Question 1

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?
A)Broad differentiation.
B)Supplier cost differentiation.
C)Focused strategy.
D)Broad cost leadership.

Accepted Answer

Porter's three generic strategies are broad differentiation, focused strategy, and broad cost leadership. Supplier cost differentiation is not one of the three identified strategies.

Question 2

Which of the following offers an example where Porter's five forces are mostly weak and competition is low?
A)An international hotel chain purchasing milk.
B)A coffee shop.
C)A single consumer purchasing milk.
D)A dog walking business.

Accepted Answer

The answer of Which of the following offers an example...

Question 3

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents a threat of a new entrant in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water,fruit juice,coffee.

Accepted Answer

Zevia Natural Diet Soda beginning to sell directly over the Internet represents a threat of a new entrant in the soft drink industry. By selling directly over the internet, Zevia can reach customers without the need to distribute through traditional retailers. This can make it easier for new entrants to enter the market with lower costs and minimal infrastructure requirements.

Question 4

Some industries' competition is much more intense than others.Retail grocery stores such as Kroger,Safeway,and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete.What is this an example of in terms of Porter's Five Forces?
A)Rivalry among new entrants.
B)Rivalry among existing competitors.
C)Threat of substitute products or services.
D)Buyer power.

Accepted Answer

This scenario is an example of rivalry among existing competitors, as the retail grocery stores are experiencing intense competition and similar marketing campaigns to compete with each other.

Question 5

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents the threat of substitute products or services in the music industry?
A)Established record labels like EMI,Sony,Universal.
B)Independent record labels.
C)Game systems like Wii,social networks like Facebook.
D)Taylor Swift,Beyonce,The Beatles,The Stones.

Accepted Answer

Game systems like Wii and social networks like Facebook represent the threat of substitute products or services in the music industry. These platforms offer alternative ways for consumers to access and enjoy music, which could potentially harm the sales and revenue of traditional music industry players like record labels and artists.

Question 6

Jennifer Bloom is writing a paper and she must determine which of Porter's three generic strategies The Museum Company has implemented.Jennifer finds out that The Museum Company offers specialty products found only in museums around the world to affluent customers.What would Jennifer determine The Museum Company is using as its generic strategy?
A)Broad market,low cost.
B)Narrow market,high cost.
C)Broad market,high cost.
D)Narrow market,low cost.

Accepted Answer

The Museum Company is offering specialty products found only in museums around the world, indicating that their market is narrow. Additionally, they are catering to affluent customers, which suggests they are using a high-cost strategy. Therefore, The Museum Company is implementing a narrow market, high cost generic strategy.

Question 7

Which of the following offers an example where Porter's five forces are mostly strong and competition is high?
A)A dog walking business.
B)A ski resort.
C)A professional hockey team.
D)All of the above.

Accepted Answer

With Porter's five forces model, these are all examples of strong forces, where it increases competition: 1)a single consumer purchasing milk, 2)a company that makes pencils, 3)coffee from McDonalds, 4)a dog walking business, and 5)a coffee shop.

Question 8

Which of the following demonstrates a company that has implemented a low cost,broad market strategy?
A)Neiman Marcus.
B)Payless Shoes.
C)The Sharper Image.
D)Walmart.

Accepted Answer

Walmart is a prime example of a company that has implemented a low-cost, broad market strategy. They offer a wide range of products at very competitive prices, targeting a diverse range of customers, from low-income to high-income earners. They achieve their low-cost structure through efficient supply chain management, cost-effective advertising, and minimal store design.

Question 9

According to Porter companies that wish to dominate broad markets should operate using a ________ strategy.
A)Cost leadership with a low cost
B)Differentiation with a low cost
C)Cost leadership with a high cost
D)All of the above

Accepted Answer

According to Porter broad markets should utilize cost leadership with a low cost and differentiation with a high cost.

Question 10

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents supplier power in the music industry?
A)Established record labels like EMI,Sony,Universal.
B)Walmart,Target,iTunes.
C)Game systems like Wii,social networks like Facebook.
D)Taylor Swift,Beyonce,The Beatles,The Stones.

Accepted Answer

Established record labels like EMI, Sony, and Universal have a significant amount of power in the music industry as they control the distribution channels and have the resources to invest in the promotion and marketing of their artists. They also have control over the number of contracts they offer and can dictate terms to the artists.

Question 11

When analyzing Porter's three generic strategies for entering a market,if you have a focused strategy what market should you target?
A)A niche market.
B)A broad market.
C)Neither niche or broad markets.
D)Both niche and broad markets.

Accepted Answer

A focused strategy is centered on targeting a specific niche market. Therefore, option A is the best choice as it aligns with the strategy.

Question 12

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents rivalry in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Accepted Answer

Option D represents rivalry in the soft drink industry, as it demonstrates competition between Coke and Pepsi to secure exclusive sale rights at a football stadium. The other options are related to supplier power (A), buyer power (B), and the threat of new entrants (C).

