Question 1

Firm entry rates tend to be highest during the growth stage of an industry life cycle because:

Accepted Answer

A) Shortage of production capacity keeps margins attractive. 
B) The propensity for entrepreneurs and venture capitalists to imitate one another. 
C) Growing legitimacy of the industry attracts resources to the industry. 
D) Both (a)and (c). 
A) Shortage of production capacity keeps margins attractive. 
B) The propensity for entrepreneurs and venture capitalists to imitate one another. 
C) Growing legitimacy of the industry attracts resources to the industry. 
D) Both (a)and (c). D

Question 2

The problem for companies which reject conventional management principles and adopt radically new management systems and organizational forms is that:

Accepted Answer

A) Lack of legitimacy hurts their stock market valuations. 
B) Employees tend to be conservative and prefer the security of traditional modes of management. 
C) Most attempts at radical transformation fail. 
D) Innovations in management conflict with prevailing systems of financial reporting and human resource management. 
A) Lack of legitimacy hurts their stock market valuations. 
B) Employees tend to be conservative and prefer the security of traditional modes of management. 
C) Most attempts at radical transformation fail. 
D) Innovations in management conflict with prevailing systems of financial reporting and human resource management. C

Question 3

An organizational routine is:

Accepted Answer

A) A stable,repeatable,pattern of coordinated activity among organizational members 
B) A lower-level,operational capability,as opposed to a dynamic capability which tends not to be routinized 
C) The resource needed to create a new capability 
D) A new capability after it has been institutionalized within an organization 
A) A stable,repeatable,pattern of coordinated activity among organizational members 
B) A lower-level,operational capability,as opposed to a dynamic capability which tends not to be routinized 
C) The resource needed to create a new capability 
D) A new capability after it has been institutionalized within an organization A

Question 4

The term "competency trap",refers to:

Accepted Answer

A) The hubris that affects the senior managers of successful firms. 
B) The tendency for firms with competitive advantage based in one industry to fail when they diversify into a new industry. 
C) The tendency for capabilities based on highly developed organizational routines to be a source of inflexibility. 
D) The tendency for managers to be reluctant to change the strategies that brought them their initial success. 
A) The hubris that affects the senior managers of successful firms. 
B) The tendency for firms with competitive advantage based in one industry to fail when they diversify into a new industry. 
C) The tendency for capabilities based on highly developed organizational routines to be a source of inflexibility. 
D) The tendency for managers to be reluctant to change the strategies that brought them their initial success.

Question 5

With the onset of the maturity,industries often experience a "shake-out" period.

Accepted Answer

A) True 
 B)False

Question 6

IBM's decision in the late 1970s to establish its new personal computer division in Florida,rather than close to its headquarters in New York is an example of "contextual ambidexterity."

Accepted Answer

A) True 
 B)False

Question 7

The emergence of a dominant product design tends to coincide with a shift from process innovation to product innovation

Accepted Answer

A) True 
 B)False

Question 8

Long-term change within most industries is achieved through the birth and death of companies rather than through adaptation by existing companies.

Accepted Answer

A) True 
 B)False

Question 9

Dynamic capabilities are "higher order" capabilities that orchestrate change among operational capabilities.

Accepted Answer

A) True 
 B)False

Question 10

The main drivers of industry evolution are growth of demand and the production and diffusion of knowledge.

Accepted Answer

A) True 
 B)False

Question 11

During an industry's introductory and growth phases,most companies in an industry are likely to experience negative free cash flows.

Accepted Answer

A) True 
 B)False

Question 12

The establishment of a dominant design in an industry requires convergence around a common technical standard.

Accepted Answer

A) True 
 B)False

Question 13

A technical standard tends to emerge in an industry if:

Accepted Answer

A) Economies of scale are present 
B) The industry has converged around a dominant design 
C) The industry is subject to economies of learning 
D) Network effects exist 
A) Economies of scale are present 
B) The industry has converged around a dominant design 
C) The industry is subject to economies of learning 
D) Network effects exist

Question 14

According to institutional sociologists,the propensity for organizations to adopt similar structures ("institutional isomorphism")is primarily a result of

Accepted Answer

A) Common key success factors within an industry. 
B) Bounded rationality. 
C) The complementarity among different managerial practices within firms' "activity systems". 
D) The propensity of firms to imitate one another in order to gain legitimacy. 
A) Common key success factors within an industry. 
B) Bounded rationality. 
C) The complementarity among different managerial practices within firms' "activity systems". 
D) The propensity of firms to imitate one another in order to gain legitimacy.

