UWEC MGMT 449 EXAM 1 (LATEST UPDATE) REAL
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
PESTEL Analysis Ans✓✓✓ focuses on principal components of
strategic significance in the macro-environment
what do the letters in PESTEL mean Ans✓✓✓ Political factors
Economic conditions
Socioeconomic forces
Technological factors
Environmental factors
Legal factors
What are the components in the five-forces model of competition
Ans✓✓✓ Buyers
Suppliers
Potential
Firms in other industries w/ sub products
Rivalry among competing firms
How to use the five-forces model Ans✓✓✓ Step 1: ID parties involved
in competitive pressures
Step 2: Eval strengths of pressures
, Step 3: Determine if the forces are supportive of high industry
profitability
define Strategy Ans✓✓✓ set of actions that its managers take to out
perform the company's competitors and achieve superior profitability
Rivalry increases and becomes stronger when: Ans✓✓✓ - demand is
growing slowly
- cost to switch brands is low
- products are commodities or weakly differentiated
- firms have excess production capacity
- firms have high fixed/storage costs
- competitors are numerous or equal in size and strength
- rivals have diverse objectives, strategies or countries of origin
- rivals have emotional stakes or face high exit barriers
Factors affecting the threat of entry Ans✓✓✓ all types barriers to entry
from capital requirements or brand loyalty to government regulations or
policies
competitive pressure from substitutes are stronger when: Ans✓✓✓ good
substitutes are available and attractively priced, comparable or better
features, and have a low cost to switch
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
PESTEL Analysis Ans✓✓✓ focuses on principal components of
strategic significance in the macro-environment
what do the letters in PESTEL mean Ans✓✓✓ Political factors
Economic conditions
Socioeconomic forces
Technological factors
Environmental factors
Legal factors
What are the components in the five-forces model of competition
Ans✓✓✓ Buyers
Suppliers
Potential
Firms in other industries w/ sub products
Rivalry among competing firms
How to use the five-forces model Ans✓✓✓ Step 1: ID parties involved
in competitive pressures
Step 2: Eval strengths of pressures
, Step 3: Determine if the forces are supportive of high industry
profitability
define Strategy Ans✓✓✓ set of actions that its managers take to out
perform the company's competitors and achieve superior profitability
Rivalry increases and becomes stronger when: Ans✓✓✓ - demand is
growing slowly
- cost to switch brands is low
- products are commodities or weakly differentiated
- firms have excess production capacity
- firms have high fixed/storage costs
- competitors are numerous or equal in size and strength
- rivals have diverse objectives, strategies or countries of origin
- rivals have emotional stakes or face high exit barriers
Factors affecting the threat of entry Ans✓✓✓ all types barriers to entry
from capital requirements or brand loyalty to government regulations or
policies
competitive pressure from substitutes are stronger when: Ans✓✓✓ good
substitutes are available and attractively priced, comparable or better
features, and have a low cost to switch
