MGMT 4513 MIDTERM ACTUAL STUDY
QUESTIONS WITH VERIFIED ANSWERS |
LATEST EDITION
1. 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 - ANSWER c
2. 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 - ANSWER b
3. Which of the following is NOT an entry barrier to an industry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
d. bargaining power of suppliers - ANSWER d
4. 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 - ANSWER c
,5. Exit barriers arise from
a. specialized assets with no alternative use
b. governmental and social pressures
c. strategic interrelations with other business units within the same
company
d. all of these. - ANSWER d
6. Some excellent examples of mission statements are: "to be the happiest
place on earth" (Disney) and "restoring patients to full life" (Medtronic)
a. True
b. False - ANSWER b
7. The hierarchy of organization goals is in this order (least specific to most
specific)
a. vision statements, strategic objectives, mission statements
b. mission statements, strategic objectives, vision statements
c. vision statements, mission statements, strategic objectives
d. mission statements, vision statements, strategic objectives -
ANSWER c
8. A certain marble quarry provides a unique type of marble that is richly
colored and strikingly veined. It has been used for churches and public
buildings throughout the world. The architect of a new headquarters for a
prestigious Fortune 500 firm has specified the use of this marble, and this
marble only, for this project. Which of the following statements is most
likely to be true?
a. The cost of the marble will be expensive because of the bargaining
power of the supplier
b. The cost of the marble will be moderate because of the bargaining
power of the buyer
c. The cost of the marble will be moderate because of the economies of
scale
d. The cost of the marble will be expensive because of the high strategic
stakes involved. - ANSWER a
,9. Increasingly larger number of women entering the work force since the early
1970s is an example of
a. demographic changes
b. political and legal environmental changes
c. sociocultural changes
d. technological developments - ANSWER c
10.Supplier power tends to be highest in industries where products are vital to
buyers, where switching from one supplier to another is very costly, and
where there are many suppliers.
a. True
b. False - ANSWER b
11.Firms would be most likely to face intense rivalry with competitors when
they
a. are in a high growth industry with low fixed costs
b. are in a protected market
c. have high fixed costs, in a slow growth industry with high exit
barriers
d. have low exit barriers for easy transition to another industry. -
ANSWER c
12.Organizational goals and objectives should be vague in order to allow
changes in strategy
a. true
b. false - ANSWER b
13.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 - ANSWER c
14.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
d. a group of firms producing products that are close substitutes -
ANSWER d
15.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 - ANSWER d
16.Industries characterized by high economies of scale typically attract fewer
new entrants.
a. true
b. false - ANSWER a
17.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 - ANSWER b
If you believed in a pure five forces model of above-average returns, which of the
following things is LEAST important?
a. industry analysis
QUESTIONS WITH VERIFIED ANSWERS |
LATEST EDITION
1. 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 - ANSWER c
2. 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 - ANSWER b
3. Which of the following is NOT an entry barrier to an industry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
d. bargaining power of suppliers - ANSWER d
4. 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 - ANSWER c
,5. Exit barriers arise from
a. specialized assets with no alternative use
b. governmental and social pressures
c. strategic interrelations with other business units within the same
company
d. all of these. - ANSWER d
6. Some excellent examples of mission statements are: "to be the happiest
place on earth" (Disney) and "restoring patients to full life" (Medtronic)
a. True
b. False - ANSWER b
7. The hierarchy of organization goals is in this order (least specific to most
specific)
a. vision statements, strategic objectives, mission statements
b. mission statements, strategic objectives, vision statements
c. vision statements, mission statements, strategic objectives
d. mission statements, vision statements, strategic objectives -
ANSWER c
8. A certain marble quarry provides a unique type of marble that is richly
colored and strikingly veined. It has been used for churches and public
buildings throughout the world. The architect of a new headquarters for a
prestigious Fortune 500 firm has specified the use of this marble, and this
marble only, for this project. Which of the following statements is most
likely to be true?
a. The cost of the marble will be expensive because of the bargaining
power of the supplier
b. The cost of the marble will be moderate because of the bargaining
power of the buyer
c. The cost of the marble will be moderate because of the economies of
scale
d. The cost of the marble will be expensive because of the high strategic
stakes involved. - ANSWER a
,9. Increasingly larger number of women entering the work force since the early
1970s is an example of
a. demographic changes
b. political and legal environmental changes
c. sociocultural changes
d. technological developments - ANSWER c
10.Supplier power tends to be highest in industries where products are vital to
buyers, where switching from one supplier to another is very costly, and
where there are many suppliers.
a. True
b. False - ANSWER b
11.Firms would be most likely to face intense rivalry with competitors when
they
a. are in a high growth industry with low fixed costs
b. are in a protected market
c. have high fixed costs, in a slow growth industry with high exit
barriers
d. have low exit barriers for easy transition to another industry. -
ANSWER c
12.Organizational goals and objectives should be vague in order to allow
changes in strategy
a. true
b. false - ANSWER b
13.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 - ANSWER c
14.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
d. a group of firms producing products that are close substitutes -
ANSWER d
15.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 - ANSWER d
16.Industries characterized by high economies of scale typically attract fewer
new entrants.
a. true
b. false - ANSWER a
17.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 - ANSWER b
If you believed in a pure five forces model of above-average returns, which of the
following things is LEAST important?
a. industry analysis
