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CA Inter Strategic Analysis: External Environment — practice questions

Explore 67 free Strategic Analysis: External Environment questions in CA Inter Strategic Management. Open each question or exercise to read its content, reference answers and available explanation.

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Strategic Analysis: External Environment questions and exercises with answers

Showing questions 1–30 of 67.

Who originated the five forces framework of industry competition?Read the answer and worked solution →In which journal was the five forces framework first published in 1979?Read the answer and worked solution →Which of these is one of Porter's five forces?Read the answer and worked solution →Which pair forms the two sources of vertical competition?Read the answer and worked solution →The five forces model is rooted in which branch of economics?Read the answer and worked solution →The five forces model rests on which economic paradigm?Read the answer and worked solution →Which industry structure is the most unattractive for profits?Read the answer and worked solution →Why is airline industry profitability low, in structural terms?Read the answer and worked solution →On what basis do airlines tend to compete?Read the answer and worked solution →If barriers to entry are high, the threat of new entrants is what?Read the answer and worked solution →How many major sources of entry barriers does Porter list?Read the answer and worked solution →Which segment is the most attractive in terms of barriers?Read the answer and worked solution →Spreading fixed costs over more units to cut unit cost is which barrier?Read the answer and worked solution →Which entry barrier is also known as the network effect?Read the answer and worked solution →If rivals hold the few retail and wholesale outlets, entrants face which barrier?Read the answer and worked solution →Patents and legal franchise requirements are which entry barrier?Read the answer and worked solution →Customer loyalty and brand equity are which kind of entry barrier?Read the answer and worked solution →Why are diversifying entrants an especially intense threat?Read the answer and worked solution →A substitute product solves the same economic need using what?Read the answer and worked solution →Which is a substitute, not a direct rival, for Coke?Read the answer and worked solution →More Pepsi advertising would likely do what to total soft drink consumption?Read the answer and worked solution →What are the only two basic mechanisms of competition?Read the answer and worked solution →Buyer power is higher when buyers have what?Read the answer and worked solution →Customer bargaining power is also described as the market of what?Read the answer and worked solution →Which step can a firm take to reduce buyer power?Read the answer and worked solution →A biscuit maker has only one flour seller. Which force is strong?Read the answer and worked solution →A supplier that cuts out the buyer shows what?Read the answer and worked solution →Which is a factor that affects buyer power?Read the answer and worked solution →Who added complementors as a sixth force using game theory?Read the answer and worked solution →What are complementors in industry analysis?Read the answer and worked solution →

Worked practice questions

Who originated the five forces framework of industry competition?

  1. Michael E. Porter
  2. Igor Ansoff
  3. Henry Mintzberg
  4. Peter Drucker
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Correct answer: A. Michael E. Porter

The five forces perspective is associated with Michael E. Porter of Harvard Business School.

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In which journal was the five forces framework first published in 1979?

  1. Sloan Management Review
  2. Harvard Business Review
  3. California Management Review
  4. Strategic Management Journal
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Correct answer: B. Harvard Business Review

Porter first published the framework in Harvard Business Review in 1979.

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Which of these is one of Porter's five forces?

  1. Government policy changes
  2. Technology and innovation
  3. Threat of substitute products
  4. Industry growth trends
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Correct answer: C. Threat of substitute products

The threat of substitutes is a core force, while government, technology and growth rate are treated only as factors affecting the forces.

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