Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGMT 466 > MGMT 466 Exam 1 - FLASHCARDS - Chapter 2 > Flashcards

MGMT 466 Exam 1 - FLASHCARDS - Chapter 2

1
Q

True or false: the external environment affects the competitive actions and responses firms take to outperform competitors and earn above-average returns?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the general environmnt?

A

Composed of dimensions in the broader society that influence an industry and the firms within it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are aspects of the general environment?

A

Demographic
Economic
Political/legal
Sociocultural
Technological
Global
Sustainable physical environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the industry environment?

A

Set of factors that directly influences a firm and its competitive actions and responses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

True or false: How companies gather and interpret information about their competitors is called competitor analysis?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does analysis of the industry environment focus on?

A

the factors and conditions influencing an industry’s profitability potential

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does analysis of the general environment focus on?

A

environmental trends and their implications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the four parts of an external environmental analysis?

A
  1. Scanning
  2. Monitoring
  3. Forecasting
  4. Assessing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is identifying early signals of potential changes in the general environment and detecting changes that are already under way?

A

Scanning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is seeing if an important trend is emerging from among those spotted through scanning?

A

Monitoring

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is developing feasible projections of what might happen, and how quickly?

A

Forecasting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is determining the timing and significance of the effects? Appropriately interpreting– opportunity or threat

A

Assessing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Must each firm scan, monitor, forecast, and assess the elements in each general environmental segment to predict their effects on it?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What elements are included in the demographic segment of the general environment?

A

population’s size, age structure, geographic distribution, ethnic mix, and income distribution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What segment of the general environment deals with the nature and direction of the economy?

A

Economic segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is included in the economic segment of the general environment?

A

Inflation rates
Interest rates
Trade deficits or surpluses
Budget deficits or surpluses
Personal savings rate
Business savings rates
Gross domestic product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What segment is about how organizations try to influence governments, to understand the current and projected influences of those governments on their competitive actions and responses?

A

Political/legal segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What segment is about society’s attitudes and cultural values?

A

Sociocultural segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are examples of the socicultural segment?

A

caring about health, working from home

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Example of adversarial

A

we didn’t do it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What segment has to do with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials?

A

Technological segment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a group of firms producing products that are close substitutes?

A

Industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

True or false: coke and pepsi are substitute products because they are in the same industry?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What do new entrants do?

A

bring new capacity and desire to gain market share. Pressure on prices, costs, investment. Put a cap on profit potential of the industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

True or false: Particularly when new entrants are diversifying from other markets, they can leverage existing capabilities and cash flows to shake up competition?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

True or false: When the threat of new entrants is high, incumbents must hold down prices or boost investments to deter new competitors?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are different barriers to entry?

A

Switching Costs.
Capital Requirements
Product Differentiation
Economies Of Scale
Access To Distribution Channels
Cost Disadvantages Independent Of Scale
Government Policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is it called when the cost of producing each unit declines as the quantity of a product produced during a given period increases?

A

Economies of scale

29
Q

True or false: product differentiation is a barrier to entry?

A

TRUE

30
Q

True or false: switching costs are a barrier to entry for new firms?

A

TRUE

31
Q

True or false: Starbucks has low barriers to entry?

A

TRUE

32
Q

True or false: Slow industry growth increases rivalry?

A

TRUE

33
Q

What is expected retaliation?

A

An expectation of swift and vigorous competitive responses reduces the likelihood of entry

34
Q

When can vigorous retaliation be expected?

A

when the existing firm has a major stake in the industry, when it has substantial resources, and when industry growth is slow or constrained

35
Q

True or false: Small entrepreneurial firms are generally best suited for identifying and serving neglected market segments?

A

TRUE

36
Q

What is bargaining power of suppliers?

A

Suppliers can exert power, either increasing prices or reducing quality

37
Q

What do buyers bargain for?

A

Higher quality, greater levels of service, and lower prices

38
Q

True or false: buyers are powerful when they purchase a large portion of an industry’s total output?

