Question 1

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.

Accepted Answer

A) True 
 B)False

Question 2

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 3

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they

Accepted Answer

A)  are more likely to have organizational slack. 
B)  can launch competitive actions more quickly. 
C)  have more loyal and diverse workforces. 
D)  can wait for larger firms to make mistakes in introducing innovative products. 
A)  are more likely to have organizational slack. 
B)  can launch competitive actions more quickly. 
C)  have more loyal and diverse workforces. 
D)  can wait for larger firms to make mistakes in introducing innovative products.

Question 4

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

Accepted Answer

A)  fast-cycle markets. 
B)  standard-cycle markets. 
C)  incremental-cycle markets. 
D)  slow-cycle markets. 
A)  fast-cycle markets. 
B)  standard-cycle markets. 
C)  incremental-cycle markets. 
D)  slow-cycle markets.

Question 5

Walt Disney's focus on ____ is typical of a slow-cycle market.

Accepted Answer

A)  innovation 
B)  total quality 
C)  proprietary rights 
D)  economies of scale 
A)  innovation 
B)  total quality 
C)  proprietary rights 
D)  economies of scale

Question 6

Large firms are likely to initiate more competitive actions along with more strategic actions during a given period.

Accepted Answer

A) True 
 B)False

Question 7

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

Accepted Answer

A)  the high exit barriers in the industry. 
B)  knowing what had to be done and having the motivation to do it which came from the overlapping market commonality and resource similarity between global competitors. 
C)  low market commonality which prevented retaliation from competitors in key markets. 
D)  reduced rivalry in the segment of the industry producing fuel efficient cars. 
A)  the high exit barriers in the industry. 
B)  knowing what had to be done and having the motivation to do it which came from the overlapping market commonality and resource similarity between global competitors. 
C)  low market commonality which prevented retaliation from competitors in key markets. 
D)  reduced rivalry in the segment of the industry producing fuel efficient cars.

Question 8

Intensified rivalry within an industry results in decreased average profitability for the firms within it.

Accepted Answer

A) True 
 B)False

Question 9

Competitors are more likely to respond to strategic or tactical actions when they are taken by a market leader.

Accepted Answer

A) True 
 B)False

Question 10

____ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

Accepted Answer

A)  Motivation 
B)  Awareness 
C)  Responsiveness 
D)  Ability 
A)  Motivation 
B)  Awareness 
C)  Responsiveness 
D)  Ability

Question 11

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

Accepted Answer

A) True 
 B)False

Question 12

Case Scenario 1: Romulac, Inc.
Romulac Inc. (RI), a subsidiary of a large successful manufacturing conglomerate, supplies a key component in the assembly of residential cooling systems (air conditioning units, etc.). There has been tremendous consolidation in RI's industry, to the point where only five suppliers of this particular component account for nearly 90% of U.S. industry sales. Paralleling this trend, its customers - comprised of makers of branded residential air conditioning units like Carrier and Trane - have seen similar levels of consolidation in their own industry. Half of these firms produce all their components in-house, while the balance purchases them from specialized component manufacturers like RI. RI's business is extremely capital intensive, and their 40% share of the market allows them to also be the most profitable domestic player. Strong competitors exist in Europe and Asia. Although like RI, these foreign players' strongholds are their home regions, with negligible presence outside of the region. Some of the larger Asian manufacturers have signaled an interest in more aggressively pursuing the lucrative U.S. market. RI is presently considering a $400 million dollar investment in a new plant, which will create a component that is much quieter, more efficient, and is likely to satisfy future regulatory standards. While the core technology for the new component is very old, RI's engineering and design skills have allowed them to retain their low cost-advantage, even though the component will represent a significant improvement over products currently provided by its competition.
-(Refer to Case Scenario 1) Assume that you are a consultant and have been asked by the management at Romulac Inc. whether it should be a first mover with the new component technology. Romulac is leaning towards being a first mover because the general evidence is that first movers have greater survival rates than later market entrants. Is this true or false?

