question archive Quiz 3 (question 1-10 is true and false) 1
Quiz 3 (question 1-10 is true and false) 1
Subject:BusinessPrice: Bought3
Quiz 3 (question 1-10 is true and false)
1. Government deregulation of telephone service lowered the barriers to entry and lowered industry profit rates.
2. In Porter's competitive forces framework, the stronger the five forces, the ability of established companies to raise prices and earn greater profits becomes more limited.
3. The risk of entry by potential competitors is a function of the height of the barriers to entry.
4. The bottled water industry created new competitors for Coca-Cola, but it did not change the basic industry boundaries.
5. Strong brand loyalty and high customer switching costs are low barriers to entering an industry.
6. Changes in the characteristics of a population, such as age or race, are irrelevant to the analysis of an industry's macroenvironment.
7. To determine its opportunities and threats, a firm should focus on internal processes and capabilities.
8. Market segments are distinct groups of customers within a market that can be distinguished from each other based on their individual attributes and specific demands.
9. Starbucks and an independent local café are different in terms of their business techniques. They both sell coffee, and therefore belong to the same strategic group.
10. Opportunities arise when a company can take advantage of conditions in its environment to formulate and implement strategies that allow it to become more profitable.
11. A group of firms manufactures writing implements such as pens, pencils, and markers. This group should be referred to as a/an
Select one:
a. market segment.
b. service provider.
c. substitute.
d. regulator.
e. industry.
A baking company has different product ranges like whole-wheat pizzas for the diet-conscious and rich cookies for children and youngsters. The company is catering to different groups of customers known as
Select one:
a. market segments.
b. entrants.
c. sectors.
d. investors.
e. substitutes.
An industry's buyers have high bargaining power when
Select one:
a. they purchase in small quantities.
b. the industry is a monopoly.
c. the supply industry depends upon buyers for a very small percentage of its total orders.
d. it is economically impossible for them to purchase an input from several companies at once.
e. switching costs are low.
The bargaining power of an industry's suppliers is greater when
Select one:
a. the industry is not an important customer to the suppliers.
b. switching costs are minimal for companies because of little difference among products offered by different suppliers.
c. the supply industry is fragmented.
d. the industry buys in large quantities.
e. the product that suppliers sell has many substitutes and is not vital to the companies.
Economies of scale can arise from
Select one:
a. an advantage gained by spreading fixed production costs over a large production volume.
b. cost reductions gained through decreased production.
c. high prices on bulk purchases of raw material inputs and component parts.
d. increased spending on marketing and advertising activities.
e. poor production operations.
When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates
Select one:
a. brand loyalty.
b. lack of economies of scale
c. lack of demand.
d. risk of entry.
e. bargaining power.
Which of the following statements is true about rivalry in the context of established companies?
Select one:
a. It significantly reduces the costs of established companies.
b. It enables companies to lower their spending on non-price-competitive strategies.
c. It is unaffected by the demand conditions of an industry.
d. It forces companies to reduce prices when it is less intense.
e. It squeezes profits out of an industry.
The extent of rivalry among established companies is lowest when
Select one:
a. the industry is entering a decline stage.
b. the fixed costs are high.
c. the industry's product is a commodity.
d. demand is growing rapidly.
e. exit barriers are substantial.
The competitive structure of an industry refers to the
Select one:
a. number and size distribution of companies in the industry.
b. number of manufacturing plants in the industry.
c. number of consumers in the industry.
d. number of products produced in the industry.
e. number of market segments in the industry.
An industry can be defined as a group of
Select one:
a. companies offering products or services that are close substitutes for each other.
b. manufacturing plants of a single company.
c. brands that offer different products but are owned by a single firm.
d. companies that are different but generate similar amounts of revenues.
e. different kinds of companies that are based in the same geographic location.
Select one:
a. companies offering products or services that are close substitutes for each other.
b. manufacturing plants of a single company.
c. brands that offer different products but are owned by a single firm.
d. companies that are different but generate similar amounts of revenues.
e. different kinds of companies that are based in the same geographic location.
