chapter 1

Topics: Barriers to entry, Strategic management, Competition Pages: 66 (15859 words) Published: May 1, 2015
3
Student: ___________________________________________________________________________ 1.
A company's broad "macro-environment" refers to 
 

A. 
the industry and competitive arena in which the company operates.

B. 
general economic conditions plus the factors driving change in the markets being served.

C. 
all the strategically significant forces and factors outside a company's boundaries — general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation.

D. 
the competitive market environment that exists between a company and its competitors.

E. 
the dominant economic features of a company's industry.

 
2.
Which one of the following is not part of a company's broad macro-environment?   

A. 
conditions in the economy at large.

B. 
population demographics and societal values and lifestyles.

C. 
technological and ecological factors.

D. 
governmental regulations and legislation.

E. 
the company's resource strengths, resource weaknesses, and competitive capabilities.

 
3.
Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?   

A. 
How many companies in the industry have good track records for revenue growth and profitability?

B. 
What strategic moves are rivals likely to make next?

C. 
What are the key factors for future competitive success?

D. 
Does the outlook for the industry offer good prospects for profitability?

E. 
What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability?

 
4.
Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as   

A. 
cultural, lifestyle, and demographic changes.

B. 
the birth of new industries, new knowledge, and disruptive technologies.

C. 
weather, climate change, and water shortages.

D. 
interest rates, exchange rates, unemployment rates, inflation rates, and economic growth.

E. 
how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

 
5.
Which of the following is not a factor to consider in identifying an industry's dominant economic features?   

A. 
The market size, growth rate and prospects

B. 
The scope of competitive rivalry including geographic area

C. 
The market demand-supply conditions

D. 
How strong driving forces and competitive forces are

E. 
The role and pace of technological change

 
6.
Which of the following is not a relevant consideration in identifying an industry's dominant economic features?   

A. 
Market size and growth rate, the geographic scope of competitive rivalry, and demand-supply conditions

B. 
How many strategic groups the industry has and which ones are most profitable and least profitable

C. 
The number and sizes of buyers, the number of rivals, and the pace of product innovation

D. 
The pace of technological change

E. 
The current industry position in its life cycle to reveal the industry's growth prospects

 
7.
The state of competition in an industry is a function of 
 

A. 
the competitive pressures associated with rivalry among competing sellers to attract customers.

B. 
competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products.

C. 
competitive pressures associated with the threat of new entrants into the marketplace.

D. 
competitive pressures associated with the bargaining power of suppliers and customers.

E. 
All of these

 
8.
The nature and strength of the competitive forces that prevail in an industry is generally a joint...
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