Question 1

With maturity,the opportunities for differentiation become scarcer due to:

Accepted Answer

A) Competition making it difficult to charge a price premium 
B) Firms lacking the resources needed to differentiate their offerings 
C) The trend toward commoditization narrows the scope for differentiation and reduces customer willingness to pay 
D) Technological innovation hinders the potential for differentiation 
A) Competition making it difficult to charge a price premium 
B) Firms lacking the resources needed to differentiate their offerings 
C) The trend toward commoditization narrows the scope for differentiation and reduces customer willingness to pay 
D) Technological innovation hinders the potential for differentiation C

Question 2

Achieving strategic innovation requires that managers in mature sectors need to:

Accepted Answer

A) Commit additional resources to R&D 
B) Combat isomorphism-the tendency for companies to adopt similar approaches to organization and management 
C) Break out of the maturity mindset and recognize the potential for rejuvenation 
D) Cultivate entrepreneurship by promoting young,creative individuals to senior management positions 
A) Commit additional resources to R&D 
B) Combat isomorphism-the tendency for companies to adopt similar approaches to organization and management 
C) Break out of the maturity mindset and recognize the potential for rejuvenation 
D) Cultivate entrepreneurship by promoting young,creative individuals to senior management positions C

Question 3

Leadership models which have been shown to be effective for companies in mature industries include: the administrator,the autocrat,and the strategic leader.

Accepted Answer

A) True 
 B)False  True

Question 4

An industry leadership strategy involving continued investment,acquiring competitors,and encouraging rivals to exit is seldom advisable for a firm in a declining industry.

Accepted Answer

A) True 
 B)False

Question 5

A critical determinant of the profitability of a declining industry is the balance between capacity and output during decline.

Accepted Answer

A) True 
 B)False

Question 6

A distinctive feature of the strategies of Starbucks,Lego,and Harley-Davidson is:

Accepted Answer

A) Intangible differentiation 
B) Strategic innovation 
C) They focus on offering a customer experience rather than a product 
D) Premium pricing 
A) Intangible differentiation 
B) Strategic innovation 
C) They focus on offering a customer experience rather than a product 
D) Premium pricing

Question 7

The evidence from watches,pens,and cigars is that the best segments of a declining industry in which to be located are usually the low-price segments that cater to the mass market.

Accepted Answer

A) True 
 B)False

Question 8

Low-cost inputs,low overheads,and R&D effectiveness are the three primary drivers of cost in mature industries.

Accepted Answer

A) True 
 B)False

Question 9

Strategic innovation in mature industries usually involves the application of new technology.

Accepted Answer

A) True 
 B)False

Question 10

The transition of an industry from mature to decline is most commonly the result of technological obsolescence as superior substitutes become available.

Accepted Answer

A) True 
 B)False

Question 11

The single most important factor that determines the profitability of a declining industry is:

Accepted Answer

A) The adjustment of capacity to shrinking demand. 
B) The capacity of firms in the industry to devise innovative strategies. 
C) The speed with which customers switch out of products supplied by the industry. 
D) The ability of firms to reduce costs through off-shoring. 
A) The adjustment of capacity to shrinking demand. 
B) The capacity of firms in the industry to devise innovative strategies. 
C) The speed with which customers switch out of products supplied by the industry. 
D) The ability of firms to reduce costs through off-shoring.

Question 12

Companies in mature industries where cost efficiency is the critical success factor (such as wholesale distribution,airlines,and logistics)tend to favour qualitative performance targets over quantitative performance targets.

Accepted Answer

A) True 
 B)False

Question 13

In mature industries,the most important sources of cost advantage are:

Accepted Answer

A) Economies of scale and economies of learning. 
B) Low-cost inputs,low overheads,and economies of scale. 
C) Superior process technologies. 
D) Business model innovation. 
A) Economies of scale and economies of learning. 
B) Low-cost inputs,low overheads,and economies of scale. 
C) Superior process technologies. 
D) Business model innovation.

Question 14

Overinvestment in production capacity,internationalization,and commoditization are factors that depress the profitability of mature industries.

Accepted Answer

A) True 
 B)False

Question 15

In mature industries new entrants are almost always at a cost disadvantage to established firms.

Accepted Answer

A) True 
 B)False

Question 16

Warren Buffet's distinction between a "franchise" and a "business" refers to:

Accepted Answer

A) The advantage of starting a franchised business rather than an independent start-up. 
B) The difference between a business whose uniqueness gives it pricing power and one that lacks such a competitive advantage. 
C) The importance of taking a contrarian approach in business. 
D) The importance of selecting a business that is easy to manage. 
A) The advantage of starting a franchised business rather than an independent start-up. 
B) The difference between a business whose uniqueness gives it pricing power and one that lacks such a competitive advantage. 
C) The importance of taking a contrarian approach in business. 
D) The importance of selecting a business that is easy to manage.

