Question 1

Which of the following is an example of a strategic action?

Accepted Answer

A)  a "two movies for the price of one" campaign by Blockbuster Video 
B)  use of product coupons by a local grocer 
C)  entry into the European market by Home Depot 
D)  fare increases by Southwest Airlines 
A)  a "two movies for the price of one" campaign by Blockbuster Video 
B)  use of product coupons by a local grocer 
C)  entry into the European market by Home Depot 
D)  fare increases by Southwest Airlines

Question 2

Without quality, the firm's products

Accepted Answer

A)  can compete effectively on the basis of low price. 
B)  lack credibility among customers. 
C)  must be exported to developing countries, because they are not competitive in the U.S. or developed countries. 
D)  are associated with predatory competition. 
A)  can compete effectively on the basis of low price. 
B)  lack credibility among customers. 
C)  must be exported to developing countries, because they are not competitive in the U.S. or developed countries. 
D)  are associated with predatory competition.

Question 3

Which organization has the highest market dependence?

Accepted Answer

A)  a chain of rapid-service oil change shops 
B)  a manufacturer of chemicals for the international pharmaceutical industry 
C)  a regional department store having 26 locations in the Northwest 
D)  a company that specializes in making replacement tiles for the space shuttle 
A)  a chain of rapid-service oil change shops 
B)  a manufacturer of chemicals for the international pharmaceutical industry 
C)  a regional department store having 26 locations in the Northwest 
D)  a company that specializes in making replacement tiles for the space shuttle

Question 4

The best predictor of a competitor's action is the amount of organizational slack it holds.

Accepted Answer

A) True 
 B)False

Question 5

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

Accepted Answer

A) True 
 B)False

Question 6

A second mover

Accepted Answer

A)  is typically ineffective in its response to the first mover. 
B)  attempts to provide a product with greater customer value than the first mover's product. 
C)  usually incurs higher expenses than the first mover since it must engage in reverse engineering. 
D)  typically has a higher survival rate than first movers which typically take greater risks. 
A)  is typically ineffective in its response to the first mover. 
B)  attempts to provide a product with greater customer value than the first mover's product. 
C)  usually incurs higher expenses than the first mover since it must engage in reverse engineering. 
D)  typically has a higher survival rate than first movers which typically take greater risks.

Question 7

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Accepted Answer

A)  the attack is by a price predator. 
B)  the attack makes the firm's market position less defensible. 
C)  the attack damages the firm's ability to use its capabilities. 
D)  the attack improves the competitor's market position. 
A)  the attack is by a price predator. 
B)  the attack makes the firm's market position less defensible. 
C)  the attack damages the firm's ability to use its capabilities. 
D)  the attack improves the competitor's market position.

Question 8

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main competitor, MyTools, bring out a line of power tools that are smaller sized, lighter weight, and suitable for women and older hobbyists who have weaker hands than the typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTool's new line is a success. Mighty Mike could be classified as a second mover.

Accepted Answer

A) True 
 B)False

Question 9

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

Accepted Answer

A) True 
 B)False

Question 10

The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.

Accepted Answer

A)  more fragmented 
B)  the slower 
C)  the larger 
D)  more tactical 
A)  more fragmented 
B)  the slower 
C)  the larger 
D)  more tactical

Question 11

Define awareness, motivation and ability in reference to competitive behavior.

Accepted Answer

Awareness, motivation and ability are th

Question 12

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if

Accepted Answer

A)  theme parks with alternative cartoon characters were built in large numbers. 
B)  numerous lawsuits against copyright thieves tainted the reputation of the company. 
C)  Disney attempted to move beyond its traditional industry. 
D)  Disney's cartoon characters became widely perceived as old-fashioned and unappealing. 
A)  theme parks with alternative cartoon characters were built in large numbers. 
B)  numerous lawsuits against copyright thieves tainted the reputation of the company. 
C)  Disney attempted to move beyond its traditional industry. 
D)  Disney's cartoon characters became widely perceived as old-fashioned and unappealing.

Question 13

Quality begins at the bottom of the organization where employees must create values for quality that permeate the entire organization.

Accepted Answer

A) True 
 B)False

Question 14

First movers can gain a sustained competitive advantage when they reduce their costs through reverse engineering.

Accepted Answer

A) True 
 B)False

Question 15

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Accepted Answer

Competitors are firms competing in the s

Question 16

Expanding geographic scope in the global economy allows competitive rivalry to ease because of the larger potential customer base.

