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Multiple Choice 1) The competitive strategy followed by an organization is derived from its ________. A) function B) structure C) profits D) goals 2) The competitive strategy of an organization determines its ________. A) industry rivals B) short-term goals C) value chains D) structure 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 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 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 6) Porter’s five competitive forces can be grouped into two types: forces related to ________ and forces related to supply chain bargaining power. A) pricing B) labor C) competition D) consumers 7) Porter’s model includes the bargaining power of which of the following groups as one of the five factors? A) investors B) competitors C) employees D) customers 8) In Porter’s five factor model, each of the three competitive forces concerns the danger of ________. A) suppliers favoring rival companies B) customers taking their business elsewhere C) investors refusing to back up new projects D) employees not working towards organizational goals 9) Two strength factors that relate to all three competitive forces are ________ and customer loyalty. A) market forces B) nature of products C) customer satisfaction D) switching costs 10) In which of the following cases is the strength of competitive forces low? A) when switching costs are high B) when rival products are priced low C) when customer loyalty is low D

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