pacmandefense

According to Porter's Five Forces, which of the following should least likely be considered when analyzing a firm's competitive strategy?

A) The bargaining power of suppliers.

B) The bargaining power of buyers.

C) The bargaining power of employees.

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The bargaining power of buyers and bargaining power of suppliers are relevant, but the bargaining power of employees is not one of the Five Forces.

pacmandefense

According to Porter's Five Forces, which of the following should least likely be considered when analyzing a firm's competitive strategy?

A) The bargaining power of suppliers.

B) The bargaining power of buyers.

C) The bargaining power of employees.

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The bargaining power of buyers and bargaining power of suppliers are relevant, but the bargaining power of employees is not one of the Five Forces.

pacmandefense

Which of following is NOT one of Michael Porter’s factors used to determine competition in an industry?

A) Capital structure and financial flexibility.

B) Threat of new entrants into the market.

C) Bargaining power of the firm with its suppliers.

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Porter’s competitive factors are: rivalry among the existing competitors; threat of new entrants; threat of substitute products; bargaining power of buyers; bargaining power of suppliers.

pacmandefense

Daniel Tipton and Jesse Torrez are first-year MBA students at the Haas School of Business. Torrez has an economics background, but Tipton’s background is in music. To help Tipton study one of the main tenets of competition theory, Torrez creates the following question and asks Tipton to identify the statement that is most inconsistent with Porter’s five forces. Which statement should Tipton select?

A) Supplier power is higher when there are only a few suppliers to an industry.

B) Porter's five forces are: rivalry among current competitors, economies of scale, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers.

C) To sustain above average returns on invested capital, firms should strive for economies of scale.

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Porter’s five forces are: rivalry among current competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. Economies of scale are a way to lessen the threat of new entrants, but are not the only way to discourage competition. Companies can also have barriers to entry such as regulation or high start up capital. The other choices are true.

pacmandefense

Which of following is NOT one of Michael Porter’s factors used to determine competition in an industry?

A) Threat of substitute products.

B) Bargaining power of buyers.

C) Economies of scale.

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Porter’s five forces are: rivalry among current competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers. Economies of scale are a way to lessen the threat of new entrants, but are not the only way to discourage competition

pacmandefense

Which of the following factors associated with industry competition affect the performance of a firm within that industry?

A) Industry operating leverage.

B) The industry's stage in its life cycle.

C) Threat of new entrants.

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New entrants represent increased competition and lower profitability.

pacmandefense

Which of the following is NOT one of Porter’s five factors used to determine industry competition?

A) Purchasing power of consumers.

B) Bargaining power of buyers.

C) Rivalry among existing competitors.

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Purchasing power of consumers is not one of the five forces that Porter believes to determine the intensity of competition within an industry. The other two choices are, along with the threat of new entrants and the threat of substitute products.

pacmandefense

Which of the following is NOT one of Porter’s five factors used to determine industry competition?

A) Purchasing power of consumers.

B) Bargaining power of buyers.

C) Rivalry among existing competitors.

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Purchasing power of consumers is not one of the five forces that Porter believes to determine the intensity of competition within an industry. The other two choices are, along with the threat of new entrants and the threat of substitute products.

pacmandefense

Which of the following statements about Porter's five factors is least accurate?

A) Profitability is enhanced by increases in the bargaining power of buyers or suppliers within an industry.

B) Rivalry increases when many firms of relatively equal size compete within an industry.

C) The presence of substitute products limits the profit potential of an industry.

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If buyers bargaining power is increased, firms' profitability will decrease.

pacmandefense

Which of the following statements about Porter's five factors is least accurate?

A) Profitability is enhanced by increases in the bargaining power of buyers or suppliers within an industry.

B) Rivalry increases when many firms of relatively equal size compete within an industry.

C) The presence of substitute products limits the profit potential of an industry.

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If buyers bargaining power is increased, firms' profitability will decrease.