Question 1

Which of the following is not an example of a way a seller can increase switching costs?

Accepted Answer

A)  Creating a product line compatible with parts that are made by other manufacturers 
B)  Offering coupons that tie discounts to the completion of a series of transactions 
C)  Offering warranties if product is not serviced at authorized dealer 
D)  Bundling complementary products that fit together in a product line 
E)  Offering "frequent customer" points that tie promotions to the completion of a series of transactions 
A)  Creating a product line compatible with parts that are made by other manufacturers 
B)  Offering coupons that tie discounts to the completion of a series of transactions 
C)  Offering warranties if product is not serviced at authorized dealer 
D)  Bundling complementary products that fit together in a product line 
E)  Offering "frequent customer" points that tie promotions to the completion of a series of transactions A

Question 2

Which of the following is not a Legal Restriction?

Accepted Answer

A)  Patent 
B)  Copyright 
C)  Trademark 
D)  Intellectual property 
E)  Operating rights 
A)  Patent 
B)  Copyright 
C)  Trademark 
D)  Intellectual property 
E)  Operating rights D

Question 3

Which of the following terms describes a nation's position with regard to the elements (e.g.human resources,infrastructure)of production that are necessary to compete in a particular industry?

Accepted Answer

A)  Factor conditions 
B)  Demand conditions 
C)  Supply conditions 
D)  Related supplier or support industries 
E)  Strategy, structure, and rivalry 
A)  Factor conditions 
B)  Demand conditions 
C)  Supply conditions 
D)  Related supplier or support industries 
E)  Strategy, structure, and rivalry A

Question 4

What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable,it must be underpinned by resource capabilities that are scarce and imperfectly mobile?

Accepted Answer

A)  Persistence of profitability for the firm 
B)  Capability-based theory of the firm 
C)  Regression to the mean 
D)  Resource-based theory of the firm 
E)  Five-forces framework 
A)  Persistence of profitability for the firm 
B)  Capability-based theory of the firm 
C)  Regression to the mean 
D)  Resource-based theory of the firm 
E)  Five-forces framework

Question 5

Which of the following terms best describes an idea,developed by Gary Hamel and C.K.Prahalad,which combines commitment to the firm's ambitions with the flexibility to change with circumstances?

Accepted Answer

A)  Leveraging resources 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  Global dominance 
A)  Leveraging resources 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  Global dominance

Question 6

What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?

Accepted Answer

A)  Path dependence 
B)  Correlated research strategies 
C)  Evolutionary economics 
D)  Dynamic efficiency 
E)  Dynamic capabilities 
A)  Path dependence 
B)  Correlated research strategies 
C)  Evolutionary economics 
D)  Dynamic efficiency 
E)  Dynamic capabilities

Question 7

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Accepted Answer

A)  Competitive advantage 
B)  Resources 
C)  Capabilities 
D)  Threats to sustainability 
E)  Strategic firm assets 
A)  Competitive advantage 
B)  Resources 
C)  Capabilities 
D)  Threats to sustainability 
E)  Strategic firm assets

Question 8

Which of the following products and services depend on standards?

Accepted Answer

A)  Cellular communications 
B)  Internet 
C)  Video gaming 
D)  High-definition television 
E)  All of the above 
A)  Cellular communications 
B)  Internet 
C)  Video gaming 
D)  High-definition television 
E)  All of the above

Question 9

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Accepted Answer

A)  Industry for ideas 
B)  Community of ideas 
C)  Innovation market 
D)  Market for ideas 
E)  Idea environment 
A)  Industry for ideas 
B)  Community of ideas 
C)  Innovation market 
D)  Market for ideas 
E)  Idea environment

Question 10

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

Accepted Answer

A)  The replacement effect 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  The sunk cost effect 
A)  The replacement effect 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  The sunk cost effect

Question 11

What term best characterizes the battle between firms to innovate first?

Accepted Answer

A)  Market for new ideas 
B)  New product competition 
C)  R&D race 
D)  Innovation competition 
E)  Patent race 
A)  Market for new ideas 
B)  New product competition 
C)  R&D race 
D)  Innovation competition 
E)  Patent race

Question 12

Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?

Accepted Answer

A)  Riskiness of R&D 
B)  Correlated research strategies 
C)  Evolutionary economics 
D)  Dynamic efficiency 
E)  Dynamic capabilities 
A)  Riskiness of R&D 
B)  Correlated research strategies 
C)  Evolutionary economics 
D)  Dynamic efficiency 
E)  Dynamic capabilities

Question 13

What term best describes a resource that cannot "sell itself" to the highest bidder?

Accepted Answer

A)  Isolated 
B)  Value-creating 
C)  Scarce 
D)  Imperfectly mobile 
E)  Profit maximizing 
A)  Isolated 
B)  Value-creating 
C)  Scarce 
D)  Imperfectly mobile 
E)  Profit maximizing

Question 14

What term best describes firm-specific assets such as patents and trademarks,brand-name reputation,installed base,and organizational culture?

