1. Which of the following statements about a company’s strategy is false?

1. a company’s strategy is driven partly by management analysis and choice and partly by the necessity of adapting and learning by doing

2. company’s strategy is more likely to produce a durable competitive over rivals if it is focused on building competitively valuable expertise and capabilities that are difficult to match

3. a company’s strategy is based partly on proactive actions by management to improve market position and financial performance and partly on reactions by management to unanticipated market developments and moves by rivals

4. a company’s strategy is chosen within a narrow range of strategic options since all industry competitors face the same market conditions and competitive pressures and, therefore, have to cope with them using similar strategies

5. a company’s strategy is a work in progress, not a one-time management exercise.

2. Which one of the following most strengthens the rivalry among currently competing sellers?

1. buyer demand is growing slowly and buyers have low switching costs

2. products are weakly differentiated and customer loyalty is high

3. products are strongly differentiated and buyers have high switching costs

4. there are so many sellers that the actions of any one seller to attract more customers have little direct impact on rivals

3. Which one of the following factors is not a relevant consideration in judging whether the bargaining power of buyers is relatively strong or weak?

1. whether buyers have high or low switching costs

2. whether the threat of backward integration by buyers is great or small

3. whether buyers purchase products in large quantities or small quantities

4. whether the threat of forward integration by buyers is great or small