425 CH 1 Flashcards

Q: the competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve targeted objectives.

A company\'s strategy consists of

Q: strategy

The competitive moves and business approaches a company\'s management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its

Q: management\'s commitment to pursue a particular set of actions in growing the business, attracting and pleasing customers, competing successfully, conducting operations, and improving the company\'s financial and market performance.

A company\'s strategy is most accurately defined as

Q: How quickly and closely to copy the strategies being used by successful rival companies

Which of the following is not something a company\'s strategy is concerned with?

Q: How to achieve above-average gains in the company\'s stock price and thereby meet or beat shareholder expectations

Which of the following is not a primary focus of a company\'s strategy?

Q: managers need to come up with some distinctive \"aha\" element to the strategy that draws in customers and produces a competitive edge over rivals.

In crafting a company\'s strategy,

Q: it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

A company\'s strategy stands a better chance of succeeding when

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What are the key products or service attributes demanded by consumers?

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1. (p. 4) Which of the following is not one of the central questions in evaluating a company's business prospects?

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management's action plan for running the business and conducting operations—its commitment to pursue a particular set of actions in growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives.

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A company's strategy concerns

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the competitive moves and business approaches that managers are employing to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve targeted objectives.

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A company's strategy consists of

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strategy

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The competitive moves and business approaches a company's management is using to grow the business, stake out a market position, attract and please customers, compete successfully, conduct operations, and achieve organizational objectives is referred to as its

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"among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market position and competitiveness, and boosting performance."

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In crafting a strategy, management is in effect saying

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management's commitment to pursue a particular set of actions in growing the business, attracting and pleasing customers, competing successfully, conducting operations, and improving the company's financial and market performance.

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A company's strategy is most accurately defined as

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How quickly and closely to copy the strategies being used by successful rival companies

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Which of the following is not something a company's strategy is concerned with?

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How to achieve above-average gains in the company's stock price and thereby meet or beat shareholder expectations

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Which of the following is not a primary focus of a company's strategy?

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managers need to come up with some distinctive "aha" element to the strategy that draws in customers and produces a competitive edge over rivals.

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In crafting a company's strategy,

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it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

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A company's strategy stands a better chance of succeeding when

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is a company's most reliable ticket to above-average profitability—indeed, the tight connection between competitive advantage and profitability means that the quest for sustainable competitive advantage always ranks center stage in crafting a strategy.

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A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage

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involves coming up with moves and actions that produce a durable competitive edge over rivals.

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The heart and soul of a company's strategy-making effort

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crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

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A company's strategy and its quest for competitive advantage are tightly connected because

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an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.

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A company achieves sustainable competitive advantage when

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management's ability to forge a series of moves, both in the marketplace and internally, that sets the company apart from rivals, tilts the playing field in the company's favor, and produces sustainable competitive advantage over rivals.

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What separates a powerful strategy from a run-of-the-mill or ineffective one is

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. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money C. Developing expertise and resource strengths that give the company competitive capabilities D. Focusing on a narrow market niche E. ALL OF THESE

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Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

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Striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins

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Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage?

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to come up with one or more strategy elements that act as a magnet to draw customers and yield a lasting competitive edge.

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One of the keys to successful strategy-making is

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A. Having a competitive product offering. B. Building valuable expertise and capabilities not readily matched and offering a distinctive product. C. Building experience, know-how, and specialized capabilities that have been perfected over a long period of time. D. Having "hard to beat" capabilities and impressive product innovation. E. All of these.

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Winning a competitive edge over competitors generally hinges on which of the following?

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A. the need to keep strategy in step with changing market conditions and changing customer needs and expectations. B. the proactive efforts of company managers to fine-tune and improve one or more pieces of the strategy. C. the need to abandon some strategy features that are no longer working well. D. the need to respond to the newly-initiated actions and competitive moves of rival firms. E. All of these.

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A company's strategy evolves over time as a consequence of

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The need on the part of company managers to initiate fresh strategic actions that boost employee commitment and create a results-oriented culture.

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Which of the following is not one of the basic reasons that a company's strategy evolves over time?

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account for why a company's strategy evolves over time.

