Question 1

If a firm is more profitable than its rivals,this invariably means that it possesses a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 2

The difference between "search goods" and "experience goods" depends upon whether customers can ascertain the product's true attributes: on inspection or only after consuming the product

Accepted Answer

A) True 
 B)False

Question 3

Banks spend more money on their head office buildings than most other large corporations because:

Accepted Answer

A) They tend to be located in financial centers where property prices are high 
B) They offer "experience goods",hence they need to signal wealth and stability 
C) Their CEOs are more committed to the display of wealth than other CEOs 
D) Because their products are essentially commodities,they need to find alternative ways of differentiating. 
A) They tend to be located in financial centers where property prices are high 
B) They offer "experience goods",hence they need to signal wealth and stability 
C) Their CEOs are more committed to the display of wealth than other CEOs 
D) Because their products are essentially commodities,they need to find alternative ways of differentiating.

Question 4

Most of the business models deployed in electronic commerce have no historical precedence

Accepted Answer

A) True 
 B)False

Question 5

Cost and differentiation strategies are similar in terms of their potential to confer sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 6

The usefulness of the strategy canvas in developing blue ocean strategies rests on its ability to:

Accepted Answer

A) Suggest possible applications of frontier technologies 
B) Identify opportunities for recombining existing product attributes in novel ways 
C) Identify unfulfilled customwer needs 
D) Reconfigure a firm's value chain 
A) Suggest possible applications of frontier technologies 
B) Identify opportunities for recombining existing product attributes in novel ways 
C) Identify unfulfilled customwer needs 
D) Reconfigure a firm's value chain

Question 7

Which of the following product categories offers the greatest potential for differentiation?

Accepted Answer

A) Clothes and restaurants 
B) Cement and wheat 
C) Jet fuel for airline jets 
D) Sulfur and ethylene 
A) Clothes and restaurants 
B) Cement and wheat 
C) Jet fuel for airline jets 
D) Sulfur and ethylene

Question 8

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

Accepted Answer

A) True 
 B)False

Question 9

A firm's competitive advantage is not necessarily revealed in higher profitability;it may be reflected in:

Accepted Answer

A) Expanding market share 
B) An aggressive quest for acquisitions 
C) Increasing employee bonuses 
D) Expanding market share and/or increasing employee bonuses 
A) Expanding market share 
B) An aggressive quest for acquisitions 
C) Increasing employee bonuses 
D) Expanding market share and/or increasing employee bonuses

Question 10

The fact that a firm's "activity system" comprises closely linked,complementary activities simplifies the task of imitating a competitor's strategy.

Accepted Answer

A) True 
 B)False

Question 11

In strategic management,the expression "blue oceans" refers to:

Accepted Answer

A) Radical innovation 
B) The potential offered by uncontested market space 
C) The campaign to reduce pollution in the world's oceans 
D) Cost reduction through offshoring production 
A) Radical innovation 
B) The potential offered by uncontested market space 
C) The campaign to reduce pollution in the world's oceans 
D) Cost reduction through offshoring production

Question 12

In order to discover a "blue ocean" of uncontested market space,a firm must use technological innovation to create a new product market

Accepted Answer

A) True 
 B)False

Question 13

When an industry is subject to externally generated changes,the firms which are most likely to establish a competitive advantage are:

Accepted Answer

A) Those with the highest market share 
B) Those that that respond most quickly to the change and have the resources and capabilities that are most closely aligned to the emerging success factors 
C) Those with the greatest agility and capacity for innovation 
D) A combination of (a), (b),and (c). 
A) Those with the highest market share 
B) Those that that respond most quickly to the change and have the resources and capabilities that are most closely aligned to the emerging success factors 
C) Those with the greatest agility and capacity for innovation 
D) A combination of (a), (b),and (c).

Question 14

Isolating mechanisms are:

Accepted Answer

A) Barriers to the erosion of interfirm profit differentials 
B) Mechanisms that impede the equilibration of rents between industries 
C) The same as "barriers to mobility" 
D) Sources of disequilibrium that cause the profitability of different firms in an industry to diverge over time 
A) Barriers to the erosion of interfirm profit differentials 
B) Mechanisms that impede the equilibration of rents between industries 
C) The same as "barriers to mobility" 
D) Sources of disequilibrium that cause the profitability of different firms in an industry to diverge over time

Question 15

Competitive advantage without purposeful activity by a firm-it may arise through it being favored by an external change.

Accepted Answer

A) True 
 B)False

Question 16

The main challenge of business model innovations is conceiving of novel business models,not implementing them.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not an isolating mechanism?

Accepted Answer

A) Private ownership of a company which means that it is not obliged to publish its financial statements 
B) Competitive advantage which is based upon the interaction of a number of different resources and capabilities 
C) Competitive advantage based upon exploiting pricing anomalies 
D) Competitive advantage based upon resources that are difficult to transfer and slow to replicate. 
A) Private ownership of a company which means that it is not obliged to publish its financial statements 
B) Competitive advantage which is based upon the interaction of a number of different resources and capabilities 
C) Competitive advantage based upon exploiting pricing anomalies 
D) Competitive advantage based upon resources that are difficult to transfer and slow to replicate.

Question 18

Pre-emption strategies can help sustain a firm's competitive advantage through:

Accepted Answer

A) Reducing the opportunities available to competiors to invade the firm's strategic space 
B) Threatening compeitors with retaliation 
C) Engaging in limit pricing that makes entry unprofitable for would-be rivals 
D) Reinforcing barriers of mobility 
A) Reducing the opportunities available to competiors to invade the firm's strategic space 
B) Threatening compeitors with retaliation 
C) Engaging in limit pricing that makes entry unprofitable for would-be rivals 
D) Reinforcing barriers of mobility

Question 19

Physical characteristics of a product are of little importance in determining its potential for differentiation

Accepted Answer

A) True 
 B)False

Question 20

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

Accepted Answer

A) True 
 B)False

If a firm is more profitable than its rivals,this invariably means that it possesses a competitive advantage.

The difference between "search goods" and "experience goods" depends upon whether customers can ascertain the product's true attributes: on inspection or only after consuming the product

Banks spend more money on their head office buildings than most other large corporations because:

Most of the business models deployed in electronic commerce have no historical precedence

Cost and differentiation strategies are similar in terms of their potential to confer sustainable competitive advantage.

The usefulness of the strategy canvas in developing blue ocean strategies rests on its ability to:

Which of the following product categories offers the greatest potential for differentiation?

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

A firm's competitive advantage is not necessarily revealed in higher profitability;it may be reflected in:

The fact that a firm's "activity system" comprises closely linked,complementary activities simplifies the task of imitating a competitor's strategy.

In strategic management,the expression "blue oceans" refers to:

In order to discover a "blue ocean" of uncontested market space,a firm must use technological innovation to create a new product market

When an industry is subject to externally generated changes,the firms which are most likely to establish a competitive advantage are:

Isolating mechanisms are:

Competitive advantage without purposeful activity by a firm-it may arise through it being favored by an external change.

The main challenge of business model innovations is conceiving of novel business models,not implementing them.

Which of the following is not an isolating mechanism?

Pre-emption strategies can help sustain a firm's competitive advantage through:

Physical characteristics of a product are of little importance in determining its potential for differentiation

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

The Concept of Strategy

Goals, Values, and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

B :The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

Filters

Exam 7: A : The Sources and Dimensions of Competitive Advantage

If a firm is more profitable than its rivals,this invariably means that it possesses a competitive advantage.

The difference between "search goods" and "experience goods" depends upon whether customers can ascertain the product's true attributes: on inspection or only after consuming the product

Banks spend more money on their head office buildings than most other large corporations because:

Most of the business models deployed in electronic commerce have no historical precedence

Cost and differentiation strategies are similar in terms of their potential to confer sustainable competitive advantage.

The usefulness of the strategy canvas in developing blue ocean strategies rests on its ability to:

Which of the following product categories offers the greatest potential for differentiation?

Sustainable competitive advantage can be established in all types of market-including those financial markets deemed to be "efficient."

A firm's competitive advantage is not necessarily revealed in higher profitability;it may be reflected in:

The fact that a firm's "activity system" comprises closely linked,complementary activities simplifies the task of imitating a competitor's strategy.

In strategic management,the expression "blue oceans" refers to:

In order to discover a "blue ocean" of uncontested market space,a firm must use technological innovation to create a new product market

When an industry is subject to externally generated changes,the firms which are most likely to establish a competitive advantage are:

Isolating mechanisms are:

Competitive advantage without purposeful activity by a firm-it may arise through it being favored by an external change.

The main challenge of business model innovations is conceiving of novel business models,not implementing them.

Which of the following is not an isolating mechanism?

Pre-emption strategies can help sustain a firm's competitive advantage through:

Physical characteristics of a product are of little importance in determining its potential for differentiation

A firm's competitive advantages can only be sustained if it is protected by some form of "isolating mechanisms."

The Concept of Strategy

Goals, Values, and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

B :The Sources and Dimensions of Competitive Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Vertical Integration and the Scope of the Firm

Global Strategy and the Multinational Corporation

Diversification Strategy

Implementing Corporate Strategy: Managing the Multibusiness Firm

External Growth Strategies: Mergers, Acquisitions, and Alliances

Current Trends in Strategic Management

Filters