MC Quiz 2

Question 1

What are the 5 analytic tools?

Answer 1

1) Resource & Capability Analysis
2) SWOT Analysis
3) Value Chain Analysis
4) Benchmarking
5) Competitive Strength Assessment

Question 2

What are the 6 components of the macro-enivroment?

PESTEL

Answer 2

1) Political
2) Economic
3) Sociocultural
4) Technological
5) Environmental
6) Legal

Question 3

What are the 5 aspects of the five forces model of competition?

Answer 3

1) Suppliers
2) Rival Firms
3) New Entrants
4) Buyers
5) Substitute Products

Question 4

What is a competitively unattractive industry?

Answer 4

When all 5 forces are producing competitive pressures

Question 5

What is a competitively unattractive industry?

Answer 5

When all 5 forces are producing competitive pressures

Question 6

What is the rule of 5 forces?

Answer 6

The strongest competitive forces determine the extent of the competitive pressure on industry profitability

Question 7

What are the 2 aspects of matching a company’s strategy to competitive conditions?

Answer 7

1) Purse avenues that shield firm from the different pressures
2) Have actions that shift the competitive forces in the company’s favour

Question 8

Define: Complementers

Answer 8

Producers of
complementary products,
which are products that
enhance the value of the
focal firm’s products when
they are used together.

Question 9

Define: Driving Forces

Answer 9

major underlying causes
of change in industry and
competitive conditions.

Question 10

What are the 3 steps of driving forces analysis?

Answer 10

1) Identify what the driving forces are
2) Assessing whether the drivers are making the industry more or less attractive
3) Determine what strategy changes are needed to prepare for the impact of the driving forces

Question 11

Define: Strategic Group Mapping

Answer 11

technique for displaying
the different market or
competitive positions that
rival firms occupy in the
industry.

Question 12

Define: Strategic Group

Answer 12

a cluster of industry
rivals that have similar
competitive approaches
and market positions.

Question 13

What are the 2 ways to achieve cost advantage?

Answer 13

1) Perform value chain activities more cost-effectively than rivals.
2. Revamp the firm’s overall value chain to eliminate or bypass some costproducing
activities.

Question 14

Define: Cost Driver

Answer 14

a factor
that has a strong influence
on a company’s costs.

Question 15

Define: Cost Driver

Answer 15

a factor
that has a strong influence
on a company’s costs.

Question 16

Define: Best cost provider strategies

Answer 16

a hybrid
of low-cost provider and
differentiation strategies
that aim at providing more
desirable attributes (quality,
features, performance,
service) while beating rivals
on price.