93. The aircraft industry has long been dominated by two aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry? a. It will make the airline industry more attractive because of decreased supplier power. b. It will make the airline industry less attractive because of decreased supplier power. c. It will make the airline industry more attractive because of increased supplier power. d. It will make the airline industry more attractive because of a new entrant. a ANSWER: 1 POINTS: Hard DIFFICULTY: 56 REFERENCES: STMA.HITT.13.Comprehension - Comprehension LEARNING OBJECTIVES: AACSB: Business Knowledge & Analytical Skills | Management: NOTES: Environmental Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension 94. Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company? a. the sociocultural environment b. the demographics of the environment c. the economy of the area d. the power of the customers/buyers d ANSWER: 1 POINTS: Hard DIFFICULTY: 56–57 REFERENCES: STMA.HITT.13. - 1.4 LEARNING OBJECTIVES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental NOTES: Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Application 95. Buyers are powerful when a. there is a threat of forward integration. b. they purchase a small proportion of the supplier's output. c. switching costs are low. d. the buyers' industry is fragmented. c ANSWER: 1 POINTS: Medium DIFFICULTY: 56 REFERENCES: STMA.HITT.13.Comprehension - Comprehension LEARNING OBJECTIVES: AACSB: Business Knowledge & Analytical Skills | Management: NOTES: Environmental Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension
93. The aircraft industry has long been dominated by two aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry? a. It will make the airline industry more attractive because of decreased supplier power. b. It will make the airline industry less attractive because of decreased supplier power. c. It will make the airline industry more attractive because of increased supplier power. d. It will make the airline industry more attractive because of a new entrant. ANSWER: a POINTS: 1 DIFFICULTY: Hard REFERENCES: 56 LEARNING OBJECTIVES: STMA.HITT.13.Comprehension - Comprehension NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension 94. Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fast-growing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company? a. the sociocultural environment b. the demographics of the environment c. the economy of the area d. the power of the customers/buyers ANSWER: d POINTS: 1 DIFFICULTY: Hard REFERENCES: 56–57 LEARNING OBJECTIVES: STMA.HITT.13. - 1.4 NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Application 95. Buyers are powerful when a. there is a threat of forward integration. b. they purchase a small proportion of the supplier's output. c. switching costs are low. d. the buyers' industry is fragmented. ANSWER: c POINTS: 1 DIFFICULTY: Medium REFERENCES: 56 LEARNING OBJECTIVES: STMA.HITT.13.Comprehension - Comprehension NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Environmental Influence | Dierdorff & Rubin: Managing the task environment | Bloom: Comprehension