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Administration Policy & Strategy Learn Smart > Learn Smart 3 > Flashcards

Learn Smart 3 Flashcards

1
Q

Which factor allowed honda to successfully enter the U.S lawn mower market despite competition?

A

its reputation and ts expertise with gasoline

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2
Q

the change agents with the biggest influence in reshaping the industry landscape are known as ____ forces.

A

driving

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3
Q

to develop a business strategy to combat competitive conditions, companies must

A
  • identify competitive pressures

- gauge the strength of the five competitive forces

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4
Q

which conditions increase rivalry among competing sellers?

A
  • when buyer demand is growing slowly

- when the cost of switching brands is low

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5
Q

The threat of ____ increases competitive pressure on incumbent firms.

A

a new entrant in an industry

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6
Q

Industry members with similar competitive approaches and positions in the market are known as a(n)____ group.

A

strategic

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7
Q

Which of the following components form part of a company’s macro-environment?

A
  • political factors
  • sociocultural forces
  • legal/regulatory conditions
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8
Q

List the three steps of driving-forces analysis in order,from the first step to the last

A
  1. identify what the driving forces are
  2. assess whether the driving forces are acting to make an industry more or less attractive
  3. Determine what strategy changes are needed to prepare for the effects that are driving forces.
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9
Q

to match a business strategy to prevailing competitive conditions, companies must initiate actions that alter the underlying factors driving the ?

A

five competitive forces

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10
Q

the ________ framework includes cooperative interactions among industry participants and introduce the category of “complementors”

A

Value Net

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11
Q

T/F
Key Success factors are so important that all firms in a given industry must pay attention to them or else jeopardize their competitive success.

A

TRUE

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12
Q

The “L” in PESTEL analysis stands for

A

Legal/Regulatory conditions

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13
Q

The suppliers of any given industry must have sufficient_______ power in order to influence the terms of supply in their favor

A

bargaining

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14
Q

What are some of the most important factors for determining a company’s prospects for competitive success and attractive profits?

A
  • whether the company occupies a stronger market position than rivals
  • how well the company’s strategy delivers on the industry key success factors
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15
Q

which of the following are concepts or analytic tools for assessing a company’s industry and competitive environment?

A
  • the five forces framework

- competitor analysis

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16
Q

Buyers with strong bargaining power can exert strong ____ pressures and reduce industry profitability by demanding price concessions and additional features.

A

competitive

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17
Q

Rival Sellers may try to differentiate their products from those of competitors by

A
  • Providing improved customer service

- building higher performance products

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18
Q

When circumstances would increase the bargaining power of buyers?

A
  • when buyers are comparatively large and few

- when the cost for buyers to switch brands is low

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19
Q

T/F

In a given industry, all the driving forces push change in the same direction but by different amounts

A

False

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20
Q

When two industries are closely related to one another, companies can be threatened by the competitive pressure produced by ____ products.

A

Substitute

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21
Q

Increasing consumer demand, lower-cost foreign inputs, and reduced trade barriers all contribute to the increasing ________ of economic markets.

A

Globalization

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22
Q

In an ideal competitive environment for earning profit

A
  • suppliers are in weak bargaining positions

- rivalry among present sellers is muted.

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23
Q

the final step in evaluating an industry and competitive environment is to?

A

combine the results of each analytic framework to determine its prospects.

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24
Q

the total dollar investment needed to enter a market successfully is known as the _______ requirement.

A

capital

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25
Q

The SOAR framework for competitor analysis was developed by

A

Michael Porter

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26
Q

which of the following are outlines in the five forces model of competition?

A
  • supplier bargaining power
  • competition from rival sellers
  • customer bargaining power
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27
Q

When undertaking the third step in a strategic analysis of industry dynamics, managers must decide what strategy adjustments are needed to deal with the effects of

A

driving forces

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28
Q

Which of the following concepts are analytic for assessing a company’s industry and competitive environment?

A
  • strategic group mapping
  • the value net
  • driving forces
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29
Q

All companies operate in a broad_________ - environment that is made up of six components, including political factors and technological factors.

A

Macro

30
Q

When all five types of competitive forces are exerting strong pressure on an industry, the industry is said to be

A

competitively unattractive

31
Q

Examples of substitute products that lead to competitive pressure between industries include

A
  • newspaper and cable news

- sugar and sweet’ N low

32
Q

when the overall effect of the five component forces is moderate to weak, an industry is

A

attractive

33
Q

When conditions increase rivalry among competing sellers?

