MAN 4720, Exam 1, Chapter 3 ACTUAL
QUESTIONS AND CORRECT ANSWERS
1. When managers understand the forces in the external environment, they are better able to
a. Understand the firm's internal resources
b. Achieve price stability
c. Mitigate threats and leverage opportunities
d. Illustrate the impact of strategic actions - Correct answers✔c. Mitigate threats and leverage
opportunities
2. A group of companies that deal with more or less the same set of suppliers and buyers
comprise
a. An industry
b. A state
c. A business group
d. A multi-environment - Correct answers✔a. An industry
3. The stronger the five forces, the _____ the industry's profit potential
a. Stronger
b. Less differentiated
c. Lower
d. Higher - Correct answers✔c. Lower
, 4. One way of mapping competitors in to strategic groups is on a graph. When choosing this
method, the dimensions of the X and Y axes should
a. Be correlated
b. Not expose differences among the competitors
c. Not be correlated
d. Not pertain to market forces - Correct answers✔c. Not be correlated
5. A ______ is a set of companies that pursue a similar strategy within a specific industry to
achieve competitive advantage
a. Technological force
b. Strategic group
c. Competitive rival
d. Dynamic performer - Correct answers✔b. Strategic group
6. The _____ is the idea that products or services available from outside the given industry will
come close to meeting the needs of current customers
a. Threat of substitutes
b. Power of buyers
c. Rivalry of existing competitors
d. Threat of new entrants - Correct answers✔a. Threat of substitutes
7. The pressures that industry suppliers can exert on an industry's profit potential, is also called
the
QUESTIONS AND CORRECT ANSWERS
1. When managers understand the forces in the external environment, they are better able to
a. Understand the firm's internal resources
b. Achieve price stability
c. Mitigate threats and leverage opportunities
d. Illustrate the impact of strategic actions - Correct answers✔c. Mitigate threats and leverage
opportunities
2. A group of companies that deal with more or less the same set of suppliers and buyers
comprise
a. An industry
b. A state
c. A business group
d. A multi-environment - Correct answers✔a. An industry
3. The stronger the five forces, the _____ the industry's profit potential
a. Stronger
b. Less differentiated
c. Lower
d. Higher - Correct answers✔c. Lower
, 4. One way of mapping competitors in to strategic groups is on a graph. When choosing this
method, the dimensions of the X and Y axes should
a. Be correlated
b. Not expose differences among the competitors
c. Not be correlated
d. Not pertain to market forces - Correct answers✔c. Not be correlated
5. A ______ is a set of companies that pursue a similar strategy within a specific industry to
achieve competitive advantage
a. Technological force
b. Strategic group
c. Competitive rival
d. Dynamic performer - Correct answers✔b. Strategic group
6. The _____ is the idea that products or services available from outside the given industry will
come close to meeting the needs of current customers
a. Threat of substitutes
b. Power of buyers
c. Rivalry of existing competitors
d. Threat of new entrants - Correct answers✔a. Threat of substitutes
7. The pressures that industry suppliers can exert on an industry's profit potential, is also called
the
