Question 1

Nalebuff and Brandenburger developed the PARTS model for analysing competitive situations using game theory concepts.PARTS stands for:

Accepted Answer

A)  playing fields, added interest, risk, tactics, search 
B)  parameters, added players, random chance, takeovers, stakeholders 
C)  players, added value, rules, tactics, scope 
D)  participation, amplification, rules, tactics, satisfaction 
A)  playing fields, added interest, risk, tactics, search 
B)  parameters, added players, random chance, takeovers, stakeholders 
C)  players, added value, rules, tactics, scope 
D)  participation, amplification, rules, tactics, satisfaction C

Question 2

Define and explain D'Aveni's 'hypercompetition' concept.What are the major competitive arenas for it to occur?

Accepted Answer

In hypercompetition conditions,market players continuously generate new competitive advantages that destroy,make obsolete or neutralise the industry leader's advantages,leaving the industry in disequilibrium and disarray.The frequency,boldness and aggressiveness of dynamic movement by players create constant disequilibrium and rapid change,often involving unexpected new players and radical redefinitions of an industry.Under such conditions,firms cannot sustain the superior profit for a meaningful period of time based on a single advantage,and the traditional strategic concepts of fit and long-term sustainable competitive advantage are inappropriate to ensure sustainable competitive advantage.
Hyper-competition may occur in four competitive arenas:
-the price-quality arena
-the know-how/timing arena
-the stronghold creation/invasion arena
-the deep pockets arena.

Question 3

The key parameters defining any specific game in game theory include:

Accepted Answer

A)  whether or not actions by competitors are simultaneous or differential 
B)  whether or not complete information about the issue is available 
C)  whether or not it is a one-off or multiperiod game 
D)  whether or not the expected outcomes are quantifiable 'payoffs' 
A)  whether or not actions by competitors are simultaneous or differential 
B)  whether or not complete information about the issue is available 
C)  whether or not it is a one-off or multiperiod game 
D)  whether or not the expected outcomes are quantifiable 'payoffs' C

Question 4

One of the key principles of game theory is:

Accepted Answer

A)  knowledge of major competitor organisations 
B)  differentiation between one-period games and repeated interaction games 
C)  reasoning backwards to the expected actions of competitors to any move 
D)  all of the above 
A)  knowledge of major competitor organisations 
B)  differentiation between one-period games and repeated interaction games 
C)  reasoning backwards to the expected actions of competitors to any move 
D)  all of the above

Question 5

Major oil producers' attempts to expand their oil production and renewable energy sources are an example of their:

Accepted Answer

A)  simultaneous and sequential strategic moves 
B)  simultaneous strategic moves 
C)  sequential strategic moves 
D)  none of the above 
A)  simultaneous and sequential strategic moves 
B)  simultaneous strategic moves 
C)  sequential strategic moves 
D)  none of the above

Question 6

In D'Aveni's model of stronghold competition,entry barriers can be built by:

Accepted Answer

A)  customer restraint and local rules 
B)  customer loyalty and familiarity 
C)  customer protection and local rules 
D)  customer power and increased advertising 
A)  customer restraint and local rules 
B)  customer loyalty and familiarity 
C)  customer protection and local rules 
D)  customer power and increased advertising

Question 7

Nalebuff and Brandenburger have argued that organisations should be hostile to all competitors.

Accepted Answer

A) True 
 B)False

Question 8

One of the main principles of game theory is to consider the unexpected reactions of the competitors.

Accepted Answer

A) True 
 B)False

Question 9

Consider the relevance of game theory in understanding business strategy.

Accepted Answer

Game theory analyses the nature of compe

Question 10

Explain the competitive options of small organisations to meet the challenges of 'deep pocket competitors'.

Accepted Answer

Small firms try to neutralise the advant

Question 11

Innovative organisations accept,understand and preserve the rules of the game.

Accepted Answer

A) True 
 B)False

Question 12

D'Aveni's model of deep pockets competition implies that:

Accepted Answer

A)  deep pockets are matched with increased advertising 
B)  deep pockets of resistance to change develop rapidly 
C)  deep pockets of industry absorption develop slowly 
D)  deep pockets lead to larger organisations initiating price wars 
A)  deep pockets are matched with increased advertising 
B)  deep pockets of resistance to change develop rapidly 
C)  deep pockets of industry absorption develop slowly 
D)  deep pockets lead to larger organisations initiating price wars

Question 13

The PARTS model introduced the idea that value chain members can both cooperate and compete at the same time.

Accepted Answer

A) True 
 B)False

Question 14

Nalebuff and Brandenburger constructed a 'value net' comprising:

Accepted Answer

A)  the competition, complementors, customers, creators, coordinators 
B)  collaborators, the opposition, flatterers, hostiles, supplementers 
C)  suppliers, the shareholders, employees, competitors, customers 
D)  complementors, customers, suppliers, competitors, the organisation 
A)  the competition, complementors, customers, creators, coordinators 
B)  collaborators, the opposition, flatterers, hostiles, supplementers 
C)  suppliers, the shareholders, employees, competitors, customers 
D)  complementors, customers, suppliers, competitors, the organisation

Question 15

D'Aveni identified four 'competitive areas':

Accepted Answer

A)  cost advantage, deep holds, strong pockets, timing-know-how 
B)  side pockets, strangleholds, knowledge-timing, total quality management 
C)  timing-know-how, cost-quality, deep pockets, strongholds 
D)  strongholds, cost-benefit, timing-anyhow, long pockets 
A)  cost advantage, deep holds, strong pockets, timing-know-how 
B)  side pockets, strangleholds, knowledge-timing, total quality management 
C)  timing-know-how, cost-quality, deep pockets, strongholds 
D)  strongholds, cost-benefit, timing-anyhow, long pockets

Question 16

Within a strategic game,players indicate their perceptions of the competitive situation by:

Accepted Answer

A)  a series of bluffs 
B)  signalling 
C)  a competitive fog 
D)  surrendering 
A)  a series of bluffs 
B)  signalling 
C)  a competitive fog 
D)  surrendering

Question 17

Which of the following industries would you consider is experiencing a declining stage of industry evolution?

