Q. Which one of the following is NOT included in the Porter’s Five Forces model?
a. Potential development of substitute products
b. Bargaining power of suppliers
c. Rivalry among stockholders
d. Rivalry among competing firms
Q. What is meant by the term ‘Stakeholder’?
a. A person who is not related with a business.
b. A person who is related with a business.
c. A person who owns a business.
d. A person who purchases the shares of a business.
Q. The strategic management process is
a. a set of activities that will assure a temporary advantage and average returns for the firm.
b. a decision-making activity concerned with a firm’s internal resources, capabilities, and competencies, independent of the conditions in its external environment.
c. a process directed by top-management with input from other stakeholders that seeks to achieve above-average returns for investors through effective use of the organization’s resources.
d. the full set of commitments, decisions, and actions required for the firm to achieve above-average returns and strategic competitiveness.
Q. The goal of the organization’s is to capture the hearts and minds of employees, challenge them, and evoke their emotions and dreams.
a. vision
b. mission
c. culture
d. strategy
Q. A firm’s mission:
a. is a statement of a firm’s business in which it intends to compete and the customers which it intends to serve.
b. is an internally-focused affirmation of the organization’s financial, social, and ethical goals.
c. is mainly intended to emotionally inspire employees and other stakeholders.
d. is developed by a firm before the firm develops its vision.
Q. The environmental segments that comprise the general environment typically willNOT include:
a. demographic factors.
b. sociocultural factors.
c. substitute products or services.
d. technological factors.
Q. An analysis of the economic segment of the external environment would include all of the following EXCEPT:
a. interest rates.
b. international trade.
c. the strength of the U.S. dollar.
d. the move toward a contingent workforce.
Q. Product differentiation refers to the:
a. ability of the buyers of a product to negotiate a lower price.
b. response of incumbent firms to new entrants.
c. belief by customers that a product is unique.
d. fact that as more of a product is produced the cheaper it becomes per unit.
Q. Which of the following is NOT an entry barrier to an industry?
a. expected competitor retaliation
b. economies of scale
c. customer product loyalty
d. bargaining power of suppliers
Q. Switching costs refer to the:
a. cost to a producer to exchange equipment in a facility when new technologies emerge.
b. cost of changing the firm’s strategic group.
c. one-time costs suppliers incur when selling to a different customer.
d. one-time costs customers incur when buying from a different supplier.
Q. New entrants to an industry are more likely when (i.e., entry barriers are low when…)
a. it is difficult to gain access to distribution channels.
b. economies of scale in the industry are high.
c. product differentiation in the industry is low.
d. capital requirements in the industry are high.
Q. All of the following are forces that create high rivalry within an industry EXCEPT
a. numerous or equally balanced competitors.
b. high fixed costs.
c. fast industry growth.
d. high storage costs.
Q. According to the five factors model, an attractive industry would have all of the following characteristics EXCEPT:
a. low barriers to entry.
b. suppliers with low bargaining power.
c. a moderate degree of rivalry among competitors.
d. few good products substitute.
Q. Internal analysis enables a firm to determine what the firm:
a. can do.
b. should do.
c. will do.
d. might do.
Q. An external analysis enables a firm to determine what the firm:
a. can do.
b. should do.
c. will do.
d. might do.