Accepted Answer

A)  Competitive advantage 
B)  Capabilities 
C)  Resources 
D)  Threats to sustainability 
E)  Strategic firm assets 
A)  Competitive advantage 
B)  Capabilities 
C)  Resources 
D)  Threats to sustainability 
E)  Strategic firm assets

Question 15

What term best describes assets that are more valuable when used together than when separated?

Accepted Answer

A)  Isolating 
B)  Value-creating 
C)  Imperfectly mobile 
D)  Scarce 
E)  Cospecialized 
A)  Isolating 
B)  Value-creating 
C)  Imperfectly mobile 
D)  Scarce 
E)  Cospecialized

Question 16

Which of the following is not an isolating mechanism that falls under the heading of early-mover advantage?

Accepted Answer

A)  Learning curve 
B)  Reputation and buyer uncertainty 
C)  Buyer switching costs 
D)  Network effects 
E)  Superior access to inputs or customers 
A)  Learning curve 
B)  Reputation and buyer uncertainty 
C)  Buyer switching costs 
D)  Network effects 
E)  Superior access to inputs or customers

Question 17

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

Accepted Answer

A)  The replacement effect 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  The sunk cost effect 
A)  The replacement effect 
B)  Strategic intent 
C)  Strategic stretch 
D)  Hypercompetition 
E)  The sunk cost effect

Question 18

What type of isolating mechanisms impedes existing firms and potential entrants from duplicating the resources and capabilities that form the basis of the firm's advantage?

Accepted Answer

A)  Scarce 
B)  Imperfectly mobile 
C)  Early-mover advantages 
D)  Impediments to imitation 
E)  Cospecialized 
A)  Scarce 
B)  Imperfectly mobile 
C)  Early-mover advantages 
D)  Impediments to imitation 
E)  Cospecialized

Question 19

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

Accepted Answer

A)  Regression to the mean 
B)  Competitive advantage 
C)  Persistent performer 
D)  Sustainable firm 
E)  Predictable performance 
A)  Regression to the mean 
B)  Competitive advantage 
C)  Persistent performer 
D)  Sustainable firm 
E)  Predictable performance

Question 20

What term describes the optimal allocation of society's resources at a given point in time?

Accepted Answer

A)  Creative destruction 
B)  Static efficiency 
C)  Dynamic efficiency 
D)  Efficient allocation 
E)  Resource efficiency 
A)  Creative destruction 
B)  Static efficiency 
C)  Dynamic efficiency 
D)  Efficient allocation 
E)  Resource efficiency

Which of the following is not an example of a way a seller can increase switching costs?

Which of the following is not a Legal Restriction?

Which of the following terms describes a nation's position with regard to the elements (e.g.human resources,infrastructure)of production that are necessary to compete in a particular industry?

What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable,it must be underpinned by resource capabilities that are scarce and imperfectly mobile?

Which of the following terms best describes an idea,developed by Gary Hamel and C.K.Prahalad,which combines commitment to the firm's ambitions with the flexibility to change with circumstances?

What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Which of the following products and services depend on standards?

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

What term best characterizes the battle between firms to innovate first?

Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?

What term best describes a resource that cannot "sell itself" to the highest bidder?

What term best describes firm-specific assets such as patents and trademarks,brand-name reputation,installed base,and organizational culture?

What term best describes assets that are more valuable when used together than when separated?

Which of the following is not an isolating mechanism that falls under the heading of early-mover advantage?

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

What type of isolating mechanisms impedes existing firms and potential entrants from duplicating the resources and capabilities that form the basis of the firm's advantage?

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

What term describes the optimal allocation of society's resources at a given point in time?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters

Exam 11: Sustaining Competitive Advantage

Which of the following is not an example of a way a seller can increase switching costs?

Which of the following is not a Legal Restriction?

Which of the following terms describes a nation's position with regard to the elements (e.g.human resources,infrastructure)of production that are necessary to compete in a particular industry?

What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable,it must be underpinned by resource capabilities that are scarce and imperfectly mobile?

Which of the following terms best describes an idea,developed by Gary Hamel and C.K.Prahalad,which combines commitment to the firm's ambitions with the flexibility to change with circumstances?

What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Which of the following products and services depend on standards?

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

What term best characterizes the battle between firms to innovate first?

Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?

What term best describes a resource that cannot "sell itself" to the highest bidder?

What term best describes firm-specific assets such as patents and trademarks,brand-name reputation,installed base,and organizational culture?

What term best describes assets that are more valuable when used together than when separated?

Which of the following is not an isolating mechanism that falls under the heading of early-mover advantage?

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

What type of isolating mechanisms impedes existing firms and potential entrants from duplicating the resources and capabilities that form the basis of the firm's advantage?

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

What term describes the optimal allocation of society's resources at a given point in time?

The Power of Principles: an Historical Perspective

Economies of Scale and Scope

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, power, and Culture

Filters