Question 1

Industrial organization economics is a branch of economics that seeks to better understand how firms within an industry may be both centralized and regulated.

Accepted Answer

A) True 
 B)False  False

Question 2

Intel held numerous patents for semiconductors, allowing them to hold a significant share of the world's market. These patents represented a significant barrier to entry for other firms wanting to enter the lucrative semiconductor business.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Accepted Answer

A) ​They become "stuck in the middle" with resulting poor performance. 
B) ​They cannot be successful in both strategies. 
C)  ​Flexible manufacturing enables a firm to produce differentiated products at low costs in many cases. 
D)  ​Mass customization is the inevitable result of combining strategies. 
A) ​They become "stuck in the middle" with resulting poor performance. 
B) ​They cannot be successful in both strategies. 
C)  ​Flexible manufacturing enables a firm to produce differentiated products at low costs in many cases. 
D)  ​Mass customization is the inevitable result of combining strategies. C

Question 4

Which of the follow would tend to reduce the bargaining power of buyers?

Accepted Answer

A) Large number of buyers. 
B) Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers. 
C)  Purchase standard, undifferentiated commodity products from suppliers. 
D)  Willingness and ability of buyers to integrate backward. 
A) Large number of buyers. 
B) Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers. 
C)  Purchase standard, undifferentiated commodity products from suppliers. 
D)  Willingness and ability of buyers to integrate backward.

Question 5

If a low-cost firm has already achieved the maximum efficient scale, it must turn to differentiation to distinguish itself from competitors.

Accepted Answer

A) True 
 B)False

Question 6

The traditional view recommends avoidance of integration.

Accepted Answer

A) True 
 B)False

Question 7

Product proliferation is a potential strategy used to reduce the threat of potential entry.

Accepted Answer

A) True 
 B)False

Question 8

How can high exit costs increase the chance that firms may continue to operate for at least a while when operating at a loss? Explain by giving examples.

Accepted Answer

Specialized equipment and facilities tha

Question 9

Which of the following is NOT one of the forces in Porter's five forces framework?

Accepted Answer

A) ​The intensity of collaboration among rivals. 
B) ​The threat of potential entry. 
C)  ​The bargaining power of buyers. 
D)  ​The threat of substitutes. 
A) ​The intensity of collaboration among rivals. 
B) ​The threat of potential entry. 
C)  ​The bargaining power of buyers. 
D)  ​The threat of substitutes.

Question 10

Which of the following are true concerning cost leadership?

Accepted Answer

A) Targets average customers for mass market - little differentiation. 
B) Key functional areas are manufacturing and materials management. 
C)  Relentless drive to cut costs might compromise value that customers desire. 
D)  All of the above. 
A) Targets average customers for mass market - little differentiation. 
B) Key functional areas are manufacturing and materials management. 
C)  Relentless drive to cut costs might compromise value that customers desire. 
D)  All of the above.

Question 11

In an industry-based view, firms should strive for integration and avoid outsourcing.

Accepted Answer

A) True 
 B)False

Question 12

What are the "Three Generic Strategies," and what lessons can we learn from their use?

Accepted Answer

Porter suggested three generic strategie

Question 13

Related and supporting industries are called _________ and they are an additional force that can impact the competitiveness of an industry.

Accepted Answer

A) Complementors 
B) Supporters 
C)  Customizers 
D)  Flexible manufacturing 
A) Complementors 
B) Supporters 
C)  Customizers 
D)  Flexible manufacturing

Question 14

A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Accepted Answer

A) ​It is defined by a specific geographical area. 
B) ​It is defined by a specific geographical area 
C)  ​It is define by product line. 
D)  ​It is defined by imitation of competitors. 
A) ​It is defined by a specific geographical area. 
B) ​It is defined by a specific geographical area 
C)  ​It is define by product line. 
D)  ​It is defined by imitation of competitors.

Question 15

Mass markets tend to be characterized by low profit margins.

Accepted Answer

A) True 
 B)False

Question 16

Maximizing opportunities and minimizing threats presented by the five forces provides some answers to which of the following questions?

Accepted Answer

A) ​Why do firms differ? 
B) ​How do firms behave? 
C)  ​What determines the scope of the firm? 
D)  ​What determines the international success and failure of firms? 
A) ​Why do firms differ? 
B) ​How do firms behave? 
C)  ​What determines the scope of the firm? 
D)  ​What determines the international success and failure of firms?