Question 17

Competition in mature,low-technology industries such as tires,brassieres,and fishing rods reveals:

Accepted Answer

A) In these "stalemate" industries the potential for competitive advantage is severely limited 
B) There is constant quest for new sources of competitive advantage-including a steady stream of technological innovations 
C) The quest for cost advantage has resulted in these industries relocating to countries with low labor costs 
D) A price premium can only be earned through providing high quality 
A) In these "stalemate" industries the potential for competitive advantage is severely limited 
B) There is constant quest for new sources of competitive advantage-including a steady stream of technological innovations 
C) The quest for cost advantage has resulted in these industries relocating to countries with low labor costs 
D) A price premium can only be earned through providing high quality

Question 18

The major source of differentiation in mature industries is:

Accepted Answer

A) Enhanced product features 
B) Customization 
C) Innovation to create enhanced product functionality 
D) Image differentiation and providing complementary services 
A) Enhanced product features 
B) Customization 
C) Innovation to create enhanced product functionality 
D) Image differentiation and providing complementary services

Question 19

In mature industries where companies compete primarily on prices and cost efficiency,the most appropriate type of performance controls are:

Accepted Answer

A) Flexible,allowing considerable managerial discretion. 
B) Quantitative and short term. 
C) Those closely linked to pay. 
D) Qualitative milestones. 
A) Flexible,allowing considerable managerial discretion. 
B) Quantitative and short term. 
C) Those closely linked to pay. 
D) Qualitative milestones.

Question 20

Which of the following factors is not a source of barriers to the exit of capacity from the European oil refining industry: a declining industry includes not just the presence of durable,specialized assets and the costs of plant closure,but also:

Accepted Answer

A) Oil refineries have few alternative uses 
B) Environmental clean-up costs 
C) Employee redundancy payments 
D) Investments in new refining capacity in the Middle East by national oil companies 
A) Oil refineries have few alternative uses 
B) Environmental clean-up costs 
C) Employee redundancy payments 
D) Investments in new refining capacity in the Middle East by national oil companies

With maturity,the opportunities for differentiation become scarcer due to:

Achieving strategic innovation requires that managers in mature sectors need to:

Leadership models which have been shown to be effective for companies in mature industries include: the administrator,the autocrat,and the strategic leader.

An industry leadership strategy involving continued investment,acquiring competitors,and encouraging rivals to exit is seldom advisable for a firm in a declining industry.

A critical determinant of the profitability of a declining industry is the balance between capacity and output during decline.

A distinctive feature of the strategies of Starbucks,Lego,and Harley-Davidson is:

The evidence from watches,pens,and cigars is that the best segments of a declining industry in which to be located are usually the low-price segments that cater to the mass market.

Low-cost inputs,low overheads,and R&D effectiveness are the three primary drivers of cost in mature industries.

Strategic innovation in mature industries usually involves the application of new technology.

The transition of an industry from mature to decline is most commonly the result of technological obsolescence as superior substitutes become available.

The single most important factor that determines the profitability of a declining industry is:

Companies in mature industries where cost efficiency is the critical success factor (such as wholesale distribution,airlines,and logistics)tend to favour qualitative performance targets over quantitative performance targets.

In mature industries,the most important sources of cost advantage are:

Overinvestment in production capacity,internationalization,and commoditization are factors that depress the profitability of mature industries.

In mature industries new entrants are almost always at a cost disadvantage to established firms.

Warren Buffet's distinction between a "franchise" and a "business" refers to:

Competition in mature,low-technology industries such as tires,brassieres,and fishing rods reveals:

The major source of differentiation in mature industries is:

In mature industries where companies compete primarily on prices and cost efficiency,the most appropriate type of performance controls are:

Which of the following factors is not a source of barriers to the exit of capacity from the European oil refining industry: a declining industry includes not just the presence of durable,specialized assets and the costs of plant closure,but also:

The Concept of Strategy

Goals,values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers,acquisitions,and Alliances

Current Trends in Strategic Management

Filters

Exam 10: Competitive Advantage in Mature Industries

With maturity,the opportunities for differentiation become scarcer due to:

Achieving strategic innovation requires that managers in mature sectors need to:

Leadership models which have been shown to be effective for companies in mature industries include: the administrator,the autocrat,and the strategic leader.

An industry leadership strategy involving continued investment,acquiring competitors,and encouraging rivals to exit is seldom advisable for a firm in a declining industry.

A critical determinant of the profitability of a declining industry is the balance between capacity and output during decline.

A distinctive feature of the strategies of Starbucks,Lego,and Harley-Davidson is:

The evidence from watches,pens,and cigars is that the best segments of a declining industry in which to be located are usually the low-price segments that cater to the mass market.

Low-cost inputs,low overheads,and R&D effectiveness are the three primary drivers of cost in mature industries.

Strategic innovation in mature industries usually involves the application of new technology.

The transition of an industry from mature to decline is most commonly the result of technological obsolescence as superior substitutes become available.

The single most important factor that determines the profitability of a declining industry is:

Companies in mature industries where cost efficiency is the critical success factor (such as wholesale distribution,airlines,and logistics)tend to favour qualitative performance targets over quantitative performance targets.

In mature industries,the most important sources of cost advantage are:

Overinvestment in production capacity,internationalization,and commoditization are factors that depress the profitability of mature industries.

In mature industries new entrants are almost always at a cost disadvantage to established firms.

Warren Buffet's distinction between a "franchise" and a "business" refers to:

Competition in mature,low-technology industries such as tires,brassieres,and fishing rods reveals:

The major source of differentiation in mature industries is:

In mature industries where companies compete primarily on prices and cost efficiency,the most appropriate type of performance controls are:

Which of the following factors is not a source of barriers to the exit of capacity from the European oil refining industry: a declining industry includes not just the presence of durable,specialized assets and the costs of plant closure,but also:

The Concept of Strategy

Goals,values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers,acquisitions,and Alliances

Current Trends in Strategic Management

Filters