Exam 1 Ch. 3.docx - Chapter 3 1 A competitive strategy...

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Chapter 3 1) A competitive strategy followed by an organization is derived from the ________ of its industry. A) function B) structure C) profits D) goals 2) A competitive strategy of an organization determines its ________. A) industry rivals B) short-term goals C) value chains D) structure 3) Porter originally developed the five forces model to determine the ________. A) potential profitability of an industry B) nature of competitive industrial environments C) reason why certain industries collapse D) means by which to improve resource utilization 4) Which of the following statements describes suppliers in a position of strong bargaining power? A) coffee planters during a season of frost that decreases production B) companies negotiating supplier contracts after taxes on raw materials have been reduced C) providers of logistic support when fuel prices have been reduced D) wholesalers declaring end-of-season sales 5) Simpson's Lawn Services decides to offer two free mowing services for all customers who booked garden landscaping in the fall. Which of the following forces is Simpson's Lawn Services addressing? A) the control exercised by Acme Corp., who supplies Simpson's with lawn mowers B) the power held by the landlord of the Simpson's office space C) the threat posed by Roger's Landscapes, a new competitor D) the bargaining power of the City Football Club who are Simpson's customers 6) Porter's five competitive forces can be grouped into two types: forces related to ________ and forces related to supply chain bargaining power. A) pricing B) labor C) competition
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D) consumers 7) Which of the following groups' bargaining power is considered as one of the five competitive forces in Porter's five forces model? A) investors B) competitors C) employees D) customers 8) In Porter's five factor model, each of the three competitive forces concerns the danger of ________. A) suppliers favoring rival companies B) customers taking their business elsewhere C) investors refusing to back new projects D) employees not working toward organizational goals 9) The two strength factors that relate to all three competitive forces are ________ and customer loyalty. A) employee unions B) nature of products C) customer satisfaction D) switching costs 10) In which of the following cases is the strength of competitive forces low? A) when switching costs are high B) when rival products are priced relatively low C) when customer loyalty to the brand or company is low D) when finding rival products is easy 11) If customers perceive the benefits of an alternative to be similar to that of a product, then the ________. A) switching cost is high B) price of the product should be increased to retain market share C) threat from the substitute is strong D) customers' bargaining power decreases 12) Which of the following is true if the threat from substitutes is strong?
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