Question

1. Which of the following statements is NOT true about a fragmented? industry?

A. Companies use the experience curve to reduce costs faster than the competition.

B. As new competitors enter the? industry, prices drop as a result of competition.

C. Companies integrate to reduce costs even further sometimes by acquiring their suppliers and distributors.

D. Companies use economies of scale to reduce costs faster than the competition.

E. Competitors have no reason to differentiate their products from one? another's in order to avoid the fierce price competition.

2. Which of the following statements is NOT true about a consolidated? industry?

A. Price becomes a dominant concern

B. Focus is on positioning not on differentiation.

C. Profit margins declin

D. Dominated by a few large firms

E. As buyers become more sophisticated over? time, purchasing decisions are based on better information.

3. Research indicates that there is a strong association between? ________________________.

A. corporate performance and innovation.

B. innovation and product intelligence.

C. product performance and competitive intelligence activities.

D. corporate performance and competitive intelligence activities.

E. corporate growth and product performance.

4. To answer questions about? competitors, competitive intelligence professionals utilize a number of analytical techniques. Of the? following, which is NOT one of the techniques used to analyze? competitors?

A. Treacy and? Wiersema's value disciplines.

B. Strategic group analysis

C. Industry forces analysis

D. STEEP analysis

E. Gilad's blind spot analysis

5. Many strategic plans are simply based on projections of the current situation.? _________________________ is/are the most frequent cause of forecasting errors.

A. Inexperienced executive management

B. Faulty underlying assumptions

C. Poor strategic planning

D. Use of current situation data

E. Faulty use of analytical software

6. All of the following statements are true regarding the key performance indictors? (KPI) EXCEPT? ____________.

A. KPI are determined by the technological characteristics within that industry.

B. KPI are crucial in determining a? company's ability to succeed within that industry

C. KPI are determined by the economic characteristics within that industry.

D. KPI are indicators that are constant from industry to industry

E. KPI can be summarized using an industry matrix.

7. Strategic Audit examines all of the following aspects EXCEPT? ________________.

A. using the EFAS Table to analyze how well a particular? company's management is responding to specific factors in light of the perceived importance of these factors to the company

B. using the EFAS Table to organize the external factors into the generally accepted categories of opportunities and threats

C. summarizing external environmental factors.

D. in Column 4 of the EFAS? Table, the total weighted score for an average firm is always a 3.0

E. using the EFAS Table is ideal because after managers complete the EFAS? Table, they need to scan the societal and task environments and identify a number of likely internal factors for their particular corporation

Answer 1

1. Option E, as in Fragmented industry Companies try to differenitate their product to avoid price competition

2.option B, In consolidated industry ,few large firms focus on product differentiation

3 Option D. There is srtong relationship betweencoreporate performance and competive intelligence

4.Option D as STEEP analysis look into envirnmental, Technical etc analysis not competiom

5. Option B Faulty underlying assumptions as it is the base of forecast and if base in wrong whole forcast will be wrong

6 option D

7. Option E as EFAS analysis is done after scanning of social and task envirnment