Question 1

The contribution of game theory to the field of strategic management is in:

Accepted Answer

A) Generating more accurate predictions about competitive behavior 
B) Extending the theory of competition to embrace cooperation 
C) Extending the analysis of competitive behavior to the realms of politics,diplomacy,and social behavior 
D) Permitting a more rigorous framing of competitive situations and strategic decisions

Question 2

Business model mapping is a useful technique for developing strategy for firms:

Accepted Answer

A) In mature industries 
B) In technology-based industries 
C) Which inhabit complex business ecosystems 
D) Which are seeking venture capital funding

Question 3

A strategic groups consists of:

Accepted Answer

A) Firms that follow the same generic strategies (e.g.cost leadership or differentiation) 
B) Firms within an industry that have similar strategies 
C) Firms that occupy the same industry segment 
D) Firms that target the same customer groups

Question 4

In common with the Porter five forces framework,the Schumpeterian approach views competitive behavior as the outcome of industry structure.

Accepted Answer

A) True 
 B)False

Question 5

Signaling refers to:

Accepted Answer

A) Communications that announce your strategic intentions or plans to rivals 
B) Any deliberate action that is intended to influence other players' perceptions or behavior 
C) Deception through misinformation 
D) Internal communications that divert strategic orientations and obtain the buy-in of the organization's key stakeholders

Question 6

The tendency for both Coca-Cola and Pepsi to compete through large advertising budgets which have little impact on their relative market shares cannot be a true example of a "prisoners' dilemma" because both firms remain highly profitable.

Accepted Answer

A) True 
 B)False

Question 7

Competitive intelligence,the systematic collection and analysis of information about rival firms,is:

Accepted Answer

A) A practice which,though legal in most countries,is unethical 
B) Likely to distract firms from their efforts to establish positions of competitive advantage based upon their distinctive strengths 
C) An important component of a firm's environmental scanning and strategic analysis 
D) A useful activity because it can help firms imitate the strategies of their more successful competitors.

Question 8

Where different firms supply different products that link together to form a system,power typically resides with the form that supplies the platform-the interface between the different component products.

Accepted Answer

A) True 
 B)False

Question 9

Porter's five forces model offers a rigorous,empirically-validated approach to explaining the variation in profitability across industries

Accepted Answer

A) True 
 B)False

Question 10

The suppliers of video game consoles (Sony,Microsoft and Nintendo)are less able to appropriate the profits generated by the sales of video game systems because of d the growing size and power of the video game developers and publishers.

Accepted Answer

A) True 
 B)False

Exam 4: Further Topics in Industry and Competitive Analysis

The contribution of game theory to the field of strategic management is in:

Business model mapping is a useful technique for developing strategy for firms:

A strategic groups consists of:

In common with the Porter five forces framework,the Schumpeterian approach views competitive behavior as the outcome of industry structure.

Signaling refers to:

The tendency for both Coca-Cola and Pepsi to compete through large advertising budgets which have little impact on their relative market shares cannot be a true example of a "prisoners' dilemma" because both firms remain highly profitable.

Competitive intelligence,the systematic collection and analysis of information about rival firms,is:

Where different firms supply different products that link together to form a system,power typically resides with the form that supplies the platform-the interface between the different component products.

Porter's five forces model offers a rigorous,empirically-validated approach to explaining the variation in profitability across industries

The suppliers of video game consoles (Sony,Microsoft and Nintendo)are less able to appropriate the profits generated by the sales of video game systems because of d the growing size and power of the video game developers and publishers.