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Chapter 03 Evaluating a Company’s External Environment Answer Key
Multiple Choice Questions
1.
The strategically relevant factors outside a company's industry boundaries—economic conditions,
political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory
conditions—are known as
2.
Managers must chart a company's strategic course by
3.
Which of the following is NOT part of a company's macro-environment?
4.
Which of the following is NOT one of the principal components of strategic significance in the PESTEL
analysis?
5.
Which of the following is LIKELY to have the biggest strategy-shaping impact on on-demand
transportation providers such as Uber and Lyft?
6.
Which of the following factors represents the strategically relevant political factors in the macro-
environment that will influence the performance of all firms across the board?
7.
Which of the following is NOT a major question to ask in thinking strategically about industry and
competitive conditions in a given industry?
8.
Which of the following does NOT exemplify the impact of the macro-environment on a company's
strategic opportunities?
9.
The most powerful and widely used conceptual tool for diagnosing the principal competitive pressures
in a market is
10.
The competitive pressures on companies within an industry come from all of the following, EXCEPT
11.
Which of the following is NOT one of the five forces of competitive pressures?
12.
The most powerful of the five competitive forces is USUALLY
13.
Using the five forces model of competition to determine the character and strength of the competitive
forces within a given industry involves
14.
What makes the marketplace a competitive battlefield?
15.
Market maneuvering among industry rivals
16.
Rivalry among competing sellers decreases
17.
Factors that cause the rivalry among competing sellers to be weaker include
18.
The rivalry among competing sellers tends to be less intense when
19.
Rivalry among competing sellers is generally less intense when
20.
The competitive battles among rival sellers striving for better market positions, higher sales and market
shares, and competitive advantage, suggest the rivalry force
21.
In analyzing the strength of competition among rival firms, an important consideration is
22.
The intensity of rivalry among competing sellers does NOT depend on whether
23.
In which of the following instances is rivalry among competing sellers NOT more intense?
24.
Competing companies deploy whatever means necessary to strengthen market position, including all of
the following EXCEPT
25.
Which of the following is generally NOT considered a barrier to entry?
26.
Potential entrants are more likely to be deterred from actually entering an industry when
27.
Competitive pressures associated with the threat of entry are greater in all of the following situations,
EXCEPT when
28.
The best test of whether potential entry is a strong or weak competitive force is
29.
The competitive threat that outsiders will enter a market is weaker when
30.
Which of the following is NOT a good example of a substitute product that triggers stronger
competitive pressures?
31.
The competitive pressures from substitute products tend to be stronger when
32.
In which of the following instances are industry members NOT subject to stronger competitive
pressures from substitute products?
33.
Determining how strong the threat of substitutes will be entails
34.
The lower the user's switching costs, the
35.
Whether supplier-seller relationships in an industry represent a strong or weak source of competitive
pressure is a function of
36.
The strength of competitive pressures that suppliers can exert on industry members is MAINLY a
function of
37.
The bargaining leverage of suppliers is greater when
38.
In which one of the following instances is supplier bargaining power and leverage not weakened?
39.
When an industry member is a major customer of the supplier, and the relationship (partnership) is
unusually effective and mutually advantageous
40.
The higher the switching costs for industry members, the more it can
41.
Whether buyer-seller relationships in an industry represent a strong or weak source of competitive
pressure is a function of