A

TRUE

39
Q

What are goods or services from outside a given industry that perform similar or the same functions as a product that the industry produces?

A

Substitute products

40
Q

True or false: substitute products present a threat to a firm when customers face few, if any, switching costs?

A

TRUE

41
Q

True or false: substitute products present a threat to a firm when the substitute product’s price is lower?

A

TRUE

42
Q

True or false: substitute products present a threat to a firm when the substitute product’s quality and performance capabilities are equal to or greater than those of the competing product?

A

TRUE

43
Q

What can a firm do do differentiate a substitute’s attractiveness?

A

a firm can differentiate a product along dimensions that are valuable to customers, such as:
Quality
Service after the sale
Location

44
Q

What are factors that increase the intensity of rivalries among firms?

A

Numerous or equally balanced competitors
Slow industry growth
High fixed costs or high storage costs
Lack of differentiation or low switching costs
High strategic stakes Strategic Commitments– costly, long-term oriented, and difficult to reverse.
High exit barriers

45
Q

What are products of careful study and interpretation of data and information from multiple sources?

A

Effective industry analyses

46
Q

Within a firm’s effective industry analysis, international markets and rivalries must be included?

A

Yes

47
Q

True or false: an attractive industry has low entry barriers?

A

False. An attractive industry has high entry barriers

48
Q

True or false: an attractive industry has suppliers and buyers with little bargaining power?

A

TRUE

49
Q

True or false: an attractive industry has few competitive threats from product substitutes?

A

TRUE

50
Q

True or false: an attractive industry has relatively moderate rivalry?

A

TRUE

51
Q

True or false: an unattractive industry has low entry barriers?

A

TRUE

52
Q

True or false: an unnatractive industry has suppliers and buyers with strong bargaining power?

A

TRUE

53
Q

True or false: an unnatractive industry has strong competitive threats from product substitutes?

A

TRUE

54
Q

True or false: an unnatractive industry has intense rivalry among competitors?

A

TRUE

55
Q

What is a set of firms emphasizing similar strategic dimensions and using a similar strategy?

A

Strategic group

56
Q

True or false: competitive rivalry is greater within a strategic group than between strategic groups?

A

TRUE

57
Q

Using strategic groups to understand an industry’s competitive structure requires the firm to plot companies’ competitive actions and responses along strategic dimensions, such as what?

A

Pricing Decisions
Product Quality
Distribution Channels

58
Q

True or false: The competitive rivalry among strategic groups can be intense?

A

TRUE

59
Q

True or false: The more intense the rivalry between strategic groups, the greater is the threat to each firm’s profitability?

A

TRUE

60
Q

True or false: The closer the strategic groups are in terms of their strategies, the greater is the likelihood of rivalry between the groups?

A

TRUE

61
Q

What are companies or networks of companies that sell complementary goods or services that are compatible with the focal firm’s good or service?

A

Complementers

62
Q

What is example of a complementer?

A

Intel and Microsoft - using Intel chips in Microsoft products

63
Q

When is a company a complementer to your company?

A

A company is a complementor to your company if customers value your product or service offering more when they are able to combine it with the other company’s product or service

64
Q

Supplier power can erode - appliances in big box stores erode because of online shopping

A

.

65
Q

What focuses on each company against which a firm competes directly?

A

Competitor analysis

66
Q

What does the firm try to understand during competitor analysis?

A
  1. What drives the competitor, as shown by its future objectives
  2. What the competitor is doing, as revealed by its current strategy
  3. What the competitor believes about the industry, as shown by its assumptions
  4. What the competitor’s capabilities are, as shown by its strengths and weaknesses
67
Q

Porter’s 5 forces pertain to all different industries

A

.

68
Q

What are porter’s 5 forces?

A

Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of new substitutes
Competitive rivalry

69
Q

What is the current market share of beats?

A

15.3

MGMT 466 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions