Question 1

​The main goal of a differentiation strategy is to:

Accepted Answer

A)   ​Target the average customers for mass market.
B)   ​Identify the attributes and deliver products that attract customers willing to pay a premium price.
C)   ​Relentlessly cut costs in producing the products customers desire.
D)   ​All of the above.E) None of the above
F) B) and C)

Question 2

Which of the following is NOT true regarding supplier relationships?

Accepted Answer

A)   Supplier relationships that are too close may introduce rigidities,including loss of flexibility.
B)   In Japan suppliers may become trusted members of the keiretsu.
C)   In Japan,instead of treating suppliers as adversaries,they are treated as collaboration partners.
D)   Supplier relationships in Japan tend to be ineffective.E) A) and D)
F) All of the above

Question 3

Recent work favors outsourcing and willingness to collaborate with suppliers/buyers,as well as competitors.

Accepted Answer

A) True 
 B)False

Question 4

​Cost leaders are significantly and negatively affected when strong suppliers decrease their prices.

Accepted Answer

A) True 
 B)False

Question 5

​For firms following a cost leadership strategy,their goal is a:

Accepted Answer

A)   ​High-volume how-margin approach.
B)   ​High-volume high-margin approach.
C)   ​Low-volume high-margin approach.
D)   ​Low-volume low-margin approach.E) A) and B)
F) All of the above

Question 6

​Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers,and entries and exits are relatively easy.

Accepted Answer

A)   ​Michael Porter
B)   ​John Maynard Keynes
C)   ​Adam Smith
D)   ​Richard BransonE) A) and D)
F) B) and C)

Question 7

Which of the following tends to reduce the intensity of rivalry?

Accepted Answer

A)   Similarity of firms in terms of size,market influence and product offerings.
B)   Products are big-ticket items and purchased infrequently.
C)   New capacity can be added in small increments.
D)   Slow industry growth or decline in demand.E) A) and D)
F) A) and B)

Question 8

The five forces model overemphasizes threats and downplays opportunities.

Accepted Answer

A) True 
 B)False

Question 9

​It is easier to establish dominance and market share in an industry that provides big-ticket items.

Accepted Answer

A) True 
 B)False

Question 10

​Japanese firms do not tend to maintain close relationships with their suppliers.

Accepted Answer

A) True 
 B)False

Question 11

​The ultra-luxury automobile market is characterized by:

Accepted Answer

A)   ​A great deal of competition in the past - but that is changing.
B)   ​A small number of cars produced each year - but they are very expensive.
C)   ​Being the same as the luxury market.
D)   ​A and B above.E) A) and D)
F) B) and C)

Question 12

​In an industry-based view,not every firm within an industry competes against each other.

Accepted Answer

A) True 
 B)False

Question 13

Activities that are crucial to a firm's core business:​

Accepted Answer

A)   ​Should be outsourced to increase a firm's strategic flexibility.
B)   ​Should be managed through a keiretsu structure.
C)   ​Should not be outsourced.
D)   ​Should always be outsourced.E) None of the above
F) A) and C)

Question 14

The traditional view recommends avoidance of integration.

Accepted Answer

A) True 
 B)False

Question 15

Which of the follow would tend to reduce the bargaining power of buyers?

Accepted Answer

A)   Large number of buyers.
B)   Products of the industry do not produce clear cost advantages or enhance the quality of life for buyers.
C)   Purchase standard,undifferentiated commodity products from suppliers.
D)   Willingness and ability of buyers to integrate backward.E) A) and B)
F) None of the above

Question 16

The industry-based view ignores the impact of industry history and institutions on firm performance.

Accepted Answer

A) True 
 B)False

Question 17

​Which of the following is characteristic of a savvy strategist?

Accepted Answer

A)   ​Focusing on the five forces as a way to understand an industry inside and out.
B)   ​Understanding that structurally unattractive industries do not allow for firm success.
C)   ​Using the five forces framework as the beginning,middle,and end of any good strategic analysis.
D)   ​Realizing that industry is destiny.E) None of the above
F) A) and B)

Question 18

Mass markets tend to be characterized by low profit margins.

Accepted Answer

A) True 
 B)False

Question 19

Strategic alliances are on the decline.

Accepted Answer

A) True 
 B)False

Question 20

​A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Accepted Answer

A)   ​It is defined by a specific geographical area.
B)   ​It is define by product line.
C)   ​It is defined by imitation of competitors.D) B) and C)
E) A) and B)

Exam 2: Managing Industry Competition

​Cost leaders are significantly and negatively affected when strong suppliers decrease their prices.

Correct AnswerverifiedShow Answer

​The main goal of a differentiation strategy is to:

Correct AnswerverifiedShow Answer

Which of the following is NOT true regarding supplier relationships?

Correct AnswerverifiedShow Answer

​It is easier to establish dominance and market share in an industry that provides big-ticket items.

Correct AnswerverifiedShow Answer

The industry-based view ignores the impact of industry history and institutions on firm performance.

Correct AnswerverifiedShow Answer

The traditional view recommends avoidance of integration.

Correct AnswerverifiedShow Answer

Mass markets tend to be characterized by low profit margins.

Correct AnswerverifiedShow Answer

​In an industry-based view,not every firm within an industry competes against each other.

Correct AnswerverifiedShow Answer

The five forces model overemphasizes threats and downplays opportunities.

Correct AnswerverifiedShow Answer

​Japanese firms do not tend to maintain close relationships with their suppliers.

Correct AnswerverifiedShow Answer

​Which of the following is characteristic of a savvy strategist?

Correct AnswerverifiedShow Answer

Strategic alliances are on the decline.

Correct AnswerverifiedShow Answer

Which of the following tends to reduce the intensity of rivalry?

Correct AnswerverifiedShow Answer

Recent work favors outsourcing and willingness to collaborate with suppliers/buyers,as well as competitors.

Correct AnswerverifiedShow Answer

​The ultra-luxury automobile market is characterized by:

Correct AnswerverifiedShow Answer

​For firms following a cost leadership strategy,their goal is a:

Correct AnswerverifiedShow Answer

Which of the follow would tend to reduce the bargaining power of buyers?

Correct AnswerverifiedShow Answer

​A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Correct AnswerverifiedShow Answer

Activities that are crucial to a firm's core business:​

Correct AnswerverifiedShow Answer

​Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers,and entries and exits are relatively easy.

Correct AnswerverifiedShow Answer

Cost leaders are significantly and negatively affected when strong suppliers decrease their prices.

Correct Answer
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The main goal of a differentiation strategy is to:

Correct Answer
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Correct Answer
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It is easier to establish dominance and market share in an industry that provides big-ticket items.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In an industry-based view,not every firm within an industry competes against each other.

Correct Answer
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Correct Answer
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Japanese firms do not tend to maintain close relationships with their suppliers.

Correct Answer
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Which of the following is characteristic of a savvy strategist?

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The ultra-luxury automobile market is characterized by:

Correct Answer
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For firms following a cost leadership strategy,their goal is a:

Correct Answer
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Correct Answer
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A niche market that is the goal of a focus strategy may have all of the following characteristics EXCEPT:

Correct Answer
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Activities that are crucial to a firm's core business:

Correct Answer
verified

Economist ________________ defined perfect competition as a situation in which price is set by the "market," all firms are price takers,and entries and exits are relatively easy.

Correct Answer
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