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Q:
A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.
Q:
The information that is gathered by a firm to learn about its competitors is referred to as tactical intelligence.
Q:
The three types of competitors a business will face are direct competitors, indirect competitors, and future competitors.
Q:
A firm's future competitors are its most important ones.
Q:
The first step in a competitor analysis is to determine who the competition is.
Q:
Firms that pursue a global strategy use the same basic approach in all foreign markets.
Q:
A mature industry is an industry that is experiencing slow increases in demand, numerous repeat customers, and limited product innovation.
Q:
The primary opportunity available to firms in fragmented industries is consolidation. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.
Q:
A fragmented industry is one that is characterized by a large number of firms of approximately equal size.
Q:
An emerging industry is a new industry in which standard operating procedures have yet to be developed.
Q:
If the buyers are concentrated and they buy from a large number of suppliers, then the bargaining power of buyers is increased.
Q:
In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry.
Q:
There are four factors that determine the threat of new entrants: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs.
Q:
The best industry to enter is an industry where the threat of each of Porter's five-forces is low.
Q:
The five competitive forces model is a framework for understanding the structure of an industry.
Q:
Business trends include economic trends, social trends, technological advances, and political and regulatory changes.
Q:
The two trends that are most important to focus on in an industry analysis are business trends and environmental trends.
Q:
Virtually all studies have concluded that firm-specific factors are more important than industry-specific factors in terms of firm profitability.
Q:
A comparison analysis is a detailed evaluation of a firm's competitors.
Q:
Industry analysis is business research that focuses on the potential of an industry.
Q:
Amy has just launched a firm in the sports drink industry. She has decided to complete a grid to see how she stacks up against her competitors. Along the horizontal axis of the grid, she lists her firm along with her major competitors. Along the vertical axis of the grid, she lists the main competitive factors in her industry. Amy is completing a:
A) strategic analysis spreadsheet
B) tactical analysis framework
C) competitive analysis grid
D) strategic analysis grid
E) behavioral analysis spreadsheet
Q:
The information that is gathered by a firm to learn about its competitors is referred to as:
A) a feasibility appraisal
B) a workable appraisal
C) a practical assessment
D) a viable assessment
E) competitive intelligence
Q:
The Savvy Entrepreneurial Firm feature in Chapter 5 focuses on three firms that are doing well in crowded industries for two reasons:A) they have effectively differentiated themselves from their competitors and they have captured a first-mover advantageB) they have passionate leaders and they run savvy promotional campaignsC) they have captured a first-mover advantage and they have unique business modelsD) they create meaningful value for customers at a fair price and they have differentiated themselves from their competitorsE) they are low-cost leaders and they run savvy promotional campaigns
Q:
In the context of competitor analysis, ________ are companies that are not yet direct or indirect competitors but could move into one of these roles at any time.
A) stable competitors
B) roundabout competitors
C) impending competitors
D) approximate competitors
E) future competitors
Q:
In the beverage industry, soda, fruit juice, and sports drinks are ________ competitors of bottled water.
A) occasional
B) infrequent
C) indirect
D) direct
E) future
Q:
In the context of competitor analysis, ________ offer close substitutes to the product sold by the firm completing the analysis.
A) potential competitors
B) direct competitors
C) indirect competitors
D) impending competitors
E) future competitors
Q:
Aquafina operates in the bottled water industry. The companies that offer identical or similar products and go after the same customers that Aquafina does are Dasani and Zephyrhills. Dasani and Zephyrhills are Aquafina's:
A) direct competitors
B) indirect competitors
C) future competitors
D) impending competitors
E) potential competitors
Q:
In the context of competitor analysis, businesses that offer identical or similar products are referred to as:
A) immediate competitors
B) direct competitors
C) indirect competitors
D) straight competitors
E) urgent competitors
Q:
According to the textbook, the three different types of competitors a business will face are:
A) potential, direct, and upcoming
B) indirect, fleeting, and future
C) serious, cautious, and future
D) direct, indirect, and future
E) potential, fleeting, and indirect
Q:
According to the textbook, the first step in a competitor analysis is to:
A) develop a marketing plan
B) develop the strategic plan
C) study the strength of the industry
D) study the external environment
E) determine who the competition is
Q:
Katherine Chapman recently launched a firm in the clothing industry, targeting teens ages 13-17. One thing Katherine thinks she has accomplished is producing products that have universal appeal, so she will not vary her approach from country to country. Katherine is pursuing a ________ strategy.
A) universal
B) multidomestic
C) contemporary
D) global
E) home
Q:
Shelly James recently launched a firm in the fruit drink industry, and has already exported her fruit drinks to 9 different countries. One thing that Shelly's firm is doing is that it is varying the tastes of the fruit drinks it sells on a country by country basis to meet the demands of the local markets. Shelly's firm is pursuing a ________ strategy.
