1. What is the relationship between macro level factors (such as economic trends or political trends) and strategy?

Select one:

a. It's good to be aware of these factors, but they don't change your strategy.

b. Strategy emerges from these factors.

c. Strategy can be strongly affected by these factors, in terms of opportunities and threats.

d. Macro level factors affect the industry environment.

2. Given the plethora of external influences, understanding the external environment requires managers to:

Select one:

a. Use a framework or a system that allows them to organise information and rank factors.

b. Monitor their rivals closely to detect signals of change in their strategies.

c. Use all existing techniques to gather and analyse information.

d. Work on the matter full-time.

3. The theories of monopoly and perfect competition:

Select one:

a. Cannot be compared, because they rely upon totally antagonistic premises.

b. Are contradictory.

c. Are the two extremes in the spectrum of the number of competitors in an industry.

d. Are interesting but unrealistic concepts to understand real industries.

4. The relative bargaining power of buyers depends on:

Select one:

a. The size and concentration of buyers relative to suppliers.

b. A buyer's access to information about products and costs.

c. The ability or threat to integrate vertically.

d. All of the above.

5. The bargaining power of suppliers is likely to be high:

Select one:

a. When the suppliers' industry is concentrated.

b. When suppliers are supplying differentiated products.

c. When "our" (the customer's) industry is relatively fragmented.

d. All of the above.

6. Excess capacity often leads firms to cut prices to hold on to existing business for fear that competitors will do the same first, leaving them with a lower market share, and adverse average costs. True or False?

Select one:

True

False

7. Key success factors are:

Select one:

a. Factors that lead a firm's rivals to be successful in the industry.

b. Factors derived from the competitive environment that a firm must satisfy if it is to succeed.

c. Entirely internal factors which determine a firm's ability to survive and prosper.

d. Factors in the five forces of competition that are critical for a firm's survival and prosperity.

8. In a competitive intelligence exercise, the aim is:

Select one:

a. To maintain a strategic focus, not getting drawn into tactics.

b. To obtain and analyse the most confidential data.

c. To assess a rival's options objectively.

d. To get inside a rival CEO's head & predict their firm's behaviour.

9. Understanding the structure of the industry helps managers to work out how to make a profit in future and to possibly identify ways to change the industry structure to their advantage. True or False?

Select one:

True

False

10. Strategic group analysis is very useful for:

Select one:

a. Identifying strategic niches.

b. Identifying the strategic positioning of different firms within the whole industry.

c. Answers 1 and 2.

d. Neither 1 nor 2.