1. Which of the following is one of the primary competitive forces in Porter's model for industry analysis?

a. Level of demand for products

b. threat of differentiation

c. bargaining power of suppliers

d. intellectual property

e. buyer purchasing power

2. The strategic-management process requires

a. an exclusively external focus

b. an integration of internal and external analyses

c. an exclusive focus on internal (VRIO) analysis

d. bottoms-up analysis

3. The lower the barriers to entry in an industry, the more attractive that industry is

a. True

b. False

4. It is possible to attempt to excel in multiple forms of competitive advantage. The most likely outcome of this approach is:

a. to be "stuck in the middle", with lower profits

b. to combine differentiation and cost leadership with few conflicts

c. to have a distinctive cost-leadership advantage

d. to have a distinctive differentiation advantage

5. Strategy is concerned with how a firm's internal strengths and weaknesses fit with its external opportunities and threats

a. True

b. False