ISA 235 EXAM 2 PRACTICE SCRIPT 2026
TESTED QUESTIONS WITH ANSWERS
◉ First-mover advantage. Answer: Organization can significantly
impact its market share by being the first to market with
competitive advantage
◉ SWOT analysis. Answer: Evaluates an organization's strengths,
weaknesses, opportunities, and threats.
◉ Five Forces Model. Answer: Evaluating industry attractiveness
based on supplier power, buyer power, threat of new entrants, threat
of substitute products, and rivalry among existing competitors
◉ Buyer power. Answer: The ability of buyers to affect the price of
an item
◉ Supplier power. Answer: The supplier's ability to influence the
prices they charge for supplies
◉ The threat of substitute products. Answer: High when many
alternatives, low when few alternatives
, ◉ The threat of new entrants. Answer: High when it is easy to enter
market, low when it is hard to enter market
◉ Rivalry among competitors. Answer: High when competition is
fierce, low when competitors are complacent
◉ Pointer's three generic strategies. Answer: Cost leadership,
Differentiation, Focused strategy
◉ Cost leadership. Answer: Board market, low cost
◉ Differentiation. Answer: High cost, board market
◉ Focused strategy. Answer: Narrow market, high or low cost
◉ Value chain analysis. Answer: Views a firm as a series of business
processes that each add value to the product or service
◉ Primary value activities. Answer: Inbound logistics, Operations,
Outbound logistics, Marketing and sales, Service
◉ Inbound logistics. Answer: Acquires raw materials resources and
distributes
TESTED QUESTIONS WITH ANSWERS
◉ First-mover advantage. Answer: Organization can significantly
impact its market share by being the first to market with
competitive advantage
◉ SWOT analysis. Answer: Evaluates an organization's strengths,
weaknesses, opportunities, and threats.
◉ Five Forces Model. Answer: Evaluating industry attractiveness
based on supplier power, buyer power, threat of new entrants, threat
of substitute products, and rivalry among existing competitors
◉ Buyer power. Answer: The ability of buyers to affect the price of
an item
◉ Supplier power. Answer: The supplier's ability to influence the
prices they charge for supplies
◉ The threat of substitute products. Answer: High when many
alternatives, low when few alternatives
, ◉ The threat of new entrants. Answer: High when it is easy to enter
market, low when it is hard to enter market
◉ Rivalry among competitors. Answer: High when competition is
fierce, low when competitors are complacent
◉ Pointer's three generic strategies. Answer: Cost leadership,
Differentiation, Focused strategy
◉ Cost leadership. Answer: Board market, low cost
◉ Differentiation. Answer: High cost, board market
◉ Focused strategy. Answer: Narrow market, high or low cost
◉ Value chain analysis. Answer: Views a firm as a series of business
processes that each add value to the product or service
◉ Primary value activities. Answer: Inbound logistics, Operations,
Outbound logistics, Marketing and sales, Service
◉ Inbound logistics. Answer: Acquires raw materials resources and
distributes
