Question 1

​Porter's five forces framework:

Accepted Answer

A)  ​Identifies relevant variables but fails to ask the needed questions. 
B)  ​Identifies only questions to ask. 
C)  ​Identifies both relevant variables and questions to ask. 
D)  ​Eliminates the need for other frameworks to add insight about firm performance. 
A)  ​Identifies relevant variables but fails to ask the needed questions. 
B)  ​Identifies only questions to ask. 
C)  ​Identifies both relevant variables and questions to ask. 
D)  ​Eliminates the need for other frameworks to add insight about firm performance. C

Question 2

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  False

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

​Describe the advantages and disadvantages of pursuing a cost leadership strategy?

Accepted Answer

​Advantages include offering the same va

Question 6

The industry-based view recommends:

Accepted Answer

A)  Backward integration as a way to defend against the power of suppliers. 
B)  Backward integration as a way to defend against the power of buyers. 
C)  Forward integration as a way to defend against the power of suppliers. 
D)  Backward or forward integration as a way to defend against the power of suppliers and buyers. 
A)  Backward integration as a way to defend against the power of suppliers. 
B)  Backward integration as a way to defend against the power of buyers. 
C)  Forward integration as a way to defend against the power of suppliers. 
D)  Backward or forward integration as a way to defend against the power of suppliers and buyers.

Question 7

​When demand is uncertain,integration increases strategic flexibility.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

​Describe a situation in which a focus strategy would be most effective.

Accepted Answer

​Answers will vary greatly but should ma

Question 12

​A complementor that sells products that add value to a focal industry's products:

Accepted Answer

A)  ​Does not affect the competitiveness of an industry. 
B)  ​Is almost always high-tech in nature. 
C)  ​Can act as a sixth force in the five forces framework. 
D)  ​None of the above. 
A)  ​Does not affect the competitiveness of an industry. 
B)  ​Is almost always high-tech in nature. 
C)  ​Can act as a sixth force in the five forces framework. 
D)  ​None of the above.

Question 13

An intense focus on above-average firm performance is shared by IO economists and those involved in the strategy of firms and yet their perspective is opposite of each other.Explain.

Accepted Answer

IO economists and policymakers are conce

Question 14

​Which of the following statements about strategic groups is most accurate?

Accepted Answer

A)  ​Firms within an industry can easily move from one strategic group to another. 
B)  ​Members of strategic groups are often subject to mobility barriers. 
C)  ​An abundance of objective data within industries prevents classification of strategic groups. 
D)  ​Strategic groups greatly complicate the analysis of a given industry. 
A)  ​Firms within an industry can easily move from one strategic group to another. 
B)  ​Members of strategic groups are often subject to mobility barriers. 
C)  ​An abundance of objective data within industries prevents classification of strategic groups. 
D)  ​Strategic groups greatly complicate the analysis of a given industry.

Question 15

​By finding ways to reduce the per-unit cost of its products,a firm enjoys non-scale-based advantages that provide greater profitability.

Accepted Answer

A) True 
 B)False

Question 16

​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

Question 17

​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 18

​Strategists using the industry-based view need to:

Accepted Answer

A)  ​See it as a powerful strategic tool. 
B)  ​Arrive at an uncritical acceptance of the traditional view. 
C)  ​Identify their firm within an industry in a boundary-less way. 
D)  ​Avoid strategic alliances. 
A)  ​See it as a powerful strategic tool. 
B)  ​Arrive at an uncritical acceptance of the traditional view. 
C)  ​Identify their firm within an industry in a boundary-less way. 
D)  ​Avoid strategic alliances.

Question 19

​In order for firms within an industry to be more likely to enjoy higher profitability,product differentiation should be high.

Accepted Answer

A) True 
 B)False

Question 20

​Every firm within a broadly defined industry:

Accepted Answer

A)  ​Is uniformly influenced by advances in technology. 
B)  ​Succeeds best by following a strategy that combines cost leadership and differentiation. 
C)  ​Competes against each other. 
D)  ​Can usually be placed in one of several strategic groups within that industry. 
A)  ​Is uniformly influenced by advances in technology. 
B)  ​Succeeds best by following a strategy that combines cost leadership and differentiation. 
C)  ​Competes against each other. 
D)  ​Can usually be placed in one of several strategic groups within that industry.

Porter's five forces framework:

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

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

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

Describe the advantages and disadvantages of pursuing a cost leadership strategy?

The industry-based view recommends:

When demand is uncertain,integration increases strategic flexibility.

Which of the following are true concerning cost leadership?

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

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.

Describe a situation in which a focus strategy would be most effective.

A complementor that sells products that add value to a focal industry's products:

An intense focus on above-average firm performance is shared by IO economists and those involved in the strategy of firms and yet their perspective is opposite of each other.Explain.

Which of the following statements about strategic groups is most accurate?

By finding ways to reduce the per-unit cost of its products,a firm enjoys non-scale-based advantages that provide greater profitability.

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

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

Strategists using the industry-based view need to:

In order for firms within an industry to be more likely to enjoy higher profitability,product differentiation should be high.

Every firm within a broadly defined industry:

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

​Porter's five forces framework:

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

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

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

​Describe the advantages and disadvantages of pursuing a cost leadership strategy?

The industry-based view recommends:

​When demand is uncertain,integration increases strategic flexibility.

Which of the following are true concerning cost leadership?

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

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.

​Describe a situation in which a focus strategy would be most effective.

​A complementor that sells products that add value to a focal industry's products:

An intense focus on above-average firm performance is shared by IO economists and those involved in the strategy of firms and yet their perspective is opposite of each other.Explain.

​Which of the following statements about strategic groups is most accurate?

​By finding ways to reduce the per-unit cost of its products,a firm enjoys non-scale-based advantages that provide greater profitability.

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

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

​Strategists using the industry-based view need to:

​In order for firms within an industry to be more likely to enjoy higher profitability,product differentiation should be high.

​Every firm within a broadly defined industry:

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

Porter's five forces framework:

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

Describe the advantages and disadvantages of pursuing a cost leadership strategy?

When demand is uncertain,integration increases strategic flexibility.

Describe a situation in which a focus strategy would be most effective.

A complementor that sells products that add value to a focal industry's products:

Which of the following statements about strategic groups is most accurate?

By finding ways to reduce the per-unit cost of its products,a firm enjoys non-scale-based advantages that provide greater profitability.

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

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

Strategists using the industry-based view need to:

In order for firms within an industry to be more likely to enjoy higher profitability,product differentiation should be high.

Every firm within a broadly defined industry: