hi there! this is Sarah (
[email protected]) and ive got an exam. Hope anyone can correct these sample-test questions before wednesday night (just 6 questions). please i realy need some help. i answered most of them but im not realy sure... thank you very, much for your help:
EXAM (there is only one true statement per question: a, b, c or d)
Consider the following statements regarding the production sector of the beer...
Question 1. (switching costs = sunk costs)
a) the switching costs (due to the bargaining power of suppliers) only occurs with barrel providers. (I dont know if this one is true)
b) the switching costs are found in all formats of consumption. (this one is false because question c) is false)
c) the switching costs are only found in beer bottle or can. (false cause anyone can provide you cans and bottles)
d) the switching costs are not found in any format of consumption. (if question a) is false this one is true)
Question 2.
a) providers of hops are an important power in the beer sector because there are many alternative substances that can be used instead. (false cause if there were alternatives, hops providers would not be so important)
b) suppliers of hops are an important power in the sector because the evolution of the beer sector depends on hops. (maybe true??)
c) providers of hops are not an important power in the sector. (false)
d) suppliers of hops are an important power for the sector because they are highly concentrated. (true?? this means that there are few and big providers)
Question 3. (forward vertical integration = i buy the business of my client[if i'm a beer company i could buy a logistics company]) (backward vertical integration = i buy the business of my provider).
a) forward vertical integration of the beer sector occurs more often than backward vertical integration of customers.
b) backward vertical integration of customers occurs more often than forward vertical integration of the beer sector.
c) the backward vertical integration occurs with all types of customers. (dont thinks so)
d) the forward vertical integration allows the beer industry to reduce significantly the bargaining power of customers.
Question 4.
a) the concentration of suppliers makes it difficult for competitors to enter the higher value added segments. (false)
b) The dispersion of suppliers makes it difficult for competitors in lower value added segments. (false)
c) the dispersion of suppliers is balanced by the reaction with the client. (false)
d) the concentration of suppliers makes it difficult for competitors in lower value added segments. (true)
Question 5. (continous growth = your business grows little by little). (discontinous growth = you need to invest a lot of $ to get bigger cause to get bigger you need to buy or bild a new factory, new machines...)
a) the requirement for discontinuous growth in production protects competitors. (i think its true. since i need a lot of $ to grow, there are less chances for me to grow and competitors feel safer)
b) the requirement for discontinuous growth in production does not protect competitors. (false)
c) the discontinuous growth in production is not required , but, if it were required, it would protect competitors. (false)
d) the discontinuous growth in production is not required , but, if it were required, it would not protect competitors. (false)
Question 6.
a) the power of customers (the bargaining power of customers) is high because of the existence of the providers' switching costs. (i think it's false)
b) the power of customers is very high because the supermarkets are the main client. (i tried looking for statistics in internet... but no luck... where do people most buy beer? bars, supermarkets...)
c) the power of customers is low, although the supermarkets are the main customer, the value placed on the mark.
d) the power of customers is relatively low due to the customers' fragmentation. (maybe true)
REMEMBER: ONLY ONE TRUE STATEMENT IN EACH QUESTION. THANK YOU VERY, VERY, VERY MUCH FOR YOUR HELP!!! BEST REGARDS, SARAH (
[email protected]) Send me an email if you were able to answer then (if you dont mind, i need to know how you got the answers: references, statistics... because i need to be sure they are accurate). Thank you so much!!!!