Question 15

The main forces driving industry evolution are:

Accepted Answer

A) Technology and demand. 
B) Technology and globalization. 
C) The quest for cost and differentiation advantage. 
D) Government policies and global financial flows. 
A) Technology and demand. 
B) Technology and globalization. 
C) The quest for cost and differentiation advantage. 
D) Government policies and global financial flows.

Question 16

Which of the following is not a source of organizational inertia?

Accepted Answer

A) The tendency for organizations to limit themselves to local search 
B) Organizational routines 
C) Complementarities between the different activities of a firm 
D) The hierarchical structure of organizational capabilities where dynamic capabilities reside at a higher level than operational capabilities 
A) The tendency for organizations to limit themselves to local search 
B) Organizational routines 
C) Complementarities between the different activities of a firm 
D) The hierarchical structure of organizational capabilities where dynamic capabilities reside at a higher level than operational capabilities

Question 17

Which of the following developments is not a typical feature of the transition from the "introductory" to the "growth" phase of the industry life cycle?

Accepted Answer

A) The emergence of a dominant design 
B) The shift from product to process innovation 
C) The shift of production from mature to emerging countries 
D) Rapid market penetration 
A) The emergence of a dominant design 
B) The shift from product to process innovation 
C) The shift of production from mature to emerging countries 
D) Rapid market penetration

Question 18

"Punctuated equilibrium" refers to the tendency for organizations to follow a gradual process of transition from one equilibrium to another

Accepted Answer

A) True 
 B)False

Question 19

According to Charles Darwin it is the strongest of a species that survive.

Accepted Answer

A) True 
 B)False

Question 20

During the introduction phase of the industry life cycle,different technologies and design configurations compete for market acceptance.

Accepted Answer

A) True 
 B)False

Firm entry rates tend to be highest during the growth stage of an industry life cycle because:

The problem for companies which reject conventional management principles and adopt radically new management systems and organizational forms is that:

An organizational routine is:

The term "competency trap",refers to:

With the onset of the maturity,industries often experience a "shake-out" period.

IBM's decision in the late 1970s to establish its new personal computer division in Florida,rather than close to its headquarters in New York is an example of "contextual ambidexterity."

The emergence of a dominant product design tends to coincide with a shift from process innovation to product innovation

Long-term change within most industries is achieved through the birth and death of companies rather than through adaptation by existing companies.

Dynamic capabilities are "higher order" capabilities that orchestrate change among operational capabilities.

The main drivers of industry evolution are growth of demand and the production and diffusion of knowledge.

During an industry's introductory and growth phases,most companies in an industry are likely to experience negative free cash flows.

The establishment of a dominant design in an industry requires convergence around a common technical standard.

A technical standard tends to emerge in an industry if:

According to institutional sociologists,the propensity for organizations to adopt similar structures ("institutional isomorphism")is primarily a result of

The main forces driving industry evolution are:

Which of the following is not a source of organizational inertia?

Which of the following developments is not a typical feature of the transition from the "introductory" to the "growth" phase of the industry life cycle?

"Punctuated equilibrium" refers to the tendency for organizations to follow a gradual process of transition from one equilibrium to another

According to Charles Darwin it is the strongest of a species that survive.

During the introduction phase of the industry life cycle,different technologies and design configurations compete for market acceptance.

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

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

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 8: Industry Evolution and Strategic Change

Firm entry rates tend to be highest during the growth stage of an industry life cycle because:

The problem for companies which reject conventional management principles and adopt radically new management systems and organizational forms is that:

An organizational routine is:

The term "competency trap",refers to:

With the onset of the maturity,industries often experience a "shake-out" period.

IBM's decision in the late 1970s to establish its new personal computer division in Florida,rather than close to its headquarters in New York is an example of "contextual ambidexterity."

The emergence of a dominant product design tends to coincide with a shift from process innovation to product innovation

Long-term change within most industries is achieved through the birth and death of companies rather than through adaptation by existing companies.

Dynamic capabilities are "higher order" capabilities that orchestrate change among operational capabilities.

The main drivers of industry evolution are growth of demand and the production and diffusion of knowledge.

During an industry's introductory and growth phases,most companies in an industry are likely to experience negative free cash flows.

The establishment of a dominant design in an industry requires convergence around a common technical standard.

A technical standard tends to emerge in an industry if:

According to institutional sociologists,the propensity for organizations to adopt similar structures ("institutional isomorphism")is primarily a result of

The main forces driving industry evolution are:

Which of the following is not a source of organizational inertia?

Which of the following developments is not a typical feature of the transition from the "introductory" to the "growth" phase of the industry life cycle?

"Punctuated equilibrium" refers to the tendency for organizations to follow a gradual process of transition from one equilibrium to another

According to Charles Darwin it is the strongest of a species that survive.

During the introduction phase of the industry life cycle,different technologies and design configurations compete for market acceptance.

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

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

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