Question 1

A supplier will have more bargaining power
A) if it is able to provide the products that the industry is currently providing.
B) if the supplier's product is an important input to the industry.
C) if the supplier's products are differentiated or there are customer switching costs.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Accepted Answer

All the options listed contribute to increasing a supplier's bargaining power. If a supplier's product is crucial to the industry, if the products are differentiated, or if there are significant costs associated with switching suppliers, the supplier gains more leverage in negotiations and transactions.

Question 2

________ refers to cost savings that you get as volume increases.
A) Switching costs
B) Economic costs
C) Economies of scale
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Accepted Answer

Economies of scale refer to cost savings that occur as the volume of production or output increases. As the volume increases, fixed costs such as rent and machinery can be spread out over more units, resulting in lower costs per unit. This can make a business more efficient and competitive. Switching costs refer to costs incurred when changing suppliers or products, while economic costs are the total costs (including both explicit and implicit costs) of producing a good or service.

Question 3

Which of the following does not usually function as an entry barrier?
A) Economies of scale
B) High strategic stakes
C) Product differentiation
D) Switching costs
E) Access to distribution channels

Accepted Answer

High strategic stakes do not usually function as an entry barrier because they generally attract new entrants instead of deterring them. High strategic stakes refer to industries or markets with significant profit potential, which makes them more attractive to potential new entrants rather than acting as a deterrent. Other factors such as economies of scale, product differentiation, switching costs, and access to distribution channels are commonly used as entry barriers to prevent potential new entrants from gaining a foothold in the market.

Question 4

Recent census data showed that for the first time in the history of the United States there were more Americans over age ________ than under.
A) 25
B) 30
C) 21
D) 19
E) 35

Accepted Answer

The answer of Recent census data showed that for the...

Question 5

A buyer will have less bargaining power if all of the following factors apply except
A) buyers have limited information.
B) buyers face few switching costs.
C) the products purchased are highly differentiated and unique.
D) buyers do not have the ability to manufacture the products.
E) buyers purchase small volumes of the products.

Accepted Answer

Buyers face fewer switching costs means they can easily switch to another supplier if they are not satisfied with the terms of the current one, which increases their bargaining power, not decreases it.

Question 6

An example of a strategic group would be all of the following except
A) Mercedes Benz versus General Motors' Saturn.
B) Toyota Camry versus Honda Accord.
C) Mercedes Benz versus BMW.
D) All of the above are strategic group examples.
E) None of the above is an example of a strategic group.

Accepted Answer

Strategic groups refer to companies within the same industry that have similar business models or strategies. Mercedes Benz and General Motors' Saturn do not represent a strategic group because they target significantly different market segments with different strategies (luxury vs. economy). In contrast, Toyota Camry versus Honda Accord, and Mercedes Benz versus BMW, are examples of companies within the same strategic group, targeting similar market segments with similar strategies.

Question 7

The one-time costs facing the buyer who switches from one supplier's product to another's is
A) product differentiation.
B) capital requirements.
C) switching costs.
D) access to distribution channels.
E) government policy.

Accepted Answer

Switching costs refer to the one-time expenses incurred by a buyer who switches from one supplier's product to another's. These costs can include financial, time, and resource expenditures, such as training employees on a new product or investing in new equipment.

Question 8

According to Michael Porter, major potential barriers to entry include
A) economies of scale.
B) product differentiation.
C) switching costs.
D) capital requirements.
E) All of the answer choices are correct.

Accepted Answer

All of the answer choices are correct according to Michael Porter as they all represent potential barriers to entry for new competitors. Economies of scale can create cost advantages for established firms, product differentiation can make it difficult for new firms to establish a foothold and compete on equal footing, switching costs may discourage customers from switching to a new competitor, and high capital requirements may make it difficult for new entrants to secure necessary resources to compete.

Question 9

Which of the following is not one of the five competitive forces?
A) Competition forms substitute products
B) The threat of potential entry
C) The strength of industry forces
D) The bargaining power of buyers
E) None of the answer choices is correct.

Accepted Answer

The five competitive forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. There is no such force as "the strength of industry forces."

Question 10

One of the factors that shapes the definition of exit barriers as factor(s)that keep companies competing in businesses, even when those businesses are failing, is
A) economic factors.
B) strategic factors.
C) emotional factors.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Accepted Answer

The answer of One of the factors that shapes the...

Question 11

Which of the following would be examples of sectors that could be found in the specific environment?
A) Demographics
B) Competitors
C) Economics
D) Political/legal
E) All of the answer choices are correct.

Accepted Answer

Competitors are part of the specific environment as they directly affect an organization's ability to achieve its goals. Other options like demographics, economics, and political/legal are part of the general environment.

Question 12

The Porter five forces model includes all of the following factors except
A) bargaining power of suppliers.
B) threat of new entrants.
C) threat of a decrease in research and development.
D) threat of substitute products.
E) bargaining power of buyers.

Accepted Answer

The Porter five forces model consists of the bargaining power of suppliers, threat of new entrants, threat of substitute products, bargaining power of buyers, and competitive rivalry. The threat of a decrease in research and development is not a factor included in the model.