Question 17

Recent success of firms in unattractive industries suggests that firm-specific resources and capabilities are not needed to determine firm performance.

Accepted Answer

A) True 
 B)False

Question 18

Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers, and entries and exits are relatively easy.

Accepted Answer

A) ​Michael Porter 
B) ​John Maynard Keynes 
C)  ​Adam Smith 
D)  ​Richard Branson 
A) ​Michael Porter 
B) ​John Maynard Keynes 
C)  ​Adam Smith 
D)  ​Richard Branson

Question 19

High exit costs from an industry tend to reduce the intensity of rivalry.

Accepted Answer

A) True 
 B)False

Question 20

The text discusses how the five forces framework continues to influence strategic practice and research. According to the text, what are the lessons offered by the five forces framework?

Accepted Answer

​Answers should mention the three points

Industrial organization economics is a branch of economics that seeks to better understand how firms within an industry may be both centralized and regulated.

Intel held numerous patents for semiconductors, allowing them to hold a significant share of the world's market. These patents represented a significant barrier to entry for other firms wanting to enter the lucrative semiconductor business.

Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Which of the follow would tend to reduce the bargaining power of buyers?

If a low-cost firm has already achieved the maximum efficient scale, it must turn to differentiation to distinguish itself from competitors.

The traditional view recommends avoidance of integration.

Product proliferation is a potential strategy used to reduce the threat of potential entry.

How can high exit costs increase the chance that firms may continue to operate for at least a while when operating at a loss? Explain by giving examples.

Which of the following is NOT one of the forces in Porter's five forces framework?

Which of the following are true concerning cost leadership?

In an industry-based view, firms should strive for integration and avoid outsourcing.

What are the "Three Generic Strategies," and what lessons can we learn from their use?

Related and supporting industries are called _________ and they are an additional force that can impact the competitiveness of an industry.

A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Mass markets tend to be characterized by low profit margins.

Maximizing opportunities and minimizing threats presented by the five forces provides some answers to which of the following questions?

Recent success of firms in unattractive industries suggests that firm-specific resources and capabilities are not needed to determine firm performance.

Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers, and entries and exits are relatively easy.

High exit costs from an industry tend to reduce the intensity of rivalry.

The text discusses how the five forces framework continues to influence strategic practice and research. According to the text, what are the lessons offered by the five forces framework?

Strategizing Around the Globe

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 2: Managing Industry Competition

Industrial organization economics is a branch of economics that seeks to better understand how firms within an industry may be both centralized and regulated.

Intel held numerous patents for semiconductors, allowing them to hold a significant share of the world's market. These patents represented a significant barrier to entry for other firms wanting to enter the lucrative semiconductor business.

Which of the following is true about firms that pursue both strategies of cost leadership and differentiation?

Which of the follow would tend to reduce the bargaining power of buyers?

If a low-cost firm has already achieved the maximum efficient scale, it must turn to differentiation to distinguish itself from competitors.

The traditional view recommends avoidance of integration.

Product proliferation is a potential strategy used to reduce the threat of potential entry.

How can high exit costs increase the chance that firms may continue to operate for at least a while when operating at a loss? Explain by giving examples.

Which of the following is NOT one of the forces in Porter's five forces framework?

Which of the following are true concerning cost leadership?

In an industry-based view, firms should strive for integration and avoid outsourcing.

What are the "Three Generic Strategies," and what lessons can we learn from their use?

Related and supporting industries are called _________ and they are an additional force that can impact the competitiveness of an industry.

A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Mass markets tend to be characterized by low profit margins.

Maximizing opportunities and minimizing threats presented by the five forces provides some answers to which of the following questions?

Recent success of firms in unattractive industries suggests that firm-specific resources and capabilities are not needed to determine firm performance.

Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers, and entries and exits are relatively easy.

High exit costs from an industry tend to reduce the intensity of rivalry.

The text discusses how the five forces framework continues to influence strategic practice and research. According to the text, what are the lessons offered by the five forces framework?

Strategizing Around the Globe

Leveraging Resources and Capabilities

Emphasizing Institutions, Cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Entering Foreign Markets

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, Acquiring, and Restructuring

Strategizing, Structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters