managerial Policy

1. aaChapter 03<br />The Competitive EnvironmentTop of Form<br />Question 1 <br />Porter's Five Forces framework is based on the principle of: <br />a) Resource-based view <br />b) Conduct - structure - performance <br />c) Structure - conduct - performance <br />d) Econometrics <br />Question 2 <br />In Porter's Five Forces, the 'threat of new entrants' relates to: <br />a) Barriers to entry <br />b) Substitutes <br />c) Switching costs <br />d) Buyer power <br />Question 3 <br />Brandenburg and Nalebuff added a sixth force to Porter's Five Forces. It is known as: <br />a) Substitutes <br />b) Complementors <br />c) Seller power <br />d) Government regulation <br />Question 4 <br />'Co-opetition' as suggested by Brandenburger and Nalebuff (1997) can be defined as:<br />a) Competitive behavior that combines competition and cooperation <br />b) Competitive behaviour that is good for society <br />c) Collaboration <br />d) The acquisition of rivals <br />Question 5 <br />The 'positioning' approach to strategy holds the view that:<br />a) Strategy is about how a firm positions itself in relation to the industry structure <br />b) Strategy is about how firms respond to macro-environmental changes <br />c) Strategy is about how firms deal with their stakeholders <br />d) Strategy is about how firms position themselves in relation to competitors <br />Question 6 <br />Barriers to entry into an industry are likely to be high if:<br />a) Switching costs are low <br />b) Differentiation is low <br />c) Requirement for economies of scale is high <br />d) Access to distribution channels is high <br />Question 7 <br />Buyer power is high if:<br />a) Differentiation is low <br />b) Switching costs are low <br />c) They have little information <br />d) The buyer requires a high quality product for their own production <br />Question 8 <br />Supplier power will be high if:<br />a) The supplier's product is easy to understand <br />b) There are many suppliers to chose from <br />c) There is a threat of forward integration <br />d) The supplier's product is undifferentiated <br />Question 9 <br />A substitute product or service is:<br />a) A competitor's product or service <br />b) An alternative way of meeting the same need <br />c) A new entrant into the industry <br />d) A less attractive way of meeting the same need <br />Question 10 <br />Competitive rivalry will be high if:<br />a) The industry is fragmented <br />b) There are a few strong players in the industry <br />c) There is a high degree of differentiation <br />d) The industry is in its infancy <br />Question 11 <br />Porter's Five Forces assumes a 'zero-sum game'. A 'zero-sum game' means:<br />a) Firm A wins at the expense of Firm B <br />b) Firm A and Firm B both win <br />c) No firm wins <br />d) Some industries will win at the expense of other industries. <br />Question 12 <br />An industry characterized by irregular patterns of stability, rapid technological change, high uncertainty and global competition can be described as:<br />a) Hypercompetitive <br />b) Hyperactive <br />c) Atypical <br />d) Co-opetitive <br />Question 13 <br />The 'value-net' as developed by Brandenburger and Nalebuff (1996) can be defined as:<br />a) The way in which an organization is linked to its supply chain <br />b) The way in which the different activities of the organization are linked together to add value <br />c) The relationship between organizations interacting in the same game <br />d) The way in which the organization produces value for the customer <br />Question 14 <br />A strategic group can be defined as:<br />a) A group of key resources and competences that are necessary to achieve competitive advantage <br />b) A group of customers that have similar characteristics <br />c) An industry recipe <br />d) A group of firms in an industry following the same or a similar strategy <br />Question 15 <br />Strategic group analysis involves mapping organizations using:<br />a) Two variables appropriate to the industry <br />b) Three variables appropriate to the industry <br />c) Two variables which stay the same regardless of the industry <br />d) Three variables which stay the same regardless of the industry <br />Bottom of Form<br />