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Changing circumstances and ongoing managerial efforts to improve the strategy

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the ongoing need of company managers to react and respond to changing market and competitive conditions.

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A company's strategy is a "work in progress" and evolves over time because of

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a blend of proactive actions to improve the company's competitiveness and financial performance and adaptive reactions to unanticipated developments and fresh market conditions.

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It is normal for a company's strategy to end up being

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stitching together a proactive/intended strategy and then adapting first one piece and then another as circumstances surrounding the company's situation change or better options emerge.

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Crafting a strategy involves

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A company's strategy is typically a blend of proactive and reactive strategy elements.

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Which of the following statements about a company's strategy is true?

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the proactive efforts of company managers to improve this or that aspect of the strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.

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A company's strategy evolves from one version to the next because of

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A desire on the part of company managers to develop new strategy elements on the fly

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Which one of the following does not account for why a company's strategy evolves from one version to another?

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A. decide to abandon certain strategy elements that have grown stale or become obsolete. B. modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall. C. modify the current strategy in response to the fresh strategic maneuvers of rival firms. D. take proactive actions to improve this or that piece of the strategy. ALL OF THESE

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In the course of crafting a strategy, it is common for management to

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is management's storyline for how it will generate revenues ample to cover costs and produce a profit—absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt.

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A company's business model

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zeros in on how and why the business will generate revenues sufficient to cover costs and produce attractive profits and return on investment.

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A company's business model (2)

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sets forth the key components of the enterprise's business approach, indicates how revenues will be generated, and makes a case for why the strategy can deliver value to customers in a profitable manner.

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A company's business model (3)

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best describes what is meant by a company's business model.

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Management's story line for how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment

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strategy relates broadly to a company's competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the revenues and costs flowing from the strategy demonstrate that the business is viable from the standpoint of being able to earn satisfactory profits and returns on investment.

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The difference between a company's strategy and a company's business model is that

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fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

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A winning strategy is one that

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fits the company's internal and external situations, builds sustainable competitive advantage, and improves company performance.

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A winning strategy is one that (2)

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How well does the strategy fit the company's situation?

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Which one of the following questions can be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy?

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Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?

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Which of the following questions ought to be used to test the merits of one strategy over another and distinguish a winning strategy from a mediocre or losing strategy?

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there is a compelling need for managers to proactively shape how the company's business will be conducted and because a strategy-focused enterprise is more likely to be a stronger bottom-line performer than a company whose management views strategy as secondary and puts its priorities elsewhere.

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Crafting and executing strategy are top-priority managerial tasks because

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good strategy coupled with good strategy execution greatly raises the chances that a company will be a standout performer in the marketplace.

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Crafting and executing strategy are top-priority managerial tasks because

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are the most trustworthy signs of good management.

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Good strategy combined with good strategy execution

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good strategy-making combined with good strategy execution.

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The most trustworthy signs of a well-managed company are

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the best test of managerial excellence and the best recipe for making a company a standout performer.

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Excellent execution of an excellent strategy is

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What must managers do, and do well, to make a company a winner in the marketplace?

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What is the foremost question in running a business enterprise?

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Developing a profitable business model

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Which one of the following is not one of the five basic tasks of the strategy-making, strategy-executing process?

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Setting objectives and using them as yardsticks for measuring the company's performance and progress

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Which of the following is an integral part of the managerial process of crafting and executing strategy?

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Developing a strategic vision, setting objectives, and crafting a strategy

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Which of the following are integral parts of the managerial process of crafting and executing strategy?

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embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.

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The strategy-making, strategy-executing process

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a company's directional path and future product-market-customer-technology focus.

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A company's strategic vision concerns

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delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense.

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A company's strategic vision

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prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense.

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Developing a strategic vision for a company entails

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involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

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The managerial task of developing a strategic vision for a company

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Outlining how the company intends to implement and execute its business model

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Which one of the following is not an accurate attribute of an organization's strategic vision?

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charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense.

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Management's strategic vision for an organization

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constitutes their strategic vision for the company.

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What a company's top executives are saying about where the company is headed and about what the company's future product-customer-market-technology will be

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clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction.

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One of the important benefits of a well-conceived and well-stated strategic vision is to

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what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be."

