WorksheetsBT9.3
Total questions: 10
Worksheet time: 6mins
F Co sells motor vehicles in country V. It has recently discovered that the government is planning a major overhaul of the public transport system in country V, which will significantly increase its speed and comfort, while lowering the cost to make it attractive to individual drivers. Under which heading of Porter’s five forces model would this issue be included?
Barriers to entry
Power of suppliers
Threat of substitutes
Power of buyers
X Co offers accountancy training courses. The market is growing quickly and X’s courses are significantly different to those offered by its rivals. Any new company wishing to teach accountancy courses must obtain accreditation by the various accountancy organisations — a process which can take several years. Based on the above information, which of the following statements can be made about X’s competitive environment?
Competitive rivalry is likely to be low
Supplier power is likely to be low
Barriers to entry are likely to be low
The threat of new entrants is likely to be low
High industry fixed costs would NOT be expected to be an issue within which one of Porter’s five forces?
Competitive rivalry
Threat of substitutes
Barriers to entry
Power of customers
When considering Porter’s value chain analysis, outbound logistics is:
receiving, handling and distributing inputs to the production system
using rational approach to solving problems
informing customers about the products a company has to offer
distributing the products to the customer
AAH Co buys cable from a number of manufacturers, cuts it into shorter lengths and sells it to various retailers. One of its departments is solely responsible for the cutting of the cable. Which of Porter’s value chain activities is the department responsible for
Procurement
Operations
Inbound logistics
Infrastructure
Porter’s value chain determines whether and how a firm’s activities contribute to which of the following?
its long term survival
its competitive advantage
its profitability
its productive capacity
BCD Co is a large trading company. Steve is the administration manager and is also responsible for legal and compliance functions. Sheila is responsible for customer service and has responsibility for ensuring that customers who have purchased goods from BCD Co are fully satisfied. Sunny deals with suppliers and negotiates on the price and quality of inventory. He is also responsible for identifying the most appropriate suppliers of plant and machinery for the factory. Sam is the information technology manager and is responsible for all information systems within the company. According to Porter’s value chain, which of the managers is involved in a primary activity as opposed to a support activity?
Steve
Sheila
Sunny
Sam
AZ Co is performing a SWOT analysis and notes that it has a large cash balance. Which of the SWOT headings would this be most likely to fall under?
Strengths
Weaknesses
Opportunities
Threats
E Ltd is a company that buys, cleans and then sells vegetables. It has recently introduced a new automated inventory system that allows management to identify older inventory quickly. This will allow the company to reduce its currently high level of wastage. Which activity within E’s value chain will the new system improve?
Operations
Outbound logistics
Inbound logistics
Procurement
When analysing its strategic position, an organisation may use one of several models, including: (i) SWOT (ii) Five forces (iii) PEST (iv) Value chain OIU company is undertaking a strategic analysis of its operations. It has discovered government plans to write new legislation that would result in OIU’s closure. Which of the strategic models should have identified this issue?
(i) and (ii)
(ii) and (iii)
(i) and (iii)
(i) and (iv)
