Question 1

The five industry types discussed in the book include:

Accepted Answer

The five industry types discussed in the book are emerging, fragmented, mature, declining, and global. None of the other answer choices match the correct terminology used in the book.

Question 2

Windspire is starting a firm in the small-scale wind-generated power industry. This industry is still so new that no standard operating procedures have been developed. Small-scale wind-generated power is an example of a(n) ________ industry.

Accepted Answer

The fact that no standard operating procedures have been developed and the industry is still new indicates that it is an emerging industry.

Question 3

Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

Accepted Answer

The description of the strategy matches with the multidomestic strategy, where firms adapt to local markets to compete for market share on a country-by-country basis.

Question 4

According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

The answer of According to the textbook, InstyMeds in prescription...

Question 5

According to the textbook, PharmaJet, in needleless injection systems, and d'light, in solar-powered lanterns, are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

The answer of According to the textbook, PharmaJet, in needleless...

Question 6

The What Went Wrong? feature in Chapter 5 focuses on Eclipse Aviation. What was Eclipse Aviation's goal?

Accepted Answer

Eclipse Aviation's goal was to create a new segment in the private jet industry called very light jets.

Question 7

A(n) ________ industry is an industry that is experiencing slow or no increase in demand.

Accepted Answer

A mature industry is an industry that has reached its peak and is experiencing slow or no increase in demand. This is because the market is already saturated with established players, making it difficult for new firms to enter the market and gain market share. In contrast, declining industries are experiencing a decline in demand, while global industries have a presence in multiple countries. Emerging industries are growing rapidly, and fragmented industries have many small players with no dominant firms.

Question 8

According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as:

Accepted Answer

The example provided in Chapter 5 highlights www.1800contacts.com as possessing a nontraditional barrier to entry in the form of an Internet domain name. This is because the company has established itself as a reputable and recognizable brand within the online contact lens market, making it difficult for new entrants to compete with them using a similar domain name.

Question 9

Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 different countries. One thing that Shelly's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country by country basis to meet the demands of the local markets. Shelly's firm is pursuing a ________ strategy.

Accepted Answer

Shelly's firm is varying the taste of their fruit drinks on a country by country basis to meet the demands of the local markets, which is a characteristic of a multidomestic strategy. This approach involves tailoring products or services to the specific needs and preferences of each local market.

Question 10

Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on:

Accepted Answer

These factors directly affect the bargaining power of suppliers. Supplier concentration refers to the degree to which the market is dominated by a few large suppliers, making it more difficult for buyers to negotiate favorable terms. Switching costs refer to the costs buyers incur when switching to a new supplier, which can make it more difficult for them to switch to alternatives. Attractiveness of substitutes refers to the availability and convenience of alternative products or services, which can limit the bargaining power of suppliers. Threat of forward integration refers to the possibility of suppliers entering the buyer's industry and competing directly with them, which can further reduce the buyer's bargaining power.

Question 11

A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.

Accepted Answer

A fragmented industry is the one where there are numerous small firms, and no single large firm dominates the industry. This leads to a situation where firms compete with each other for market share, and there is no clear market leader. This is in contrast to a consolidated industry, where a few large firms dominate the industry.

Question 12

The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.

Accepted Answer

The two most common strategies pursued by firms in global industries are the multidomestic strategy, which involves customizing products and marketing strategies to fit the specific needs and preferences of individual countries or regions, and the global strategy, which involves standardized products and marketing strategies across multiple countries or regions. The other answer choices are either not correct terms or not commonly used to describe global business strategies.

Question 13

Which of the following was not identified in the textbook as a nontraditional barrier to entry?

Accepted Answer

Capital requirements are considered a traditional barrier to entry, not a nontraditional one.

Question 14

A(n) ________ industry is an industry that is experiencing significant international sales.

Accepted Answer

A global industry is one that is experiencing international sales across multiple countries and regions. This indicates that the industry has a strong presence and demand in various markets, making it a profitable and attractive industry for businesses to operate in.

Question 15

According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.

Accepted Answer

The answer of According to the textbook, Nucor in steel,...

Question 16

Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.

Accepted Answer

Katherine is pursuing a global strategy, which involves offering the same products using the same marketing approach in all markets, aiming for universal appeal without adapting to local preferences.

Question 17

John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John because they tell him that the profitability of the specialty chemical industry is suppressed by the:

Accepted Answer

The high supplier concentration, high switching costs for buyers, and lack of attractive substitutes all indicate that suppliers have a great deal of bargaining power. This suggests that the profitability of the industry is suppressed by the bargaining power of suppliers.

Question 18

The primary opportunity existing for startups in fragmented industries is to:

Accepted Answer

The answer of The primary opportunity existing for startups in...

Question 19

Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.

Accepted Answer

Opportunities for leadership, niche, harvest, and divestment are typically associated with declining industries. In such industries, demand decreases over time, leading companies to adopt strategies like focusing on niche markets, reducing investment (harvesting), or exiting the market (divestment).

Question 20

The primary opportunity existing for startups in emerging industries is to:

Accepted Answer