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The defining characteristic of a well-conceived strategic vision is

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What business approaches and operating practices should we consider in trying to implement and execute our business model?

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Which one of the following questions is not pertinent to company managers in thinking strategically about their company's directional path and developing a strategic vision?

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Do we have a better business model than key rivals?

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Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

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Graphic, directional, and focused

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Which of the following are characteristics of an effectively-worded strategic vision statement?

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Consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support)

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Which one of the following is not a characteristic of an effectively-worded strategic vision statement?

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Too narrow—doesn't leave enough room for future growth

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Which of the following is not a common shortcoming of company vision statements?

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Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives

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Which of the following are common shortcomings of company vision statements?

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frequently reiterate the basis for the new direction at company gatherings, address employee concerns and fears head-on, and provide updates and progress reports as events unfold.

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Breaking down resistance to a new strategic vision typically requires that top management

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should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction.

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Top management efforts to communicate the strategic vision to company personnel

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inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction.

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Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of

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uniting company personnel behind managerial efforts to get the company moving in the intended direction.

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Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is

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capturing the essence of the vision in a catchy slogan or brief phrase and then using it repeatedly as a reminder of "where we are going and why."

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The task of effectively communicating the strategic vision is made easier by

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greater ability to avoid strategic inflection points.

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The payoffs of a clear vision statement do not include

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. Senior executives solidify their own view of the firm's long term direction. B. The risk of rudderless decision-making is minimized. C. Organizational members support the changes internally that will help make the vision a reality. D. Assists the organization prepare for the future ALL OF THESE

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Which of the following is the result of a well-conceived and communicated strategic vision?

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"Who are we and what do we do?"

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A company's mission statement typically addresses which of the following questions?

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a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus.

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The difference between the concept of a company mission statement and the concept of a strategic vision is that

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a mission statement typically concerns a company's present business scope and purpose whereas a strategic vision sets forth "where we are going and why."

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The difference between a company's mission statement and the concept of a strategic vision is that

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A. Identify the company's services and products to give the company its own identity. B. Relate to the buyer's needs that the company seeks to satisfy. C. Identify the customer or market that the company intends to serve. D. Specify the approach taken by the company to satisfy its customer's needs. E. All of these.

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A company's mission statement should be sufficiently descriptive and includes which of the following?

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the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission.

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A company's values concern

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fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship.

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A company's values relate to such things as

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making it clear that company personnel are expected to live up to the values in conducting the company's business and pursuing its strategic vision.

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Company managers connect values to the chosen strategic vision by

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A. converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. B. using the objectives as yardsticks for tracking the company's progress and performance. C. challenging and helping stretch the organization to perform at its full potential and deliver the best possible results. D. pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. E. All of these.

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The managerial purpose of setting objectives includes

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because adequate profitability and financial strength is critical to effective pursuit of its strategic vision, as well as to its long-term health and ultimate survival.

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A company needs financial objectives

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Increase earnings per share by 15% annually.

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Which of the following is the best example of a well-stated financial objective?

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Overtake key competitors on product quality within three years.

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Which of the following is the best example of a well-stated strategic objective?

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relate to strengthening a company's overall business and competitive position.

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Strategic objectives

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entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives.

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A balanced scorecard for measuring company performance

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financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance.

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A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because

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recognize that the achievement of strategic objectives fosters better long-term financial performance.

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Perhaps the most reliable way for a company to improve its financial performance over time is to

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is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives.

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A company that pursues and achieves strategic objectives

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it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

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A company exhibits strategic intent when

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is an effective tool for avoiding ho-hum results.

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A set of "stretch" financial and strategic objectives

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Helping clarify the company's strategic vision and strategic intent

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Which one of the following is not an advantage of setting "stretch" objectives?

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Long-run objectives are necessary for achieving long-term performance and block focus on short-term results and put the company in a position to perform better later.

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Why should long-run objectives take precedence over short-run objectives?

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for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.

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A company needs performance targets or objectives

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need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.

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Company objectives

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entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

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The task of stitching together a strategy

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doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd.

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Masterful strategies come from

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more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.

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Strategy-making is

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The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors.

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Which of the following is not an accurate description of the task of crafting a company's strategy?

