MGMT 5560 EXAM 1 GLO-BUS
QUESTIONS AND ANSWERS
(GRADED A+)
Which of the following questions is NOT helpful in identifying an industry's key success
factors? - Answer- Which one of the five competitive forces must any company in the
industry absolutely be able to cope with and defend against successfully in order to
survie and have a reasonable chance at earning a profit?
The competitive threat that outsiders will enter a market is weaker when - Answer- entry
barriers are high, the pool of entry candidates is small, and buyer demand is growing
slowly or is stagnant
The strongest of the competitive forces in the five-forces model of competition is usually
- Answer- the competitive pressures associated with the market maneuvering and
jockeying for buyer patronage among rival sellers in the industry
Based on Figure 3.4, which of the following is NOT a typical competitive weapon that a
company can use to battle rivals and attract buyers? - Answer- Constructing the biggest
produciton plant of any company in the industry
Which of the following is NOT generally a "driving force" capable of producing
fundamental changes in industry and competitive conditions? - Answer- Shifts upward
or downward in interest rates, the inflation rate, and the unemployment rate
Supplier bargaining power is weaker when - Answer- industry members are major
customers of their suppliers and/or when the item being supplied is a standard item or
commodity
Which one of the following factors is NOT an important consideration in deciding
whether the outlook for the industry presents the company with good prospects for
attractive profitability? - Answer- Whether statistical analysis indicates that long-term
industry profitability is trending up or down
In which one of the following instances is the rivalry among competing sellers generally
weaker? - Answer- When there are so many rivals that any one company's actions have
little direct impact on the businesses of rivals
In which one of the following instances is the rivalry among competing sellers generally
stronger? - Answer- When one or more rivals are dissatisfied with their business
performance and are making aggressive moves to attract more customers
, Just identifying an industry's driving forces is not sufficient; a more important step is to -
Answer- determine whether the collective impact of the driving forces will be to increase
or decrease market demand, make competition more or less intense, and lead to higher
or lower industry profitability
Whether buyer bargaining power poses a strong or weak source of competitive
pressure on industry members depends in part on - Answer- the price sensitivity of
buyers, whether buyer switching costs are high or low, and how well-informed buyers
are about the product offerings of industry members
Chapter 4 - Answer- Chapter 4
Which of the following is NOT one of the six questions that comprise the task of
evaluting a company's collection of resources and capabilities, the competitiveness of
its prices and internal operating costs, and its competitive strength versus rivals? -
Answer- How well do the company's profit margins compare to the industry average
profit margins and to the profit margins of the company's closest rivals?
In Table 4.2, which one of the following is NOT an example of a POTENTIAL weakness
or competitive deficiency that a company may have? - Answer- Having a single, unified
functional strategy instead of several distinct functional strategies
As shown in Figure 4.2, the three steps of SWOT analysis include - Answer- (1)
identifying the company's internal strengths and weaknesses, its market opportunities,
and the external threats to its future well-being, (2) drawing conclusions from the SWOT
listings about the company's overall business situation, and (3) translating these
conclusions into strategic actions for improving the company's strategy and business
prospects
A potent tool for learning which companies are best at performing particular activities
and then emulating their techniques (or "best practices") to improve the cost and/or
effectiveness of a company's own internal activites is - Answer- benchmarking
The competitive power of a company resource or capability is NOT measured by which
one of the following tests? - Answer- Does the resource or capability help the company
improve the cost efficiency of its value chain?
SWOT analysis is a powerful tool for - Answer- sizing up a ompany's competitively
important strengths and weaknesses, its market opportunities, and the external threats
to its future well-being
According to the illustration in Table 4.3, and the accompanying discussion of weighted
competitive strength assessment, the company with the highest weighted overall
competitive stregnth rating - Answer- enjoys a net competitive advantage vis-a-vis
rivals, with the size of its advantage being signaled by how much its overall competitive
QUESTIONS AND ANSWERS
(GRADED A+)
Which of the following questions is NOT helpful in identifying an industry's key success
factors? - Answer- Which one of the five competitive forces must any company in the
industry absolutely be able to cope with and defend against successfully in order to
survie and have a reasonable chance at earning a profit?
The competitive threat that outsiders will enter a market is weaker when - Answer- entry
barriers are high, the pool of entry candidates is small, and buyer demand is growing
slowly or is stagnant
The strongest of the competitive forces in the five-forces model of competition is usually
- Answer- the competitive pressures associated with the market maneuvering and
jockeying for buyer patronage among rival sellers in the industry
Based on Figure 3.4, which of the following is NOT a typical competitive weapon that a
company can use to battle rivals and attract buyers? - Answer- Constructing the biggest
produciton plant of any company in the industry
Which of the following is NOT generally a "driving force" capable of producing
fundamental changes in industry and competitive conditions? - Answer- Shifts upward
or downward in interest rates, the inflation rate, and the unemployment rate
Supplier bargaining power is weaker when - Answer- industry members are major
customers of their suppliers and/or when the item being supplied is a standard item or
commodity
Which one of the following factors is NOT an important consideration in deciding
whether the outlook for the industry presents the company with good prospects for
attractive profitability? - Answer- Whether statistical analysis indicates that long-term
industry profitability is trending up or down
In which one of the following instances is the rivalry among competing sellers generally
weaker? - Answer- When there are so many rivals that any one company's actions have
little direct impact on the businesses of rivals
In which one of the following instances is the rivalry among competing sellers generally
stronger? - Answer- When one or more rivals are dissatisfied with their business
performance and are making aggressive moves to attract more customers
, Just identifying an industry's driving forces is not sufficient; a more important step is to -
Answer- determine whether the collective impact of the driving forces will be to increase
or decrease market demand, make competition more or less intense, and lead to higher
or lower industry profitability
Whether buyer bargaining power poses a strong or weak source of competitive
pressure on industry members depends in part on - Answer- the price sensitivity of
buyers, whether buyer switching costs are high or low, and how well-informed buyers
are about the product offerings of industry members
Chapter 4 - Answer- Chapter 4
Which of the following is NOT one of the six questions that comprise the task of
evaluting a company's collection of resources and capabilities, the competitiveness of
its prices and internal operating costs, and its competitive strength versus rivals? -
Answer- How well do the company's profit margins compare to the industry average
profit margins and to the profit margins of the company's closest rivals?
In Table 4.2, which one of the following is NOT an example of a POTENTIAL weakness
or competitive deficiency that a company may have? - Answer- Having a single, unified
functional strategy instead of several distinct functional strategies
As shown in Figure 4.2, the three steps of SWOT analysis include - Answer- (1)
identifying the company's internal strengths and weaknesses, its market opportunities,
and the external threats to its future well-being, (2) drawing conclusions from the SWOT
listings about the company's overall business situation, and (3) translating these
conclusions into strategic actions for improving the company's strategy and business
prospects
A potent tool for learning which companies are best at performing particular activities
and then emulating their techniques (or "best practices") to improve the cost and/or
effectiveness of a company's own internal activites is - Answer- benchmarking
The competitive power of a company resource or capability is NOT measured by which
one of the following tests? - Answer- Does the resource or capability help the company
improve the cost efficiency of its value chain?
SWOT analysis is a powerful tool for - Answer- sizing up a ompany's competitively
important strengths and weaknesses, its market opportunities, and the external threats
to its future well-being
According to the illustration in Table 4.3, and the accompanying discussion of weighted
competitive strength assessment, the company with the highest weighted overall
competitive stregnth rating - Answer- enjoys a net competitive advantage vis-a-vis
rivals, with the size of its advantage being signaled by how much its overall competitive