Accepted Answer

A) True 
 B)False

Question 13

Because Coca-Cola, Nestle, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant companies are engaged in battles for market share using incremental changes in their products and seeking loyalty to brand names, it is most likely that the bottled water market is a(an)

Accepted Answer

A)  slow-cycle market 
B)  standard cycle market. 
C)  fast-cycle market. 
D)  intermediate-cycle market. 
A)  slow-cycle market 
B)  standard cycle market. 
C)  fast-cycle market. 
D)  intermediate-cycle market.

Question 14

The satellite dish at Faye's weekend home has malfunctioned. When she calls to have the dish repaired, the service representative tells her that the dish is obsolete and that parts for it are no longer made. Faye must replace the old dish with a new dish. This is an example of lack of firm loyalty to a product in a fast-cycle market.

Accepted Answer

A) True 
 B)False

Question 15

Competitive rivalry is the set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is FALSE?

Accepted Answer

A)  First movers tend to take higher risks than second and later movers. 
B)  First movers tend to have significantly higher revenues than second movers. 
C)  First movers have lower survival rates than second and late movers. 
D)  First movers tend to have more organizational slack than later movers. 
A)  First movers tend to take higher risks than second and later movers. 
B)  First movers tend to have significantly higher revenues than second movers. 
C)  First movers have lower survival rates than second and late movers. 
D)  First movers tend to have more organizational slack than later movers.

Question 17

Quality is

Accepted Answer

A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage. 
A)  meeting or exceeding customer expectations in the goods and/or services offered. 
B)  only a major factor in the production of luxury goods, such as BMW cars. 
C)  an assured way to gain competitive advantage. 
D)  a viable trade-off with product cost in gaining a competitive advantage.

Question 18

Competitive rivalry is the contest to be the first mover in an international market.

Accepted Answer

A) True 
 B)False

Question 19

In the The Chapter 5 Strategic Focus, rivals (Amazon, Oracle, HP and Dell) in the cloud computing market have competitive advantages that are __________________.

Accepted Answer

A)  shielded from imitation 
B)  partially shielded from imitation 
C)  sustainable for long periods of time 
D)  not shielded from imitation 
A)  shielded from imitation 
B)  partially shielded from imitation 
C)  sustainable for long periods of time 
D)  not shielded from imitation

Question 20

A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.

Accepted Answer

A)  slow-cycle 
B)  medium-cycle 
C)  standard-cycle 
D)  fast-cycle 
A)  slow-cycle 
B)  medium-cycle 
C)  standard-cycle 
D)  fast-cycle

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

Walt Disney's focus on ____ is typical of a slow-cycle market.

Large firms are likely to initiate more competitive actions along with more strategic actions during a given period.

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

Intensified rivalry within an industry results in decreased average profitability for the firms within it.

Competitors are more likely to respond to strategic or tactical actions when they are taken by a market leader.

____ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

Competitive rivalry is the set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position.

Which of the following statements is FALSE?

Quality is

Competitive rivalry is the contest to be the first mover in an international market.

In the The Chapter 5 Strategic Focus, rivals (Amazon, Oracle, HP and Dell) in the cloud computing market have competitive advantages that are __________________.

A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.

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

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 5: Competitive Rivalry and Competitive Dynamics

According to the Chapter 5 Strategic Focus, the global automobile producing industry has high market commonality but low resource similarity.

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that they

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

Walt Disney's focus on ____ is typical of a slow-cycle market.

Large firms are likely to initiate more competitive actions along with more strategic actions during a given period.

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

Intensified rivalry within an industry results in decreased average profitability for the firms within it.

Competitors are more likely to respond to strategic or tactical actions when they are taken by a market leader.

____ relates to the gains or losses a firm will experience if it attacks a rival or responds to an attack by a rival.

Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

Competitive rivalry is the set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position.

Which of the following statements is FALSE?

Quality is

Competitive rivalry is the contest to be the first mover in an international market.

In the The Chapter 5 Strategic Focus, rivals (Amazon, Oracle, HP and Dell) in the cloud computing market have competitive advantages that are __________________.

A company in a ____ industry is LEAST likely to make heavy use of patents and copyrights.

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

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Leadership

Strategic Entrepreneurship

Filters