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MGMT 4513 MIDTERM EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
Which is considered a force in the "Five Forces" model?
a. Increased deregulation
b. the threat of government intervention
c. rivalry among competing firms
d. recent technology innovation - correct answer-C
Because the Internet lowers barriers to entry in most industries, it
a. decreases the threat of new entrants
b. increases the threat of new entrants
c. makes it easier to build customer loyalty
d. increases supplier power - correct answer-B
Which of the following is NOT an entry barrier to an industry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
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d. bargaining power of suppliers - correct answer-D
Organizational goals and objectives should be vague in order to
allow changes in strategy
a. true
b. false - correct answer-False
Which of the following firms would likely pose the least
competitive threat?
a. A firm in the same industry and in the same strategic group
b. A firm that produces substitute goods to your product
c. A competitor to your product where a high switching cost exists
d. A firm in the same industry and in the nearest strategic group
looking to join your group - correct answer-c
An industry is defined as:
a. A group of firms producing the same item
b. firms producing items that sell through the same distribution
channels
c. firms that have the same seven digit standard industrial code
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d. a group of firms producing products that are close substitutes -
correct answer-d
The bargaining power of suppliers is enhanced under the
following market condition
a. no threat of forward integration
b. low differentiation of the suppliers' products
c. greater availability of substitute products
d. dominance by a few suppliers - correct answer-d
Industries characterized by high economies of scale typically
attract fewer new entrants.
a. true
b. false - correct answer-True
Upper limits on the prices a firm can charge are impacted by:
a. expected retaliation from competitors
b. the cost of substitute products
c. variable costs of production
d. customers' high switching costs - correct answer-b
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If you believed in a pure five forces model of above-average
returns, which of the following things is LEAST important?
a. industry analysis
b. competitor analysis
c. analysis of general environment
d. analysis of resources, capabilities, and core competencies
e. all are equally important. - correct answer-d
Product differentiation by incumbents act as an entry barrier
because
a. new entrants cannot differentiate their products
b. incumbents will take legal action if new entrants do not
differentiate their products
c. new entrants will have to spend heavily to overcome existing
customer loyalties
d. it helps a firm to derive greater economies of scale - correct
answer-c
Exit barriers arise from
a. specialized assets with no alternative use
b. governmental and social pressures
MGMT 4513 MIDTERM EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
Which is considered a force in the "Five Forces" model?
a. Increased deregulation
b. the threat of government intervention
c. rivalry among competing firms
d. recent technology innovation - correct answer-C
Because the Internet lowers barriers to entry in most industries, it
a. decreases the threat of new entrants
b. increases the threat of new entrants
c. makes it easier to build customer loyalty
d. increases supplier power - correct answer-B
Which of the following is NOT an entry barrier to an industry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
, Page | 2
d. bargaining power of suppliers - correct answer-D
Organizational goals and objectives should be vague in order to
allow changes in strategy
a. true
b. false - correct answer-False
Which of the following firms would likely pose the least
competitive threat?
a. A firm in the same industry and in the same strategic group
b. A firm that produces substitute goods to your product
c. A competitor to your product where a high switching cost exists
d. A firm in the same industry and in the nearest strategic group
looking to join your group - correct answer-c
An industry is defined as:
a. A group of firms producing the same item
b. firms producing items that sell through the same distribution
channels
c. firms that have the same seven digit standard industrial code
, Page | 3
d. a group of firms producing products that are close substitutes -
correct answer-d
The bargaining power of suppliers is enhanced under the
following market condition
a. no threat of forward integration
b. low differentiation of the suppliers' products
c. greater availability of substitute products
d. dominance by a few suppliers - correct answer-d
Industries characterized by high economies of scale typically
attract fewer new entrants.
a. true
b. false - correct answer-True
Upper limits on the prices a firm can charge are impacted by:
a. expected retaliation from competitors
b. the cost of substitute products
c. variable costs of production
d. customers' high switching costs - correct answer-b
, Page | 4
If you believed in a pure five forces model of above-average
returns, which of the following things is LEAST important?
a. industry analysis
b. competitor analysis
c. analysis of general environment
d. analysis of resources, capabilities, and core competencies
e. all are equally important. - correct answer-d
Product differentiation by incumbents act as an entry barrier
because
a. new entrants cannot differentiate their products
b. incumbents will take legal action if new entrants do not
differentiate their products
c. new entrants will have to spend heavily to overcome existing
customer loyalties
d. it helps a firm to derive greater economies of scale - correct
answer-c
Exit barriers arise from
a. specialized assets with no alternative use
b. governmental and social pressures