Accepted Answer

A) True 
 B)False

Question 17

Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share. There is a wide-spread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys. Which of these statements is most likely TRUE?

Accepted Answer

A)  The owners of Bubble-Up are unconcerned about Mega-Toy's entry to the market because of the resource dissimilarity between the firms. 
B)  Bubble-Up's greater organizational slack will allow it to aggressively attack Mega-Toy. 
C)  Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy. 
D)  Competitive rivalry will not increase for Bubble-Up because Mega-Toy is not dependent on the educational toy market. 
A)  The owners of Bubble-Up are unconcerned about Mega-Toy's entry to the market because of the resource dissimilarity between the firms. 
B)  Bubble-Up's greater organizational slack will allow it to aggressively attack Mega-Toy. 
C)  Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy. 
D)  Competitive rivalry will not increase for Bubble-Up because Mega-Toy is not dependent on the educational toy market.

Question 18

Case Scenario 3: The Pet Food Industry.
The pet food industry is comprised primarily of six market segments: dry dog food, dry cat food, moist dog food, moist cat food, canned dog food, and canned cat food. Five large firms dominate the market and each has some market share in all segments, and the leading share in at least one segment. The largest firm participates solely in the pet food industry, while the next four firms are actually subsidiaries of some of the world's largest food and consumer products companies. Top management of these larger firms have made public statements that suggest they each see themselves as future leaders of the pet food industry. All five have acquired comparable skills in terms of manufacturing and marketing. Two small firms also participate in the industry, but these players are relatively weak and compete in just two of the six segments; the pet food industry is the only industry in which they operate. Inputs to the industry are basic commodities and there is no real threat of substitute products except across segments and price points. The industry is growing slowly, barely keeping up with the rate of inflation. Barriers to entry are enormous when pet food companies can gain scale economies in production coupled with aggressive marketing, though even then these coordinated actions may only yield average industry profitability. Any firm can increase its market share only to the extent that another firm's share is decreased.
-(Refer to Case Scenario 3) The pet food industry provides an example of

Accepted Answer

A)  market commonality. 
B)  resource similarity. 
C)  multimarket competition. 
D)  market commonality, resource similarity, and multimarket competition. 
A)  market commonality. 
B)  resource similarity. 
C)  multimarket competition. 
D)  market commonality, resource similarity, and multimarket competition.

Question 19

It is much easier for a competitor to implement strategic actions than tactical actions.

Accepted Answer

A) True 
 B)False

Question 20

What factors contribute to the likelihood of a response to a competitive action?

Accepted Answer

In general, a firm is more likely to res

Which of the following is an example of a strategic action?

Without quality, the firm's products

Which organization has the highest market dependence?

The best predictor of a competitor's action is the amount of organizational slack it holds.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

A second mover

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.

Define awareness, motivation and ability in reference to competitive behavior.

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if

Quality begins at the bottom of the organization where employees must create values for quality that permeate the entire organization.

First movers can gain a sustained competitive advantage when they reduce their costs through reverse engineering.

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Expanding geographic scope in the global economy allows competitive rivalry to ease because of the larger potential customer base.

It is much easier for a competitor to implement strategic actions than tactical actions.

What factors contribute to the likelihood of a response to a competitive action?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 5: Competitive Rivalry and Competitive Dynamics

Which of the following is an example of a strategic action?

Without quality, the firm's products

Which organization has the highest market dependence?

The best predictor of a competitor's action is the amount of organizational slack it holds.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

A second mover

A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT

Under the framework of competitive action and response, "ability" refers to an attacking or responding firm's knowledge of the competitive market characteristics.

The larger the resources of a firm taking a competitive action compared with the resources of the other firms in the industry, the ____ the response will be of these other firms.

Define awareness, motivation and ability in reference to competitive behavior.

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if

Quality begins at the bottom of the organization where employees must create values for quality that permeate the entire organization.

First movers can gain a sustained competitive advantage when they reduce their costs through reverse engineering.

Define competitors, competitive rivalry, competitive behavior, and competitive dynamics.

Expanding geographic scope in the global economy allows competitive rivalry to ease because of the larger potential customer base.

It is much easier for a competitor to implement strategic actions than tactical actions.

What factors contribute to the likelihood of a response to a competitive action?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters