Deck 3: Analysing the external environment

Question 1

In understanding key customers,it is NOT relevant to know:

A) what they use the product for
B) what the product's key benefits are to them
C) what the product's buying features are for them
D) what they will recommend to others (word of mouth)

Answer 1

D

Question 2

In an industry analysis in the public sector it is NOT relevant to ask:

A) How does this influence group affect our organisation?
B) Why does this influence group affect our organisation?
C) When will we feel the affect of this influence group on our organisation?
D) What gives this influence group power to affect our organisation?

Answer 2

C

Question 3

Porter's 'five forces' do NOT include:

A) threat of new entrants
B) threat of substitutes
C) buyer power
D) threat of complementary products

Answer 3

D

Question 4

To gain an understanding of how each market works within an industry we ask:

A) What is the size of key market segments?
B) What is the factor-controller's decision process?
C) How homogenous is the market?
D) What is the proximity level of the market?

Question 5

Today,business organisations globally are facing increased pressures to improve their:

A) profitability
B) environmental impact
C) resources
D) global competitiveness

Question 6

Industry analysis aims to answer the question:

A) What are the forces within an industry that determine its size?
B) Based on these forces, what is the current and likely future number of firms in the industry?
C) How are the forces changing and expected to change, over time?
D) How will those changes affect the future size of the industry?

Question 7

The factors that influence the bargaining power of suppliers include:

A) access to distribution
B) government policy
C) decision makers' incentives
D) brand identity

Question 8

Porter's 'diamond' model of international competitiveness suggests that where firms cluster,analysis may need to be conducted at:

A) industry level
B) organisation level
C) firm level
D) network level

Question 9

Porter's 'diamond' model of international competitiveness does NOT include:

A) absence of related industries and infrastructure
B) favourable factor (supply) conditions
C) government support
D) chance events

Question 10

The elements of the macro-environment do NOT include:

A) legal and political trends
B) fashion and brand-image trends
C) demographic and cultural trends
D) economic and technological trends

Question 11

A piece of information that Hubbard,Rice and Galvin do NOT recommend gathering about a competitor is:

A) its business strategy
B) its key stakeholders
C) its capabilities
D) the gaps between its strategy and the industry environment

Question 12

An industry is defined as:

A) all the productive capacity of the national economy
B) a reality based on geography and not a perception
C) a group of business units producing complementary goods and services
D) a group of organisations producing close substitutes

Question 13

Driving forces determine what the organisation needs to do well to:
A) survive in the industry

A) both of the above
B) grow in the industry
B) none of the above

Question 14

Extension of the 'five forces' framework moves it towards:

A) a business system framework
B) a value chain framework
C) both of the above
D) none of the above

Question 15

A 'five forces' analysis will suggest that profitability should be high when:

A) all five forces are high
B) all five forces are low
C) the two 'powers' cancel out the two 'threats'
D) industry rivalry is intense

Question 16

In carrying out a competitive positioning analysis of an industry it is important to:

A) find groups of competitors that use the same approach
B) find groups of competitors that use different approaches
C) use uncorrelated axes
D) use correlated axes

Question 17

Scenario planning is of most use in industries where there is:

A) slow change
B) rapid change
C) low future uncertainty
D) a lot of data about the past

Question 18

Turbulence that is characterised as discontinuous is:

A) unpredictable
B) changing incrementally at random
C) repeating past events
D) when the past is an unreliable predictor of the future

Question 19

In the 'maturity' stage of the industry life cycle,the issue is:

A) how to manage industry position
B) how to manage markets and assets
C) how to grow
D) how to avoid decline

Question 20

Porter claims that ___ contribute(s)to intensity of industry rivalry:

A) barriers to exit
B) switching costs
C) absolute cost advantage
D) differentiation of outputs

Question 21

Not many countries are affected by major technology changes.

Question 22

Pensions are one of the largest costs to government and they are expected to decrease dramatically over time.

Question 23

Scenario planning is an alternative approach in which several different scenarios are developed so that the organisation can consider how it would position itself under each.

Question 24

Industry life cycle models aim to explain organisation and industry growth and decline over time.

Question 25

An industry is defined as a group of organisations producing close substitutes.

Question 26

'Analysis of the macro-environment is a waste of time and effort for all but the largest corporations.' Discuss the relevance of this observation.

Question 27

Government policies and regulations can be a barrier to new entrants in an industry.

Question 28

Economic trends are often key drivers of industry growth.

Question 29

In an industry,not all competitors compete directly with each other.Comment.

Question 30

A local council can be treated as a geographic monopoly in competition with other geographic monopoly councils for funds from the common provider.

Question 31

In Australia,if a product gains entry to the government's Pharmaceutical Benefits Scheme,the government does not subsidise its cost to users.

Question 32

The five forces model is a useful tool of analysing an industry.Briefly discuss the five forces.

Question 33

If it is difficult or costly to withdraw from an industry,competitors may decide to stay in the industry even if they are making losses.