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A company's "macro-environment" refers to - ANSWER the strategically relevant factors outside a company's industry boundaries—economic conditions, political factors, socio-cultural forces, technological factors, environmental factors, and legal/regulatory conditions. principal components of strategic significance in the PESTEL analysis - ANSWER A. Political factors including the extent to which government intervenes in the economy B. Economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence C. Socio-cultural forces including societal values, attitudes, cultural factors, and lifestyles that impact business D. Technological factors includes the pace of change and technical developments that have the potential for impacting society major questions to ask in thinking strategically about industry and competitive conditions in a given industry - ANSWER -What strategic moves are rivals likely to make next? -What are the industry's key factors for future competitive success? -Is the outlook for the industry conducive to providing attractive profitability? -What are the driving forces in the industry, and what impact will these changes have on competitive intensity and industry profitability? Thinking strategically about the industry and competitive environment involves in-depth analysis and evaluation of such consideration as - ANSWER the market positions of industry rivals and their relative strength, and the competitive forces rivals are facing and what impact they will have on competitive intensity and industry profitability. The most powerful and widely used tool for diagnosing the principle competitive pressures in a market is the - ANSWER Five Forces Model The competitive pressures on companies within an industry comes from those: - ANSWER -associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. -companies in other industries attempting to win buyers over to their substitute products. -associated with the threat of new entrants into the marketplace. -associated with the bargaining power of suppliers and customers. The nature and strength of the competitive forces that prevail in an industry is generally a joint product of - ANSWER -competition from rival sellers. -competition from potential new entrants. -competition from producers of substitute products. -competitive pressures stemming from the bargaining power of both suppliers and buyers. The most powerful of the five competitive forces is USUALLY - ANSWER the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. What makes the marketplace a competitive battlefield is - ANSWER the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals. Market maneuvering among industry rivals - ANSWER is ongoing and dynamic, with moves and countermoves of rivals producing a continually evolving competitive landscape that delivers winners and losers. Rivalry increases - ANSWER when buyer demand is growing fast or increasing. Factors that cause the rivalry among competing sellers to be weaker include - ANSWER rapid growth in buyer demand and high buyer switching costs. In analyzing the strength of competition among rival firms, an important consideration is - ANSWER the diversity of competitors in terms of long-term direction objectives, strategies, and countries of origin. Potential entrants are more likely to be deterred from actually entering an industry when - ANSWER incumbent firms are willing and able to be aggressive in defending their market positions against entry. The competitive threat that outsiders will enter a market is weaker when - ANSWER financially strong incumbents send strong signals that they will launch strategic initiatives to combat the entry of newcomers. Competitive pressures stemming from the threat of entry are weaker when - ANSWER the industry outlook is risky or uncertain good examples of substitutes product that triggers stronger competitive pressures? - ANSWER -A salad as a substitute for French fries -Wireless phones as a substitute for wired telephones -Snowboards as a substitute for snow skis -Video-on-demand services from a cable TV company as a substitute for going to the movies Just how strong the competitive pressures are from substitute products depends on - ANSWER whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes. Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of - ANSWER whether demand for supplier products is high and they are in short supply. factors causing supplier bargaining power to be stronger - ANSWER 54. Which one of the following is NOT a factor in causing supplier bargaining power to be stronger? -The products/services needed from suppliers are in short supply. -Industry members can't integrate backward and self-supply themselves.