
Some excellent examples of mission statements are: "To be the happiest place on earth"
(Disney) and "restoring patients to full life" (Medtronic)
False
The hierarchy of organizational goals is in this order (least specific to most
specific):
vision statements, mission statements, strategic objectives.
State University - Professor Aime: Quiz #1 with
Correct Answers
Which is considered a force in the "Five-Forces" model?
Rivalry among competing firms.
Because the Internet lowers barriers to entry in most industries, it
increases the threat of new entrants.
Which of the following is NOT an entry barrier to an industry?
bargaining power of suppliers
Organizational goals and objectives should be vague in order to allow changes in
strategy.
False
Which of the following firms would likely pose the least competitive threat?
A competitor to your product where a high switching cost exists.
An industry is defined as:
a group of firms producing products that are close substitutes.
The bargaining power of suppliers is enhanced under the following market
condition
dominance by a few suppliers.
, Industries characterized by high economies of scale typically attract fewer new entrants.
True
Upper limits on the prices a firm can charge are impacted by:
the cost of substitute products.
If you believed in a pure five forces model of above-average returns, which of the
following things is LEAST important?
analysis of resources, capabilities, and core competencies
Product differentiation by incumbents act as an entry barrier because
new entrants will have to spend heavily to overcome existing
customer loyalties.
Exit barriers arise from
all of these.
Some excellent examples of mission statements are: "To be the happiest place on earth"
(Disney) and "restoring patients to full life" (Medtronic)
False
The hierarchy of organizational goals is in this order (least specific to most
specific):
vision statements, mission statements, strategic objectives.
