Chapter 5 mgt

A company in a ____ is most likely to make heavy use of patents and copyrights. a. slow cycle c. standard cycle b. medium cycle d. fast cycle

A

A competitive response is a (an): a. move taken to counter the effects of an action taken by a competitor. b. move taken to initiate a strategic change in an industry. c. ineffective action for a firm to pursue. d. military concept that does not apply to business.

A

A second mover is a (an): a. firm that responds to a first mover's competitive action, often through imitation. b. firm that leads a competitive action in an industry. c. individual who imitates others in an industry to ensure the progress of his/her career. d. individual who moves from a declining industry to a new expanding industry.

A

Companies initiate more competitive responses to ____ actions than to ____ actions. a. tactical, strategic b. strategic, tactical c. business-level strategic, corporate-level strategic d. business-level strategic, operating-level strategic

A

Firms will be more loyal to their products in a ____ market than in the other types of markets. a. standard cycle c. slow cycle b. fast cycle d. medium cycle

A

Late movers are those firms: a. that do respond to a competitive action but only after considerable time has elapsed after the first mover's action and the second mover's response. b. that respond to a first mover's competitive action often through imitation or a move designed to counter the effects of the action. c. that take an initial competitive action (either strategic or tactical). d. that stay in a declining industry.

A

Quality involves: a. either meeting or exceeding customer expectations in the goods and/or services offered. b. meeting the standards established by ISO 9000. c. an assured way to gain competitive advantage. d. an association only with differentiation strategies.

A

Quality is ____ strategic competitiveness. a. necessary for c. sufficient for b. negatively related to d. not associated with

A

Sustained competitive advantage is most achievable in a ____ market. a. slow-cycle c. standard-cycle b. medium-cycle d. fast-cycle

A

The chief disadvantages of being a first mover is: a. the high degree of risk. b. the high level of competition in the new marketplace. c. an inability to sustain a sustained competitive advantage. d. the difficulty of obtaining new customers.

A

____ relates to the incentives a firm has to attack a rival or to respond if attacked. a. Motivation c. Responsiveness b. Awareness d. Ability

A

A benefit of being a second mover is: a. an absence of the need to be the largest firm in the industry. b. that a firm may be able to respond to first movers' competitive actions while avoiding the risks and development costs experienced by the first movers. c. the absence of any risk. d. the ability to lead the industry into new areas of product development and gain customer loyalty from its move.

B

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms is that ____. a. they are more likely to have organizational slack b. they can launch competitive actions more quickly c. they have more loyal and diverse workforces d. they can wait for larger firms to make mistakes in introducing innovative products

B

Both ____ and ____ affect the awareness and motivation of a firm to undertake actions and responses. a. first mover advantages, corporate size b. market commonality, resource similarity c. management capabilities, competitive analysis d. speed of management decisions, management actions

B

Competitive rivalry exists ONLY when: a. two or more firms establish their domains and do not challenge each other over those domains. b. two or more firms compete against one another in pursuit of an advantageous market position. c. two or more firms compete against international firms in pursuit of the world's dominant market position. d. a firm is willing to accept its market position without regard to its competitors' intentions.

B

In order to compete effectively, standard-cycle firms need ____. a. organizational slack c. first mover capability b. economies of scale d. total quality

B

On the whole there are more competitive responses to: a. strategic actions than to tactical actions. b. tactical actions than to strategic actions. c. buyer pressures than to supplier pressures. d. the demands of the top management team than to industry structural pressures.

B

Reverse engineering is characteristic of ____. a. first movers. c. total quality management. b. fast-cycle markets. d. cost-leadership strategies.

