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STRATEGIC MANAGEMENT: CHAPTER
2 MULTIPLE CHOICE 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
According to the five forces model, an attractive industry would
have all of the following characteristics EXCEPT
a. low barriers to entry.
b. suppliers and buyers with little bargaining power.
c. a moderate degree of rivalry among competitors.
d. few good product substitutes. - correct answer -low barriers to
entry.
According to the five forces model, an unattractive industry would
include all of the following characteristics EXCEPT
a. low economies of scale needed for new firms to enter.
b. low supplier power due to commodity inputs.
c. high threat of substitute products due to a large number of low
cost alternatives.
d. high bargaining power of buyers due to low switching costs. -
correct answer -low supplier power due to commodity inputs.
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The competition within each strategic group is
a. more intense than is the competition between strategic groups.
b. less intense than is the competition between strategic groups.
c. typically very low.
d. an unknown factor in the analysis of competitive practices
within a firm's strategic group. - correct answer -more intense
than is the competition between strategic groups.
Firms within strategic groups
a. follow dissimilar strategies.
b. follow similar strategies across certain dimensions.
c. typically engage in greater amounts of intergroup rivalry than
intragroup rivalry.
d. exist almost exclusively in the manufacturing sector. - correct
answer -follow similar strategies across certain dimensions.
All of the following are implications of strategic groups EXCEPT
a. the strength of the five forces differ across strategic groups.
b. the strength of the five forces is the same across strategic
groups.
c. competitive rivalry within strategic groups is greater than
between strategic groups.
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d. the closer the strategic groups are in terms of strategies, the
greater is the likelihood of rivalry. - correct answer -the strength
of the five forces is the same across strategic groups.
Competitor analysis focuses on
a. firms with which the company competes directly.
b. firms that produce products that are substitutes.
c. all firms in the industry.
d. companies that might enter the industry. - correct answer -
firms with which the company competes directly.
Which of the following pairs of companies would be least likely to
be examined together as part of competitive analysis?
a. Home Depot and Lowe's
b. Boeing and Airbus
c. IBM and Microsoft
d. Coca Cola and PepsiCo - correct answer -IBM and Microsoft
Competitor intelligence is
a. legally or illegally-gained data about competitors' internal
strategic processes and competitive decisions.
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b. strategic information gained from industrial espionage targeting
international competitors.
c. the data that the firm gathers to understand competitors'
objectives, strategies, assumptions, and capabilities.
d. illegal to gather under the Sarbanes-Oxley Act. - correct
answer -the data that the firm gathers to understand competitors'
objectives, strategies, assumptions, and capabilities.
Once a firm has determined its competitor's future objectives,
current strategy, assumptions, and strengths and weaknesses, its
next step is to develop
a. an environmental assessment.
b. a marketing plan.
c. a response profile.
d. a task force to implement the plan. - correct answer -a
response profile.
A competitor analysis includes all of the following about
competitors EXCEPT
a. future objectives.
b. current strategy.
c. assumptions.
d. traditions. - correct answer -traditions.
STRATEGIC MANAGEMENT: CHAPTER
2 MULTIPLE CHOICE 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
According to the five forces model, an attractive industry would
have all of the following characteristics EXCEPT
a. low barriers to entry.
b. suppliers and buyers with little bargaining power.
c. a moderate degree of rivalry among competitors.
d. few good product substitutes. - correct answer -low barriers to
entry.
According to the five forces model, an unattractive industry would
include all of the following characteristics EXCEPT
a. low economies of scale needed for new firms to enter.
b. low supplier power due to commodity inputs.
c. high threat of substitute products due to a large number of low
cost alternatives.
d. high bargaining power of buyers due to low switching costs. -
correct answer -low supplier power due to commodity inputs.
, Page | 2
The competition within each strategic group is
a. more intense than is the competition between strategic groups.
b. less intense than is the competition between strategic groups.
c. typically very low.
d. an unknown factor in the analysis of competitive practices
within a firm's strategic group. - correct answer -more intense
than is the competition between strategic groups.
Firms within strategic groups
a. follow dissimilar strategies.
b. follow similar strategies across certain dimensions.
c. typically engage in greater amounts of intergroup rivalry than
intragroup rivalry.
d. exist almost exclusively in the manufacturing sector. - correct
answer -follow similar strategies across certain dimensions.
All of the following are implications of strategic groups EXCEPT
a. the strength of the five forces differ across strategic groups.
b. the strength of the five forces is the same across strategic
groups.
c. competitive rivalry within strategic groups is greater than
between strategic groups.
, Page | 3
d. the closer the strategic groups are in terms of strategies, the
greater is the likelihood of rivalry. - correct answer -the strength
of the five forces is the same across strategic groups.
Competitor analysis focuses on
a. firms with which the company competes directly.
b. firms that produce products that are substitutes.
c. all firms in the industry.
d. companies that might enter the industry. - correct answer -
firms with which the company competes directly.
Which of the following pairs of companies would be least likely to
be examined together as part of competitive analysis?
a. Home Depot and Lowe's
b. Boeing and Airbus
c. IBM and Microsoft
d. Coca Cola and PepsiCo - correct answer -IBM and Microsoft
Competitor intelligence is
a. legally or illegally-gained data about competitors' internal
strategic processes and competitive decisions.
, Page | 4
b. strategic information gained from industrial espionage targeting
international competitors.
c. the data that the firm gathers to understand competitors'
objectives, strategies, assumptions, and capabilities.
d. illegal to gather under the Sarbanes-Oxley Act. - correct
answer -the data that the firm gathers to understand competitors'
objectives, strategies, assumptions, and capabilities.
Once a firm has determined its competitor's future objectives,
current strategy, assumptions, and strengths and weaknesses, its
next step is to develop
a. an environmental assessment.
b. a marketing plan.
c. a response profile.
d. a task force to implement the plan. - correct answer -a
response profile.
A competitor analysis includes all of the following about
competitors EXCEPT
a. future objectives.
b. current strategy.
c. assumptions.
d. traditions. - correct answer -traditions.