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extend throughout the managerial ranks and exist in every part of a company—business units, operating divisions, functional departments, manufacturing plants, and sales districts.

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Managerial jobs with strategy-making responsibility

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The more a company's operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants.

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Which of the following most accurately describes the task of crafting a company's strategy?

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is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

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A company's overall strategy

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corporate strategy, business strategies, functional strategies, and operating strategies.

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In a diversified company, the strategy-making hierarchy consists of

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is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the businesses the company has diversified into.

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Corporate strategy for a diversified or multi-business enterprise

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the actions and approaches crafted by management to produce successful performance in one specific line of business.

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Business strategy concerns

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forging actions and approaches to compete successfully in a particular line of business.

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Business strategy, as distinct from corporate strategy, is chiefly concerned with

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concern the actions, approaches, and practices to be employed in managing particular functions or business processes or key activities within a business.

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Functional-area strategies

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support the overall business strategy and competitive approach.

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The primary role of a functional strategy is to

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the relatively narrow strategic initiatives for managing key operating units within a business (plants, distribution centers, geographic units) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) in ways that support functional strategies and the overall business strategy.

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Operating strategies concern

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business strategy, functional strategies, and operating strategies.

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In a single-business company, the strategy-making hierarchy consists of

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a vision of where it is headed, a set of performance targets, and a strategy to achieve them.

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A company's strategic plan consists of

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relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

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Strategic intent refers to a situation where a company

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usually has an exceptionally bold and grandiose long-term objective—like becoming the dominant global market leader—and an unshakable commitment to concentrating its full resources and strategy on achieving that objective.

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A company with strategic intent

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Surveying employees on how they think costs can be reduced and how employee morale and job satisfaction can be improved

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Which of the following is not among the principal managerial tasks associated with managing the strategy execution process?

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decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.

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Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to

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deciding when adjustments are needed and what adjustments to make.

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The leadership challenges that top executives face in making corrective adjustments when things are not going well include

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deciding when adjustments are needed and what adjustments to make.

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The task of top executives in making corrective adjustments includes

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overseeing the company's direction, strategy and business approaches and evaluating the caliber of senior executives' strategy-making and strategy-executing skills.

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The primary roles/obligations of a company's board of directors in the strategy-making, strategy-executing process include

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overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.

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The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include

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Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations

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Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?

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all the relevant forces and factors outside a company's boundaries—general economic conditions, population demographics, societal values and lifestyles, technological factors, governmental legislation and regulation, and closer to home, the industry and competitive arena in which it operates.

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A company's "macro-environment" refers to

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The company's resource strengths, resource weaknesses, and competitive capabilities

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Which one of the following is not part of a company's macroenvironment?

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How many companies in the industry have good track records for revenue growth and profitability?

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Which of the following is not a major question to ask in thinking strategically about industry and competitive conditions in a given industry?

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A. the forces driving change in the industry. B. the dominant economic features of the industry in which the company operates. C. the kinds of competitive forces industry members are facing and the strength of each competitive force. D. the key factors influencing future competitive success in the industry. E. All of these.

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Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as

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Strength of driving forces and competitive forces

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Which of the following is not a factor to consider in identifying an industry's dominant economic features?

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How many strategic groups the industry has and which ones are most profitable and least profitable

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Which of the following is not a relevant consideration in identifying an industry's dominant economic features?

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A. the competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. B. competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products. C. competitive pressures associated with the threat of new entrants into the marketplace. D. competitive pressures associated with the bargaining power of suppliers and customers. E. All of these.

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The state of competition in an industry is a function of

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A. the pressures induced by the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry. B. the threat that firms outside the industry will decide to enter the market. C. the attempts of companies in other industries to win buyers over to their own substitute products. D. competitive pressures stemming from the bargaining power of both suppliers and buyers. E. All of these.

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The nature and strength of the competitive forces that prevail in an industry is generally a joint product of

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The power and influence of industry driving forces

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Which of the following is not one of the five typical sources of competitive pressures?

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he competitive pressures associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry.

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The most powerful of the five competitive forces is usually

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None of these is typically weakest.

