Question 1

Which of the following statements about strategic groups is ?

Accepted Answer

A)   Two assumptions are made: (1)  no two firms are totally different, (2)  no two firms are exactly the same.
B)   Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.
C)   Strategic groups help chart the future directions of firms' strategies.
D)   Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.E) A) and B)
F) B) and C)

Question 2

Environmental forecasting involves developing plausible projections about the _____ of environmental change.

Accepted Answer

A)   direction, scope, speed, and intensity
B)   volatility
C)   competitive rivalry
D)   severityE) B) and C)
F) A) and B)

Question 3

Which of the following best demonstrates the interrelationships among different segments of the general environment?

Accepted Answer

A)   A new technology results in the development of a substitute product for your firm's product.
B)   Government deregulation results in different firms being able to offer the same product as your firm.
C)   The recession results in several of your competitors cutting prices and intensifying rivalry.
D)   Increased concern for the environment results in legislation that impacts your current packaging.E) A) and D)
F) A) and C)

Question 4

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Accepted Answer

A) True 
 B)False

Question 5

Technological developments also raise substantial issues about the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 6

Many indicators of the macroeconomic environment such as GNP, interest rates, savings rates, trade and budget deficits/surplus, and so forth, are interrelated. Explain.

Accepted Answer

Due to globalization...

Question 7

How has the bargaining power of buyers been affected by today's technology?

Accepted Answer

Answers will vary. Some examples from th...

Question 8

Which of the following is considered a force in the "Five Forces model"?

Accepted Answer

A)   Increased deregulation in an industry
B)   The threat of government intervention
C)   Intensity of rivalry among competing firms
D)   Recent technological innovationE) B) and D)
F) B) and C)

Question 9

Using the Canadian beer as an example, explain how an industry or competitive environment might be defined and analyzed.

Accepted Answer

The Canadian beer industry is complex wi...

Question 10

An industry is commonly viewed from the suppliers' perspective and is defined as a collection of similar producers that employ similar production processes.

Accepted Answer

A) True 
 B)False

Question 11

Michael Porter's five forces analysis is a dynamic tool for analyzing industry attractiveness.

Accepted Answer

A) True 
 B)False

Question 12

When considering strategic groups within industries, Canadian retailer Holt Renfrew is described as

Accepted Answer

A)   a high growth industry with low fixed costs
B)   similar to Canadian Tire
C)   a prestigious upscale player
D)   a competitor of WalmartE) C) and D)
F) B) and D)

Question 13

A danger of forecasting discussed in the text is that

Accepted Answer

A)   in most cases, the expense of collecting the necessary data exceeds the benefit
B)   forecasting's retrospective nature provides little information about the future
C)   managers may view uncertainty as "black and white" while ignoring important "grey areas"
D)   it can create legal problems for the firm if regulators discover the company is making forecastE) A) and B)
F) A) and C)

Question 14

Provide one example of a crowdsourcing success.

Accepted Answer

There are three examples provided in the...

Question 15

Competitor Intelligence (CI) is a tool that can provide management with "early warnings" about both threats and opportunities.

Accepted Answer

A) True 
 B)False

Question 16

Explain how competitor intelligence can be improved by gathering information about competitors in the public domain. Provide examples.

Accepted Answer

There is a wealth of informati...

Question 17

Threat of substitute products comes from

Accepted Answer

A)   other companies in the same industry.
B)   foreign companies which can use cheap labour in their countries.
C)   firms in other industries that produce products or services that satisfy the same customer need.
D)   partners and affiliates.E) A) and D)
F) A) and C)

Question 18

In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except

Accepted Answer

A)   lack of importance of the buyer to the supplier group.
B)   high differentiation by the supplier.
C)   dominance by a few suppliers.
D)   readily available substitute products.E) C) and D)
F) B) and C)

Question 19

The use of the strategic groups concept is generally not helpful in charting the future directions of firms' strategies.

Accepted Answer

A) True 
 B)False

Question 20

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Accepted Answer

A) True 
 B)False

Exam 2: Analyzing the External Environment of the Firm

Threat of substitute products comes from

Correct AnswerverifiedShow Answer

An industry is commonly viewed from the suppliers' perspective and is defined as a collection of similar producers that employ similar production processes.

Correct AnswerverifiedShow Answer

In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except

Correct AnswerverifiedShow Answer

Which of the following statements about strategic groups is ?

Correct AnswerverifiedShow Answer

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Correct AnswerverifiedShow Answer

How has the bargaining power of buyers been affected by today's technology?

Correct AnswerverifiedAnswers will vary. Some examples from th...View AnswerShow Answer

Environmental forecasting involves developing plausible projections about the _____ of environmental change.

Correct AnswerverifiedShow Answer

Which of the following best demonstrates the interrelationships among different segments of the general environment?

Correct AnswerverifiedShow Answer

Technological developments also raise substantial issues about the boundaries of industries.

Correct AnswerverifiedShow Answer

Explain how competitor intelligence can be improved by gathering information about competitors in the public domain. Provide examples.

Correct AnswerverifiedThere is a wealth of informati...View AnswerShow Answer

Michael Porter's five forces analysis is a dynamic tool for analyzing industry attractiveness.

Correct AnswerverifiedShow Answer

When considering strategic groups within industries, Canadian retailer Holt Renfrew is described as

Correct AnswerverifiedShow Answer

Many indicators of the macroeconomic environment such as GNP, interest rates, savings rates, trade and budget deficits/surplus, and so forth, are interrelated. Explain.

Correct AnswerverifiedDue to globalization...View AnswerShow Answer

If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

Correct AnswerverifiedShow Answer

A danger of forecasting discussed in the text is that

Correct AnswerverifiedShow Answer

Competitor Intelligence (CI) is a tool that can provide management with "early warnings" about both threats and opportunities.

Correct AnswerverifiedShow Answer

Which of the following is considered a force in the "Five Forces model"?

Correct AnswerverifiedShow Answer

Using the Canadian beer as an example, explain how an industry or competitive environment might be defined and analyzed.

Correct AnswerverifiedThe Canadian beer industry is complex wi...View AnswerShow Answer

The use of the strategic groups concept is generally not helpful in charting the future directions of firms' strategies.

Correct AnswerverifiedShow Answer

Provide one example of a crowdsourcing success.

Correct AnswerverifiedThere are three examples provided in the...View AnswerShow Answer

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Answers will vary. Some examples from th...
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There is a wealth of informati...
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Due to globalization...
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The Canadian beer industry is complex wi...
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There are three examples provided in the...
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