Test 2 Flashcards
Within Porter’s framework, a _________ competitive force can be regarded as a(n) __________.
Strong ; threat
What are the elements of Porter’s Five Forces?
a. Risk of entry by potential competitors
b. Bargaining power of suppliers
c. Intensity of rivalry among established firms
d. Bargaining power of buyers
e. The closeness of substitutes to an industry’s products.
What are barriers to entry?
a. Economies of scale
b. Brand loyalty
c. Absolute cost advantages
d. High customer bargaining power
What industry structure consists of a large number of small and medium-sized companies, none of which is in a position to determine industry price?
Fragmented industry
What industry structure is dominated by a small number of large companies?
Consolidated industry
Research suggests that it is often the __________ firms in an industry that initiate price cuts or increase promotions in an attempt to cover fixed costs
Weakest
The bargaining power of an industry’s buyers is greater when
they can threaten to enter the industry and produce the product themselves.
Members of a strategic group
follow a business model that is similar to that pursued by other companies in the group.
Mobility orders
inhibit the movement of companies between strategic groups in an industry.
In growth industries,
buyers are familiar with the industry’s product
Entry barriers in the embryonic stage are frequently based on…
Technological know-how
Demand reaches total saturation in the ___________ stage of the industry life cycle.
Maturity
The threat from new entrants is greatest in the _________ stage of the industry life cycle.
Growth
What are the parts of the shakeout stage of the industry life cycle
a. demand approaches saturation levels.
b. rivalry between companies becomes intense.
c. capacity continues to grow. Incorrect
d. companies cut prices.
What are the factors in the economic forces of the macroenvironment?
a. Growth rate of the economy
b. Interest rates
c. Price inflation
d. Currency exchange rates Incorrect
What are the forces in the wider macroenvironment
a. economic forces
b. global
c. demographic forces
d. social forces
Julian is asked to examine the demographic environment facing his employer, a clothing manufacturer. Which of the following should Julian examine?
Aging of the population
Beverage makers are finding that water sales are increasing due to consumers’ preferences for healthy drinks. Which part of the macroenvironment does this represent?
Social forces
The Internet is an example of a
Technological force
What are the demographic forces in the macroenvironment except
a. age
b. gender
c. social class
d. sexual orientation
Due to a recent relaxation in pollution standards, Ford Motors is withdrawing its electric-powered cars from sales in the U.S. market. Ford is responding to a change in which of the following macroenvironmental forces?
Political and legal
Superior value requires that
the gap between perceived value and costs of production be greater than the gap attained by competitors.
The reasons that explain why so many new products fail to generate an economic return include
the demand for innovations is inherently uncertain.
b. the technology is poorly commercialized.
c. many fail because of poor positioning strategy
d. the products are slow to get to the market.
John’s bakery is able to produce exactly the right types of bread each day and have them available when customers come into the store. John’s bakery is superior in
Customer responsiveness
