Question 1

Attributes associated with a product or service that cause customers to prefer it rather than competing products or services are _____.

Accepted Answer

Product/service differentiation refers to the unique features or qualities of a product or service that make it stand out from competitors, leading customers to prefer it over other options.

Question 2

Entry barriers are caused by all of the following, except _____.

Accepted Answer

Low switching costs actually lower entry barriers because they make it easier for customers to switch to a new entrant's products or services. The other options (economies of scale, capital requirements, product differentiation, and inimitable resources) all contribute to making it harder for new competitors to enter an industry.

Question 3

Resources that are possessed by industry participants but are difficult or impossible to completely duplicate are _____.

Accepted Answer

Inimitable resources are those that cannot be easily replicated by competitors, giving the possessing company a competitive advantage. These can include unique brand identity, proprietary technology, or a highly skilled workforce.

Question 4

Substitute products form a _____.

Accepted Answer

Substitute products form a ceiling on prices because they provide alternative options for consumers, limiting how high the price of a product can go before consumers switch to the substitute.

Question 5

The interest that a group takes in assuring that an organization behaves in a manner that is socially responsible is referred to as a(n) _______.

Accepted Answer

The term "social stake" refers to the interest a group has in ensuring an organization acts in a socially responsible way.

Question 6

Having a legal right to make decisions for some part of the company is referred to as a(n) _______.

Accepted Answer

Formal power refers to the legitimate authority granted to individuals within an organization to make decisions, allocate resources, and direct others' work. It is typically associated with a specific position within the company's hierarchy.

Question 7

Techniques that firms use to win market share and increase revenues and profits are _______.

Accepted Answer

Competitive tactics are specific techniques that firms use to win market share and increase revenues and profits. These tactics can include pricing strategies, product innovations, marketing campaigns, and other actions designed to outperform competitors.

Question 8

Which term best describes various types of organizational cooperation?

Accepted Answer

Interorganizational relationships best describe various types of organizational cooperation, as they encompass the broad range of collaborative activities and partnerships between different organizations.

Question 9

The best example which illustrates the competitive force of substitute products is _______.

Accepted Answer

Substitute products are those that can serve as replacements for each other, fulfilling the same need or want but not necessarily being direct competitors within the same industry. Kroger Grocery Store and Dairy Queen serve as substitutes because consumers can choose to buy food at a grocery store instead of eating out at a fast-food chain, even though they operate in slightly different sectors (retail vs. fast food). The other options (A, C, D, E) represent direct competitors within the same industry, not substitutes.

Question 10

A group of firms oriented towards problem solving and technology development is referred to as a(n) _____.

Accepted Answer

Consortia are collaborative arrangements among firms oriented towards problem solving and technology development, pooling resources to achieve common objectives.

Question 11

Which relationship is most important for industries that are heavily regulated or subject to frequent government interferences?

Accepted Answer

Trade associations play a crucial role for industries that are heavily regulated or subject to frequent government interferences. They represent the collective interests of companies within an industry, engaging in lobbying, providing a platform for collaboration on common issues, and facilitating compliance with regulations.

Question 12

What is the primary advantage of interlocking directorates?

Accepted Answer

The answer of What is the primary advantage of interlocking...

Question 13

The bargaining power of suppliers is great when _____.

Accepted Answer

The bargaining power of suppliers increases when they can credibly threaten to enter the buyer's industry, potentially becoming competitors. This gives them leverage in negotiations.

Question 14

Discuss the four perspectives that make societal analysis important.

Accepted Answer

The answer of Discuss the four perspectives that make societal...

Question 15

Define technology and discuss the three characteristics of technological innovation.

Accepted Answer

The answer of Define technology and discuss the three characteristics...

Question 16

Discuss what factors make customers strong in Porter's Five Forces model.

Accepted Answer

The answer of Discuss what factors make customers strong in...

Question 17

Discuss the characteristics that lead to greater rivalry in an industry.

Accepted Answer

The answer of Discuss the characteristics that lead to greater...

Question 18

Discuss the factors that create barriers to entry in Porter's Five Forces model.

Accepted Answer

The answer of Discuss the factors that create barriers to...

Quiz 2: The Environment and External Stakeholders