Download Porter's Five Forces: A Q&A Guide to Competitive Analysis and Industry Dynamics and more Exams Advanced Education in PDF only on Docsity!
MGMT 3850 Chapter 5 Test
With Solution
Prior to launching his Korean-Mexican fusion restaurant, Gregory Kim is making a detailed evaluation of the restaurants in his market area. Gregory Kim is doing a ____ analysis. - ANSWER Competitor
It is useful for a new venture to think about its _____ at both the company level and the product or service level. - ANSWER Position
John Banega developed a drug that offers a potential cure for pediatric blindness. However, he finds a number of government and legal issues that make it difficult for him to launch his drug company. Which of the following force is he facing in the five forces model of industry analysis? - ANSWER threat of new entrants
Access to distribution channels are a relevant factor in which of the five forces? - ANSWER Threat of new entrant
The five forces model help a firm determine whether it should enter a particular industry and whether it can - ANSWER carve out an attractive position in that industry
The five forces in the five forces model determine the threat to industry _______. - ANSWER Probability
A(n) _____ industry is an industry or a part of an industry that is experiencing a reduction in demand. - ANSWER Declining
A(n) ____ industry is one that is characterized by a large number of firms of approximately equal size - ANSWER Fragemented
_____ competitors are businesses that offer products or services that are identical or highly similar to those of the firm in question. - ANSWER Direct
Coffee, milk, tea, and water are ______ competitors for Coca-Cola. - ANSWER Indirect
A fragmented industry is best characterized by a(n) _______ - ANSWER Large number of firms of approximately equal size
The experience, atmosphere, and service that Starbucks has created in its stores so customers will not buy a lower-priced coffee from a competitor is an example of its attempt to diminish the __________. - ANSWER threat of substitutes
An emerging industry is best described as a(n) ________. - ANSWER new industry in which standard operating procedures have yet to be developed
In various studies, researchers have found that between 8 to 30 percent of the variation in firm profitability is directly attributable to the _________. - ANSWER industry in which a firm competes
It is useful for a new venture to think about its _______ at both the company level and the product or service level. - ANSWER position
Switching costs, attractiveness of substitutes, and the threat of forward
Completing a competitive analysis grid has all of the following benefits except __________ - ANSWER identify all direct, indirect, and future potential competitors
Which of the following statements about the bargaining power of buyers is true? - ANSWER If the buyers are concentrated, they can pressure the suppliers to lower costs.
Firms offering close substitutes to the product the firm completing the analysis sells are best described as _________ - ANSWER indirect
If a business leader decides to hold a Skype conference instead of traveling to the customer due to the increasing cost of airfare, this is an example of the _________ - ANSWER threat of substitutes
Which of the following statements about Porter's five forces model is not true? - ANSWER Well-managed companies try to position their firms in a way that enhances or increases Porter's five forces.
Trade __________ are organizations that firms in the same industry form for the purpose of collecting and disseminating trade information, promoting industry-related issues, and providing a variety of member services. -
ANSWER Associations
Indirect competitors are best described as firms _________. - ANSWER offering close substitutes to the product the firm completing the analysis sells
Which of the following is not one of the sources of competitive intelligence?
- ANSWER Analyzing financial reports of privately-held companies
The bargaining power of buyers is lowest when ________. - ANSWER suppliers' products are differentiated
All of the following are examples of environmental trends except the ability to _________ - ANSWER outsource to lower-cost foreign markets
Which of the following is not one of the five most prevalent industry types? - ANSWER Disruptive
All of the following responses result in a decision to reconsider the new venture except - ANSWER Answering yes to "Is the industry a realistic place for a new venture?"
Environmental trends include all of the following except _________. - ANSWER
Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its _____ environment - ANSWER competitive
It is useful for a new venture to think about its position at both the _____ level and the product or service level. - ANSWER company
At the company level, a firm's ____ determines how the company is situated relative to its competitors. - ANSWER Launch
Economic trends, ____ trends, technological advances, and political and regulatory changes are the most important environmental trends for entrepreneurs to study. - ANSWER Social
The ability of firms in some industries to benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign labor markets is an example of a(n) _____ trend. - ANSWER Business
The five forces models looks at forces that determine _____profitability - ANSWER industry
Which of the following is NOT a force as per the five forces model? - ANSWER Bargaining power of stockholders
In analyzing the pharmaceutical industry for a prospective business launch, Nicole Turco, a Ph.D. in pharmacology, concluded that the industry was attractive because the threat of substitutes is ___________ - ANSWER Low
A _____ is a condition that creates a disincentive for a new firm to enter an industry. - ANSWER Barrier to entry
which of the following is NOT a barrier to entry - ANSWER stakeholder holdout
The growth rate of the e-book industry has slowed down in the last two years. Which of the five forces is this likely to affect? - ANSWER Rivalry among existing firms
In contemplating the launch of her seafood restaurant, Paige Graham concluded that suppliers of seafood had an advantage in bargaining power over restaurant owners in her market. Paige's conclusion is likely to have happened because there were __________ suppliers to provide a critical product to a large number of restaurants - ANSWER Only a few
Microsoft's power as a supplier of computer operating systems is ____ by the threat that it might enter the PC industry if PC makers balk too much at the
ANSWER fragmented
The consumer milk industry in the United States over the last few years is characterized by slow growth, repeat (rather than new) customers, and limited product innovation. This industry is an example of a(n) ______ industry. - ANSWER mature
The renting of DVDs and video games by mail is an example of a(n) ____ industry. - ANSWER declining
A leadership strategy in which a firm tries to become the dominant player in the industry is a strategy that works in ____ industries. - ANSWER declining
When a firm varies its product or service offerings to meet the demands of the local market, it is pursuing a _____ strategy. - ANSWER multidomestic
For Pepsi, milk, tea, and bottled water are ___ competitors - ANSWER indirect
