Question 1

________ costs exist when customers make investments in order to use a firm's particular products or services.

Accepted Answer

A)   Strategic-switching
B)   Competitive-switching
C)   Customer-switching
D)   Resource-switchingE) A) and B)
F) B) and C)

Question 2

An industry in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies is known as a(n) ________ industry.

Accepted Answer

A)   fragmented
B)   consolidated
C)   mature
D)   emergingE) A) and B)
F) C) and D)

Question 3

All divestments are caused by industry decline.

Accepted Answer

A) True 
 B)False

Question 4

The threat of rivalry in the hardwood furniture industry can best be described as

Accepted Answer

A)   low because of the numerous firms in the industry and the slowing growth rate.
B)   low because of the slowing growth rate and the competition from composite wood furniture.
C)   high because of the numerous firms in the industry and the slowing growth rate
D)   moderate because the slowing growth rate offsets the numerous firms in the industry.E) A) and B)
F) A) and C)

Question 5

What are customer-switching costs?

Accepted Answer

Customer-switching costs exist when cust...

Question 6

Discuss the difference between a company's rivals and its substitutes and discuss the role substitutes play in an industry.

Accepted Answer

The products or services provided by a f...

Question 7

Within the five forces framework,the five most common threats facing firms from their competitive environment include each of the following except

Accepted Answer

A)   substitutes.
B)   complementors.
C)   suppliers.
D)   buyers.E) B) and D)
F) None of the above

Question 8

A(n) ________ is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

Accepted Answer

A)   environmental threat
B)   environmental opportunity
C)   environmental equalizer
D)   competitive advantageE) C) and D)
F) A) and B)

Question 9

________ exist when a firm's cost rise as a function of its volume of production.

Accepted Answer

A)   Economies of scale
B)   Economies of scope
C)   Diseconomies of scale
D)   Learning cure effectsE) B) and D)
F) All of the above

Question 10

Based on the above description,the hardwood furniture industry can best be described as a(n) ________ industry.

Accepted Answer

A)   emerging
B)   fragmented
C)   consolidated
D)   decliningE) All of the above
F) C) and D)

Question 11

In a perfectly competitive industry,a large number of firms have products and services that are similar to each other and it is not very costly for firms to enter into or exit these markets.

Accepted Answer

A) True 
 B)False

Question 12

The threat of entry in an industry depends on the cost of entry,and the cost of entry,in turn,depends upon the existence and "height" of barriers to entry.

Accepted Answer

A) True 
 B)False

Question 13

Identify the five most common threats facing firms from their local competitive environment that are represented in the five forces framework,and discuss under what conditions firms in a specific industry are most likely to earn an above average profit and when they are to likely to earn a below average profit.

Accepted Answer

The five threats that constitute the fiv...

Question 14

Buyers tend to have less power when

Accepted Answer

A)   a firm has only one buyer,or a small number of buyers.
B)   the products or services being sold to buyers are standard and not differentiated.
C)   the supplies they purchase are an insignificant portion of the costs of their final products.
D)   they are not earning significant economic profits.E) None of the above
F) A) and B)

Question 15

Within the five forces framework,when all five threats are very high competition in the industry begins to approach a monopoly.

Accepted Answer

A) True 
 B)False

Question 16

The products or services provided by a firm's substitutes meet ________ customer needs in ________ ways as the product provided by the firm itself.

Accepted Answer

A)   different; the same
B)   approximately the same; the same
C)   different; different
D)   approximately the same; differentE) None of the above
F) B) and C)

Question 17

In this example,composite wood furniture would be an example of

Accepted Answer

A)   substitutes.
B)   rivals.
C)   new entrants.
D)   complementors.E) A) and C)
F) B) and D)

Question 18

Civil wars,political coups,terrorism,wars between countries,famines,and country or regional economic recessions are all examples of which element of the general environment?

Accepted Answer

A)   Demographics
B)   Specific international events
C)   Economics
D)   CultureE) A) and B)
F) None of the above

Question 19

Mature industries are characterized by

Accepted Answer

A)   an increase in total industry demand.
B)   faster increases in production capacity.
C)   a slowdown in the introduction of new products or services.
D)   a decrease in the amount of international competition.E) A) and D)
F) A) and C)

Question 20

________ is/are the distribution of individuals in a society in terms of age,sex,marital status,income,ethnicity,and other personal attributes that may determine buying patterns.

Accepted Answer

A)   Demographics
B)   Economics
C)   Technological trends
D)   CultureE) C) and D)
F) A) and D)

Exam 2: Evaluating a Firm's External Environment

________ is/are the distribution of individuals in a society in terms of age,sex,marital status,income,ethnicity,and other personal attributes that may determine buying patterns.

