Question 1

A firm can pre-empt competitors from invading its market space by:

Accepted Answer

A) Vigorous legal action 
B) Threatening to imitate its imitators 
C) Introducing new products to fill each niche,investing in capacity ahead of market growth and filing many patents 
D) None of these: competitive imitators is inevitable and unstoppable 
A) Vigorous legal action 
B) Threatening to imitate its imitators 
C) Introducing new products to fill each niche,investing in capacity ahead of market growth and filing many patents 
D) None of these: competitive imitators is inevitable and unstoppable

Question 2

Product integrity refers to the consistency of a firm's differentiation across all differentiated features - it is the balance of the overall impression left on most customers' minds

Accepted Answer

A) True 
 B)False

Question 3

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

Accepted Answer

A) True 
 B)False

Question 4

According to Porter,cost leadership and differentiation are:

Accepted Answer

A) What leads a firm to "be stuck in the middle" 
B) Two names for the same fundamental strategy 
C) Distinct generic strategies 
D) Strategies that can be pursued simultaneously 
A) What leads a firm to "be stuck in the middle" 
B) Two names for the same fundamental strategy 
C) Distinct generic strategies 
D) Strategies that can be pursued simultaneously

Question 5

The difference between a "generic" and a "contextual" management practices is:

Accepted Answer

A) None: the concepts are identical in practice. 
B) The performance impact of a generic practice is independent of the firm's other practices; the impact of a contextual practice depends upon the firm's other practices. 
C) Generic practices relate to basic functions; contextual practices tend to be more idiosyncratic. 
D) A generic practices offers incremental performance improvement; a contextual practices leads to a new fitness peak. 
A) None: the concepts are identical in practice. 
B) The performance impact of a generic practice is independent of the firm's other practices; the impact of a contextual practice depends upon the firm's other practices. 
C) Generic practices relate to basic functions; contextual practices tend to be more idiosyncratic. 
D) A generic practices offers incremental performance improvement; a contextual practices leads to a new fitness peak.

Question 6

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

Accepted Answer

A) True 
 B)False

Question 7

Firms pursuing differentiation advantages will implement their strategies differently from those pursuing cost advantages.The implementation of differentiation strategy is likely to feature:

Accepted Answer

A) Employee remuneration based upon individual productivity. 
B) Frequent performance reporting. 
C) High levels of outsourcing. 
D) Low levels of job specialization. 
A) Employee remuneration based upon individual productivity. 
B) Frequent performance reporting. 
C) High levels of outsourcing. 
D) Low levels of job specialization.

Question 8

In supplying "lifestyle" products which are designed to meet consumers' social and psychological needs,the key to differentiation advantage is:

Accepted Answer

A) A relentless pursuit of quality. 
B) Thorough market research. 
C) Product integrity. 
D) Market segmentation. 
A) A relentless pursuit of quality. 
B) Thorough market research. 
C) Product integrity. 
D) Market segmentation.

Question 9

In retailing,the cost advantages of large retail chains (such as Wal-Mart in the US,Tesco in Britain,Metro in Germany,and Carrefour in France)is primarily the result of:

Accepted Answer

A) Scale economies in operating large individual retail units. 
B) Lower costs of bought-in products as a result of superior bargaining power. 
C) Higher capacity utilization in retailing and distribution. 
D) Using superior bargaining power to pay lower wage rates. 
A) Scale economies in operating large individual retail units. 
B) Lower costs of bought-in products as a result of superior bargaining power. 
C) Higher capacity utilization in retailing and distribution. 
D) Using superior bargaining power to pay lower wage rates.

Question 10

Gary Hamel argues that management innovations (such as Procter & Gamble's brand management system or Toyota's lean production are unlikely to offer sustainable competitive advantage because these innovations are easy to imitate.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an isolating mechanism?

Accepted Answer

A) Private ownership of a company which means that it is not obliged to publish its financial statements. 
B) Competitive advantage which is based upon the interaction of a number of different resources and capabilities. 
C) Competitive advantage based upon exploiting pricing anomalies. 
D) Competitive advantage based upon resources that are difficult to transfer and slow to replicate. 
A) Private ownership of a company which means that it is not obliged to publish its financial statements. 
B) Competitive advantage which is based upon the interaction of a number of different resources and capabilities. 
C) Competitive advantage based upon exploiting pricing anomalies. 
D) Competitive advantage based upon resources that are difficult to transfer and slow to replicate.

Question 12

Causal ambiguity allows a firm's competitive advantage to be sustained because potential rivals are:

Accepted Answer

A) Deterred from directly competing with the advantaged firm 
B) Unable to identify the sources of the advantaged firm's superior performance 
C) Unable to acquire the resources needed to compete against the advantaged firm 
D) All the above 
A) Deterred from directly competing with the advantaged firm 
B) Unable to identify the sources of the advantaged firm's superior performance 
C) Unable to acquire the resources needed to compete against the advantaged firm 
D) All the above

A firm can pre-empt competitors from invading its market space by:

Product integrity refers to the consistency of a firm's differentiation across all differentiated features - it is the balance of the overall impression left on most customers' minds

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

According to Porter,cost leadership and differentiation are:

The difference between a "generic" and a "contextual" management practices is:

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

Firms pursuing differentiation advantages will implement their strategies differently from those pursuing cost advantages.The implementation of differentiation strategy is likely to feature:

In supplying "lifestyle" products which are designed to meet consumers' social and psychological needs,the key to differentiation advantage is:

In retailing,the cost advantages of large retail chains (such as Wal-Mart in the US,Tesco in Britain,Metro in Germany,and Carrefour in France)is primarily the result of:

Gary Hamel argues that management innovations (such as Procter & Gamble's brand management system or Toyota's lean production are unlikely to offer sustainable competitive advantage because these innovations are easy to imitate.

Which of the following is not an isolating mechanism?

Causal ambiguity allows a firm's competitive advantage to be sustained because potential rivals are:

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

Industry Evolution and Strategic Change

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 7: The Sources and Dimensions of Competitive Advantage

A firm can pre-empt competitors from invading its market space by:

Product integrity refers to the consistency of a firm's differentiation across all differentiated features - it is the balance of the overall impression left on most customers' minds

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

According to Porter,cost leadership and differentiation are:

The difference between a "generic" and a "contextual" management practices is:

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

Firms pursuing differentiation advantages will implement their strategies differently from those pursuing cost advantages.The implementation of differentiation strategy is likely to feature:

In supplying "lifestyle" products which are designed to meet consumers' social and psychological needs,the key to differentiation advantage is:

In retailing,the cost advantages of large retail chains (such as Wal-Mart in the US,Tesco in Britain,Metro in Germany,and Carrefour in France)is primarily the result of:

Gary Hamel argues that management innovations (such as Procter & Gamble's brand management system or Toyota's lean production are unlikely to offer sustainable competitive advantage because these innovations are easy to imitate.

Which of the following is not an isolating mechanism?

Causal ambiguity allows a firm's competitive advantage to be sustained because potential rivals are:

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

Industry Evolution and Strategic Change

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