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Michael E. Porter’s competitive strategies model includes an analysis of the competitive forces that determine the attractiveness of an industry. These forces include 1)The stage of the industry life cycle; 2)Threats of, and barriers to, entry 3)Threat of substitutes 4)The threat of suppliers’ bargaining power

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I and III only.

I, II, III, and IV.

II, III, and IV only.

I and II only.

none

In a product’s life cycle, the first symptom of the decline stage is a decline in the

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Product’s prices.

Product’s production cost.

Product’s sales.

Firm’s inventory levels.

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The concurrent action of basic competitive forces as defined by Porter’s model determines the

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Nonvalue-adding activities that should be eliminated.

Entrance barriers that potential players must face to get into the industry.

Long-term profitability and the competitive intensity of the industry.

Rivalry inside the industry.

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Which factor most likely encourages entry into an existing market?

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High product differentiation, principally produced by trademarks.

Low fixed exit costs.

Governmental subsidies for new investors.

Knowledge of the industry, with high investments in development.

none

What operations strategy is most likely to be adopted when the product sold by an organization is a commodity and the market is very large?

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Quality strategy.

Flexibility strategy.

Service strategy.

Cost strategy.

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Which industry factor does not contribute to competitive rivalry?

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Price-cutting, large advertising budgets, and frequent introduction of new products.

High costs of customers switching suppliers.

A firm’s growth must come from winning other firms’ customers.

High fixed costs relative to variable costs.

none

During the growth stage of a product’s life cycle,

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The quality of the products becomes more variable and products are less differentiated.

There is little difference between competing products.

New product models and features are introduced.

The quality of products is poor.

none

Which of the following is a favorable condition for a firm competing in a profitable, expanding industry?

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Compet itors find it difficult to acquire the firm’s customers.

The firm has high costs relative to other firms in the industry.

The firm does not have a strong customer base.

A few suppliers who can restrict supply.

none

Structural considerations affecting the threat of substitutes include all of the following except

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Brand identity.

Relative prices.

Cost of switching to substitutes.

Customers’ inclination to use a substitute.

none

A manufacturing company produces plastic utensils for a particular segment at the lowest possible cost. The company is pursuing a cost

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Leadership strategy.

Containment strategy.

Differentiation strategy.

Focus strategy.