Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Goods or services in standard-cycle markets reflect

Accepted Answer

A)  organizations that serve a mass market. 
B)  numerous first mover advantages. 
C)  an inability to sustain a competitive advantage except for brief periods of time. 
D)  competitive advantages that are shielded from imitation. 
A)  organizations that serve a mass market. 
B)  numerous first mover advantages. 
C)  an inability to sustain a competitive advantage except for brief periods of time. 
D)  competitive advantages that are shielded from imitation. A

Question 3

In general, small firms are more likely than large firms to launch competitive actions and tend to do it more quickly.

Accepted Answer

A) True 
 B)False  True

Question 4

Because Coca-Cola, Nestle, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant companies are engaged in battles for market share using incremental changes in their products and seeking loyalty to brand names, it is most likely that the bottled water market is a(an)

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.

Question 5

____ and ____ describe the situation in which organizations are direct competitors and are fully aware of the competition.

Accepted Answer

A)  High market commonality, high resource similarity 
B)  High market commonality, low resource similarity 
C)  Low market commonality, high resource similarity 
D)  Low market commonality, low resource similarity 
A)  High market commonality, high resource similarity 
B)  High market commonality, low resource similarity 
C)  Low market commonality, high resource similarity 
D)  Low market commonality, low resource similarity

Question 6

Which of the following is TRUE of Wal-Mart?

Accepted Answer

A)  Wal-Mart has an unusual amount of flexibility for a large firm. 
B)  Wal-Mart's success is largely due to the fact it has little market commonality with other industry firms. 
C)  Decision-making responsibility is centered at its Arkansas headquarters which allows the firm to respond quickly to competitive attacks. 
D)  Wal-Mart's advantage lies in its ability to "think big." 
A)  Wal-Mart has an unusual amount of flexibility for a large firm. 
B)  Wal-Mart's success is largely due to the fact it has little market commonality with other industry firms. 
C)  Decision-making responsibility is centered at its Arkansas headquarters which allows the firm to respond quickly to competitive attacks. 
D)  Wal-Mart's advantage lies in its ability to "think big."

Question 7

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

Accepted Answer

A)  fast-cycle markets. 
B)  standard-cycle markets. 
C)  incremental-cycle markets. 
D)  slow-cycle markets. 
A)  fast-cycle markets. 
B)  standard-cycle markets. 
C)  incremental-cycle markets. 
D)  slow-cycle markets.

Question 8

The chief disadvantage of being a first mover is the

Accepted Answer

A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers. 
A)  high degree of risk. 
B)  high level of competition in the new marketplace. 
C)  inability to earn above-average returns unless the production process is very efficient. 
D)  difficulty of obtaining new customers.

Question 9

Case Scenario : The Pet Food Industry.
The pet food industry is comprised primarily of six market segments: dry dog food, dry cat food, moist dog food, moist cat food, canned dog food, and canned cat food. Five large firms dominate the market and each has some market share in all segments, and the leading share in at least one segment. The largest firm participates solely in the pet food industry, while the next four firms are actually subsidiaries of some of the world's largest food and consumer products companies. Top management of these larger firms have made public statements that suggest they each see themselves as future leaders of the pet food industry. All five have acquired comparable skills in terms of manufacturing and marketing. Two small firms also participate in the industry, but these players are relatively weak and compete in just two of the six segments; the pet food industry is the only industry in which they operate. Inputs to the industry are basic commodities and there is no real threat of substitute products except across segments and price points. The industry is growing slowly, barely keeping up with the rate of inflation. Barriers to entry are enormous when pet food companies can gain scale economies in production coupled with aggressive marketing, though even then these coordinated actions may only yield average industry profitability. Any firm can increase its market share only to the extent that another firm's share is decreased
-(Refer to the above Case Scenario) The pet food industry is best characterized as an example of

Accepted Answer

A)  slow-cycle markets. 
B)  standard-cycle markets. 
C)  fast-cycle markets. 
D)  neither slow-cycle, standard-cycle, nor fast-cycle markets. 
A)  slow-cycle markets. 
B)  standard-cycle markets. 
C)  fast-cycle markets. 
D)  neither slow-cycle, standard-cycle, nor fast-cycle markets.