A
  • when buyer demand is growing slowly

- when the cost of switching brands is low

34
Q

The most powerful tool for diagnosing the principal competitive pressure in a market is known as the

A

five forces framework

35
Q

Anheuser-Busch has partially ____ into metal-can manufacturing to gain bargaining power over manufactures

A

integrated backwards

36
Q

which of the following are types of marketing tactics?

A
  • sales promotions

- rebates

37
Q

which of the following factors would lead to higher entry barriers for new industry entrants?

A
  • high capital requirements

- restrictive trade policies

38
Q

Intense competitive pressure from___ of the five competitive forces is sufficient to destroy the conditions for good profitability

A

just one

39
Q

Which indicators of a rivals potential strategic moves are found in the SOAR framework for competitor analysis

A

resources and capabilities

40
Q

which of the following are factors that affect the strength of rivalry among competing sellers?

A
  • Substitutes
  • new entrants
  • suppliers
41
Q

Understanding the ____ of driving forces requires looking at the effects of each factor separately.

A

collective impact

42
Q

the competitive pressure created by the presence of substitute product increases when the substitutes are

A
  • readily available and attractively priced

- seen as comparable in terms of quality and performance

43
Q

which of the following are examples of trade restrictions?

A
  • tariffs
  • local content requirements
  • anti-dumping rules
44
Q

which of the following would likely have the greatest bargaining power over the sellers who supply them?

A
  • best buy stores
45
Q

T/F

Strategically relevant factors typically exist only within a company’s industry boundaries

A

false

46
Q

What variables are typically included in a strategic group map?

A
  • degree of vertical integration
  • price/quality range
  • product- line breadth
47
Q

the advantage gained from a “wall of patents” is a form of

A

intellectual property protection

48
Q

Which of the following are examples of key success factors?

A
  • superior firm branding capabilities
  • strong network of wholesale distributors
  • superior product differentiation
49
Q

minimum wage legislation tends to affect ____ industries more than others

A

labor-intensive

50
Q

which of the following are strategically relevant macro-environment factors affecting cigarette producers?

A
  • anti-smoking ordinances
  • cultural stigma
  • cigarette taxes
51
Q

Over time, falling levels of risk tend to stimulate_____ on the part of growth-minded companies that seek new opportunities

A
  • new entry

- capital investments

52
Q

on a map of strategic groups, why are some groups more favorably positioned than others?

A

industry driving forces favor some strategic groups and hurt others

53
Q

Which of the following are examples of regulated industries that require government-controlled entry?

A
  • telecommunications
  • liquor retailing
  • railroads
54
Q

in the past, Microsoft has used its dominant market status in which of the following ways?

A
  • to charge PC makers premium prices

- to pressure PC makers to load only Microsoft products

55
Q

When the supplier industry is more highly___ than the industry it sells to, it is generally able to deny request lower for lower prices

A

concentrated

56
Q

Rivalry among industry members will be high when

A

there is excess supply in the market

57
Q

Suppliers bargaining power increases when

A

industry members are not major customers of those suppliers

58
Q

high _____ deter buyers from purchasing substitute products

A

switching products

59
Q

Which of the following are examples of a technological factor that effects companies?

A
  • R&D consortia
  • Patent laws
  • genetic engineering
60
Q

Buyer price sensitivity increases when an industry product makes up a(n) portion of the total purchases of the buyer

A

large

61
Q

Which of the following tend to reduce competitive activity among sellers?

A
  • when there are few competitors in a market

- fear of retaliation

62
Q

buyers bargaining power is reduced when

A

product information is incomplete

63
Q

the two variables selected as ___ in a strategic group map should not be highly correlated

A

axes

64
Q

Suppliers of ____ are in a weak bargaining position because there is no reason to choose the product of one supplier over that of another except for price.

A

commodities

65
Q

Value net analysis can help managers improve their position through ____ as well as competitive interactions

A

cooperative

66
Q

Which of the following are examples of economic conditions that affect companies?

A
  • the per capita domestic product
  • the inflation rate
  • trade surpluses
67
Q

which of the following is an example of something that establishes a network effect in customer demand?

A

video games systems

68
Q

Consumers have the option to delay the purchase of ____ goods such as hot tubs and home entertainment centers

A

discretionary

69
Q

strategically relevant factors have a bearing on the ___ direction of any given company?

A

long term

70
Q

supplier power is greatest when demand for their products is ___ and the products are ___.

A

high; in short supply

71
Q

Lowered switching costs___ supplier bargaining power

A

limit

72
Q

The existence of complementors shows that a company’s sussess in the marketplace___ other industry participants.

A

need not come at the expense of

Administration Policy & Strategy Learn Smart (11 decks)

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