MANAGEMENT1-MIDTERM EXAM

When customers are concentrated or large or buy in volume, their bargaining power represents a major force affecting the intensity of competition in an industry?

• Bargaining Power of Consumers

• Bargaining Power of Suppliers

• Potential Development of Substitute Products

• Potential Entry of New Competitors

Affects the intensity of competition in an industry, especially when there is a large number of suppliers, when there are only a few good substitute raw materials, or when the cost of switching raw materials is especially costly?

• Bargaining Power of Consumers

• Bargaining Power of Suppliers

• Rivalry Among Competing Firms

• Potential Entry of New Competitors

Competitive pressures arising from substitute products increase as the relative price of substitute products declines and as consumers’ switching costs decrease?

• Potential Development of Substitute Products

• Bargaining Power of Suppliers

• Potential Entry of New Competitors

• Bargaining Power of Consumers

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms increases?

• Potential Entry of New Competitors

• Potential Development of Substitute Products

• Rivalry Among Competing Firms

• Bargaining Power of Suppliers

Changes in strategy by one firm may be met with retaliatory countermoves, such as lowering prices, enhancing quality, adding features, providing services, extending warranties, and increasing advertising?

• Rivalry Among Competing Firms

• Potential Entry of New Competitors

• Potential Development of Substitute Products

• Bargaining Power of Suppliers

is a systematic and ethical process for gathering and analyzing information about the competition’s activities and general business trends to further a business’s own goals?

• COMPETITIVE INTELLIGENCE PROGRAMS

• THE FIVE-FORCES MODEL OF COMPETITION

• THE COMPETITIVE PROFILE MATRIX (CPM)

• THE EXTERNAL FACTOR EVALUATION (EFE) MATRIX

Good competitive intelligence in business, as in the military, is one of the keys to success?

• TRUE

• FALSE

The more information and knowledge a firm can obtain about its competitors, the less likely it is that it can formulate and implement effective strategies.

• TRUE

• FALSE

It identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position?

• THE COMPETITIVE PROFILE MATRIX (CPM)

• COMPETITIVE INTELLIGENCE PROGRAMS

• THE FIVE-FORCES MODEL OF COMPETITION

• THE EXTERNAL FACTOR EVALUATION (EFE) MATRIX

The ________and _____ scores in both a CPM and an EFE have the same meaning.

• The weights and Total weighted

• The Competitive and Profile Matrix

• Strengths and Weaknesses

• Systematic and Ethical