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Typically, the weakest of the five competitive forces in an industry is/are:

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A. building the picture of competition in three steps: (1) identifying the specific competitive pressures associated with each of the five competitive forces; (2) evaluating how strong the pressures comprising each competitive force are; and (3) determining whether the collective impact of all five competitive forces is conducive to earning attractive profits.

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Using the five-forces model of competition to determine what competition is like in a given industry involves

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the constant jockeying of industry members to strengthen their standing with buyers and win a competitive edge over rivals.

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What makes the marketplace a competitive battlefield is

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is ever-changing as fresh offensive and defensive moves are initiated and as rivals emphasize first one mix of competitive weapons and tactics and then another.

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Competitive jockeying and market maneuvering among industry rivals

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Low barriers to entry

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Which one of the following does not cause the rivalry among competing sellers to be weak?

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rapid growth in buyer demand, high buyer costs to switch brands, and so many industry rivals that any one company's actions have little impact on rivals' businesses.

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Factors that tend to result in weak rivalry among competing sellers include

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industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance.

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The rivalry among competing sellers tends to be less intense when

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rivals are active in making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share.

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Rivalry among competing sellers is generally more intense when

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buyer demand is growing slowly and the industry is composed of 6 to 10 competitors that are fairly equal in size and competitive capability.

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Rivalry among competing sellers grows in intensity when

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when demand for the product is growing slowly, buyers have low switching costs, and the actions of any one company to attract more customers and boost market share have strong direct impact on their rivals.

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The rivalry among competing firms tends to be more intense

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Whether industry driving forces are strong or weak

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Which of the following is not among the factors that affect whether competitive rivalry among participating firms is strong, moderate, or weak?

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several competitors are under pressure to improve their market share or profitability and launch fresh strategic initiatives to attract more buyers and bolster their business position.

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Rivalry among competing sellers tends to be more intense when

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tends to intensify when strong companies outside the industry acquire weak firms in the industry and launch aggressive, well-funded moves to transform the acquired companies into strong market contenders.

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The competitive force of rival firms' jockeying for better market positions, higher sales and market shares, and competitive advantage

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the diversity of competitors in terms of visions, strategic intents, objectives, strategies, resources and countries of origin.

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In analyzing the strength of competition among rival firms, an important consideration is

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When there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

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In which one of the following instances is rivalry among competing sellers not more intense?

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Rapid market growth

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Which of the following is generally not considered as a barrier to entry?

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incumbent firms have previously been aggressive in defending their market positions against entry.

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Potential entrants are more likely to be deterred from actually entering an industry when

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All of these conditions heighten the competitive pressures associated with fresh entry into the industry.

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Competitive pressures associated with the threat of entry are greater when

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When industry members are struggling to earn good profits

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Which one of the following does not intensify the competitive pressures associated with the threat of entry?

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When newcomers can expect to earn attractive profits

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Which one of the following increases the competitive pressures associated with the threat of entry?

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financially strong industry members send strong signals that they will launch strategic initiatives to combat the entry of newcomers.

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The competitive threat that outsiders will enter a market is weaker when

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the industry outlook is risky or uncertain.

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Competitive pressures stemming from the threat of entry are weaker when

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to ask if the industry's growth and profit prospects are strongly attractive to potential entry candidates.

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The best test of whether potential entry is a strong or weak competitive force is

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Coca-Cola as a substitute for Pepsi

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Which of the following is not a good example of a substitute product that triggers stronger competitive pressures?

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buyers are relatively comfortable with using substitutes and the costs to buyers of switching over to the substitutes are low.

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The competitive pressures from substitute products tend to be stronger when

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buyers incur high costs in switching to substitutes and substitutes are higher priced relative to the performance they deliver.

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Industry rivals tend to experience weak competitive pressures from substitute products when

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whether suppliers can exercise sufficient bargaining power to influence the terms and conditions of supply in their favor and the extent of seller-supplier collaboration in the industry.

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Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

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whether needed inputs are in short supply or whether ample supplies are readily available from several different suppliers.

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The strength of competitive pressures that suppliers can exert on industry members is mainly a function of

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there are no good substitutes for the items being furnished by the suppliers and the number of suppliers is relatively small.

