Question 1

Isolating mechanisms are barriers limiting the equalization of rents among firms, i.e. phenomena that erode a firm's competitive advantages

Accepted Answer

A) True 
 B)False  False

Question 2

If in a vegetable market, prices reflect all available information and adjust instantaneously:

Accepted Answer

A) This is a perfect market 
B) This is a monopolistic market 
C) This is an efficient market 
D) This is a common or 'garden' market 
A) This is a perfect market 
B) This is a monopolistic market 
C) This is an efficient market 
D) This is a common or 'garden' market C

Question 3

Once established, competitive advantage is:

Accepted Answer

A) Relatively stable over time 
B) Subject to erosion by competitors or entrants 
C) A firm's reward for leading the industry 
D) Easily maintained unless entry barriers are high 
A) Relatively stable over time 
B) Subject to erosion by competitors or entrants 
C) A firm's reward for leading the industry 
D) Easily maintained unless entry barriers are high B

Question 4

Nintendo competes against Sony and Microsoft:

Accepted Answer

A) With a very different resource base 
B) And has gained market share 
C) And has a distinctive strategy for its Wii 
D) All of the above 
A) With a very different resource base 
B) And has gained market share 
C) And has a distinctive strategy for its Wii 
D) All of the above

Question 5

How can a firm test the resources and capabilities fundamental to its success without actually implementing them and investing the corresponding money?

Accepted Answer

Such a test would prove to be difficult

Question 6

Cost leadership and differentiation are:

Accepted Answer

A) Two of Michael Porter's original five forces 
B) Two of Michael Porter's generic strategies 
C) Both of the above 
D) Neither of the above 
A) Two of Michael Porter's original five forces 
B) Two of Michael Porter's generic strategies 
C) Both of the above 
D) Neither of the above

Question 7

The expiration of the Nutrasweet artificial sweetener's patent was a real issue for:

Accepted Answer

A) Monsanto 
B) Pfizer 
C) Merck 
D) All customers 
A) Monsanto 
B) Pfizer 
C) Merck 
D) All customers

Question 8

Is competitive advantage sustainable?

Accepted Answer

Competitive advantage is in general not

Question 9

Requirements for quick organizational response to a turbulent environment are:

Accepted Answer

A) Flexible manufacturing systems and a good 'gut' feel for customer trends 
B) Excellent resources and capabilities 
C) Short product launch cycle times and excellent quality control 
D) Quick, accurate information, and short product launch cycle times 
A) Flexible manufacturing systems and a good 'gut' feel for customer trends 
B) Excellent resources and capabilities 
C) Short product launch cycle times and excellent quality control 
D) Quick, accurate information, and short product launch cycle times

Question 10

Transaction costs include:

Accepted Answer

A) Search costs 
B) Negotiation costs 
C) Contract enforcement costs 
D) All of the above 
A) Search costs 
B) Negotiation costs 
C) Contract enforcement costs 
D) All of the above

Question 11

A firm can create competitive advantage by responding better than rivals to changes in its environment or by maintaining strategic differences from its rivals that customers accept

Accepted Answer

A) True 
 B)False

Question 12

Benefiting from the "first mover advantage" implies that a firm:

Accepted Answer

A) Cannot be removed from the market 
B) Was the first in a market 
C) Gains access to assets that a follower cannot match 
D) Must now be successful 
A) Cannot be removed from the market 
B) Was the first in a market 
C) Gains access to assets that a follower cannot match 
D) Must now be successful

Question 13

To imitate the competitive advantage of another company, a firm must first:

Accepted Answer

A) Understand the basis of its rival's success 
B) Collect comprehensive information about its rival 
C) Analyze its rival's marketing strategy 
D) None of the above 
A) Understand the basis of its rival's success 
B) Collect comprehensive information about its rival 
C) Analyze its rival's marketing strategy 
D) None of the above

Question 14

The existence of first mover advantage and the fact that the market is small relative to the minimum efficient scale of production:

Accepted Answer

A) Are two market imperfections that impact the ability to sustain competitive advantage 
B) Are two market imperfections that impact the ability to sustain competitive advantage through preemption 
C) Are general attributes of any market 
D) Are unrelated 
A) Are two market imperfections that impact the ability to sustain competitive advantage 
B) Are two market imperfections that impact the ability to sustain competitive advantage through preemption 
C) Are general attributes of any market 
D) Are unrelated

Question 15

What is one of the relationships between change and entrepreneurship?

Accepted Answer

Change provides business opportunities.

