STR CH3

A company’s “macroenvironment” 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 where a company operates.

• C) all the relevant forces and factors outside a company’s boundaries–general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates.

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

• E) the dominant economic features of a company’s industry.

Which one of the following is not part of a company’s macroenvironment?

• A) Conditions in the economy at large

• B) Population demographics and societal values and lifestyles

• C) Technological factors and governmental regulations and legislation

• D) The industry and competitive environment arena in which the company operates

• E) The company’s resource strengths, resource weaknesses, and competitive capabilities

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 present the company with sufficiently attractive 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?

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

• A) the forces driving change in the industry.

• B) the dominant economic features of the industry in which the company operates.

• C) the kinds of competitive forces industry members are facing and the strength of each competitive force.

• D) the key factors influencing future competitive success in the industry.

• E) All of the above.

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

• A) Market size and growth rate

• B) The extent of backward and forward integration and buyer needs and requirements

• C) Whether the products or services of rival fi rms are becoming more or less differentiated

• D) Strength of driving forces and competitive forces

• E) The pace of technological change, scale economies and experience curve effects, and product innovation

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) The extent to which economies of scale and learning/experience curve effects are present

• C) How many strategic groups the industry has and which ones are most profitable and least profitable

• D) The number and sizes of buyers, the number of rivals, and the pace of product innovation

• E) The prevalence of vertical integration and the pace of technological change

The state of competition in an industry is a function of

• A) the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry.

• 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.

The nature and strength of the competitive forces that prevail in an industry are generally a joint product of

• A) the pressures induced by the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.

• B) the threat that firms outside the industry will decide to enter the market.

• C) the attempts of companies in other industries to win buyers over to their own substitute products.

• D) competitive pressures stemming from the bargaining power of both suppliers and buyers.

• E) All of these.

Which of the following is not one of the five typical sources of competitive pressures?

• A) The power and influence of industry driving forces

• B) The bargaining power of suppliers and seller-supplier collaboration

• C) The threat of new entrants into the market

• D) The attempts of companies in other industries to win customers over to their own substitute products

• E) The market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry

The most powerful of the five competitive forces is usually

• A) the competitive pressures that stem from the ready availability of attractively-priced substitute products.

• B) the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.

• C) the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates.

• D) the competitive pressures associated with the potential entry of new competitors.

• E) the bargaining power and leverage that large customers are able to exercise.