Question 13

Which of the general environmental sectors is affected when minimum wage laws are changed?
A) Economics
B) Demographics
C) Sociocultural
D) Political/legal
E) Technological

Accepted Answer

Minimum wage laws are a type of government regulation that affects the political/legal sector of the environment.

Question 14

One of the significant legislative acts affecting organizations is
A) Equal Employment Opportunity Act of 1972.
B) Family and Medical Leave Act of 1993.
C) North American Free Trade Agreement of 1993.
D) Consumer Product Safety Act of 1972.
E) All of the answer choices are correct.

Accepted Answer

All listed acts significantly affect organizations in various ways: the Equal Employment Opportunity Act of 1972 addresses non-discrimination in employment, the Family and Medical Leave Act of 1993 provides employees with job-protected and unpaid leave for qualified medical and family reasons, the North American Free Trade Agreement of 1993 impacts trade and economic relations, and the Consumer Product Safety Act of 1972 regulates the sale of most consumer products in the U.S.

Question 15

When organizations consider whether there are upcoming price increases in the products purchased by the industry, this issue refers to the ________ of the Porter five forces model.
A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices is correct.

Accepted Answer

The bargaining power of suppliers refers to the influence that suppliers have over the price and quality of goods and services. If suppliers have a high bargaining power, they can demand higher prices and better terms, which can increase costs for organizations. Anticipating upcoming price increases in the products purchased by the industry is related to the bargaining power of suppliers.

Question 16

When consumers consider whether they have the ability and resources themselves to manufacture the products they are purchasing from the industry, this issue refers to the ________ of the Porter five forces model.
A) bargaining power of buyers
B) threat of potential entrants
C) threat of substitute products
D) bargaining power of suppliers
E) None of the answer choices are correct.

Accepted Answer

The bargaining power of buyers includes considerations of how easy it is for buyers to drive prices down, which can be influenced by their ability to find alternative sources for the product or to make the product themselves. If consumers can easily manufacture the product or find alternative ways to fulfill their needs, they have more power over the industry.

Question 17

One of the conditions that contributes to intense competitor rivalry is
A) numerous or equally balanced competitors.
B) slow industry growth.
C) high fixed costs.
D) diverse competitors.
E) All of the answer choices are correct.

Accepted Answer

All of the listed conditions contribute to intense competitor rivalry. Numerous or equally balanced competitors, slow industry growth, high fixed costs, and diverse competitors all create an environment where businesses must aggressively compete for market share, leading to intense rivalry.

Question 18

Which of the following would be considered substitute products?
A) Coke and Pepsi
B) Contacts and eyeglasses
C) The Internet and the World Wide Web
D) AT&T and Sprint
E) None of the answer choices is correct.

Accepted Answer

Contacts and eyeglasses are substitute products because they serve the same purpose of correcting vision.

Question 19

The generation of the postwar group was born between the years
A) 1912-1921.
B) 1922-1927.
C) 1928-1945.
D) 1965-1977
E) 1978-1994.

Accepted Answer

The postwar group refers to those born after World War II, which ended in 1945. Therefore, the correct range of years would begin in 1945 and extend to a later date. The only option that includes this range is C, which spans from 1928-1945.

Question 20

Government policy is a potential barrier to entry because of
A) licensing requirements.
B) controlling access to raw materials.
C) product safety standards.
D) water pollution standards.
E) All of the above are issues of government policy.

Accepted Answer

All of the above options can be issues of government policy that create barriers to entry for new firms. Licensing requirements can make it difficult for new businesses to enter certain industries. Government restrictions on access to raw materials can make it hard for new firms to obtain the resources they need to produce their products. Product safety standards can also be a challenge for new firms who may not have the resources to meet the strict requirements. Water pollution standards can create additional costs for new businesses, making it harder to compete with established firms. Therefore all of the above are issues of government policy that can act as barriers to entry.

Quiz 3: Assessing Opportunities and Threats: Doing an External Analysis

A supplier will have more bargaining power

________ refers to cost savings that you get as volume increases.

Which of the following does not usually function as an entry barrier?

Recent census data showed that for the first time in the history of the United States there were more Americans over age ________ than under.

A buyer will have less bargaining power if all of the following factors apply except

An example of a strategic group would be all of the following except

The one-time costs facing the buyer who switches from one supplier's product to another's is

According to Michael Porter, major potential barriers to entry include

Which of the following is not one of the five competitive forces?

One of the factors that shapes the definition of exit barriers as factor(s) that keep companies competing in businesses, even when those businesses are failing, is

Which of the following would be examples of sectors that could be found in the specific environment?

The Porter five forces model includes all of the following factors except

Which of the general environmental sectors is affected when minimum wage laws are changed?

One of the significant legislative acts affecting organizations is

When organizations consider whether there are upcoming price increases in the products purchased by the industry, this issue refers to the ________ of the Porter five forces model.

When consumers consider whether they have the ability and resources themselves to manufacture the products they are purchasing from the industry, this issue refers to the ________ of the Porter five forces model.

One of the conditions that contributes to intense competitor rivalry is

Which of the following would be considered substitute products?

The generation of the postwar group was born between the years

Government policy is a potential barrier to entry because of