Question 13

Imagine you are creating a new product to sell in an up-and-coming market.Which of the below statements indicates that it would be difficult for you to enter this new market?
A)The threat of new entrants force is high in the up-and-coming market.
B)The threat of new entrants force is low in the up-and-coming market.
C)The threat of new entrants force is high during the summer months in the up-and-coming market.
D)All of the above depending on the time of year.

Accepted Answer

The threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market.

Question 14

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents buyer power in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water,fruit juice,coffee.
E)Coke and Pepsi submit bids to the owner of a football stadium for the exclusive sale of their products during games.

Accepted Answer

Walmart negotiating a lower cost per bottle from Coke in exchange for premium shelf space demonstrates buyer power, as it shows the ability of a large retailer to influence pricing and terms due to its purchasing volume and market presence.

Question 15

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?
A)Walmart.
B)Tiffany & Co.
C)Neiman Marcus.
D)Payless Shoes.

Accepted Answer

Payless Shoes operates in a narrow-focused market of discount shoes and strives to be the low-cost provider in this market. Walmart also operates as a low-cost provider but in a broad market. Tiffany & Co. and Neiman Marcus operate in a high-end, luxury market, which is not a narrow-focused market.

Question 16

Broad differentiation,broad cost leadership,and _________ create the three generic strategies identified by Porter.
A)Narrow market leadership
B)High cost versus low cost
C)Focused strategy
D)None of the above

Accepted Answer

The three generic strategies identified by Porter are broad differentiation, broad cost leadership, and focused strategy. The focused strategy can further be divided into two subcategories: cost focus and differentiation focus.

Question 17

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents a substitute product in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water,fruit juice,coffee.

Accepted Answer

Vitamin water, fruit juice, and coffee are all substitute products for soft drinks. Consumers can choose to drink these beverages instead of soft drinks, which puts pressure on the soft drink industry to compete with these substitutes. Options A, B, and C are not substitute products, but rather examples of supplier power and new entrants in the industry.

Question 18

Amazon.com uses a customer profiling system whenever a customer visits its website.Using this system,Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?
A)Rivalry.
B)Buyer power.
C)Product differentiation.
D)Substitute product.

Accepted Answer

Amazon is using product differentiation by tailoring its product offerings to match each customer's profile and buying pattern. This personalized approach sets Amazon apart from its competitors and provides a competitive advantage.

Question 19

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents buyer power in the music industry?
A)Established record labels like EMI,Sony,Universal.
B)Walmart,Target,iTunes.
C)Independent record labels.
D)Game systems like Wii,social networks like Facebook.

Accepted Answer

Buyer power in the music industry is represented by the bargaining power that customers have over the prices and quality of music products. Walmart, Target, and iTunes represent a large portion of music retailers where customers have bargaining power over the prices and quality of music products they are purchasing. Established record labels like EMI, Sony, and Universal, independent record labels, game systems like Wii, and social networks like Facebook do not represent buyer power in the music industry.

Question 20

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents supplier power in the soft drink industry?
A)Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B)Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C)Zevia Natural Diet Soda begins selling directly over the Internet.
D)Vitamin water,fruit juice,coffee.

Accepted Answer

Option A represents supplier power as it shows that Pepsi sets a requirement for minimum orders of their products, which gives them more bargaining power over the stores that carry their products. This indicates that the suppliers (in this case, Pepsi) have a significant amount of control over the industry. Option B is an example of buyer power, as Walmart is the buyer in this scenario and negotiates a lower price in exchange for premium shelf space. Option C represents the threat of new entrants, and Option D lists different types of beverages that are not related to supplier power.

Quiz 1: Management Information Systems: Business Driven MIS

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter.Which of the following is not included as one of Porter's three generic strategies?

Which of the following offers an example where Porter's five forces are mostly weak and competition is low?

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents a threat of a new entrant in the soft drink industry?

Some industries' competition is much more intense than others.Retail grocery stores such as Kroger,Safeway,and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete.What is this an example of in terms of Porter's Five Forces?

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents the threat of substitute products or services in the music industry?

Which of the following offers an example where Porter's five forces are mostly strong and competition is high?

Which of the following demonstrates a company that has implemented a low cost,broad market strategy?

According to Porter companies that wish to dominate broad markets should operate using a ________ strategy.

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents supplier power in the music industry?

When analyzing Porter's three generic strategies for entering a market,if you have a focused strategy what market should you target?

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents rivalry in the soft drink industry?

Imagine you are creating a new product to sell in an up-and-coming market.Which of the below statements indicates that it would be difficult for you to enter this new market?

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents buyer power in the soft drink industry?

Which of the following offers an example of a company operating in a narrow focused-market operating as the low-cost provider?

Broad differentiation,broad cost leadership,and _________ create the three generic strategies identified by Porter.

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents a substitute product in the soft drink industry?

Amazon.com uses a customer profiling system whenever a customer visits its website.Using this system,Amazon can offer products tailored to that particular customer's profile and buying pattern.What is Amazon using to achieve this competitive advantage?

Your boss,Ty Jacob,has asked you to analyze the music industry using Porter's five forces model.Which of the following represents buyer power in the music industry?

Your boss,Kerry Miller,has asked you to analyze the soft drink industry using Porter's five forces model.Which of the following represents supplier power in the soft drink industry?