Crafting and Executing Strategy Chapter 3 Evaluating a Company's External Environment

Crafting and Executing Strategy Chapter 3 Evaluating a Company's External Environment

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CHAPTER 3 1. Which of the following is not one of the questions that needs to be answered in thinking strategically about a company's industry and competitive environment? A)What kinds of competitive forces are industry members facing, and how strong is each force? B) What emerging opportunities and threats are evident in the industry environment? C)What market positions do industry rivals occupy?who is strongly/weakly positioned and who is not? D)What are the key factors for future competitive success? E)What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? 2. In identifying an industry's dominant economic features, there is a need to consider such things as A) market size and growth rate, the number of buyers, the scope of competitive rivalry, the number of rivals, demand-supply conditions, product innovation, the degree of product differentiation, the presence of scale economies and/or learning/experience curve effects, and the pace of technological change. B)the threat of additional entry into the industry and what the industry's key success factors are. C)the strength of competitive pressures from producers of substitute products and which competitors are in which strategic groups. D)the extent and importance of seller-supplier collaborative partnerships, the extent and importance of seller-buyer collaborative partnerships, and the bargaining leverage of sellers and buyers. E)All of these. 3. According to both the text discussion and the summary in Figure 3.4, which of the following is not among the factors that determine whether competitive rivalry among industry members is strong, moderate, or weak? A)Whether buyer demand for the product is growing rapidly or slowly B)Whether customers' costs to switch brands is low or high C)How active industry rivals are in initiating fresh competitive moves and in using the various weapons of competition to improve their market standing and business performance D)Whether there are few or many rival sellers and whether there are big differences in their sizes and competitive capabilities
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E) Whether industry members are vertically integrated and whether the industry is characterized by significant scale economies and rapid technological change 4. The rivalry among competing sellers in an industry intensifies A)when buyer demand for the product is growing rapidly. B)when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high. C)when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories. D) as the number of rivals increases and as they become more equal in size and competitive capability. E)when the products of rival sellers are highly differentiated products and the industry consists of so
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This note was uploaded on 07/21/2011 for the course BUS 10001 taught by Professor All during the Spring '11 term at Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology.

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Crafting and Executing Strategy Chapter 3 Evaluating a Company's External Environment

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