Chapter 3: Organizational Strategy, Information Systems, and Competitive Advantage
Multiple Choice
1) The competitive strategy followed by an organization is derived from its ________.
A) function
B) structure
C) profits
D) goals
Answer: B
Page Ref: 48
Difficulty: Easy
Study Question: Study Question 1
2) The competitive strategy of an organization determines its ________.
A) industry rivals
B) short-term goals
C) value chains
D) structure
Answer: C
Page Ref: 48
Difficulty: Easy
Study Question: Study Question 1
3) In which of the following situations would the suppliers have the strongest bargaining power?
A) coffee planters during a season of frost that decreases production
B) companies negotiating compensation during a booming economy
C) providers of logistic support during an economic slowdown
D) a wholesaler declaring a stock-clearance sale
Answer: A
Page Ref: 48
Difficulty: Moderate
Study Question: Study Question 2
4) Porter originally developed the five forces model to determine ________.
A) the potential profitability of an industry
B) the nature of competitive industrial environments
C) the reason why certain industries collapse
D) the means by which to improve industrial viability
Answer: A
Page Ref: 48
Difficulty: Easy
Study Question: Study Question 2
5) Simpson's Lawn Services decides to offer two free mowing services for all customers who booked garden landscaping in the fall. By doing this, which of the following forces is Simpson's addressing?
A) the control exercised by Acme Corp. who supplies Simpson with lawn mowers
B) the power held by the landlord of the Simpson office space
C) the threat posed by Roger's Landscapes, a new competitor
D) the bargaining power of the City Football Club who are their customers
Answer: C
Page Ref: 48-49
Difficulty: Moderate
AACSB: Analytic Skills
Study Question: Study Question 2
6) Porter's five competitive forces can be grouped into two types: forces related to