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Chapter 04 - The External Environment
49. (p. 102) A supplier group is powerful if:
50. (p. 103) A buyer group is powerful if:
51. (p. 103) Highly profitable buyers are usually:
52. (p. 103) A buyer group is powerful if:
53. (p. 103) Customers have the power to:
54. (p. 104) If price ceilings exist, substitute products are limited, unless:
55. (p. 104) Which of the following are considered competitors?
56. (p. 104) Substitute products that deserve the most attention strategically are those that are:
57. (p. 105) In intense competitive rivalry, barriers to exit are:
58. (p. 105) Exit barriers represent a determinant of
59. (p. 104) Rivalry among existing competitors takes the familiar form of:
60. (p. 105) As an industry matures, its:
61. (p. 104) In intense rivalry among manufacturing firms, fixed costs are:
62. (p. 104) High fixed costs is a factor in which of the five forces?
63. (p. 104) Which one of the following is a tactic typically used by firms to jockey for
position?
64. (p. 104) Industry growth has what characteristic(s) intense competitive rivalry?
65. (p. 104) In intense competition, competitors are characteristically:
66. (p. 105) In intense rivalry, rivals are:
67. (p. 104) Which one of the following is NOT a tactic used by competitors when they jockey
for position?
68. (p. 105) Designing viable strategies for a firm requires a thorough understanding of the firm's
industry and competition. Which one of the following is NOT a question the firm's executives
need to address?
69. (p. 105) The definition of an industry's boundaries is important because
70. (p. 105) Which of the following is NOT a reason why defining an industry's boundaries is
important?
71. (p. 105) Designing viable strategies for a firm requires a thorough understanding of the
firm's:
72. (p. 106) Defining industry boundaries is a very difficult task because
73. (p. 107) The starting point for industry definition is
74. (p. 111) The environment that is typically subject to much influence by the firm is:
75. (p. 111) The operating environment:
76. (p. 111) In considering the competition's profile, a firm would NOT be concerned with which
of the following?
77. (p. 111) A firm can more accurately forecast both its long-term and short-term growth and
profit potential by developing its:
78. (p. 111) Included in a competitor profile is:
79. (p. 112) A valuable result of task environment analysis with respect to geographic,
demographic, psychographic and buyer-behavior factors is called:
80. (p. 113) While developing the customer profile, it is important to include:
81. (p. 113) This term refers to descriptive characteristics that can be used to differentiate groups
of present or potential customers.
82. (p. 113) Purchasing behavior is often better predicted by:
83. (p. 114) Four factors are mentioned which affect a firm's access to needed personnel. One of
these factors is:
Essay Questions
84. Describe the three tiers of environmental factors that affect the performance of a firm.
Learning Objective: 1
85. Identify and briefly describe the different factors comprising the remote environment.
86. Discuss the three profound social changes in the recent years that affect the performance
of a firm.
Learning Objective: 3
87. Describes briefly the air, water and land pollution occurring in our environment. Provide
examples of federal legislations that address each of these areas.
Learning Objective: 3
88. Define eco-efficiency. Identify the four key characteristics of eco-efficient corporations.
Learning Objective: 3
89. Explain the five force model of industry analysis as described by Porter. Give an example
of each force.
Learning Objective: 4
90. Identify and briefly describe the major sources of barriers to entry.
91. How do “cost disadvantages independent of size” act as entry barriers?
Learning Objective: 5
92. What characteristics make a supplier group powerful? Explain.
Learning Objective: 5
93. Identify and explain the factors/characteristics that make the buyer group powerful.
Learning Objective: 5
94. How do substitutes affect industry structure?
Learning Objective: 5
95. How does jockeying for position escalate intensity of rivalry among competitors?
Learning Objective: 5
96. What is an industry? Why is it important to define industry boundaries?
97. What are the problems in defining industry boundaries?
Learning Objective: 5
98. How do power curves help assess industry structure?
Learning Objective: 5
99. Identify and briefly explain the five factors in the operating environment.
Learning Objective: 6
100. What factors affect a firm’s access to needed personnel?
