Question 1

Product proliferation often results in lowering of entry barriers in a mature industry.

Accepted Answer

A) True 
 B)False

Question 2

Alpha corporation owns and controls several retail outlets and is pursuing a strategy called franchising.

Accepted Answer

A) True 
 B)False

Question 3

Horizontal mergers often lead to industry fragmentation.

Accepted Answer

A) True 
 B)False

Question 4

Tom tends to be ignorant about technological advancements. He was reluctant to own a smartphone even when they were well-established and familiar in the market. However, Thomas slowly got used to the idea of a smartphone when his job demanded him to be connected to the office network all the time. Thomas is most likely to fall under which of the following categories of customers?

Accepted Answer

A)  Early majority 
B)  Late majority 
C)  Laggards 
D)  Early adopters 
E)  Innovators 
A)  Early majority 
B)  Late majority 
C)  Laggards 
D)  Early adopters 
E)  Innovators

Question 5

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

Accepted Answer

A) True 
 B)False

Question 6

A divestment strategy's success is often dependent upon good timing.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of embryonic industries?

Accepted Answer

A)  They are characterized by very a high initial customer demand. 
B)  They are characterized by well-developed distribution channels. 
C)  They involve low production costs because of large volumes of production. 
D)  They face the challenge of educating customers who are not familiar with their product benefits. 
E)  They enjoy the abundance of complementary products that help increase sales. 
A)  They are characterized by very a high initial customer demand. 
B)  They are characterized by well-developed distribution channels. 
C)  They involve low production costs because of large volumes of production. 
D)  They face the challenge of educating customers who are not familiar with their product benefits. 
E)  They enjoy the abundance of complementary products that help increase sales.

Question 8

The growth stage of an industry's life cycle is the:

Accepted Answer

A)  time when companies attempt to secure their grip over customers in existing market segments. 
B)  time when customers start exiting the markets. 
C)  time to plan an exit strategy. 
D)  time to reduce investment in a product. 
E)  time when the demand for products is low because customers are not familiar with the product. 
A)  time when companies attempt to secure their grip over customers in existing market segments. 
B)  time when customers start exiting the markets. 
C)  time to plan an exit strategy. 
D)  time to reduce investment in a product. 
E)  time when the demand for products is low because customers are not familiar with the product.

Question 9

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following factors of a particular product tends to accelerate customer demand for it?

Accepted Answer

A)  High observability 
B)  Minimum relative advantage 
C)  High complexity 
D)  Minimal value 
E)  Low trialability 
A)  High observability 
B)  Minimum relative advantage 
C)  High complexity 
D)  Minimal value 
E)  Low trialability

Question 11

Which of the following strategies helps companies with high cost structures, allowing them to survive without having to implement strategies to become more productive and efficient?

Accepted Answer

A)  Price signaling 
B)  Nonprice competition 
C)  Capacity control 
D)  Market development 
E)  Price leadership 
A)  Price signaling 
B)  Nonprice competition 
C)  Capacity control 
D)  Market development 
E)  Price leadership

Question 12

___________ is a market growth factor that refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people.

Accepted Answer

A)  Complexity 
B)  Relative advantage 
C)  Compatibility 
D)  Trialability 
E)  Observability 
A)  Complexity 
B)  Relative advantage 
C)  Compatibility 
D)  Trialability 
E)  Observability

Question 13

Which of the following statements is true of growing industries?

Accepted Answer

A)  Innovators and early adopters have the same customer needs as the early majority. 
B)  Innovators and early adopters are typically reached through specialized distribution channels. 
C)  Reaching the early majority rarely requires advertising and is usually achieved through word of mouth. 
D)  Companies serving innovators need to have large-scale mass production and very low prices. 
E)  Companies competing in an embryonic market typically pay more attention to increasing the reliability of a product than to its performance. 
A)  Innovators and early adopters have the same customer needs as the early majority. 
B)  Innovators and early adopters are typically reached through specialized distribution channels. 
C)  Reaching the early majority rarely requires advertising and is usually achieved through word of mouth. 
D)  Companies serving innovators need to have large-scale mass production and very low prices. 
E)  Companies competing in an embryonic market typically pay more attention to increasing the reliability of a product than to its performance.

Question 14

Which of the following statements is true of declining industries?