Question 16

Regarding causal ambiguity and uncertain imitability :

Accepted Answer

A) These are academic phrases to describe a state of confusion 
B) Causal ambiguity causes uncertain imitability 
C) Anyone who tries to imitate something they don't fully understand is asking for trouble 
D) All of the above are true 
A) These are academic phrases to describe a state of confusion 
B) Causal ambiguity causes uncertain imitability 
C) Anyone who tries to imitate something they don't fully understand is asking for trouble 
D) All of the above are true

Question 17

Can two firms benefit from the same competitive advantage?

Accepted Answer

In theory, a competitive advantage exist

Question 18

The development of "collateralized debt obligations", by Drexel Burnham Lambert, shows that:

Accepted Answer

A) Well-paid bankers always come up with good ideas 
B) The financial system can be very fragile 
C) Financial products are easily copied so first movers must quickly establish a large track record of successful trades 
D) A financial crisis was inevitable 
A) Well-paid bankers always come up with good ideas 
B) The financial system can be very fragile 
C) Financial products are easily copied so first movers must quickly establish a large track record of successful trades 
D) A financial crisis was inevitable

Question 19

Why do we need the concept of competitive advantage if we identify it with superior financial returns?

Accepted Answer

We need to differentiate the two concept

Question 20

The case of "Urban Outfitters" illustrates:

Accepted Answer

A) Complexity theory 
B) That a strategy that successfully integrates many unique features is very hard to copy 
C) Excellence of personal leadership 
D) All of the above 
A) Complexity theory 
B) That a strategy that successfully integrates many unique features is very hard to copy 
C) Excellence of personal leadership 
D) All of the above

Isolating mechanisms are barriers limiting the equalization of rents among firms, i.e. phenomena that erode a firm's competitive advantages

If in a vegetable market, prices reflect all available information and adjust instantaneously:

Once established, competitive advantage is:

Nintendo competes against Sony and Microsoft:

How can a firm test the resources and capabilities fundamental to its success without actually implementing them and investing the corresponding money?

Cost leadership and differentiation are:

The expiration of the Nutrasweet artificial sweetener's patent was a real issue for:

Is competitive advantage sustainable?

Requirements for quick organizational response to a turbulent environment are:

Transaction costs include:

A firm can create competitive advantage by responding better than rivals to changes in its environment or by maintaining strategic differences from its rivals that customers accept

Benefiting from the "first mover advantage" implies that a firm:

To imitate the competitive advantage of another company, a firm must first:

The existence of first mover advantage and the fact that the market is small relative to the minimum efficient scale of production:

What is one of the relationships between change and entrepreneurship?

Regarding causal ambiguity and uncertain imitability :

Can two firms benefit from the same competitive advantage?

The development of "collateralized debt obligations", by Drexel Burnham Lambert, shows that:

Why do we need the concept of competitive advantage if we identify it with superior financial returns?

The case of "Urban Outfitters" illustrates:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

Cost Advantage

Differentiation Advantage

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 Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters

Exam 8: The Nature and Sources of Competitive Advantage

Isolating mechanisms are barriers limiting the equalization of rents among firms, i.e. phenomena that erode a firm's competitive advantages

If in a vegetable market, prices reflect all available information and adjust instantaneously:

Once established, competitive advantage is:

Nintendo competes against Sony and Microsoft:

How can a firm test the resources and capabilities fundamental to its success without actually implementing them and investing the corresponding money?

Cost leadership and differentiation are:

The expiration of the Nutrasweet artificial sweetener's patent was a real issue for:

Is competitive advantage sustainable?

Requirements for quick organizational response to a turbulent environment are:

Transaction costs include:

A firm can create competitive advantage by responding better than rivals to changes in its environment or by maintaining strategic differences from its rivals that customers accept

Benefiting from the "first mover advantage" implies that a firm:

To imitate the competitive advantage of another company, a firm must first:

The existence of first mover advantage and the fact that the market is small relative to the minimum efficient scale of production:

What is one of the relationships between change and entrepreneurship?

Regarding causal ambiguity and uncertain imitability :

Can two firms benefit from the same competitive advantage?

The development of "collateralized debt obligations", by Drexel Burnham Lambert, shows that:

Why do we need the concept of competitive advantage if we identify it with superior financial returns?

The case of "Urban Outfitters" illustrates:

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

Cost Advantage

Differentiation Advantage

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 Strategies and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Management of the Multibusiness Firm

Current Trends in Strategic Management

Filters