Question 1

In the food industry, where there are direct competitors, rivalry takes the form of

Accepted Answer

The answer of In the food industry, where there are...

Question 2

Which of the following increases the attractiveness of a market?

Accepted Answer

Few substitute products increase the attractiveness of a market because it reduces the threat of customers switching to alternatives, allowing firms to maintain pricing power and profitability.

Question 3

The financial statement of Labyrinth Inc., a heavy-metal industry, for the year 2013, showed a loss in revenue. The main cause was the entry of new competitors in the market, with advanced skill and expertise. The company decided to conduct an internal assessment of the organization through a SWOT analysis. What was the possible deduction arrived at by the company through its internal analysis?

Accepted Answer

The main cause for the loss in revenue was the entry of new competitors with advanced skill and expertise. This suggests that the company's technologies may be obsolete in comparison to the competitors. Therefore, the possible deduction arrived at by the company through its internal analysis could be that they have obsolete technologies that need to be upgraded.

Question 4

Any special strength that gives an organization a competitive advantage is referred to as its ___.

Accepted Answer

A core competency is a unique strength or advantage that sets an organization apart from its competitors. It could be a skill, technology, or unique process that is difficult for competitors to replicate, and it gives the organization a competitive advantage in the marketplace.

Question 5

In conducting a SWOT analysis, the presence of manufacturing efficiencies, a skilled workforce, a good market share, strong financing, and a superior reputation would be identified as a company's ___.

Accepted Answer

The qualities listed indicate strengths of a company in a SWOT analysis. Strategies refer to the approach a company takes to achieve goals, weaknesses are internal factors that hinder success, opportunities are external factors that could lead to success, and threats are external factors that could hinder success.

Question 6

Which of the following is true about oligopoly?

Accepted Answer

Oligopoly is a market structure characterized by a small number of large firms that dominate the market. Therefore, there are only a few competitors.

Question 7

According to Porter, which of the following is one of the five forces that affect industry competition?

Accepted Answer

According to Porter's five forces model, one of the five forces that affect industry competition is the threat of substitute products or services.

Question 8

Powerston Inc. is the market leader of car batteries primarily because of its unique distribution system. The distribution system that has given the company an advantage over its competitors is an example of the company's ___.

Accepted Answer

The unique distribution system of Powerston Inc. has given the company an advantage over its competitors, which is an example of the company's core competency. Core competencies are unique and deep-seated strengths that allow a company to gain a competitive advantage. In this case, Powerston's unique distribution system is a strategic advantage that sets it apart from its competitors in the market.

Question 9

In doing a SWOT analysis, the examination of threats within both the industry and macro environments should address all of the following elements except

Accepted Answer

The element of abundance of resources is not typically considered a threat in a SWOT analysis. Rather, it would be considered a strength or opportunity. The other elements listed - new competitors, changing market tastes, new regulations, and substitute products - would all be appropriate to consider when examining threats in the industry and macro environments.

Question 10

In conducting a SWOT analysis, issues regarding outdated facilities, inadequate research and development, obsolete technologies, weak management, and past planning failures would be addressed in analyzing the company's ___.

Accepted Answer

In conducting a SWOT analysis, the purpose is to analyze the company's strengths, weaknesses, opportunities, and threats. Outdated facilities, inadequate research and development, obsolete technologies, weak management, and past planning failures are all internal factors that can negatively impact the company, and therefore fall under the category of weaknesses.

Question 11

From the perspective of Porter's five forces model, a(n) ___ is one in which intense rivalry already exists among competitors, there are substantial threats in terms of new competitors and substitute products, and suppliers and buyers are very powerful in bargaining over prices and quality.

Accepted Answer

According to Porter's five forces model, an unattractive industry is characterized by intense rivalry among existing competitors, the threat of new competitors and substitute products, and powerful bargaining power by suppliers and buyers. Therefore, an industry with these characteristics would be considered unattractive.

Question 12

Which of the following is a defining characteristic of a SWOT analysis?

Accepted Answer

A SWOT analysis is used to identify the strengths, weaknesses, opportunities, and threats to a company or organization. The identification of weaknesses or things that inhibit optimum performance achievement is a defining characteristic of a SWOT analysis. The other options do not accurately reflect what a SWOT analysis is or what it examines.

Question 13

If there are many competitors and the barriers to entry are low, the

Accepted Answer

When there are many competitors and the barriers to entry are low, it indicates that there is intense competition in the industry, making it difficult for businesses to differentiate themselves and maintain a sustainable competitive advantage. This results in a decrease in profitability and thus makes the industry unattractive. Low barriers to entry mean that new entrants can easily enter the market, which can further intensify the competition.

Question 14

In conducting a SWOT analysis, a company's ___ should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations.

Accepted Answer

SWOT analysis involves assessing a company's internal strengths and weaknesses as well as external opportunities and threats. In this specific question, the items mentioned (new competitors, resource shortages, changing market tastes, substitute products, and new regulations) all refer to potential external threats that could impact the company's business operations. Therefore, the correct answer is E) threats.

Question 15

From the perspective of Porter's five forces model, a(n) ___ is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers.

Accepted Answer

Based on the description given, the industry is exhibiting characteristics of an attractive industry. This is because there is less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers. These factors make the industry more profitable and therefore more attractive to potential investors.

Question 16

In a SWOT analysis, industry environmental factors include the organization's ___.

Accepted Answer

Industry environmental factors in a SWOT analysis refer to external factors such as resource suppliers, competitors and customers which can impact the organization's operations and strategies. Therefore, the correct answer is D.

Question 17

In conducting a SWOT analysis, a company's ___ can be examined by asking questions about possible new markets, the growth of existing markets, the emergence of new technologies, and the weaknesses of market rivals.

Accepted Answer

Opportunities refer to external factors that could potentially benefit a company. Examining new markets, growth potential, emerging technologies, and weaknesses of competitors can help identify potential opportunities for a company to pursue. Therefore, the best choice in this scenario is D) opportunities.

Question 18

___ decreases the attractiveness of the market.

Accepted Answer

When customers have high bargaining power, it means they have the ability to negotiate prices and demand better products or services, which can decrease the attractiveness of the market. This can result in lower profits and increased competition among businesses as they try to retain customers.

Question 19

The ideal condition for an organization to operate in is a(n)

Accepted Answer

The answer of The ideal condition for an organization to...

Question 20

Potential opportunities and threats can be in identified in ___ and ___.

Accepted Answer

The answer of Potential opportunities and threats can be in...

Quiz 10: Strategy and Strategic Management