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Family Needs Inc.is a supermarket chain.Due to strong competition from other stores in the industry, Family Needs has aggressively used branding, pricing, and superior customer service to uniquely position itself in the market.As a result, the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices.Which of the following industry competitive structures does this scenario best illustrate?


A) Perfect competition
B) Monopolistic competition
C) Monopoly
D) Oligopoly

E) A) and C)
F) A) and B)

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When applying the five forces model, the first step should ideally be:


A) drawing a strategic group map.
B) identify the underlying drivers of each force.
C) assessing the overall industry structure.
D) defining the relevant industry.

E) A) and D)
F) C) and D)

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_____ are best described as industry-specific factors that separate one strategic group from another.


A) Mobility barriers
B) Excise duties
C) Embargoes
D) Learning effects

E) A) and C)
F) C) and D)

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What does the strategic group model propagate?

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To explain differences in firm performan...

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Due to economic regression in United Filipia, the profitability of the large conglomerate Blue Wing Products Inc.(BWP) was poor.An analysis of the company's business showed that the company could become profitable if it divested a few strategic business units under its banner.From which of the following businesses would BWP find it most easy to exit?


A) The automobile business where the company has contractual obligations with suppliers
B) The airline business where the company's strategic commitments are long-term
C) The e-commerce retail business where investments on assets are low
D) The pharmaceutical business where the company has a large number of fixed costs

E) B) and D)
F) A) and B)

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A fragmented industry is made into a consolidated industry through:


A) governmental deregulation.
B) globalization.
C) technological innovation and new legislation.
D) horizontal mergers and acquisitions.

E) None of the above
F) A) and B)

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What are exit barriers in an industry? Discuss.

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The rivalry among existing competitors i...

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The _____ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.


A) VRIO framework
B) SWOT analysis
C) BCG matrix
D) PESTEL framework

E) C) and D)
F) B) and D)

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Which of the following is an example of monopolistic competition?


A) Iron ore industry
B) Computer hardware industry
C) Express delivery industry
D) Beverages industry

E) All of the above
F) None of the above

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What are network effects?

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Network effects describe the positive ef...

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Which of the following statements is NOT true about the five forces in Porter's competitive analysis model?


A) The relative strengths of the five forces that shape competition are context-dependent.
B) The stronger the five forces in an industry, the greater the industry's profit potential.
C) Competition in the model is described as the tug-of-war between the five forces to capture as much as possible of the economic value created in an industry.
D) An analysis of the five forces provides the basis for how a firm should position itself to gain and sustain a competitive advantage.

E) All of the above
F) A) and B)

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Which of the following firms will most likely NOT be a complementor to a firm that manufactures computers?


A) A company that develops operating software
B) A company that develops application software
C) A company that manufactures its own brand of desktops and laptops
D) A company that manufactures portable external disks

E) All of the above
F) C) and D)

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Discuss the sixth force in Porter's five forces model.

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As valuable as the five forces model is ...

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Which of the following is a characteristic of a fragmented industry?


A) The entry barriers are high.
B) There are many small firms.
C) Firms tend to have high profitability.
D) Firms have substantial pricing power.

E) A) and B)
F) A) and C)

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What is meant by industry convergence? Explain with the help of a real world example.

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Student answers will vary.Industry conve...

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Discuss the situations in which bargaining power of suppliers is high.

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The relative bargaining power of supplie...

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Discuss the advantages incumbent firms possess, independent of their size.

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Incumbent firms often possess cost and q...

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Potential new entry depresses industry profit potential in two ways.Elaborate on the statement.

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The threat of entry describes the risk t...

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The telecom industry in the country of Andalus is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms.Thus, in the telecom industry, the:


A) threat of substitutes is most likely high.
B) threat of new entrants is most likely low.
C) bargaining power of buyers is most likely low.
D) entry barriers are most likely non-existent.

E) A) and B)
F) A) and C)

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Bright Billion Inc., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability.Which of the following industries would Bright Billion Inc.find it most difficult to exit?


A) The management consultancy industry in which the company's fixed costs are low
B) The steel industry in which the company has obligations like severance pay toward employees
C) The corporate training industry in which the company's commitments are mostly short-term
D) The e-commerce industry where the company has no long-term contractual agreements with suppliers

E) A) and D)
F) All of the above

Correct Answer

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Showing 101 - 120 of 129

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