STRATEGIC MANAGEMENT

What is a competitive advantage in business?

• a) A state of equilibrium with competitors

• b) A condition where a company has the lowest prices

• c) A unique strength or attribute that allows a company to outperform its rivals

• d) The ability to monopolize a market

Which of the following is an example of an opportunity for a technology company?

• a) Increasing labor costs in the industry

• b) The company's outdated equipment

• c) A growing market for innovative mobile apps

• d) A strong competitor in the market

In an external environmental analysis, what is the primary impact of high inflation rates on businesses and the economy?

• a) Increased purchasing power for consumers.

• b) Reduced business profitability due to lower prices.

• c) A higher demand for goods and services, boosting economic growth.

• d) Eroded consumer purchasing power and uncertainty for businesses.

How does a high unemployment rate typically affect businesses?

• a) Increased demand for goods and services as consumers have more disposable income.

• b) Reduced consumer spending and lower demand for products and services.

• c) Easier access to a highly skilled workforce, driving innovation and growth.

• d) Higher wages for employees, increasing labor costs for businesses.

How can political regulations affect businesses?

• a) They always lead to reduced profitability and higher taxes.

  
  

• b) They create a stable business environment, resulting in long-term growth.

  
  

• c) They can impact business operations, market entry, and profitability.

  
  

• d) They have no significant influence on businesses, as they focus on government affairs.

  
  

The threat of new entrants in the Five Forces model assesses:

• a) The bargaining power of suppliers.
  

• b) The intensity of industry rivalry.
  

• c) The potential for new competitors to enter the market.
  

• 1. d) The threat of substitute products or services.

  
  

Which force in Porter's model considers the ability of suppliers to control prices and terms?

• a) Bargaining power of buyers
  

• b) Threat of new entrants
  

• c) Bargaining power of suppliers
  

• 1. d) Competitive rivalry

  
  

The Five Forces model is primarily used for:

• a) Internal analysis of a company's strengths and weaknesses.
  

• b) Assessing a company's marketing strategies.
  

• c) Analyzing the competitive forces in an industry.
  

• 1. d) Identifying opportunities for international expansion.

  
  

In the context of Porter's Five Forces, what does the term "industry rivalry" refer to?

• a) The intensity of competition among existing firms in the industry.
  

• b) The rivalry between buyers and suppliers.
  

• c) The rivalry between domestic and international markets.
  

• 6. d) The rivalry between company executives.

  
  

In Porter's model, what does "barriers to entry" refer to?

• a) The costs and disadvantages that new entrants face when trying to compete in an industry

• b) The strategic alliances between competitors.
  

• c) The power of suppliers to control prices.
  

• 11. d) The government regulations affecting the industry.