Correct Answer
verified

In this example,composite wood furniture would be an example of

Correct Answer
verified

Correct Answer
verified
The five threats that constitute the fiv...
View Answer

An industry in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies is known as a(n) ________ industry.

Correct Answer
verified

The threat of rivalry in the hardwood furniture industry can best be described as

Correct Answer
verified

Civil wars,political coups,terrorism,wars between countries,famines,and country or regional economic recessions are all examples of which element of the general environment?

Correct Answer
verified

The products or services provided by a firm's substitutes meet customer needs in ways as the product provided by the firm itself.

Correct Answer
verified

Mature industries are characterized by

Correct Answer
verified

Within the five forces framework,the five most common threats facing firms from their competitive environment include each of the following except

Correct Answer
verified

Buyers tend to have less power when

Correct Answer
verified

________ exist when a firm's cost rise as a function of its volume of production.

Correct Answer
verified

All divestments are caused by industry decline.

Correct Answer
verified

Based on the above description,the hardwood furniture industry can best be described as a(n) ________ industry.

Correct Answer
verified

________ costs exist when customers make investments in order to use a firm's particular products or services.

Correct Answer
verified

The threat of entry in an industry depends on the cost of entry,and the cost of entry,in turn,depends upon the existence and "height" of barriers to entry.

Correct Answer
verified

Within the five forces framework,when all five threats are very high competition in the industry begins to approach a monopoly.

Correct Answer
verified

A(n) ________ is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

Correct Answer
verified

What are customer-switching costs?

Correct Answer
verified
Customer-switching costs exist when cust...
View Answer

In a perfectly competitive industry,a large number of firms have products and services that are similar to each other and it is not very costly for firms to enter into or exit these markets.

Correct Answer
verified

Discuss the difference between a company's rivals and its substitutes and discuss the role substitutes play in an industry.

Correct Answer
verified
The products or services provided by a f...
View Answer

Exam 2: Evaluating a Firm's External Environment

________ is/are the distribution of individuals in a society in terms of age,sex,marital status,income,ethnicity,and other personal attributes that may determine buying patterns.

Correct AnswerverifiedShow Answer

In this example,composite wood furniture would be an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe five threats that constitute the fiv...View AnswerShow Answer

An industry in which a large number of small or medium-sized firms operate and no small set of firms has dominant market share or creates dominant technologies is known as a(n) ________ industry.

Correct AnswerverifiedShow Answer

The threat of rivalry in the hardwood furniture industry can best be described as

Correct AnswerverifiedShow Answer

Civil wars,political coups,terrorism,wars between countries,famines,and country or regional economic recessions are all examples of which element of the general environment?

Correct AnswerverifiedShow Answer

The products or services provided by a firm's substitutes meet ________ customer needs in ________ ways as the product provided by the firm itself.

Correct AnswerverifiedShow Answer

Mature industries are characterized by

Correct AnswerverifiedShow Answer

Within the five forces framework,the five most common threats facing firms from their competitive environment include each of the following except

Correct AnswerverifiedShow Answer

Buyers tend to have less power when

Correct AnswerverifiedShow Answer

________ exist when a firm's cost rise as a function of its volume of production.

Correct AnswerverifiedShow Answer

All divestments are caused by industry decline.

Correct AnswerverifiedShow Answer

Based on the above description,the hardwood furniture industry can best be described as a(n) ________ industry.

Correct AnswerverifiedShow Answer

________ costs exist when customers make investments in order to use a firm's particular products or services.

Correct AnswerverifiedShow Answer

The threat of entry in an industry depends on the cost of entry,and the cost of entry,in turn,depends upon the existence and "height" of barriers to entry.

Correct AnswerverifiedShow Answer

Within the five forces framework,when all five threats are very high competition in the industry begins to approach a monopoly.

Correct AnswerverifiedShow Answer

A(n) ________ is any individual,group,or organization outside a firm that seeks to reduce the level of that firm's performance.

Correct AnswerverifiedShow Answer

What are customer-switching costs?

Correct AnswerverifiedCustomer-switching costs exist when cust...View AnswerShow Answer

In a perfectly competitive industry,a large number of firms have products and services that are similar to each other and it is not very costly for firms to enter into or exit these markets.

Correct AnswerverifiedShow Answer

Discuss the difference between a company's rivals and its substitutes and discuss the role substitutes play in an industry.

Correct AnswerverifiedThe products or services provided by a f...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
The five threats that constitute the fiv...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

The products or services provided by a firm's substitutes meet customer needs in ways as the product provided by the firm itself.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Customer-switching costs exist when cust...
View Answer

Correct Answer
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Correct Answer
verified
The products or services provided by a f...
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