Accepted Answer

A)  food manufacturing 
B)  fixed line telecommunications 
C)  Internet search 
D)  nanotechnology 
A)  food manufacturing 
B)  fixed line telecommunications 
C)  Internet search 
D)  nanotechnology

Question 18

D'Aveni postulated that 'hypercompetition' arises when:

Accepted Answer

A)  disequilibrium and rapid change by players creates constant dynamic movement 
B)  rapid disequilibrium movement by key players creates dynamic changes 
C)  rapidly changing environment creates dynamic disequilibrium and movement by players 
D)  dynamic movement by players creates constant disequilibrium and rapid change 
A)  disequilibrium and rapid change by players creates constant dynamic movement 
B)  rapid disequilibrium movement by key players creates dynamic changes 
C)  rapidly changing environment creates dynamic disequilibrium and movement by players 
D)  dynamic movement by players creates constant disequilibrium and rapid change

Question 19

D'Aveni's model of timing-know-how competition implies:

Accepted Answer

A)  a firm becoming a first mover attempts to create barriers to entry 
B)  a fresh price war results from a firm becoming a first mover 
C)  a first mover responds to barriers to entry by leapfrogging over them 
D)  new entrant matches to first mover through amalgamation 
A)  a firm becoming a first mover attempts to create barriers to entry 
B)  a fresh price war results from a firm becoming a first mover 
C)  a first mover responds to barriers to entry by leapfrogging over them 
D)  new entrant matches to first mover through amalgamation

Question 20

The three additional principles of game theory include:

Accepted Answer

A)  if the organisation has a dominant strategy, it should use it 
B)  managers must act positively for enhanced cooperation 
C)  seeking solutions in stability 
D)  all of the above 
A)  if the organisation has a dominant strategy, it should use it 
B)  managers must act positively for enhanced cooperation 
C)  seeking solutions in stability 
D)  all of the above

Nalebuff and Brandenburger developed the PARTS model for analysing competitive situations using game theory concepts.PARTS stands for:

Define and explain D'Aveni's 'hypercompetition' concept.What are the major competitive arenas for it to occur?

The key parameters defining any specific game in game theory include:

One of the key principles of game theory is:

Major oil producers' attempts to expand their oil production and renewable energy sources are an example of their:

In D'Aveni's model of stronghold competition,entry barriers can be built by:

Nalebuff and Brandenburger have argued that organisations should be hostile to all competitors.

One of the main principles of game theory is to consider the unexpected reactions of the competitors.

Consider the relevance of game theory in understanding business strategy.

Explain the competitive options of small organisations to meet the challenges of 'deep pocket competitors'.

Innovative organisations accept,understand and preserve the rules of the game.

D'Aveni's model of deep pockets competition implies that:

The PARTS model introduced the idea that value chain members can both cooperate and compete at the same time.

Nalebuff and Brandenburger constructed a 'value net' comprising:

D'Aveni identified four 'competitive areas':

Within a strategic game,players indicate their perceptions of the competitive situation by:

Which of the following industries would you consider is experiencing a declining stage of industry evolution?

D'Aveni postulated that 'hypercompetition' arises when:

D'Aveni's model of timing-know-how competition implies:

The three additional principles of game theory include:

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Corporate/multi-business strategy

Acquisitions and alliances

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters

Exam 8: Dynamic competitive strategy

Nalebuff and Brandenburger developed the PARTS model for analysing competitive situations using game theory concepts.PARTS stands for:

Define and explain D'Aveni's 'hypercompetition' concept.What are the major competitive arenas for it to occur?

The key parameters defining any specific game in game theory include:

One of the key principles of game theory is:

Major oil producers' attempts to expand their oil production and renewable energy sources are an example of their:

In D'Aveni's model of stronghold competition,entry barriers can be built by:

Nalebuff and Brandenburger have argued that organisations should be hostile to all competitors.

One of the main principles of game theory is to consider the unexpected reactions of the competitors.

Consider the relevance of game theory in understanding business strategy.

Explain the competitive options of small organisations to meet the challenges of 'deep pocket competitors'.

Innovative organisations accept,understand and preserve the rules of the game.

D'Aveni's model of deep pockets competition implies that:

The PARTS model introduced the idea that value chain members can both cooperate and compete at the same time.

Nalebuff and Brandenburger constructed a 'value net' comprising:

D'Aveni identified four 'competitive areas':

Within a strategic game,players indicate their perceptions of the competitive situation by:

Which of the following industries would you consider is experiencing a declining stage of industry evolution?

D'Aveni postulated that 'hypercompetition' arises when:

D'Aveni's model of timing-know-how competition implies:

The three additional principles of game theory include:

What is ‘strategy’?

Analysing business strategy: creating value

Analysing the external environment

Analysing the organisation’s resources and capabilities

Measuring strategic organisation performance

Gap analysis and business-level strategic options

Strategic decision making

Corporate/multi-business strategy

Acquisitions and alliances

International strategy

Capabilities,systems and structure

Leadership,people and culture

Change management

Filters