Question 1

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents rivalry in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Accepted Answer

The rivalry between Coke and Pepsi is famous in the soft drink industry.

Question 2

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a substitute product in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Vitamin water, fruit juice, or coffee are all substitute products to a soft drink.

Question 3

What is threat of new entrants?
A)The ability of buyers to affect the price they must pay for an item.
B)The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).
C)High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Accepted Answer

Threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.

Question 4

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee. Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Accepted Answer

Buyer power in the soft drink industry is represented by Walmart.

Question 5

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents supplier power in the music industry?
A)Established record labels like EMI, Sony, Universal.
B)Walmart, Target, iTunes.
C)Game systems like Wii, social networks like Facebook.
D)Taylor Swift, Beyoncé, The Beatles, The Stones.

Accepted Answer

An example of supplier power in the music industry includes established record labels like EMI, Sony, and Universal.

Question 6

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?
A)A niche market.
B)A broad market.
C)Neither niche or broad markets.
D)Both niche and broad markets.

Accepted Answer

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy you should target a narrow market, niche market, or a unique market.

Question 7

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?
A)Rivalry among new entrants.
B)Rivalry among existing competitors.
C)Threat of substitute products or services.
D)Buyer power.

Accepted Answer

Some industries' competition is much more intense than others. The retail grocery stores such as Kroger, Safeway, Albertson's, and Ralph's in the United States have fierce competition and similar programs to compete with each other.

Question 8

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?
A)Broad differentiation.
B)Supplier cost differentiation.
C)Focused strategy.
D)Broad cost leadership.

Accepted Answer

Porter has identified three generic business strategies for entering a new market: 1)broad cost leadership, 2)broad differentiation, and 3)focused strategy.

Question 9

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?
A)Rivalry.
B)Buyer power.
C)Product differentiation.
D)Substitute product.

Accepted Answer

Product differentiation is an advantage that occurs when a company develops unique differences in its products with the intent to influence demand.

Question 10

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?
A)Walmart.
B)Tiffany & Co.
C)Neiman Marcus.
D)Payless Shoes.

Accepted Answer

Payless competes by offering a specific product (narrow market)- shoes at low prices. Their strategy is to be the low-cost provider of shoes.

Question 11

What is rivalry among existing competitors?
A)The ability of buyers to affect the price they must pay for an item.
B)The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).
C)High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)High when competition is fierce in a market and low when competitors are more complacent.

Accepted Answer

Rivalry is high when competition is fierce in a market and low when competitors are more complacent.

Question 12

What is buyer power?
A)The ability of buyers to affect the price they must pay for an item.
B)The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).
C)High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Accepted Answer

Buyer power is the ability of buyers to affect the price they must pay for an item.

Question 13

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents the threat of substitute products or services in the music industry?
A)Established record labels like EMI, Sony, Universal.
B)Independent record labels.
C)Game systems like Wii, social networks like Facebook.
D)Taylor Swift, Beyoncé, The Beatles, The Stones.

Accepted Answer

Game systems like Wii and social networks offer alternatives or substitute products to purchasing music for a consumer.

Question 14

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents buyer power in the music industry?
A)Established record labels like EMI, Sony, Universal.
B)Walmart, Target, iTunes.
C)Independent record labels.
D)Game systems like Wii, social networks like Facebook.

Accepted Answer

Buyer power in the music industry includes Walmart, Target, and iTunes who purchase music from record labels to sell online and in their stores.

Question 15

What is supplier power?
A)The ability of buyers to affect the price they must pay for an item.
B)The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).
C)High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Accepted Answer

Supplier power is the suppliers' ability to influence prices.

Question 16

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented. Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers. What would Jennifer determine The Museum Company is using as its generic strategy?
A)Broad market, low cost.
B)Narrow market, high cost.
C)Broad market, high cost.
D)Narrow market, low cost.

Accepted Answer

The Museum Company competes using a narrow market and high cost focus.

Question 17

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a threat of a new entrant in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Zevia Natural Diet Soda represents a new entrant in the soft drink industry.

Question 18

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.
A)Narrow market leadership
B)High cost versus low cost
C)Focused strategy
D)None of the above

Accepted Answer

The three strategies proposed by Porter are 1)broad cost leadership, 2)broad differentiation, and 3)focused strategy.

Question 19

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents supplier power in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water, fruit juice, coffee.

Accepted Answer

Supplier power in the soft drink industry is represented by Pepsi.

Question 20

What is threat of substitute products or services?
A)The ability of buyers to affect the price they must pay for an item.
B)The suppliers' ability to influence the prices they charge for supplies (including materials, labor, and services).
C)High when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.
D)High when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Accepted Answer

Threat of substitute products or services is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose.

Quiz 1: Management Information Systems: Business Driven MIS

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents rivalry in the soft drink industry?

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a substitute product in the soft drink industry?

What is threat of new entrants?

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents buyer power in the soft drink industry?

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents supplier power in the music industry?

When analyzing Porter's three generic strategies for entering a market, if you have a focused strategy what market should you target?

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's Five Forces?

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

Amazon.com uses a customer profiling system whenever a customer visits its website. Using this system, Amazon can offer products tailored to that particular customer's profile and buying pattern. What is Amazon using to achieve this competitive advantage?

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?

What is rivalry among existing competitors?

What is buyer power?

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents the threat of substitute products or services in the music industry?

Your boss, Ty Jacob, has asked you to analyze the music industry using Porter's five forces model. Which of the following represents buyer power in the music industry?

What is supplier power?

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents a threat of a new entrant in the soft drink industry?

Broad differentiation, broad cost leadership, and ________ create the three generic strategies identified by Porter.

Your boss, Kerry Miller, has asked you to analyze the soft drink industry using Porter's five forces model. Which of the following represents supplier power in the soft drink industry?

What is threat of substitute products or services?