Question 1

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Accepted Answer

A) True 
 B)False

Question 2

Rivalry between the firms Air Canada and WestJet

Accepted Answer

A)   is characterized as distractive.
B)   includes allegations that Air Canada set up a screen-scraper program to automatically lift data.
C)   includes allegations that Westjet sent investigators to pilfer an Air Canada Executive's garbage looking for data.
D)   is an example of a low level of competitive rivalry.E) B) and D)
F) C) and D)

Question 3

Which of the following would be considered part of a firm's general environment?

Accepted Answer

A)   Decreased entry barriers
B)   Increased trade deficit
C)   Increased bargaining power of the firm's suppliers
D)   Increased competitive intensityE) All of the above
F) B) and C)

Question 4

Gathering "competitive intelligence"

Accepted Answer

A)   is good business practice.
B)   is illegal.
C)   is considered unethical.
D)   minimizes the need to obtain information in the public domain.E) All of the above
F) None of the above

Question 5

According to the text, Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

Accepted Answer

A) True 
 B)False

Question 6

Explain how competitor intelligence can be improved by gathering information about competitors in the public domain. Provide examples.

Accepted Answer

There is a wealth of informati...

Question 7

A supplier group would be most powerful when there is/are

Accepted Answer

A)   many suppliers.
B)   few substitute products.
C)   low differentiation of products supplied.
D)   high threat of backward integration by the buyers.E) C) and D)
F) B) and C)

Question 8

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Accepted Answer

A) True 
 B)False

Question 9

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Accepted Answer

A) True 
 B)False

Question 10

The threat of new entrants is high when there are

Accepted Answer

A)   low economies of scale.
B)   high capital requirements.
C)   high switching costs.
D)   high differentiation among competitors' products and services.E) B) and D)
F) C) and D)

Question 11

Which of the following would be an entry barrier?

Accepted Answer

A)   Large economies of scale
B)   Low switching costs
C)   Easy access to raw materials
D)   Low capital requirementsE) A) and B)
F) A) and D)

Question 12

When the US congress passed the Sarbanes-Oxley Act in 2002

Accepted Answer

A)   Canada deregulated the associations
B)   no similar Canadian legislation was developed
C)   Canada followed with similar provisions
D)   the provincial governments developed similar lawsE) C) and D)
F) B) and D)

Question 13

The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry's ability to charge high prices.

Accepted Answer

A) True 
 B)False

Question 14

Discuss and provide examples of factors that would lead to greater buyer power.

Accepted Answer

Buyer power is high when, the buyer is t...

Question 15

When considering strategic groups within industries, Canadian retailer Holt Renfrew is described as

Accepted Answer

A)   a high growth industry with low fixed costs
B)   similar to Canadian Tire
C)   a prestigious upscale player
D)   a competitor of Wal-MartE) A) and C)
F) A) and B)

Question 16

Scenario analysis draws on a range of disciplines and interests.

Accepted Answer

A) True 
 B)False

Question 17

Two key inputs to developing forecasts discussed in the text are

Accepted Answer

A)   environmental scanning and stakeholder identification.
B)   environmental scanning and competitor intelligence.
C)   assessing internal strengths and environmental scanning.
D)   environmental scanning and a SWOT analysis.E) B) and C)
F) A) and D)

Question 18

The general and competitive environments

Accepted Answer

A)   are independent and dynamic over time.
B)   tend to be interrelated and dynamic over time.
C)   have similar impact on organizations of different industries.
D)   are independent and static over time.E) C) and D)
F) All of the above

Question 19

Technological innovations can create entirely new industries and alter the boundaries of industries.

Accepted Answer

A) True 
 B)False

Question 20

Environmental forecasting involves developing plausible projections about the _____ of environmental change.

Accepted Answer

A)   direction, scope, speed, and intensity
B)   type and magnitude
C)   competitive rivalry
D)   severity and rivalryE) B) and D)
F) B) and C)

Exam 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Technological innovations can create entirely new industries and alter the boundaries of industries.

Correct AnswerverifiedShow Answer

Rivalry between the firms Air Canada and WestJet

Correct AnswerverifiedShow Answer

The threat of new entrants is high when there are

Correct AnswerverifiedShow Answer

When considering strategic groups within industries, Canadian retailer Holt Renfrew is described as

Correct AnswerverifiedShow Answer

Scenario analysis draws on a range of disciplines and interests.

Correct AnswerverifiedShow Answer

A supplier group would be most powerful when there is/are

Correct AnswerverifiedShow Answer

Which of the following would be an entry barrier?

Correct AnswerverifiedShow Answer

Discuss and provide examples of factors that would lead to greater buyer power.

Correct AnswerverifiedBuyer power is high when, the buyer is t...View AnswerShow Answer

The general and competitive environments

Correct AnswerverifiedShow Answer

According to the text, Canadian Tire is more concerned about Wal-Mart than Holt Renfrew.

Correct AnswerverifiedShow Answer

Explain how competitor intelligence can be improved by gathering information about competitors in the public domain. Provide examples.

Correct AnswerverifiedThere is a wealth of informati...View AnswerShow Answer

The power of a buyer group is increased if the buyer group has less concentration than the supplier group.

Correct AnswerverifiedShow Answer

Porter's five forces model helps to determine both the nature of competition in an industry and the industry's profit potential.

Correct AnswerverifiedShow Answer

Buyer power tends to be higher if suppliers provide undifferentiated or standard products.

Correct AnswerverifiedShow Answer

Environmental forecasting involves developing plausible projections about the _____ of environmental change.

Correct AnswerverifiedShow Answer

Gathering "competitive intelligence"

Correct AnswerverifiedShow Answer

Which of the following would be considered part of a firm's general environment?

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The more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry's ability to charge high prices.

Correct AnswerverifiedShow Answer

When the US congress passed the Sarbanes-Oxley Act in 2002

Correct AnswerverifiedShow Answer

Two key inputs to developing forecasts discussed in the text are

Correct AnswerverifiedShow Answer

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Buyer power is high when, the buyer is t...
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There is a wealth of informati...
View Answer

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