Quiz 3 Chapter 2 & Case 16 Movie
1. Major airlines change hundreds of fares daily in response to competitor's tactics, which is an
example of using:
switching costs
corporate espionage
competitive intelligence
scenario analysis
2. PPG emphasizes ________ in its strategic planning; it develops four alternative futures based
on two key variables, the cost of energy and the extent of growth opportunities in emerging
markets.
SWOT analysis
strategic groups
scenario analysis
Porter's five-forces model
3. Typically, a firm has a substantial ability to control trends in its general environment if it is
able to correctly predict them.
False
4. __________ is/are an important element of the political/legal segment of the general
environment. (Refer To: Exhibit 2.3)
Deregulation of utility and other industries
Tort reform
Americans with Disabilities Ace (ADA)
All of these
5. Currency exchange rates are an example of which segment of the general environment?
demographic
political/legal
economic
global
6. Which of the following is NOT a reason that a manager should be familiar with Porter's fiveforces model?
It clarifies whether your firm should remain in or exit an industry
It helps justify changes in resource allocation
It identifies which demographic trends will be most important in the short-term
It suggests methods for discouraging new rivals from competing against your firm
7. When is the bargaining power of the buyer greater than that of the supplier?
when cost savings from the supplier's product are minimal
when the volume of purchase is low
when the buyer's profit margin is low
when the threat of backward integration by buyers is low
8. If able to maintain a credible threat of forward integration, the power of suppliers will be
enhanced.
True
9. The more attractive the price/performance ratio of substitute products, the more tightly it
constraints an industry's ability to charge high prices.
True
10. What trends in the general external environment might make the movie theater business a
“study in contradictions”?
Many people now have home theaters with large-screen TVs and Hi Def sound systems.
Movies are expensive that's why when economy declines, people don't go to the movies.
The age group of core movie goers is not growing
Technology such as IMAX, 3D improves movie theater experience but also enable
distribution via Internet and Netflix-type of services
11. There are 3 primary revenue sources for movie exhibitors: concessions, advertising, and boxoffice receipts. Which typically generates (1) the most revenue and (2) the most profit?
Advertising, Concessions
Advertising, Box-office
Box-office, Advertising
Box-office, Concessions
Concessions, Advertising