Question 1

Which of the following does not increase the bargaining power of buyers?

Accepted Answer

A)  Buyers face few switching costs.
B)  Buyers earn high profits.
C)  Products that the buyer purchase represent a significant percentage of the buyers' costs.
D)  Buyers have the ability to engage in backward integration.

Question 2

A young industry that is beginning to form is considered to be in the growth stage.

Accepted Answer

A) True 
 B)False

Question 3

The lack of high capital costs serves as a barrier to entry for an industry.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a limitation of Porter's five-forces model?

Accepted Answer

A)  It does not account for the fact that a large firm may be able to influence industry structure.
B)  It assumes that industry structure explains firm performance.
C)  It incorporates the resource-based perspective on strategic decision-making.
D)  It is based on the assumptions of industrial organization theory.

Question 5

Switching costs are incurred by

Accepted Answer

A)  the buyer.
B)  the seller.
C)  both the buyer and the seller.
D)  neither the buyer nor the seller.

Question 6

Intensity of rivalry in an industry is a function of all of the following EXCEPT

Accepted Answer

A)  the concentration of competitors.
B)  slow industry growth.
C)  high exit barriers.
D)  government policy.

Question 7

Is the threat of substitutes low,moderate,or high in the U.S.airline industry?

Accepted Answer

a.Answers will vary,but should...

Question 8

All industries pass through the industry life cycle at roughly the same pace.

Accepted Answer

A) True 
 B)False

Question 9

Exit barriers in an industry include

Accepted Answer

A)  strategic factors.
B)  emotional factors.
C)  economic factors.
D)  All of the above.

Question 10

One weakness of Porter's five-forces model is that it tends to overemphasize partnerships and other relationships between firms.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of Porter's five industry forces?

Accepted Answer

A)  Bargaining power of buyers
B)  Threat of substitute products
C)  Intensity of rivalry among incumbent firms
D)  None of the above

Question 12

One weakness of Porter's five-forces model is that it assumes that firm resources are the primary determinants of industry profitability.

Accepted Answer

A) True 
 B)False

Question 13

Substitute products are offered by close competitors.

Accepted Answer

A) True 
 B)False

Question 14

The primary industry includes a firm's key business units,whereas the secondary industry includes the firm's less significant business units.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a limitation of Porter's five-forces model?

Accepted Answer

A)  It is based on the assumptions of industrial organization theory.
B)  It does not allow for the role of partnerships.
C)  It does not account for the fact that a large firm may be able to influence industry structure.
D)  It assumes that firm resources explain firm performance.

Question 16

When firms that provide key raw materials to an industry constantly negotiate for higher prices,the

Accepted Answer

A)  bargaining power of buyers is high.
B)  bargaining power of suppliers is high.
C)  bargaining power of buyers is low.
D)  bargaining power of suppliers is low.

Question 17

Are the barriers to entry in the automobile manufacturing industry low,moderate,or high? Explain.

Accepted Answer

a.Typically high,but answers should addr...

Question 18

The decline in unit costs of a product that occurs as the absolute volume of production increases is known as

Accepted Answer

A)  factor analysis.
B)  industry economies.
C)  economies of scope.
D)  None of the above.

Question 19

A patent is an example of a cost advantage independent of size.

Accepted Answer

A) True 
 B)False

Question 20

A young industry that is beginning to form is in the

Accepted Answer

A)  growth stage.
B)  shakeout stage.
C)  maturity stage.
D)  decline stage.

Exam 2: Industry Competition

A patent is an example of a cost advantage independent of size.

Correct AnswerverifiedShow Answer

When firms that provide key raw materials to an industry constantly negotiate for higher prices,the

Correct AnswerverifiedShow Answer

Exit barriers in an industry include

Correct AnswerverifiedShow Answer

Are the barriers to entry in the automobile manufacturing industry low,moderate,or high? Explain.

Correct Answerverifieda.Typically high,but answers should addr...View AnswerShow Answer

All industries pass through the industry life cycle at roughly the same pace.

Correct AnswerverifiedShow Answer

Intensity of rivalry in an industry is a function of all of the following EXCEPT

Correct AnswerverifiedShow Answer

A young industry that is beginning to form is in the

Correct AnswerverifiedShow Answer

Which of the following does not increase the bargaining power of buyers?

Correct AnswerverifiedShow Answer

One weakness of Porter's five-forces model is that it tends to overemphasize partnerships and other relationships between firms.

Correct AnswerverifiedShow Answer

Substitute products are offered by close competitors.

Correct AnswerverifiedShow Answer

Which of the following is not a limitation of Porter's five-forces model?

Correct AnswerverifiedShow Answer

The primary industry includes a firm's key business units,whereas the secondary industry includes the firm's less significant business units.

Correct AnswerverifiedShow Answer

The decline in unit costs of a product that occurs as the absolute volume of production increases is known as

Correct AnswerverifiedShow Answer

Which of the following is not one of Porter's five industry forces?

Correct AnswerverifiedShow Answer

Which of the following is not a limitation of Porter's five-forces model?

Correct AnswerverifiedShow Answer

The lack of high capital costs serves as a barrier to entry for an industry.

Correct AnswerverifiedShow Answer

Switching costs are incurred by

Correct AnswerverifiedShow Answer

One weakness of Porter's five-forces model is that it assumes that firm resources are the primary determinants of industry profitability.

Correct AnswerverifiedShow Answer

A young industry that is beginning to form is considered to be in the growth stage.

Correct AnswerverifiedShow Answer

Is the threat of substitutes low,moderate,or high in the U.S.airline industry?

Correct Answerverifieda.Answers will vary,but should...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Typically high,but answers should addr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Answers will vary,but should...
View Answer