McMaster University

COMM 4AA3

Chapter 13:
3) ________ has/have been classified in many ways, but what is common is to set the
business within its external environment.
A) Strategies
B) Planning
C) Competitors
D) Bargaining power of input suppliers
E) Cost Leadership
Answer: A
Diff: 1 Type: MC
Skill: Knowledge
Objective: LO 13-1
4) Which of the following is not a force that shapes an organization's competitive
environment?
A) competitors
B) equivalent products
C) bargaining power of customers
D) government regulation
E) potential entrants into the market
Answer: D
Diff: 1 Type: MC
Skill: Knowledge
Objective: LO 13-1
5) Which of the following is a force that shapes an organization's profit potential?
A) Investors
B) Potential entrants into the market
C) Lenders
D) Research and development
E) Bankers
Answer: B
Diff: 2 Type: MC
Skill: Knowledge
Objective: LO 13-1
6) ________ is an organization's ability to offer products or services that are
perceived by its customers as being superior and unique relative to those of its
competitors.
A) Strategy
B) Product differentiation
C) Cost leadership
D) The balanced scorecard
E) Cost differentiation
Answer: B
Diff: 1 Type: MC
Skill: Comprehension
Objective: LO 13-1
7) ________ is an organization's ability to achieve low costs relative to competitors
through productivity and efficiency improvements, elimination of waste, and tight
cost control.
A) Strategy
B) Product differentiation