Question 1

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

Accepted Answer

A)  Wal-Mart's launch of Sam's Club stores. 
B)  Continental Airlines exit from a hub airport in Denver. 
C)  Netflix beginning to offer music DVDs in addition to movies. 
D)  Dell's launch of a new line of high performance, custom-made PCs. 
A)  Wal-Mart's launch of Sam's Club stores. 
B)  Continental Airlines exit from a hub airport in Denver. 
C)  Netflix beginning to offer music DVDs in addition to movies. 
D)  Dell's launch of a new line of high performance, custom-made PCs.

Question 2

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 3

Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market.

Accepted Answer

A) True 
 B)False

Question 4

In general, firms are more aware of competitors who have similar resources and who

Accepted Answer

A)  have low market dependence. 
B)  are late movers. 
C)  have low market commonality. 
D)  compete against the firm in multiple markets. 
A)  have low market dependence. 
B)  are late movers. 
C)  have low market commonality. 
D)  compete against the firm in multiple markets.

Question 5

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Accepted Answer

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

Question 6

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

Accepted Answer

A) True 
 B)False

Question 7

In general, strategic actions elicit fewer competitive responses than do tactical actions.

Accepted Answer

A) True 
 B)False

Question 8

Hilliard Pharmaceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is most likely to be TRUE?

Accepted Answer

A)  Ahrens will not respond aggressively since this is a strategic move and not a tactical action. 
B)  As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend organizational slack on a major response. 
C)  Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens. 
D)  Ahrens will respond after a long delay as the nutrition supplement industry is a slow-cycle industry. 
A)  Ahrens will not respond aggressively since this is a strategic move and not a tactical action. 
B)  As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend organizational slack on a major response. 
C)  Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens. 
D)  Ahrens will respond after a long delay as the nutrition supplement industry is a slow-cycle industry.

Question 9

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) Develop an argument as to why RI should hold back and be a second mover with the new technology.

Accepted Answer

The best answers will observe that RI ca

Question 10

In order to compete effectively, standard-cycle firms need all of the following EXCEPT

Accepted Answer

A)  large market share. 
B)  customer loyalty through brand name. 
C)  careful control of operations to preserve consistency for customers. 
D)  rapid and continuous product introductions. 
A)  large market share. 
B)  customer loyalty through brand name. 
C)  careful control of operations to preserve consistency for customers. 
D)  rapid and continuous product introductions.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

First movers are

Accepted Answer

A)  entrepreneurs who lead in the establishment of new industries. 
B)  firms that are first to exit a declining industry. 
C)  firms that take an initial competitive action. 
D)  individuals who move frequently as employment opportunities change in a locale. 
A)  entrepreneurs who lead in the establishment of new industries. 
B)  firms that are first to exit a declining industry. 
C)  firms that take an initial competitive action. 
D)  individuals who move frequently as employment opportunities change in a locale.

Question 13

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

Accepted Answer

First movers can gain market share, cust

Question 14

Extensive market commonality guarantees intense competition in an industry.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The global automobile producing industry has high market commonality and high resource similarity, and are aware, motivated, and have the ability to compete for market share in each segment and country they have entered (Chapter 5 Strategic Focus).

Accepted Answer

A) True 
 B)False

Question 17

Disney is an example of a firm in a slow-cycle market because its animated characters are shielded from imitation by copyrights and trademarks.

Accepted Answer

A) True 
 B)False

Question 18

Which industry can be LEAST described as a slow cycle market?

Accepted Answer

A)  Freight railroads 
B)  Pharmaceuticals 
C)  Cell phone provider 
D)  Private ownership of highways and bridges 
A)  Freight railroads 
B)  Pharmaceuticals 
C)  Cell phone provider 
D)  Private ownership of highways and bridges

Question 19

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 20

The flat-panel television market where prices have come down and competition has become more stable is best characterized as

Accepted Answer

A)  standard-cycle. 
B)  fast-cycle. 
C)  slow-cycle. 
D)  competitive rivalry. 
A)  standard-cycle. 
B)  fast-cycle. 
C)  slow-cycle. 
D)  competitive rivalry.

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

A second mover

Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market.

In general, firms are more aware of competitors who have similar resources and who

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

In general, strategic actions elicit fewer competitive responses than do tactical actions.

In order to compete effectively, standard-cycle firms need all of the following EXCEPT

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

First movers are

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

Extensive market commonality guarantees intense competition in an industry.

Which organization has the highest market dependence?

The global automobile producing industry has high market commonality and high resource similarity, and are aware, motivated, and have the ability to compete for market share in each segment and country they have entered (Chapter 5 Strategic Focus).

Disney is an example of a firm in a slow-cycle market because its animated characters are shielded from imitation by copyrights and trademarks.

Which industry can be LEAST described as a slow cycle market?

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

The flat-panel television market where prices have come down and competition has become more stable is best characterized as

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

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

A second mover

Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market.

In general, firms are more aware of competitors who have similar resources and who

The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.

Two firms that have similar resources, but do not share markets would not be direct and mutually acknowledged competitors.

In general, strategic actions elicit fewer competitive responses than do tactical actions.

In order to compete effectively, standard-cycle firms need all of the following EXCEPT

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

First movers are

What are the advantages and disadvantages of being a first mover, second mover, and late mover?

Extensive market commonality guarantees intense competition in an industry.

Which organization has the highest market dependence?

The global automobile producing industry has high market commonality and high resource similarity, and are aware, motivated, and have the ability to compete for market share in each segment and country they have entered (Chapter 5 Strategic Focus).

Disney is an example of a firm in a slow-cycle market because its animated characters are shielded from imitation by copyrights and trademarks.

Which industry can be LEAST described as a slow cycle market?

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

The flat-panel television market where prices have come down and competition has become more stable is best characterized as

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