Test Bank Docx Chapter 3 Industry Analysis

Chapter 3: Industry Analysis

Test Bank

Type: multiple choice question

Title: Chapter 03 Question 01

1) Porter’s Five Forces framework is derived from principles from which academic field?

a. Economics

b. Game theory

c. Bounded rationality

d. Organizational behaviour

Type: multiple response question

Title: Chapter 03 Question 02

2) Porter’s Five Forces is used to analyse: Please select all that apply.

Type: multiple response question

Type: true-false

Title: Chapter 03 Question 04

4) The more difficult it is for a new organization to enter an industry, the more intense the competition will be in the industry.

A-head referencw: 3.2.1 What Determines The Threat of New Entrants

a. True

b. False

Type: fill-in-blank

Title: Chapter 03 Question 05

5) ____ as an entry barrier is further strengthened because the major oil companies are vertically integrated. They compete in different stages of production and distribution; that is, both upstream (extraction of oil) and downstream (sale of products to the consumer).

Type: multiple response question

Title: Chapter 03 Question 06

6) In Porter’s Five Forces, supplier power is high if: Please select all that apply.

Type: multiple response question

Type: multiple response question

Type: true-false

Title: Chapter 03 Question 09

9) The supermarket industry in the UK has low competitive rivalry.

a. True

b. False

Type: multiple response question

Title: Chapter 03 Question 10

10) Which of the following statements is NOT a criticism of Porter’s Five Forces? Select all that apply.

Type: fill-in-blank

Title: Chapter 03 Question 11

11) Porter suggests the use of a specific set of ________________ strategies which enable the organization to position itself in such as way as to mitigate the impact of the five forces in that particular industry.

Type: true-false

Title: Chapter 03 Question 12

12) A zero-sum game is where no player can win in a particular situation.

a. True

b. False

Type: true-false

Title: Chapter 03 Question 13

13) Porter’s Five Forces has been accused of assuming a zero-sum gain.

a. True

b. False

Type: multiple response question

Title: Chapter 03 Question 14

14) It has been suggested that Porter’s Five Forces needs to include additional aspects to make it more meaningful. These include: Please select all that apply.

Type: multiple choice question

Title: Chapter 03 Question 15

15) What main criticism do Mintzberg and Waters (1985) have of Porter’s Five Forces framework?

a. There are not enough forces.

b. The model needs to be more dynamic.

c. Emergent strategies are not considered.

d. There is little consideration of internal resources.

Type: true-false

Title: Chapter 03 Question 16

16) Porter’s Five Forces is of limited use in a young industry.

a. True

b. False

Type: fill-in-blank

Title: Chapter 03 Question 17

17) Porter’s Five Forces framework has been accused of being a ________________ analysis assuming relatively stable markets.

Type: fill-in-blank

Title: Chapter 3 Question 18

18) Brandenburger and Nalebuff (1996) developed the concept of the ___________ to represent a map of the whole game, the players in the game and their relationships with each other.

Type: true-false

Title: Chapter 03 Question 19

19) A Lexus car and a van are in the same market.

a. True

b. False

Type: multiple response question

Title: Chapter 03 Question 20

20) Strategic group analysis is useful because: Please select all that apply.

Type: true-false

Title: Chapter 03 Question 21

21) In essence, an organization needs to create value and a larger market, which is best undertaken by cooperating with customers and competitor.

a. True

b. False

Type: multiple choice question

Title: Chapter 03 Question 22

22) Which of the following industries is likely to follow the industry life cycle stages from introduction to decline?

a. Cars

b. Travel

c. Digital cameras

d. Hairdressing

Type: fill-in-blank

Title: Chapter 03 Question 23

23) A _____________ can be defined as ‘a group of firms within an industry following similar strategies’.

Type: fill-in-blank

Title: Chapter 03 Question 24

24) Factors that prevent the movement of organizations from one strategic group to another are known as _________________.

Type: multiple response question

Title: Chapter 03 Question 25

25) Strategic group analysis is useful because: Please select all that apply.

Type: fill-in-blank

Title: Chapter 03 Question 26

26) By undertaking strategic group analysis, an organization can better understand its industry structure by mapping rivals following similar into ________ strategic groups.

Type: fill-in-blank

Title: Chapter 03 Question 27

27) The term _________________ was introduced by D’Aveni (1994) to explain a relentless mode of competitive behaviour that aims to force competitors out of the industry.

Type: true-false

Title: Chapter 03 Question 28

28) Christensen’s disruptive innovation describes a competitive pathway for small business to gain a foothold in the market and subsequently success.

a. False

b. True

Type: multiple response question

Title: Chapter 03 Question 29

29) Larry Downs and Paul Nunes argue that the strategic model of disruptive innovation has a blind spot. Please select all that apply.