1

This are all true about the Industry Structure, EXCEPT:

Group of answer choices

It's level of concentration is medium

The barriers of entry are low.

It is currently in the mature stage.

It presents an average level of competition with Dunkin Brands and Starbucks accounting for more than 60% of the market share.

2

The is true about profitability drivers and industry demand determinants:

Group of answer choices

The economic recession had no impact.

World pricing of coffee has little impact

Per capita tea consumption is a main driver

Attitudes toward health is one key factor.

3

All of these have a positive effect on market revenue, EXCEPT:

Group of answer choices

Per capita increase of coffee consumption.

Sharp increase in the world price of coffee.

Increase of disposable income.

Sharp decline in the domestic price of coffee.

4

Find the perfect match.

Group of answer choices

Threat of New Entrants

[ Choose ] Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops. Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with. Refers to the barriers of entry (ease of starting a competing coffee shop). Refers to the level of advantage buyers enjoy when negotiating with the suppliers. Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Threat of Substitutes

[ Choose ] Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops. Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with. Refers to the barriers of entry (ease of starting a competing coffee shop). Refers to the level of advantage buyers enjoy when negotiating with the suppliers. Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Bargaining Power of Buyers

[ Choose ] Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops. Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with. Refers to the barriers of entry (ease of starting a competing coffee shop). Refers to the level of advantage buyers enjoy when negotiating with the suppliers. Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Bargaining Power of Suppliers

[ Choose ] Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops. Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with. Refers to the barriers of entry (ease of starting a competing coffee shop). Refers to the level of advantage buyers enjoy when negotiating with the suppliers. Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops.

Intensity of Competitive Rivalry

[ Choose ] Refers to the level of competition in the industry, which is also influenced by the cost consumers incurr for switching coffee shops. Refers to the number of alternatives consumers could reasonable substitute a trip to a coffee shop with. Refers to the barriers of entry (ease of starting a competing coffee shop). Refers to the level of advantage buyers enjoy when negotiating with the suppliers. Refers to the level of advantage suppliers enjoy when negotiating with the coffee shops. 5

Michael Porter's Five Force Analysis includes the study of:

Group of answer choices

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Competitors, and, the Intensity of Competitive Rivalry

Threat of New Suppliers, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of New Entrants, and, the Intensity of Competitive Collaboration.

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Suppliers, and, the Intensity of Competitive Rivalry.

Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Suppliers, and, the Intensity of Competitive Collaboration.

6

If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Threat of New Entrants would be felt:

Group of answer choices

higher - more damaging

impossible to quantify, because it would depend on the sales numbers

lower - less damaging

the same - no different

7

If Porter's Analysis was done on a tiny Santa Monica base 1-location only coffee shop business, the impact of the Threat of Substitutes would be felt:

Group of answer choices

impossible to measure, because the menu options are different

lower - because the smaller coffee enjoys a closer relationship with its customers

higher - because it offers less menu options than a large coffee chain such as Starbucks

the same - because it is not related to a company's size