Strategic Management
Section A [20 marks]
Multiple Choice Questions - Choose the best suitable answer
1. A general environmental analysis can be expected to produce all of the following EXCEPT
a) Objective answers.
b) Recognition of environmental changes.
c) Identification of organizational opportunities.
d) Identification of organizational threats.
2. The technological segment of environmental analysis includes
a) Institutions and activities involved with creating new knowledge and translating that knowledge into new outputs.
b) The determination of when machinery will need to be replaced in a given firm.
c) The need for new technology in order for a firm to gain a competitive advantage.
d) Places where a firm’s technology will allow that firm to dominate a given market.
3. New entrants to an industry are more likely when
a) It is difficult to gain access to distribution channels.
b) Economies of scale in the industry are high.
c) Product differentiation in the industry is low.
d) Capital requirements in the industry are high.
4. The threat from substitutes is high when
a) Switching costs are high.
b) The substitute product’s price is lower than the industry product’s price.
c) The quality of the substitute product is lower than the quality of the industry’s product.
d) The substitute product stimulates new process innovations within the industry.
5. All of the following are forces that create high rivalry within an industry EXCEPT
a) Numerous or equally balanced competitors.
b) High fixed costs.
c) Fast industry growth.
d) High storage costs.
6. Which of the following is NOT a factor affecting sustainability of a competitive advantage?
a) The availability of substitutes for a firm’s core competence.
b) The rate at which obsolescence of the core competence occurs because of environmental changes.
c) The imitability of a core competence.
d) The length of time the core competence has existed.
Multiple Choice Questions - Choose the best suitable answer
1. A general environmental analysis can be expected to produce all of the following EXCEPT
a) Objective answers.
b) Recognition of environmental changes.
c) Identification of organizational opportunities.
d) Identification of organizational threats.
2. The technological segment of environmental analysis includes
a) Institutions and activities involved with creating new knowledge and translating that knowledge into new outputs.
b) The determination of when machinery will need to be replaced in a given firm.
c) The need for new technology in order for a firm to gain a competitive advantage.
d) Places where a firm’s technology will allow that firm to dominate a given market.
3. New entrants to an industry are more likely when
a) It is difficult to gain access to distribution channels.
b) Economies of scale in the industry are high.
c) Product differentiation in the industry is low.
d) Capital requirements in the industry are high.
4. The threat from substitutes is high when
a) Switching costs are high.
b) The substitute product’s price is lower than the industry product’s price.
c) The quality of the substitute product is lower than the quality of the industry’s product.
d) The substitute product stimulates new process innovations within the industry.
5. All of the following are forces that create high rivalry within an industry EXCEPT
a) Numerous or equally balanced competitors.
b) High fixed costs.
c) Fast industry growth.
d) High storage costs.
6. Which of the following is NOT a factor affecting sustainability of a competitive advantage?
a) The availability of substitutes for a firm’s core competence.
b) The rate at which obsolescence of the core competence occurs because of environmental changes.
c) The imitability of a core competence.
d) The length of time the core competence has existed.