Question 1

Extensive market commonality guarantees intense competition in an industry.

Accepted Answer

A) True 
 B)False

Question 2

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Accepted Answer

A) True 
 B)False

Question 3

Two firms, such as a small local, family-owned Italian restaurant and Olive Garden, share few markets and have little similarity in resources, but are nonetheless direct and mutually acknowledged competitors.

Accepted Answer

A) True 
 B)False

Question 4

Firms with few competitive resources than the acting firm are more likely to:

Accepted Answer

A)  not respond to competitive actions. 
B)  respond quickly to competitive actions. 
C)  delay responding to competitive actions. 
D)  respond to strategic actions, but not to tactical actions. 
A)  not respond to competitive actions. 
B)  respond quickly to competitive actions. 
C)  delay responding to competitive actions. 
D)  respond to strategic actions, but not to tactical actions.

Question 5

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 6

Firms with __________ market commonality and __________ resource similarity are direct and mutually acknowledged competitors.

Accepted Answer

A)  low; high 
B)  low; low 
C)  high; high 
D)  high; low 
A)  low; high 
B)  low; low 
C)  high; high 
D)  high; low

Question 7

Define slow-, fast-, and standard-cycle markets.

Accepted Answer

In slow-cycle markets, the firm's compet

Question 8

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO:

Accepted Answer

A)  realizes that he must understand competitors in order to predict their competitive actions and responses. 
B)  understands that he is the market leader in his niche and thus has a sustainable competitive advantage. 
C)  believes that he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share. 
D)  realizes that his firm has such lower resources than other competitors that his chain is "competitively invisible" to them. 
A)  realizes that he must understand competitors in order to predict their competitive actions and responses. 
B)  understands that he is the market leader in his niche and thus has a sustainable competitive advantage. 
C)  believes that he has placed his firm in a slow-cycle industry where concerns about protecting unique competencies dominate concerns about market share. 
D)  realizes that his firm has such lower resources than other competitors that his chain is "competitively invisible" to them.

Question 9

The need for quality products and services is so high that quality alone can assure a firm that it will achieve strategic competitiveness and earn above-average returns.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following organizations has the highest market dependence?

Accepted Answer

A)  Chain of rapid-service oil change shops 
B)  Manufacturer of chemicals for the international pharmaceutical industry 
C)  Regional department store having 26 locations in the Northwest 
D)  Company that specializes in making replacement tiles for the space shuttle 
A)  Chain of rapid-service oil change shops 
B)  Manufacturer of chemicals for the international pharmaceutical industry 
C)  Regional department store having 26 locations in the Northwest 
D)  Company that specializes in making replacement tiles for the space shuttle

Question 11

Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.

Accepted Answer

A) True 
 B)False

Question 12

A second mover:

Accepted Answer

A)  is typically ineffective in its response to a 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 a 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 13

Coca-Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S.and foreign markets) indicating that the companies have market commonality.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)  is by a competitor known for risky or complex competitive behavior. 
B)  makes the firm's market position less defensible. 
C)  damages the firm's ability to use its capabilities. 
D)  improves the competitor's market position. 
A)  is by a competitor known for risky or complex competitive behavior. 
B)  makes the firm's market position less defensible. 
C)  damages the firm's ability to use its capabilities. 
D)  improves the competitor's market position.

Question 16

Competitive dynamics refers to the:

Accepted Answer

A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  ongoing actions and responses among all firms competing within a market for advantageous positions. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position. 
A)  circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. 
B)  set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. 
C)  ongoing actions and responses among all firms competing within a market for advantageous positions. 
D)  ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.

Question 17

While no firm, or company wants a product to break, that does happen.In customer feedback surveys, ChirOpt customers have indicated that when they have a product that breaks, they are pleased with both the ease and the speed of the repair.This reflects success in which product quality dimension?

Accepted Answer

A)  Performance 
B)  Consistency 
C)  Durability 
D)  Serviceability 
A)  Performance 
B)  Consistency 
C)  Durability 
D)  Serviceability

Question 18

Boeing's decision to commit the resources required to build the super-efficient 787 midsized jetliner is an example of a tactical action.

Accepted Answer

A) True 
 B)False

Question 19

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

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 20

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestlé, and Godiva) where firms compete in package design (including package downsizing) and ease of availability is characteristic of a(n):

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.

Extensive market commonality guarantees intense competition in an industry.

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Two firms, such as a small local, family-owned Italian restaurant and Olive Garden, share few markets and have little similarity in resources, but are nonetheless direct and mutually acknowledged competitors.

Firms with few competitive resources than the acting firm are more likely to:

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

Firms with market commonality and resource similarity are direct and mutually acknowledged competitors.

Define slow-, fast-, and standard-cycle markets.

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO:

The need for quality products and services is so high that quality alone can assure a firm that it will achieve strategic competitiveness and earn above-average returns.

Which of the following organizations has the highest market dependence?

Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.

A second mover:

Coca-Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S.and foreign markets) indicating that the companies have market commonality.

First movers are:

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

Competitive dynamics refers to the:

While no firm, or company wants a product to break, that does happen.In customer feedback surveys, ChirOpt customers have indicated that when they have a product that breaks, they are pleased with both the ease and the speed of the repair.This reflects success in which product quality dimension?

Boeing's decision to commit the resources required to build the super-efficient 787 midsized jetliner is an example of a tactical action.

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

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestlé, and Godiva) where firms compete in package design (including package downsizing) and ease of availability is characteristic of a(n):

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

Extensive market commonality guarantees intense competition in an industry.

A firm with a reputation as a price predator (an actor that frequently reduces prices to gain or maintain market share) generates few responses to its pricing tactical actions.

Two firms, such as a small local, family-owned Italian restaurant and Olive Garden, share few markets and have little similarity in resources, but are nonetheless direct and mutually acknowledged competitors.

Firms with few competitive resources than the acting firm are more likely to:

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

Firms with __________ market commonality and __________ resource similarity are direct and mutually acknowledged competitors.

Define slow-, fast-, and standard-cycle markets.

The CEO of the Wholesome Food retail grocery chain, which specializes in organic and natural produce and meat, has stated, "The key to success is to find your niche and focus on it, regardless of what anyone else does." The CEO:

The need for quality products and services is so high that quality alone can assure a firm that it will achieve strategic competitiveness and earn above-average returns.

Which of the following organizations has the highest market dependence?

Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.

A second mover:

Coca-Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water) and geographic markets (U.S.and foreign markets) indicating that the companies have market commonality.

First movers are:

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

Competitive dynamics refers to the:

While no firm, or company wants a product to break, that does happen.In customer feedback surveys, ChirOpt customers have indicated that when they have a product that breaks, they are pleased with both the ease and the speed of the repair.This reflects success in which product quality dimension?

Boeing's decision to commit the resources required to build the super-efficient 787 midsized jetliner is an example of a tactical action.

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

Competition between candy makers (e.g., Hershey, Mars, Cadbury, Nestlé, and Godiva) where firms compete in package design (including package downsizing) and ease of availability is characteristic of a(n):

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

Firms with market commonality and resource similarity are direct and mutually acknowledged competitors.