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The bargaining leverage of suppliers is greater when

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When the items purchased from suppliers are in short supply

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In which one of the following instances are the competitive pressures that industry members experience in their dealings with suppliers not weakened?

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good substitute inputs exist or new ones emerge.

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Supplier bargaining power is weaker when

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Whether industry members are struggling to make good profits because of slow-growing market demand

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Which one of the following is not a factor that affects the strength of supplier bargaining power?

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The input being supplied is a commodity.

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Which one of the following is not a factor in causing supplier bargaining power to be relatively strong?

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there is a strong likelihood such partnerships will put increased competitive pressure on those industry members who lack productive collaborative relationships with their suppliers.

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When one or more industry members have unusually effective and mutually advantageous partnerships with their suppliers,

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To reduce the costs of switching suppliers

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Which one of the following is not a reason why industry members are often motivated to enter into collaborative partnerships with key suppliers?

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the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members.

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Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of

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whether demand-supply conditions represent a buyer's market or a seller's market.

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Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on

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The industry is composed of a few large sellers and the customer group consists of numerous buyers that purchase in fairly small quantities.

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Which of the following is not a factor that causes buyer bargaining power to be stronger?

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Whether buyers have a strong preference for products of superior quality or just average quality

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Which of the following factors does not affect whether buyer bargaining power and seller-buyer collaboration are an important source of competitive pressure in an industry?

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Whether the seller is a manufacturer.

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Which of the following factors is not a relevant consideration in determining the strength of buyer bargaining power?

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sales are made to buyer groups with either strong bargaining power or high sensitivity.

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Collaborative relationships between particular sellers and buyers in an industry can represent a source of strong competitive pressure when

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When buyer demand is growing rapidly

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In which of the following circumstances are competitive pressures associated with the bargaining power of buyers not relatively strong?

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the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.

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Competitive pressures stemming from buyer bargaining power tend to be weaker when

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When buyers are unlikely to integrate backward into the business of sellers

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Which of the following conditions acts to weaken buyer bargaining power?

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the number of buyers is small or when a customer is particularly important to a seller.

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Buyers are in position to exert strong bargaining power in dealing with sellers when

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Whether buyer needs and expectations are changing rapidly or slowly

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Which of the following factors is not a relevant consideration in judging whether buyer bargaining power is relatively strong or relatively weak?

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is conducive to industry members earning attractive profits.

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A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers

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is competitively unattractive from the standpoint of earning good profits.

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A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers

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the lower the combined profitability of industry members.

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As a rule, the stronger the collective impact of competitive pressures associated with the five competitive forces,

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rapid growth in buyer demand and high buyer switching costs.

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Factors that cause the rivalry among competing sellers to be weak include

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the industry has more than two strong driving forces and whether the industry has more than 2 strategic groups.

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The intensity of rivalry among competing sellers does not depend on whether

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Buyers are dubious about using substitutes.

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In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

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whether attractively priced substitutes are readily available and the ease with which buyers can switch to substitutes.

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Just how strong the competitive pressures are from substitute products depends on

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because important forces create pressures or incentives for industry participants (competitors, customers, suppliers) to alter their actions.

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Industry conditions change

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are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.

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The "driving forces" in an industry

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identify the driving forces, assess whether their impact will make the industry more or less attractive, and determine what strategy changes are needed to prepare for the impacts of the driving forces.

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The task of driving forces analysis is to

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involves identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes a company may need to make to prepare for the impacts of the driving forces.

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Driving forces analysis

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Ups and downs in the economy and in interest rates

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Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions?

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Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances

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Which of the following are most unlikely to qualify as driving forces?

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Increases in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration

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Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?

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Wildly successful introduction of innovative new products by one or more industry rivals that force other rivals to respond quickly or lose a major share of their customers to the innovating rival(s)

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Which of the following is most likely to qualify as a driving force?

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Increasing efforts on the part of industry members to collaborate closely with their suppliers

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Which one of the following is not a common type of driving force?

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it tends to increase rivalry among industry members and often shifts the pattern of competition among an industry's major players, favoring some and disadvantaging others.

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Increasing globalization of the industry can be a driving force because

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he combined impacts of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead.

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Driving forces analysis helps managers identify whether

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generally act in ways which will strengthen or weaken market demand, competition, and industry profitability in future years.

