Porters five forces

3) Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n) ________ analysis.

• A) business

• B) industry

• C) competitor

• D) strategic

• E) market

8) According to the textbook, how do well-managed firms respond to the five forces that determine industry profitability?

• A) They switch industries if the forces are too compelling.

• B) They focus on one force intently and excel by overcoming that force.

• C) They overcome each of the forces.

• D) They ignore the forces.

• E) They try to position their firms in a way that avoids or diminishes the forces.

9) In general, industries are more attractive when the ________.

• A) majority of the threats are high

• B) majority of the threats are low

• C) threat of each of the forces is neutral-neither low nor high

• D) threat of each of the five forces is high

• E) threat of each of the five forces is low

10) Generally, industries are more attractive when the threat of substitutes is ________.

• A) high

• B) low

• C) neutral (neither high or low)

• D) high for manufacturing firms and low for service firms

• E) high for service firms and low for manufacturing firms

11) The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?

• A) Rivalry Among Existing Firms

• B) Threat of New Entrants

• C) Threat of Substitutes

• D) Bargaining Power of Buyers

• E) Bargaining Power of Suppliers

12) Which of Porter's five forces is most closely associated with the concept "barrier to entry"?

• A) Bargaining Power of Suppliers

• B) Rivalry Among Existing Firms

• C) Threat of New Entrants

• D) Bargaining Power of Buyers

• E) Threat of Substitutes

Porter's five forces model assesses industry attractiveness by surveying these five factors ________.

• potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms

• potential entrants, suppliers, buyers, similar products, and rivalry among existing firms

• potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms

• potential entrants, competitors, buyers, substitutes, and rivalry among existing firms

Economies of scale relate to which of Porter's 5-forces?

• Bargaining power of buyers

• Threat of new entrants

• Bargaining power of suppliers

• Threat of substitutes

•What is the main purpose of Porter’s Five Forces Model?

• •Inform investment appraisal decisions

• .Analyse competition in a market

• •Manage product portfolios

• •Decide which products to launch

•Can you identify which of the following forces does not form part of Porter’s Competitive Position Analysis?

• •Buyer power

• •Competitive rivalry

• •Supplier power

• •Risk of losses