Glo-Bus Exam QUESTIONS AND
CORRECT ANSWERS
The "driving forces" in an industry - CORRECT ANSWER are the major underlying causes of
changing industry and competitive conditions and have the biggest influence on how the industry
landscape will be altered
An industry's key success - CORRECT ANSWER are the particular strategy elements, product
attributes, resource strengths, competitive capabilities, and market achievements that spell the
difference between being a strong competitor and a weak competitor - and sometimes between profit
and loss.
Using the five-forces model of competition to determine what competition is like in a given industry
involves - CORRECT ANSWER building the picture of competition in three steps: 1)
identifying the specific competitive pressures of associated with each of the five competitive forces 2)
evaluating how strong the pressures comprising each competitive forces are; and 3) determining
whether the collective strength of all five competitive forces is conducive to high/good industry
profitability
Which of the following is generally not considered as a barrier to entry? - CORRECT
ANSWER rapid market growth and weakly differentiated product offerings on the part of
existing industry members
Which of the following is not a factor that affects the strength of supplier bargaining power? -
CORRECT ANSWER Whether there are greater or fewer than ten suppliers of the item being
purchased from suppliers
The competitive threat that outsiders will enter a market is weaker when - CORRECT
ANSWER entry barriers are high, the pool of entry candidates is small, and buyer demand is
growing slowly or is stagnant
Which of the following generally acts to weaken the rivalry among competing sellers? - CORRECT
ANSWER A situation where the products of rival sellers are strongly differentiated
Which of the following factors is an important consideration in deciding whether the outlook for the
industry presents the company with good prospects for attractive profitability - CORRECT
, ANSWER whether and to what degree industry profitability will be favorably or unfavorably
affected by the industry's driving forces
A very revealing indicator of whether potential entry is a strong or weak competitive force in the
marketplace is - CORRECT ANSWER whether the industry's growth and profit prospects are
strongly attractive to potential entry candidates
The rivalry among competing firms is generally a stronger competitive force when - CORRECT
ANSWER rivals have diverse industry outlook objectives, or strategies and/or have production
facilities in countries where production costs are materially different
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? - CORRECT ANSWER winning a bigger market share
Which of the following statements about strategic groups and strategic group mapping is false? -
CORRECT ANSWER The hardest aspect of strategic group mapping is always figuring out
which of several possible strategic group maps represents the single one best map for portraying how
competing firms are positioned
Which of the following is not a factor that causes buyer bargaining power to be stronger? -
CORRECT ANSWER The supply side of the marketplace composed of a few large sellers and
the demand side of the marketplace consisting of numerous buyers that purchase in fairly small
quantities
The managerial payoff from spending the time and effort to gather and digest competitive intelligence
about rivals' strategies and situations and gain some inkling of what moves they will be making comes
from - CORRECT ANSWER (1) avoiding the mistake of flying blind into competitive battle
and being surprised by the fresh actions of rivals and (2) helping a company to craft offensive and
defensive strategic moves of its own with some confidence about what market maneuvers to expect
from its rivals
Just how strong the competitive pressures are from substitute products depends in part on whether -
CORRECT ANSWER substitutes are attractively priced and have comparable or better
performance features
CORRECT ANSWERS
The "driving forces" in an industry - CORRECT ANSWER are the major underlying causes of
changing industry and competitive conditions and have the biggest influence on how the industry
landscape will be altered
An industry's key success - CORRECT ANSWER are the particular strategy elements, product
attributes, resource strengths, competitive capabilities, and market achievements that spell the
difference between being a strong competitor and a weak competitor - and sometimes between profit
and loss.
Using the five-forces model of competition to determine what competition is like in a given industry
involves - CORRECT ANSWER building the picture of competition in three steps: 1)
identifying the specific competitive pressures of associated with each of the five competitive forces 2)
evaluating how strong the pressures comprising each competitive forces are; and 3) determining
whether the collective strength of all five competitive forces is conducive to high/good industry
profitability
Which of the following is generally not considered as a barrier to entry? - CORRECT
ANSWER rapid market growth and weakly differentiated product offerings on the part of
existing industry members
Which of the following is not a factor that affects the strength of supplier bargaining power? -
CORRECT ANSWER Whether there are greater or fewer than ten suppliers of the item being
purchased from suppliers
The competitive threat that outsiders will enter a market is weaker when - CORRECT
ANSWER entry barriers are high, the pool of entry candidates is small, and buyer demand is
growing slowly or is stagnant
Which of the following generally acts to weaken the rivalry among competing sellers? - CORRECT
ANSWER A situation where the products of rival sellers are strongly differentiated
Which of the following factors is an important consideration in deciding whether the outlook for the
industry presents the company with good prospects for attractive profitability - CORRECT
, ANSWER whether and to what degree industry profitability will be favorably or unfavorably
affected by the industry's driving forces
A very revealing indicator of whether potential entry is a strong or weak competitive force in the
marketplace is - CORRECT ANSWER whether the industry's growth and profit prospects are
strongly attractive to potential entry candidates
The rivalry among competing firms is generally a stronger competitive force when - CORRECT
ANSWER rivals have diverse industry outlook objectives, or strategies and/or have production
facilities in countries where production costs are materially different
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? - CORRECT ANSWER winning a bigger market share
Which of the following statements about strategic groups and strategic group mapping is false? -
CORRECT ANSWER The hardest aspect of strategic group mapping is always figuring out
which of several possible strategic group maps represents the single one best map for portraying how
competing firms are positioned
Which of the following is not a factor that causes buyer bargaining power to be stronger? -
CORRECT ANSWER The supply side of the marketplace composed of a few large sellers and
the demand side of the marketplace consisting of numerous buyers that purchase in fairly small
quantities
The managerial payoff from spending the time and effort to gather and digest competitive intelligence
about rivals' strategies and situations and gain some inkling of what moves they will be making comes
from - CORRECT ANSWER (1) avoiding the mistake of flying blind into competitive battle
and being surprised by the fresh actions of rivals and (2) helping a company to craft offensive and
defensive strategic moves of its own with some confidence about what market maneuvers to expect
from its rivals
Just how strong the competitive pressures are from substitute products depends in part on whether -
CORRECT ANSWER substitutes are attractively priced and have comparable or better
performance features
