MGMT 481 - Chapter 11

Most companies are in competition w/ their rivals each and every day, month, or year w/ no certain end date. This is an example of

an infinitely repeated game

A ___ profile identifies characteristics of a competitor in order to assess how it might respond in the face of rival actions

competitor response

In game theory, a set of actions that are always played no matter what a rival chooses to do is referred to as the ____

dominant strategy

Any factor that increases the costs, lowers the profit margins, or limits the market share of entrants is called a

entry barrier

Noah a researcher, identifies various resourc. and capab. of an org. that are subjected to rapid obsolescence, easy imitation, and high cost not recouped by value. In this case, Noah is

learning the org's weaknesses

A comp. wants to form the foundation of a competitive strategy. It decides to assess its strengths and weaknesses. In this case, the company should first assess its

recources and capab.

A maufacturing firm maintains its price unless it observes its rivall choosing to lower its price. Any time the rival lowers price, the firm responds by lowering its own price. This is an example of

tit for tat strategy

An org watches it rivals closely and chooses actions that mimic what its rivals are doing. This is an example of

tit for tat strategy

A successful chain of restaurants is successful in securing the most advantageous geographic positions. This effectively bars competition. Which is exemplified

A limited competitive access to scarce resources

Walden inc, a well established finance company, hires the most valuable scientists and experts. Hence, start ups and other small business find it difficult to compete with Walden. Which is examplified

A limited competitive access to scarce resources

Marcel, the owner and president of a three star hotel, believes that only competitors within the same strategic group need to be analyzed. Nina, the chief of client services, beliwves that other groups must also be considered in order to stay ahead of competition. Which strengthens ninas argument?

A new cafe on the same lane as Marcels hotel is being frequented by business people

Strategic Group

A set of companies that compete in a similar ways with similar business models pursuing similar sets of customers

Lucy, a researcher, wants to identify the main differences in different healthcare firms competing to deliver value. She studies the relative price, product line breadth, and geographic placement to identify these differences. Which of the following is lucy likely to rely on to identify how the firms compete?

A strategic group map

A research firm creates a graph to represent how companies compete with each other. The X axis represents the competitive offerings and Y axis represents performance. Which does the graph represent

A strategy canvas

A well established manufacturing firm decides to set the market price of a product just low enough so that a new firm cannot pay the cost of entering a market and eventually be profitable. Which is exemplified

An entry barrier

Laser Tech, a leading printing firm, launches a new printing technique to meet the changing demands of the market. Blue Corp. its prime competitor, had been rigid in adapting to the changes in the market and is put out of business bc of the launch of the new technique by Laser. Which is exemplified in this case?

Bringing strength against weakness

Zeal Inc. an electronic goods manufacturer, launches an air conditioner that contributes to the downfall of Ochre Corp, a co. struggling to stay in the market amidst bankruptcy. Which concepts is exemplified in this scenario>

Bringing strength against weakness

An organization wants to compete at an international level. It sets the company objectives and the assumptions to reinforce the objectives. Which is being exemplified?

Competitor response profile

Copper enterprises manufactures industrial machinery. It decides to identify the characteristics of a new firm that offers same products as copper. In order to assess how it might respond in the face of rival actions, copper must develop a

Competitor response profile

An org has few rivals in the industry. These rivals are considering such moves as price changes, capacity adjustments, or new product features. Whuch will help the org predict the strategic actions most likely to be taken by rivals?

Game Theory

Alex the CEO of a manufacturing company, is asked by the board if he will consider switching strategic groups. However, Alex thinks it might not be advisable. Whuch statement strengthens Alex's belief?

His company has rigid systems, which have been in place for many years.

Gia inc. a healthcare company, aims to create a competitor response profile. It had identified its objectives & assumptions. The next step is to

Identify the competitors recources and capabilities

A research institute plans to build a compeitor response profile for a study. Whuch is the first step to build such a profile?

Identifying the assumptions

Which of the following statements is true about an infinitely repeated game?

In this game, players always believe there is a future

An automobile manufact. firm has dominated its market by consistently releasing automobile upgrades and enhancememnts. Which is being exemplified

Introducing new products frequently

Which statement is true about nash equillibrium?

Its the solution concept used to predict the outcome of competitive interaction.

An insurance firm decides to recognize its recources and capab. It observes that a few resources and capab. deliver unique value, but others are subjected to easy imitation. In this case, the org is ____

Learning its strengths and weaknesses

Nash equilibrium is represented by a set of moves in a game that

Maximizes each firms payoff given the choices of rivals

Fuschia Inc, a cosmetics manufacturer, decides to change how it competes in the market. With this objective in mind, it decides a different mkt segment with its existing set of products. However, Fushia takes a long time to reconfigure its activities and systems to meet these changes. Which is being explified in this case?

Mobility Barriers

Lieme Inc and Pola Inc. are oligopolistic rivals in the automobile indust. Lieme has staked out a price position that is slightly higher than that of Pola. Even so, if Pola raises its price, Lieme would too, on order to maintain the differential. Which is being exemplified in this case?

Monitoring and mimicking rival behavior

A researcher wants to study an org that strives at achieving the best outcome and ensures the outcome is stable. In this case, the org has developed the concept of

Nash Equillibrium

An org wants to maximize its payoff given the choices of rivals and remove incentive to defect in the sense that no org. can improve its payoff by changing its choice. Which concept will help the org create such a structure?

Nash Equillibrium

Peach Line inc, manufactures of furniture, identifies that its choice of suppliers is its weakness and makes this irrelevant by standardizing the production process irrespective of the source of raw materials. This way, its choice of suppliers does not become the target of competitors. Which is exemplified in this case?

Neutralizing vulnerability

An org. studies the strategies of its competitors closely. At the current stage, it studies factors such as geographic location, charact. of the business model, services provided, & time mgmt. At this stage, the org. is identifying the competitors ______.

Recources and Capabilites

An airline service provider watches its rivals closely. It studies the potential for reliable, timely, and service oriented international travel offered by its compeittors . In this case, the firm is focusing on the competitors ____.

Recources and capab.

A simple game has 2 players, each player has 2 choices. Assume that the players make their moves at the same time and they only play the game once. Which is examplified in this case?

Simultaneous move game

An analysis that breaks down the structure of a market or industry into its constituent grp is called

Strategic Grp Analysis

Ryan a researcher wants to indicate whether companies in one grp appeal to the primary mkts of another grp. Which is likely to help Ryan in his research?

Strategic grp maps

The word "theory" in game theory refers to

a set of predictions

Which is true about strategic groups

The firms within each group compete in similar ways

Zara, a research analyst, is studying the business decisions of some resturant owners. During the data analysis stage, she employs a strategic canvas. Which is likely to be her primary reason to employ this tool?

To study the differences in the ways the resturaunts compete with each other