Question 1

Interestingly,technical standards create benefits primarily for those firms that do not adhere to them.

Accepted Answer

A) True 
 B)False

Question 2

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

Accepted Answer

A) True 
 B)False

Question 3

Marginal costs in high-technology industries tend to stay very low as production rises.

Accepted Answer

A) True 
 B)False

Question 4

Antibody Solutions is an American company that specializes in cell bank storage and finding and producing antibodies for bacterial and viral infections.Antibody Solutions would not be considered a high-tech company since it is not in the computer industry which is considered high-tech.

Accepted Answer

A) True 
 B)False

Question 5

The layout of the keys on a computer keyboard is an example of a technical standard.

Accepted Answer

A) True 
 B)False

Question 6

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

Accepted Answer

A)  Upward at a 45-degree angle 
B)  U-shape 
C)  Straight and vertical 
D)  J-shape 
E)  Straight and flat 
A)  Upward at a 45-degree angle 
B)  U-shape 
C)  Straight and vertical 
D)  J-shape 
E)  Straight and flat

Question 7

An example of an important complementary asset is a state-of-the-art manufacturing facility.

Accepted Answer

A) True 
 B)False

Question 8

When standards are part of the public domain,they can be used

Accepted Answer

A)  only by companies in a particular industry. 
B)  only by federal contractors. 
C)  by paying a fee to the Federal Communications Commission (FC
C) . 
D)  freely by any company. 
E)  once without payment of a fee. 
A)  only by companies in a particular industry. 
B)  only by federal contractors. 
C)  by paying a fee to the Federal Communications Commission (FC
C) . 
D)  freely by any company. 
E)  once without payment of a fee.

Question 9

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Accepted Answer

A)  a first-mover disadvantage. 
B)  outmoded technology. 
C)  a positive feedback loop. 
D)  a format war. 
E)  switching costs. 
A)  a first-mover disadvantage. 
B)  outmoded technology. 
C)  a positive feedback loop. 
D)  a format war. 
E)  switching costs.

Question 10

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n)

Accepted Answer

A)  first-mover advantage. 
B)  technological paradigm shift. 
C)  format war. 
D)  complementary product. 
E)  embryonic industry. 
A)  first-mover advantage. 
B)  technological paradigm shift. 
C)  format war. 
D)  complementary product. 
E)  embryonic industry.

Question 11

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

Accepted Answer

A) True 
 B)False

Question 12

The razor-and-blade strategy was pioneered by

Accepted Answer

A)  Procter & Gamble. 
B)  Sony. 
C)  Toyota. 
D)  Ford. 
E)  Gillette. 
A)  Procter & Gamble. 
B)  Sony. 
C)  Toyota. 
D)  Ford. 
E)  Gillette.

Question 13

All of the followingconsidered high-technology industries except:

Accepted Answer

A)  Computers 
B)  Telecommunications 
C)  Consumer electronics 
D)  Pharmaceuticals 
E)  Retail clothing 
A)  Computers 
B)  Telecommunications 
C)  Consumer electronics 
D)  Pharmaceuticals 
E)  Retail clothing

Question 14

Aggressive marketing to jump-start demand for a product often involves all of these except:

Accepted Answer

A)  substantial upfront marketing. 
B)  point-of-sale promotion techniques. 
C)  high introductory prices. 
D)  use of free sampling. 
E)  all of these are utilized in aggressive marketing to jump-start demand for a product. 
A)  substantial upfront marketing. 
B)  point-of-sale promotion techniques. 
C)  high introductory prices. 
D)  use of free sampling. 
E)  all of these are utilized in aggressive marketing to jump-start demand for a product.

Question 15

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

Accepted Answer

A)  license the innovation to others. 
B)  enter into a joint venture to protect the product. 
C)  produce the product itself. 
D)  sell the technology outright to another firm. 
E)  wait until competitors develop an alternative product. 
A)  license the innovation to others. 
B)  enter into a joint venture to protect the product. 
C)  produce the product itself. 
D)  sell the technology outright to another firm. 
E)  wait until competitors develop an alternative product.

Question 16

In high-technology industries,the underlying scientific knowledge companies use is

Accepted Answer

A)  increasing slowly. 
B)  advancing rapidly. 
C)  steadily decreasing. 
D)  tripling every quarter. 
E)  becoming stagnant. 
A)  increasing slowly. 
B)  advancing rapidly. 
C)  steadily decreasing. 
D)  tripling every quarter. 
E)  becoming stagnant.