A) global
B) home
C) universal
D) contemporary
E) multidomestic
Q:
Firms that pursue a(n) ________ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.
A) inclusive
B) universal
C) multidomestic
D) contemporary
E) worldwide
Q:
The two most common strategies pursued by firms in global industries are the ________ strategy and the ________ strategy.
A) inclusive, multidomestic
B) multidomestic, global
C) multidomestic, worldwide
D) inclusive, global
E) home, worldwide
Q:
A(n) ________ industry is an industry that is experiencing significant international sales.
A) global
B) mature
C) fragmented
D) declining
E) emerging
Q:
The What Went Wrong? feature in Chapter 5 focuses on Eclipse Aviation. What was Eclipse Aviation's goal?A) to create a new segment in the private jet industry called very light jets.B) to create a more affordable line of private two-seat and four-seat propeller planesC) to create ultra-luxurious private jetsD) to create a low-cost airline to compete head-to-head with Southwest AirlinesE) to create a new segment in the passenger jet industry called very heavy jets
Q:
According to the textbook, PharmaJet, in needleless injection systems, and d'light, in solar-powered lanterns, are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.
A) global
B) declining
C) mature
D) emerging
E) fragmented
Q:
Opportunities for leadership, niche, harvest and divestment are associated with ________ industries.
A) mature
B) emerging
C) declining
D) fragmented
E) global
Q:
According to the textbook, Nucor in steel, JetBlue in airlines, and Cirque du Soleil in circuses are examples of entrepreneurial firms who are exploiting opportunities in ________ industries.
A) fragmented
B) emerging
C) declining
D) global
E) mature
Q:
According to the textbook, InstyMeds in prescription drug sales, Fresh Healthy Vending in food vending, and Daisy Rock in guitars are example of entrepreneurial firms who are exploiting opportunities in ________ industries.
A) emerging
B) fragmented
C) declining
D) mature
E) emerging
Q:
A(n) ________ industry is an industry that is experiencing slow or no increase in demand.
A) declining
B) global
C) mature
D) emerging
E) fragmented
Q:
The primary opportunity existing for startups in fragmented industries is to:
A) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
B) win customers by placing an emphasis on service and process innovation
C) capture a first-mover advantage
D) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation
E) consolidate the industry and establish industry leadership as a result of doing so
Q:
A(n) ________ industry is one that is characterized by a large number of firms of approximately equal size.
A) fragmented
B) mature
C) declining
D) emerging
E) global
Q:
The primary opportunity existing for startups in emerging industries is to:
A) consolidate the industry and establish industry leadership as a result of doing so
B) win customers by placing an emphasis on service and process innovation
C) pursue a niche strategy, which focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation
D) capture a first-mover advantage
E) pursue a cost reduction strategy, which is accomplished through achieving lower costs than industry incumbents through process innovation
Q:
Windspire is starting a firm in the small-scale wind-generated power industry. This industry is still so new that no standard operating procedures have been developed. Small-scale wind-generated power is an example of a(n) ________ industry.
A) mature
B) declining
C) emerging
D) global
E) fragmented
Q:
The five industry types discussed in the book include:
A) launching, fragmented, leveled-off, declining, and global
B) emerging, climbing, mature, declining, and worldwide
C) emerging, fragmented, mature, declining, and global
D) climbing, peaking, plateaued, declining, and international
E) launching, consolidated, plateaued, mature, and worldwide
Q:
John Petersen is thinking about starting a firm in the specialty chemical industry. In the industry analysis John has been conducting, one thing he has noticed is that the specialty chemical industry is characterized by the following factors: high supplier concentration, high switching costs for buyers when they switch from one supplier to another, and no attractive substitutes for the products that most of the suppliers provide. These factors concern John because they tell him that the profitability of the specialty chemical industry is suppressed by the:
A) threat of substitutes
B) bargaining power of buyers
C) rivalry among existing firms
D) bargaining power of suppliers
E) threat of new entrants
Q:
Supplier concentration, switching costs, attractiveness of substitutes, and threat of forward integration are factors that have a direct impact on:
A) threat of new entrants
B) bargaining power of buyers
C) rivalry among existing firms
D) threat of substitutes
E) bargaining power of suppliers
Q:
Which of the following was not identified in the textbook as a nontraditional barrier to entry?
A) inventing a new approach to an industry and executing the idea in an exemplary fashion
B) unique business model
C) capital requirements
D) strength of management team
E) passion of management team and employees
Q:
According to the example provided in Chapter 5, www.1800contacts.com possesses a nontraditional barrier to entry referred to as:A) unique business modelB) strength of management teamC) access to distribution channelsD) Internet domain nameE) first-mover advantage
Q:
If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a formidable nontraditional barrier to entry referred to as a(n):
A) unique business model
B) aggressive supremacy
C) competitive superiority
D) first-mover advantage
E) aggressive tactical advantage
Q:
Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?
A) threat of new entrants
B) rivalry among existing firms
C) threat of substitutes
D) bargaining power of buyers
E) bargaining power of suppliers
Q:
Some industries, like the athletic shoe industry, are dominated by a small number of firms with strong brands. These industries are difficult to break into without spending heavily on advertising. The barrier to entry that the firms in these types of industries have erected is referred to as:
A) government and legal barriers
B) capital requirements
C) product differentiation
D) cost advantages independent of size
E) access to distribution channels
Q:
Shelly Brunner owns a sports themed restaurant which is located in an upscale business district in Chicago. One advantage that Shelly has is that she bought the lot she built her restaurant on 25 years ago when lots in the area were selling for $50,000. Shelly knows that several potential competitors have looked at bare lots near his business but haven't been willing to pay the asking prices, which are as high as $500,000. Which of the six major sources of barriers to entry is causing a disincentive for new firms to enter Shelly's industry?
A) capital requirements
B) economies of scale
C) product differentiation
D) government and legal barriers
E) cost advantage independent of size
Q:
Which of the following is not one of the major sources of barriers to entry?
A) economies of scale
B) cost advantages independent of size
C) buyer group concentration
D) access to distribution channels
E) government and legal barriers
Q:
Which of Porter's five forces is most closely associated with the concept "barrier to entry"?
A) bargaining power of suppliers
B) rivalry among existing firms
C) threat of new entrants
D) bargaining power of buyers
E) threat of substitutes
Q:
The price of prescription medicine is high, partly because when someone is sick there is no real alternative to buying medicine if they want to get better. Which of Porter's five forces explains how this aspect of the prescription medicine industry helps keep profitability high?
A) rivalry among existing firms
B) threat of new entrants
C) threat of substitutes
D) bargaining power of buyers
E) bargaining power of suppliers
Q:
In general, industries are more attractive when:
A) the majority of the threats are high
B) the majority of the threats are low
C) the threat of each of the forces is neutralneither low nor high
D) the threat of each of the five forces is high
E) the threat of each of the five forces is low
Q:
According to the textbook, how do well-managed firms respond to the five-forces that determine industry profitability?
A) They switch industries if the forces are too compelling.
B) They focus on one force intently and excel by overcoming that force.
C) They overcome each of the forces.
D) They ignore the forces.
E) They try to position their firms in a way that avoids or diminishes the forces.
Q:
According to the textbook, the five competitive forces included in the five-forces model determine:
A) the average rate of new business starts in an industry
B) the average growth rate for the firms in an industry
C) the average rate of return for the firms in an industry
D) the average sales for the firms in an industry
E) the average failure rate for the firms in an industry
Q:
The Partnering for Success feature in Chapter 5 focuses on three things that are important for startups to become active in to learn the ins and outs of their industries. The three items focused on in the feature are?A) local Chambers of Commerce, trade journals, and networking eventsB) Facebook, industry-related e-mail listservs, and trade showsC) trade associations, trade shows, and trade journalsD) networking events, blogs, and FacebookE) local Chambers of Commerce, city or university-sponsored incubators, and trade associations
Q:
Industries that sell products to seniors, such as the eyeglass industry and the hearing aid industry, are benefiting from the aging of the population, which is an important:
A) environmental trend
B) business trend
C) commerce trend
D) statutory trend
E) competitive trend
Q:
In various studies, researchers have found that from ________ of the variation in firm profitability is directly attributable to the industry in which a firm competes.
A) 4 to 12 percent
B) 8 to 30 percent
C) 18 to 42 percent
D) 22 to 56 percent
E) 34 to 70 percent
Q:
According to the textbook, which of the following statements is accurate regarding the importance of industry versus firm-specific factors as it pertains to firm profitability?
A) Virtually all the studies have concluded that industry-specific factors are more important than firm-specific factors.
B) Virtually all the studies have concluded that firm-specific factors are more important than industry-specific factors.
C) Virtually all the studies have concluded that industry-specific factors are of almost no importance.
D) Virtually all the studies have concluded that firm-specific factors are of almost no importance.
E) Virtually all the studies have concluded that firm-specific factors and industry-specific factors are of equal importance.
Q:
Which of the following is an example of an industry-level factor as opposed to a firm-level factor?
