WorksheetsExternal Environment Analysis
Total questions: 10
Worksheet time: 5mins
A firm always operates in a single, distinct industry.
True
False
All industries follow the stages of the industry life cycle model.
True
False
The likelihood that new firms will enter an industry is contingent on the extent to which barriers to entry have been erected.
True
False
Higher capital requirements for entering an industry ultimately raise average profitability within that industry.
True
False
Substitute products are produced by competitors in the same industry.
True
False
The intensity of rivalry among firms in an industry is dependent on __________.
Concentration of competitors
High fixed or storage costs
High exit barriers
All of the above
The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as ___________:
Production effectiveness
Effective operations management
Economies of scale
Technological analysis
When switching costs are high, __________.
Customers are less likely to try a new competitor.
Companies spend more on technology.
Companies seek new suppliers to reduce costs
None of the above
Which of the following is not a cost advantage independent of scale?
Proprietary technology
Favorable locations
Experience in the industry
High volume of production
What is occurring when those who purchase an industry’s goods and services exercise great control over pricing and other terms?
High bargaining power of suppliers
A low bargaining power of suppliers
A balance of power among suppliers
None of the above