Question 10

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 both companies have market commonality.

Accepted Answer

A) True 
 B)False

Question 11

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Accepted Answer

A) True 
 B)False

Question 12

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

Accepted Answer

A) True 
 B)False

Question 13

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

Accepted Answer

A)  the high exit barriers in the industry. 
B)  knowing what had to be done and having the motivation to do it which came from the overlapping market commonality and resource similarity between global competitors. 
C)  low market commonality which prevented retaliation from competitors in key markets. 
D)  reduced rivalry in the segment of the industry producing fuel efficient cars. 
A)  the high exit barriers in the industry. 
B)  knowing what had to be done and having the motivation to do it which came from the overlapping market commonality and resource similarity between global competitors. 
C)  low market commonality which prevented retaliation from competitors in key markets. 
D)  reduced rivalry in the segment of the industry producing fuel efficient cars.

Question 14

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 15

____ markets are often described as volatile and innovative.

Accepted Answer

A)  Slow-cycle 
B)  Fast-cycle 
C)  Standard-cycle 
D)  Sheltered 
A)  Slow-cycle 
B)  Fast-cycle 
C)  Standard-cycle 
D)  Sheltered

Question 16

Which of the following is the most strategic action by Wal-Mart?

Accepted Answer

A)  Aggressive pricing to ensure they are a price leader 
B)  Aggressively pricing toys and electronics during the holiday season 
C)  Aggressively pricing school-related items in the back-to-school season 
D)  Entering a new foreign market 
A)  Aggressive pricing to ensure they are a price leader 
B)  Aggressively pricing toys and electronics during the holiday season 
C)  Aggressively pricing school-related items in the back-to-school season 
D)  Entering a new foreign market

Question 17

Large firms with significant slack resources (i.e., are able to launch a greater number of competitive actions) but who remain flexible and act like small firms (i.e., are able to launch a variety of actions) will be more successful against rivals.

Accepted Answer

A) True 
 B)False

Question 18

Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is dependent on the CDN market). If rival CDN providers such as Limelight Networks and Level 3 Communications lower their basic CDN service prices, what would be Akamai's likely response?

Accepted Answer

A)  raise its prices 
B)  do nothing since it is the market leader 
C)  exit the industry 
D)  lower its prices 
A)  raise its prices 
B)  do nothing since it is the market leader 
C)  exit the industry 
D)  lower its prices

Question 19

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 20

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.

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

Goods or services in standard-cycle markets reflect

In general, small firms are more likely than large firms to launch competitive actions and tend to do it more quickly.

and describe the situation in which organizations are direct competitors and are fully aware of the competition.

Which of the following is TRUE of Wal-Mart?

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

The chief disadvantage of being a first mover is the

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 both companies have market commonality.

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

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

____ markets are often described as volatile and innovative.

Which of the following is the most strategic action by Wal-Mart?

Large firms with significant slack resources (i.e., are able to launch a greater number of competitive actions) but who remain flexible and act like small firms (i.e., are able to launch a variety of actions) will be more successful against rivals.

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 who have similar resources and who

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

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

Goods or services in standard-cycle markets reflect

In general, small firms are more likely than large firms to launch competitive actions and tend to do it more quickly.

____ and ____ describe the situation in which organizations are direct competitors and are fully aware of the competition.

Which of the following is TRUE of Wal-Mart?

Consumer goods producers are innovating in terms of healthy products. This type of incremental innovation is typical of

The chief disadvantage of being a first mover is the

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 both companies have market commonality.

Often, successful imitation of the first mover's innovations allows the second mover to avoid the mistakes and major investments of the first mover.

Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.

US-owned automobile companies have recently (2011) bolstered their fuel efficient offerings in part due to __________________ (Chapter 5 Strategic Focus)

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

____ markets are often described as volatile and innovative.

Which of the following is the most strategic action by Wal-Mart?

Large firms with significant slack resources (i.e., are able to launch a greater number of competitive actions) but who remain flexible and act like small firms (i.e., are able to launch a variety of actions) will be more successful against rivals.

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 who have similar resources and who

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

and describe the situation in which organizations are direct competitors and are fully aware of the competition.