A) a firm's assets
B) a firm's culture
C) the teamwork among a firm's employees
D) a firm's products
E) threat of substitutes
Q:
Each quarter, Cindy Anderson, who owns a chain of card and gift shops, does a detailed analysis of her firm's competitors. This analysis is called:
A) competitor analysis
B) challenger analysis
C) strategic analysis
D) participant analysis
E) industry analysis
Q:
Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its competitive environment. This challenge can be undertaken by completing a(n):
A) business analysis
B) industry analysis
C) competitor analysis
D) strategic analysis
E) market analysis
Q:
A(n) ________ is a group of firms producing a similar product or service, such as soft drinks, electronic games, or computers.
A) cluster
B) division
C) sector
D) industry
E) network
Q:
Jeremy Banks recently started a new firm in the financial services industry. Prior to starting his firm, he spent considerable time doing research on the potential of the industry. The research that Jeremy was doing is called:
A) industry analysis
B) sector analysis
C) commercial analysis
D) business analysis
E) target market analysis
Q:
Element Bars, the company profiled in the opening feature for Chapter 5, has a unique position in its industry. It has positioned itself as:A) a generic energy bar company that resells energy bars to companies who want to create their own branded energy barsB) a niche energy bar company that sells in high-end outlets, like 5 star hotels and spasC) a premium energy bar company that only uses the most wholesome and healthy ingredients, and makes special bars for vegetarians and vegansD) a low-cost energy bar company that makes energy bars more accessible to people in all income brackets and still offers healthy ingredientsE) a customizable energy bar company that sells to individuals online and also to companies who want to create their own branded energy bars
Q:
Which of the following statements is incorrect regarding the executive summary of a business plan?
A) It is a short overview of the entire business plan.
B) In many instances an investor will first ask for a copy of a firm's executive summary and will request a copy of the full business plan only if the executive summary is sufficiently convincing.
C) It is arguably the most important section of the business plan.
D) It should not exceed two single-spaced pages.
E) The executive summary is the first thing that should be written in preparing a business plan.
Q:
The ________ is a short overview of the entire business plan.
A) summary statement
B) executive summary
C) managerial review
D) founder's introduction
E) abstract
Q:
The Savvy Entrepreneurial Firm feature for Chapter 4 focuses on three companies: Box.net, Pixability, and Groupon. The overarching point of the feature is:A) most business plan require major changes after the business is launched and the founder's start getting customer feedbackB) the degree to which business plans pan out as their founders envisioned variesC) most business plans require only minor changes after the business is launched and the founders start getting customer feedbackD) the most effective business plans take four to eight weeks to completeE) most business plans are quickly discarded after the business is launched
Q:
Match the business plan with its appropriate emphasis:
A) summary business plan, works best for companies who are at the point where they need funding or financing; serves as a "blueprint" for the company's operations
B) operational business plan, works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea
C) full business plan, works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in the idea
D) summary business plan, is meant primarily for an internal audience; works best as a tool for creating a blueprint for a company's operations and providing guidance to operational managers
E) summary business plan, works best for companies in the early stages of development that want to "test the waters" to see if investors are interested in their idea
Q:
Match the business plan with its appropriate length:
A) operational business plan, 10-15 pages
B) full business plan, 25-35 pages
C) summary business plan, 25-35 pages
D) full business plan, 40 to 100 pages
E) operational business plan, 25-35 pages
Q:
Edward Andrews has decided to write a business plan that is intended to be read primarily by his staff, which will present a blueprint for his company's entire operation and will provide guidance to operational managers. Edward should write a(n):
A) operational business plan
B) tactical business plan
C) strategic business plan
D) summary business plan
E) functional business plan
Q:
A(n) ________, which is intended to be a blueprint for a company's operations, is 40-100 pages long and is meant primarily for an internal audience.
A) operational business plan
B) full business plan
C) deliberate business plan
D) summary business plan
E) tactical business plan
Q:
A(n) ________, which is typically 25 to 35 pages long, works best for new ventures who are at the point where they need funding or financing.
A) tactical business plan
B) strategic business plan
C) summary business plan
D) full business plan
E) operational business plan
Q:
Zachery Mays is in the very early stages of putting together a business startup, and is thinking about writing a business plan to request funds to conduct a feasibility analysis and write a more complete business plan. What type of business plan should Zachery write at this point?
A) full business plan
B) tactical business plan
C) summary business plan
D) operational business plan
E) strategic business plan
Q:
There are three types of business plans:
A) functional business plan, full business plan, feasibility plan
B) summary business plan, contingency plan, full business plan
C) functional business plan, contingency plan, full business plan
D) opportunity plan, feasibility plan, full business plan
E) summary business plan, full business plan, operational business plan