Question 1

An industry moves from embryonic to growth stage when:

Accepted Answer

A) the sales of complementary products decline. 
B) the production costs increase. 
C) companies manufacture products in very small quantities. 
D) ongoing technological progress makes its product easier to use. 
E) mass markets for its products decline. 
A) the sales of complementary products decline. 
B) the production costs increase. 
C) companies manufacture products in very small quantities. 
D) ongoing technological progress makes its product easier to use. 
E) mass markets for its products decline. D

Question 2

Music CDs and newspaper sales have been falling as users tum 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 B

Question 3

To compete in the fragmented restaurant industry, Red Lobster Corporation built, and now operates hundreds of stores across the United States and Canada.Which of the following strategies is Red Lobster using ?

Accepted Answer

A) Acquisitions 
B) Horizontal mergers 
C) Franchising 
D) Licensing 
E) Chaining 
A) Acquisitions 
B) Horizontal mergers 
C) Franchising 
D) Licensing 
E) Chaining E

Question 4

Firms sometimes pursue a chaining strategy to:

Accepted Answer

A) obtain the advantages of cost leadership. 
B) create product diversity. 
C) generate revenue by licensing the patents it owns. 
D) spread overhead costs. 
E) establish a number of unrelated business units. 
A) obtain the advantages of cost leadership. 
B) create product diversity. 
C) generate revenue by licensing the patents it owns. 
D) spread overhead costs. 
E) establish a number of unrelated business units.

Question 5

Laggards are the customers who are the first ones to try and adopt a new technology.

Accepted Answer

A) True 
 B)False

Question 6

Franchisees essentially pursue independent strategies and do not use the business model of the franchisor.

Accepted Answer

A) True 
 B)False

Question 7

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 8

In the embryonic stage of the industry life cycle, a company's investment needs and production costs are low.

Accepted Answer

A) True 
 B)False

Question 9

Highest market demand and industry profits arise when:

Accepted Answer

A) early adopters leave the market. 
B) innovators and early adopters enter the market. 
C) when laggards and late majority leave the market. 
D) early and late majority users enter the market. 
E) when the production costs become high. 
A) early adopters leave the market. 
B) innovators and early adopters enter the market. 
C) when laggards and late majority leave the market. 
D) early and late majority users enter the market. 
E) when the production costs become high.

Question 10

A strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Accepted Answer

A) divestment 
B) harvest 
C) price signaling 
D) leadership 
E) capacity control 
A) divestment 
B) harvest 
C) price signaling 
D) leadership 
E) capacity control

Question 11

Early adopters are customers who purchase a new technology or product only when they are convinced that it will be around for a long time.

Accepted Answer

A) True 
 B)False

Question 12

A telecommunications firm is working on new product concept of built-in routers in mobile phones.If the new product will be sold to existing customers, the finn is pursuing a strategy of:

Accepted Answer

A) product development. 
B) market penetration. 
C) product proliferation. 
D) market signaling. 
E) market development 
A) product development. 
B) market penetration. 
C) product proliferation. 
D) market signaling. 
E) market development

Question 13

In deciding on a strategy, a company in a declining industry must do all of the following except

Accepted Answer

A) lower prices. 
B) manage industry capacity. 
C) evaluate its strengths relative to the remaining pockets of demand. 
D) evaluate the severity of decline. 
E) monitor its cash flow. 
A) lower prices. 
B) manage industry capacity. 
C) evaluate its strengths relative to the remaining pockets of demand. 
D) evaluate the severity of decline. 
E) monitor its cash flow.

Question 14

Product proliferation refers to the strategy of filling the niches by catering to the needs of customers in all market segments.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about fragmented industries?

Accepted Answer

A) They are usually characterized by large mass-production operations. 
B) They essentially enjoy a national brand loyalty. 
C) They require companies to use focus strategies because of specialized customer needs. 
D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale. 
E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices. 
A) They are usually characterized by large mass-production operations. 
B) They essentially enjoy a national brand loyalty. 
C) They require companies to use focus strategies because of specialized customer needs. 
D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale. 
E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices.

Question 16

Horizontal mergers often lead to industry fragmentation.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Thomas 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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

An industry moves from embryonic to growth stage when:

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

To compete in the fragmented restaurant industry, Red Lobster Corporation built, and now operates hundreds of stores across the United States and Canada.Which of the following strategies is Red Lobster using ?

Firms sometimes pursue a chaining strategy to:

Laggards are the customers who are the first ones to try and adopt a new technology.

Franchisees essentially pursue independent strategies and do not use the business model of the franchisor.

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

In the embryonic stage of the industry life cycle, a company's investment needs and production costs are low.

Highest market demand and industry profits arise when:

A strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Early adopters are customers who purchase a new technology or product only when they are convinced that it will be around for a long time.

A telecommunications firm is working on new product concept of built-in routers in mobile phones.If the new product will be sold to existing customers, the finn is pursuing a strategy of:

In deciding on a strategy, a company in a declining industry must do all of the following except

Product proliferation refers to the strategy of filling the niches by catering to the needs of customers in all market segments.

Which of the following statements is true about fragmented industries?

Horizontal mergers often lead to industry fragmentation.

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

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

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.

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

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

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 6: Business-Level Strategy and the Industry Environment

An industry moves from embryonic to growth stage when:

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

To compete in the fragmented restaurant industry, Red Lobster Corporation built, and now operates hundreds of stores across the United States and Canada.Which of the following strategies is Red Lobster using ?

Firms sometimes pursue a chaining strategy to:

Laggards are the customers who are the first ones to try and adopt a new technology.

Franchisees essentially pursue independent strategies and do not use the business model of the franchisor.

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

In the embryonic stage of the industry life cycle, a company's investment needs and production costs are low.

Highest market demand and industry profits arise when:

A strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Early adopters are customers who purchase a new technology or product only when they are convinced that it will be around for a long time.

A telecommunications firm is working on new product concept of built-in routers in mobile phones.If the new product will be sold to existing customers, the finn is pursuing a strategy of:

In deciding on a strategy, a company in a declining industry must do all of the following except

Product proliferation refers to the strategy of filling the niches by catering to the needs of customers in all market segments.

Which of the following statements is true about fragmented industries?

Horizontal mergers often lead to industry fragmentation.

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

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

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.

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

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

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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters