BUS 401- Chapter 2 – MC
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Two of the key inputs to developing forecasts discussed in the text are
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environmental scanning and competitor intelligence
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________ tracks the evolution of environmental trends, sequences of events, or streams of activities
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Environmental monitoring
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Scanning the general environment would identify information on
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the aging population and ethnic shifts
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Gathering "competitive intelligence"
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is good business practice.
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Environmental forecasting involves developing plausible projections about the ______ of environmental change
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all of the above
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A danger of forecasting discussed in the text is that
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managers may view uncertainty as "black and white" while ignoring important "gray areas."
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The aging of the population, changes in ethnic composition, and effects of the baby boom are
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demographic changes
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Increasingly larger numbers of women entering the work force since the early 1970s is an example of
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sociocultural changes
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Emerging sociocultural changes in the environment include
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the increasing educational attainment of women in the past decade
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All of the following are important elements of the political/legal segment of the general environment except
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the increased use of Internet technology
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Which of the following would be considered part of a firm's general environment
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Higher unemployment rates
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Interest rate increases have a ______ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items
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negative; neglible
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To illustrate interrelationships among different segments of the general environment: The persistence of large U.S. trade deficits (_____) has led to greater demand for protectionist measures, such as trade barriers and quotas (______). These measures lead to higher prices for U.S. consumers and fuel inflation (_____).
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macroeconomic, political/legal, macroeconomic
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Which is considered a force in the "Five Forces model"?
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Rivalry among competing firms
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Which of the following firms would likely pose the least competitive threat?
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A competitor to your product where a high switching cost exists.
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The threat of new entrants is high where there are
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low economies of scale
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Product differentiation by incumbents act as an entry barrier because
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new entrants will have to spend heavily to overcome existing customer loyalties
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Which of the following would be an entry barrier?
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large economies of scale
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A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of
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backward integration
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The bargaining power of the buyer is greater than that of the supplier when
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the buyer's profit margin is low
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Buyer power will be greater when
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it is concentrated or purchases large volumes relative to seller sales
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The bargaining power of suppliers increases as
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threat of forward integration by suppliers increases
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An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributors. This is an example of
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forward integration
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The bargaining power of suppliers is enhanced under the following market condition
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dominance by a few suppliers
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In Porter's Five Forces model, conditions under which a supplier group can be powerful include all of the following except
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readily available substitute products
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A supplier group would be most powerful when there is/are
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few substitute products
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Threat of substitute products comes from
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firms in other industries that produce products or services that satisfy the same customer need
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Firms would be most likely to face intense rivalry with competitors when they
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have high fixed costs, in a slow growth industry with high exit barriers
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The most intensive rivalry results from
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numerous equally balanced competitors, slow industry growth, high fixed or storage costs
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Exit barriers arise from
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all of the above
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Because the internet lowers barriers to entry in most industries, it
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increases the threat of new entrants
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End users are
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all of the above
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Incumbent firms may enjoy increased bargaining power because the Internet
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diminishes the power of many distribution channel intermediaries
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Supplier power has increased because of the Internet for all of the following reasons except
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Some suppliers have created Web-based purchasing systems that encourage switching
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In general, the threat of substitutes is heightened because the internet
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introduces new ways to accomplish the same task
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How do infomediaries and consumer information websites increase the intensity of competitive rivalry?
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by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over
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The value net is a game-theoretic approach that
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is a way to analyze all the players in a game and analyze how their interactions affect a firm's ability to generate and appropriate value
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In the value-net analysis, complementors are
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firms that produce products or services that have a positive impact on the value of a firm's products or services
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Strategic groups consists of
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A group of firms within an industry that follow similar strategies
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Which of the following statements about strategic groups is false?
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Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups
