Question 1

Imagine you are creating a new product to sell in an up-and-coming market.Which of the following statements indicates that it would be easy for you as the new entrant to compete in this market?
A)The threat of new entrants force is high in the up-and-coming market.
B)The threat of new entrants force is low in the up-and-coming market.
C)The threat of new entrants force is impossible to define in the up-and-coming market.
D)All of these are correct, depending on the time of year.

Accepted Answer

The 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 2

Which of the following offers an example where Porter's five forces are mostly weak and competition is low?
A)an international hotel chain purchasing milk
B)a coffee shop
C)a single consumer purchasing milk
D)a dog walking business

Accepted Answer

With Porter's five forces model, these are all examples of weak forces, where it decreases competition: 1) an international hotel chain purchasing milk, 2) a company that makes airline engines, 3) cancer drugs from a pharmaceutical company, 4) a professional hockey team, and 4) the Department of Motor Vehicles.

Question 3

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 4

Your boss 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)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

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.

Question 6

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 7

Your boss 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 8

Which of the following offers an example where Porter's five forces are mostly strong and competition is high?
A)a dog walking business
B)a ski resort
C)a professional hockey team
D)All of these are correct.

Accepted Answer

With Porter's five forces model, these are all examples of strong forces, where it increases competition: 1) a single consumer purchasing milk, 2) a company that makes pencils, 3) coffee from McDonalds, 4) a dog walking business, and 5) a coffee shop.

Question 9

Your boss 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 10

Your boss 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 11

Your boss has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a differentiation strategy?
A)Southwest, Horizon, Frontier, JetBlue
B)British Airways, Singapore Airlines, Virgin Atlantic
C)Sky Taxi - a rent by the hour personal plane service
D)All of these are correct.

Accepted Answer

British Airways, Singapore Airlines, and Virgin Atlantic all compete using differentiation strategies.

Question 12

Your boss 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 13

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 14

Imagine you are creating a new product to sell in an up-and-coming market.Which of the following statements indicates that it would be difficult for you to enter this new market?
A)The threat of new entrants force is high in the up-and-coming market.
B)The threat of new entrants force is low in the up-and-coming market.
C)The threat of new entrants force is high during the summer months in the up-and-coming market.
D)All of these are correct, depending on the time of year.

Accepted Answer

The 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 15

How can a company reduce the threat of substitute products or services?
A)market the product to less than ten customers
B)ignore competitive forces
C)offer additional value through wider product distribution
D)offer less value, making the product far more generic and similar to the competition

Accepted Answer

One way a company can reduce the threat of substitute products or services is to offer additional value through wider product distribution.

Question 16

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?
A)significant barrier
B)entry barrier
C)product differentiation
D)entry chain

Accepted Answer

Entry barrier is a feature of a product or service that customers have come to expect and entering competitors must offer the same for survival.

Question 17

Which of the following represents a typical supply chain?
A)company - customers - suppliers
B)company - suppliers - customers
C)suppliers - company - customers
D)suppliers - customers - company

Accepted Answer

A traditional business supply chain operates like this: supplier - company - customers.

Question 18

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 19

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 20

Which one of Porter's five forces 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?
A)Threat of new entrants
B)Threat of substitute products or services
C)Threat of buyer power
D)Supply chain competition

Accepted Answer

Threat of new entrants, one of Porter's five forces, 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.

Quiz 1: Management Information Systems: Business Driven MIS

Imagine you are creating a new product to sell in an up-and-coming market.Which of the following statements indicates that it would be easy for you as the new entrant to compete in this market?

Which of the following offers an example where Porter's five forces are mostly weak and competition is low?

What is supplier power?

Your boss 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?

What is threat of substitute products or services?

What is threat of new entrants?

Your boss 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?

Which of the following offers an example where Porter's five forces are mostly strong and competition is high?

Your boss 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?

Your boss 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 has asked you to analyze the airline industry using Porter's three generic strategies.Which of the following companies are using a differentiation strategy?

Your boss 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?

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?

Imagine you are creating a new product to sell in an up-and-coming market.Which of the following statements indicates that it would be difficult for you to enter this new market?

How can a company reduce the threat of substitute products or services?

What is a feature of a product or service that customers have come to expect and entering competitors must offer the same if they want to survive?

Which of the following represents a typical supply chain?

What is buyer power?

What is rivalry among existing competitors?

Which one of Porter's five forces 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?