B

The larger the resource imbalance between the firm taking the competitive action and the other firms in the industry, the ____ of these other firms. a. more fragmented the response will be b. the slower the response will be c. the larger the response will be d. more tactical the response will be

B

Which of the following is an example of an organization considered to be in a standard-cycle market? a. Boeing's airplanes b. Procter & Gamble c. Caterpillar's large-scale equipment d. McIlhenny's Tabasco Sauce

B

Because Hyundai Motor Company was instituting a drive for manufacturing quality in 1999, competitors could predict ____. a. that Hyundai viewed quality as a sufficient condition for success b. that Hyundai was consuming its organizational slack and would encounter financial problems c. that Hyundai would not simultaneously launch aggressive competitive actions d. that Hyundai was building for a first-mover advantage =

C

Competitive dynamics refers to a series of: a. competitive actions taken by only one firm in a market. b. competitive actions taken by the market leader. c. competitive actions and competitive responses initiated among firms competing within a given market. d. competitive actions and competitive responses initiated among firms competing within numerous markets.

C

Firms with few competitive resources are more likely to: a. refuse to respond to competitive actions. b. respond to all competitive actions. c. respond to tactical actions. d. respond to strategic actions.

C

First movers are: a. individuals who lead in the establishment of new industries. b. firms that are first to exit an industry that begins to enter a decline stage. c. firms that take an initial competitive action. d. individuals who move frequently as employment opportunities change in a locale.

C

In the global economy, rivalry is intensifying. Consequently: a. dominant cultures are overwhelming those of emerging nations, making cultural diversity an issue mainly among developed nations. b. it is becoming more likely that industrialized nations will continue to dominate world markets, overwhelming emerging countries. c. strong brand names are especially important in opening new markets. d. only companies with cost-leadership strategies have a competitive advantage.

C

Innovation has a dominant effect on competitive dynamics in ____ markets. a. slow-cycle c. fast-cycle b. standard-cycle d. all competitive

C

Intensified rivalry within an industry results in ____. a. increased hiring across the industry b. increased total revenues across the industry c. decreased average profitability across the industry d. increased entries into the industry

C

Strategic actions elicit fewer competitive responses than tactical actions for all of the following reasons EXCEPT: a. Strategic responses involve a significant commitment of resources. c. Strategic responses are easy to implement and reverse. b. The time needed for a strategic action to be implemented delays the competitor's response. d. The time needed to assess the effectiveness of strategic actions delays the competitor's response.

C

Two companies that share markets, but who have little similarity in their resources are ____. a. direct, mutually-acknowledged competitors b. neither direct nor mutually-acknowledged competitors c. competitors who are probably not engaged in intense rivalry d. competitors who have reached mutually-sustainable competitive advantage

C

Walt Disney's focus on ____ is typical of a slow-cycle market. a. innovation c. proprietary rights b. total quality d. economies of scale

C

Which of the following would be an example of a strategic action? a. Price cuts by Blockbuster Video b. Use of product coupons by a local grocer c. Entry into the European market by Wal-Mart d. Price increases by Continental Airlines

C

A method of reducing competitive rivalry may be to reduce the firm's market commonality with other firms by doing all EXCEPT which of the following? a. competing in a different geographic market b. competing in a different product segment c. competing in a different market segment d. competing in a different labor market

D

As compared to strategic actions, tactical actions usually have a: a. more delayed effect. b. greater effect on the overall corporate strategy. c. well-timed effect on the firm's corporate strategy. d. more immediate effect.

D

Competitors are more likely to respond to competitive actions that are taken by ____. a. differentiators c. first movers b. larger companies d. market leaders

D

Goods or services in slow-cycle markets reflect: a. organizations that serve a mass market. b. numerous first mover advantages. c. an inability to sustain a competitive advantage for long periods of time. d. competitive advantages that are shielded from imitation.

D

Multimarket competition occurs when firms: a. sell different products to the same customer. b. have a high level of awareness of their competitors' strategic intent. c. simultaneously enter into an attack strategy. d. compete against each other in several geographic or product markets.

D

Which firm's competitive actions are most likely to elicit response and imitation? a. Firms that have a history as a strategic player that takes risky actions b. Firms that have a history of complex and unpredictable actions c. Firms that are price predators d. Firms that are market leaders

D

Which of the following is NOT an accurate statement with respect to quality? Quality is: a. a universal theme in the global economy. b. a necessary but not sufficient condition for competitive success. c. in existence when a firm's goods or services meet or exceed customers' expectations. d. possible when customers support it.

D