Accepted Answer

A)  Typically, not all segments of an industry decline at the same rate. 
B)  A declining industry should ideally use the leadership strategy when it does not have any strengths and the competition is low. 
C)  Divestment strategy is when a company in a declining industry tries to improve sales by improving product quality. 
D)  The greater the exit barriers of a declining industry, the lower the intensity of competition. 
E)  The intensity of competition lower in declining industries that sell commodity-like products. 
A)  Typically, not all segments of an industry decline at the same rate. 
B)  A declining industry should ideally use the leadership strategy when it does not have any strengths and the competition is low. 
C)  Divestment strategy is when a company in a declining industry tries to improve sales by improving product quality. 
D)  The greater the exit barriers of a declining industry, the lower the intensity of competition. 
E)  The intensity of competition lower in declining industries that sell commodity-like products.

Question 15

One strategy used to consolidate fragmented industries is:

Accepted Answer

A)  vertical mergers. 
B)  chaining. 
C)  product proliferation. 
D)  price signaling. 
E)  nonprice competition. 
A)  vertical mergers. 
B)  chaining. 
C)  product proliferation. 
D)  price signaling. 
E)  nonprice competition.

Question 16

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the proceeds of its investment as much as it can?

Accepted Answer

A)  Market concentration strategy 
B)  Share-increasing strategy 
C)  Cost-leadership strategy 
D)  Hold-and-maintain strategy 
E)  Harvest strategy 
A)  Market concentration strategy 
B)  Share-increasing strategy 
C)  Cost-leadership strategy 
D)  Hold-and-maintain strategy 
E)  Harvest strategy

Question 17

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Accepted Answer

A) True 
 B)False

Question 18

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

Accepted Answer

A)  Leadership 
B)  Chaining 
C)  Niche 
D)  Divestment 
E)  Harvest 
A)  Leadership 
B)  Chaining 
C)  Niche 
D)  Divestment 
E)  Harvest

Question 19

An embryonic industry is one that:

Accepted Answer

A)  includes a number of small and medium sized companies. 
B)  is just beginning to develop and customer demand is initially limited. 
C)  has sufficiently developed so that early industry leaders have already been identified. 
D)  has initial government backing because of its importance to the general populace. 
E)  is characterized by intense rivalry among established companies. 
A)  includes a number of small and medium sized companies. 
B)  is just beginning to develop and customer demand is initially limited. 
C)  has sufficiently developed so that early industry leaders have already been identified. 
D)  has initial government backing because of its importance to the general populace. 
E)  is characterized by intense rivalry among established companies.

Question 20

Both innovators and early adopters are customers in the market while the industry is in its embryonic stage.

Accepted Answer

A) True 
 B)False

Product proliferation often results in lowering of entry barriers in a mature industry.

Alpha corporation owns and controls several retail outlets and is pursuing a strategy called franchising.

Horizontal mergers often lead to industry fragmentation.

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

A divestment strategy's success is often dependent upon good timing.

Which of the following statements is true of embryonic industries?

The growth stage of an industry's life cycle is the:

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Which of the following factors of a particular product tends to accelerate customer demand for it?

Which of the following strategies helps companies with high cost structures, allowing them to survive without having to implement strategies to become more productive and efficient?

___________ is a market growth factor that refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people.

Which of the following statements is true of growing industries?

Which of the following statements is true of declining industries?

One strategy used to consolidate fragmented industries is:

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the proceeds of its investment as much as it can?

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

An embryonic industry is one that:

Both innovators and early adopters are customers in the market while the industry is in its embryonic stage.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 6: Business-Level Strategy and the Industry Environment

Product proliferation often results in lowering of entry barriers in a mature industry.

Alpha corporation owns and controls several retail outlets and is pursuing a strategy called franchising.

Horizontal mergers often lead to industry fragmentation.

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

A divestment strategy's success is often dependent upon good timing.

Which of the following statements is true of embryonic industries?

The growth stage of an industry's life cycle is the:

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Which of the following factors of a particular product tends to accelerate customer demand for it?

Which of the following strategies helps companies with high cost structures, allowing them to survive without having to implement strategies to become more productive and efficient?

___________ is a market growth factor that refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people.

Which of the following statements is true of growing industries?

Which of the following statements is true of declining industries?

One strategy used to consolidate fragmented industries is:

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the proceeds of its investment as much as it can?

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Music CDs and newspaper sales have been falling as users turn to the Internet for their music and news. Which of the following is NOT a strategy for companies in these declining industries?

An embryonic industry is one that:

Both innovators and early adopters are customers in the market while the industry is in its embryonic stage.

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters