Core Concepts & Analytical Tools Quiz

A company’s “macro-environment” refers to:

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

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

• all the relevant forces and factors outside a company’s boundaries–general economic conditions, population demographics, societal values and lifestyles, technological factors, and governmental legislation and regulation.

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

• the dominant economic features of a company’s industry

Which one of the following is not part of a company’s macro-environment?

• Conditions in the economy at large

• Population demographics and societal values and lifestyles

• Technological factors

• Governmental regulations and legislation

• 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?

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

• What strategic moves are rivals likely to make next?

• What are the key factors for future competitive success?

• Does the outlook for the industry offer good prospects for profitability?

• 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

• the forces driving change in the industry.

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

• the kinds and strengths of competitive forces industry members are facing.

• the key factors of success in the industry.

• All of the above

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

• The market size, growth rate and prospects

• The scope of competitive rivalry including geographic area

• The market demand-supply conditions

• How strong driving forces and competitive forces are

• The role and pace of technological change

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

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

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

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

• The pace of technological change

• The current industry position in its life cycle to reveal the industry’s growth prospects

The state of competition in an industry is a function of

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

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

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

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

• All of these

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

• pressures associated with rivalry among sellers to attract buyer patronage.

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

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

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

• All of these

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

• The power and influence of industry driving forces

• The bargaining power of suppliers and seller-supplier collaboration

• The threat of new entrants into the market

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

• The market maneuvering and jockeying (vận động và chạy đua) for buyer patronage that goes on among rival sellers in the industry

Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

• whether most buyers possess roughly equal or varying degrees of bargaining power.

• how many buyers are engaged in collaborative partnerships with sellers.

• whether entry barriers are high or low.

• whether the overall quality of the items being furnished by industry members is rising or falling.

• whether buyer demand is strong or declining.