Question 17

The works of Shakespeare and Beethoven and the English language are all examples of standards within the public domain.

Accepted Answer

A) True 
 B)False

Question 18

An adequate supply of complements to a product helps ensure that consumers

Accepted Answer

A)  will buy the company's product. 
B)  will experiment with the products of other companies. 
C)  will buy the complements to use with the products of other companies. 
D)  all of these choices. 
E)  none of these choices. 
A)  will buy the company's product. 
B)  will experiment with the products of other companies. 
C)  will buy the complements to use with the products of other companies. 
D)  all of these choices. 
E)  none of these choices.

Question 19

Which of the following is not a true statement?

Accepted Answer

A)  First movers are the first to recover the costs of a new technology. 
B)  First movers have higher pioneering costs than do later entrants. 
C)  Later entrants can avoid the mistakes of first movers. 
D)  Later entrants have lower pioneering costs than do first movers. 
E)  First movers are more likely to make mistakes than are later entrants. 
A)  First movers are the first to recover the costs of a new technology. 
B)  First movers have higher pioneering costs than do later entrants. 
C)  Later entrants can avoid the mistakes of first movers. 
D)  Later entrants have lower pioneering costs than do first movers. 
E)  First movers are more likely to make mistakes than are later entrants.

Question 20

Fortunately,technical standards always exist in the public domain so that any company can use them.

Accepted Answer

A) True 
 B)False

Interestingly,technical standards create benefits primarily for those firms that do not adhere to them.

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

Marginal costs in high-technology industries tend to stay very low as production rises.

Antibody Solutions is an American company that specializes in cell bank storage and finding and producing antibodies for bacterial and viral infections.Antibody Solutions would not be considered a high-tech company since it is not in the computer industry which is considered high-tech.

The layout of the keys on a computer keyboard is an example of a technical standard.

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

An example of an important complementary asset is a state-of-the-art manufacturing facility.

When standards are part of the public domain,they can be used

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n)

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

The razor-and-blade strategy was pioneered by

All of the followingconsidered high-technology industries except:

Aggressive marketing to jump-start demand for a product often involves all of these except:

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

In high-technology industries,the underlying scientific knowledge companies use is

The works of Shakespeare and Beethoven and the English language are all examples of standards within the public domain.

An adequate supply of complements to a product helps ensure that consumers

Which of the following is not a true statement?

Fortunately,technical standards always exist in the public domain so that any company can use them.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 7: Strategy and Technology

Interestingly,technical standards create benefits primarily for those firms that do not adhere to them.

A possible strategy for winning a format war is for a company to make sure that,in addition to the product itself,there is an adequate supply of complements.

Marginal costs in high-technology industries tend to stay very low as production rises.

Antibody Solutions is an American company that specializes in cell bank storage and finding and producing antibodies for bacterial and viral infections.Antibody Solutions would not be considered a high-tech company since it is not in the computer industry which is considered high-tech.

The layout of the keys on a computer keyboard is an example of a technical standard.

Consider a cost curve,with production volume on the horizontal axis and marginal costs on the vertical axis.What shape would the marginal cost curve most resemble in a high-tech industry?

An example of an important complementary asset is a state-of-the-art manufacturing facility.

When standards are part of the public domain,they can be used

Microsoft released its latest operating system,Windows Vista,and intended it to replace earlier versions of Windows.Buyers of Vista had to learn how to use the features of the new software; thus,buyers were facing

Cell phone technology is replacing traditional wired phone technology.This is an example of a(n)

Switching costs are the costs that consumers must bear to switch from a product based on one technological standard to a product based on another.

The razor-and-blade strategy was pioneered by

All of the followingconsidered high-technology industries except:

Aggressive marketing to jump-start demand for a product often involves all of these except:

If a first mover does not have complementary assets,barriers to imitation are low,and there are many capable competitors,the first mover should

In high-technology industries,the underlying scientific knowledge companies use is

The works of Shakespeare and Beethoven and the English language are all examples of standards within the public domain.

An adequate supply of complements to a product helps ensure that consumers

Which of the following is not a true statement?

Fortunately,technical standards always exist in the public domain so that any company can use them.

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

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters