External assessment P2

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

• A. rivalry among existing firms

• B. switching costs

• C. capital requirements

• D. product differentiation

When General Motors considers making its own automotive parts, Delphi Automotive Supply Company would be concerned with the

• A. bargaining power of suppliers.

• B. bargaining power of buyers.

• C. rivalry among existing competitors.

• D. threat of substitutes.

In the EFAS Table, the indicator of how well a particular company is responding to current and expected factors in its external environment is characterized by the

• A. IFAS score.

• B. industry matrix.

• C. total weighted score.

• D. SWOT score.

When strategic managers have a willingness to reject unfamiliar as well as negative information it is referred to as

• A. strategic paralysis.

• B. corporate inertia.

• C. management indifference.

• D. strategic myopia.

Which environment was generally perceived by business people to be something to exploit, not conserve, until the twentieth century?

• A. the task environment

• B. the natural environment

• C. the internal environment

• D. the societal environment

One ground rule necessary for effective brainstorming is

• A. scrutinize each idea generated.

• B. propose ideas without mentally screening them.

• C. calculating future earnings of each idea.

• D. critique each idea for rationality.

Which barrier to entry uses cost advantages associated with large size?

• A. economies of scale

• B. switching costs

• C. cost disadvantages independent of size

• D. capital requirements

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

• A. capital requirements.

• B. product differentiation.

• C. switching costs.

• D. economies of scale.

Porter describes the threat of new entrants. Which of the following is not descriptive of the "threat of new entrants"?

• A. depends on the presence of entry barriers

• B. has a desire to gain market share

• C. depends on the reaction of existing competitors

• D. does not impact industry attractiveness

The origin of competitive advantage lies in the ability to

• A. gain major stockholders.

• B. identify and respond to environmental change well in advance of competition.

• C. launch products quickly.

• D. serve customers faster.