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An industry's driving forces

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identify the driving forces and evaluate their impact on (1) demand for the industry's product, (2) the intensity of competition, and (3) industry profitability.

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In analyzing driving forces, the strategist's role is to

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Determining whether the driving forces are acting to cause one or more industry rivals to shift to a different strategic group

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Which one of the following is not an integral part of driving forces analysis?

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what strategy adjustments are needed to deal with the changes in conditions.

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The real payoff for strategy making comes when managers draw conclusions about

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Strategic group mapping.

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What is the best technique for revealing the market position of industry competitors?

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is a cluster of industry rivals that have similar competitive approaches and market positions.

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A strategic group

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employ similar competitive approaches and occupy similar positions in the market.

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A strategic group consists of those firms in an industry that

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the different market or competitive positions that rival firms occupy in an industry and identifying each rival's closest competitors.

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Strategic group mapping is a technique for displaying

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Level of profitability and size of market share

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Which one of the following pairs of variables is least likely to be useful in drawing a strategic group map?

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strategic group maps help identify each company's market position and its closest competitors.

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The concept of strategic groups is relevant to industry and competitive analysis because

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the best variables to use as axes for the map are those that differentiate how rivals have positioned themselves in the marketplace.

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In mapping strategic groups

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The variables chosen as axes for the map should be highly correlated.

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Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?

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often learn to what extent industry driving forces and competitive pressures favor some companies or groups and hurt others

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With the aid of a strategic group map, one can

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whether profit prospects vary among strategic groups due to strengths and weaknesses in their respective market positions on the map (perhaps because competitive pressures are acting to favor some strategic groups and to disadvantage other groups).

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One of the things that can be gleaned from a strategic group map of industry rivals is

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anticipate what moves rivals are likely to make next, thereby providing a valuable assist in outmaneuvering them in the marketplace.

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The payoff of good scouting reports on rivals is improved ability to

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it helps a company to anticipate what moves rivals are likely to make next and to craft its own strategic moves with some confidence about what market maneuvers to expect from its rivals.

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Having good competitive intelligence about rivals' strategies and moves to improve their situation is important because

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A. which competitor has the best strategy and which competitors have flawed or weak strategies. B. which rivals are poised to gain market share and which seem destined to lose market share. C. which rivals are likely to rank among the industry leaders on the road ahead. D. which rivals are likely to initiate what kinds of fresh strategic moves and why. E. All of these.

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Good competitive intelligence about the strategies and competitive strengths and weaknesses of rival companies helps management determine

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A. Which rivals badly need to increase their unit sales and market share and what new offensive initiatives are they likely to employ? B. Which rivals are poised to gain market share and which seem destined to lose market share? C. Which rivals are good candidates to be acquired? D. Which rivals are likely to enter new geographic markets or expand their product offerings (so as to enter new market segments where they currently do not have a presence)? E. All of these.

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In seeking to predict the next moves of close or key rivals, it is useful to consider such questions as:

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are those competitive aspects that most affect industry members' abilities to prosper in the marketplace—specific strategy elements, product attributes, competencies, competitive capabilities, and market achievements that spell the difference between being a strong competitor and a weak competitor.

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The key success factors in an industry

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can be determined from an analysis of an industry's dominant economic characteristics, what competition is like, the impacts of the driving forces, the comparative market positions of industry members, and the likely next moves of industry rivals.

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An industry's key success factors

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consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage.

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In identifying an industry's key success factors, strategists should

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What are the industry product R & D capabilities and expertise in product design?

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Which of the following is not a question asked to deduce a marketing-related key success factor?

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Crucial product attributes and service characteristics

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Which of the following can aid industries in identifying key success factors?

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The industry's growth potential, whether competition appears destined to become stronger or weaker, and whether the industry's overall profit prospects are above average, average, or below average

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Which of the following is particularly pertinent in evaluating whether an industry presents a sufficiently attractive business opportunity?

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Whether the industry's product is strongly or weakly differentiated

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Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?

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sizing up overall industry and competitive conditions to determine whether the industry's overall profit prospects are above average, average, or below average.

answer

Evaluating whether an industry's environment presents a company with a sufficiently attractive business opportunity involves

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