201 BS 4 Porter's Five Forces--Key

201 BS 4 Porter's Five Forces--Key - 201 Porters Five...

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201 Porter’s Five Forces 1. The cost of a key production factor is steadily rising. The product made in the industry is critical for the industry’s customers. Will the company raise the price of its product to compensate for the increased cost of making it? Why or why not? a. no, the bargaining power of buyers is high b. no, the bargaining power of buyers is low c. no, the bargaining power of suppliers is high d. no, the bargaining power of suppliers is low e. none of the above 2. Very few companies compete in a certain industry. Using Porter’s model an analyst is likely to conclude a. rivalry is high b. rivalry is low c. the threat of substitutes is high d. the threat of substitutes is low e. none of the above 3. The cost of a key production factor is steadily rising. The company competes in an industry for which customers are relatively plentiful. Will the company raise the price of its product to compensate for the increase cost of making it? Why or why not? a. yes, the bargaining power of buyers is high b. yes, the bargaining power of buyers is low c. no, the bargaining power of suppliers is high d. no, the bargaining power of suppliers is low e. none of the above 4. Genco operates in an industry that produces products that are essential for the lives of its customers. An analyst looking at Genco’s industry most likely will conclude the bargaining power of a. Buyers is high b. Suppliers is low c. Buyers is low d. Suppliers is high e. None of the above 5. Uneek’s competitive advantage stems from its hard-fisted use of large scale operations. An analyst studying Uneek’s industry most likely will conclude that the threat of a. New entrants is high b. New entrants is low c. Substitutes is high d. Substitutes is low e. None of the above 6. In a certain industry price competition is low. An analyst using Porter’s Five Forces Model might conclude that
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201 Porter’s Five Forces a. rivalry is low b. rivalry is high c. industry attractiveness is high d. both a and c e. none of the above 7. A certain industry has very few competitors. Using one of Porter’s Five Forces to describe the industry an analyst would say that a. price competition is high b. price competition is low c. rivalry is high d. rivalry is low e. none of the above 8. Janus Corporation purchases a large portion of production volume from Neptune Inc. Using Porter’s Five Forces Model to describe the industry in which Janus competes an
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This note was uploaded on 03/12/2010 for the course ACCY 201 taught by Professor Susancurtis during the Fall '09 term at University of Illinois, Urbana Champaign.

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201 BS 4 Porter's Five Forces--Key - 201 Porters Five...

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