BUSN620 Week 3 Study

Which of the following is not generally a driving force capable of producing fundamental changes in industry and competitive conditions? A. Ups and downs in the economy and interest rates. B. Product innovation and technological change. C. Changes in the long-term industry growth rate. D. Increasing globalization of the industry. E. New government regulations or significant changes in government policy toward the industry.

A. Ups and downs in the economy and interest rates.

Kim and Andrew are co-owners of seven specialty ice cream stands in their city. Which of the following questions would not help them to predict the next strategic moves and countermoves of their rivals? A. Which mode of transport does the rival's supplier use? B. How frequently does their rival fulfill special orders for custom cupcakes and how large are those special orders? C. Why is the rival's cupcakes so popular among customers? D. How does the rival manage door-to-door deliveries at no extra cost? E. What percentage of customers frequent the rival's store?

A. Which mode of transport does the rival's supplier use?

The marketplace being a competitive battlefield is primarily due to A. the efforts of industry incumbents to lower cost products/services at a faster rate than their rivals. B. the constant rivalry of firms to strengthen buyer patronage among competing sellers of a product or service, in order to win a competitive edge over rivals. C. the ongoing efforts of industry members to introduce innovative products/services as fast followers in the marketplace. D. the ability of industry rivals to build strong defenses against the industry's driving forces. E. the ongoing race among rivals to achieve the fastest rate of growth in revenues and profits.

B. the constant rivalry of firms to strengthen buyer patronage among competing sellers of a product or service, in order to win a competitive edge over rivals.

Downstream productions spent 10 million dollars to buy the rights to a best-selling novel. the company then prepared for production by hiring a screenwriter to adapt the novel casting the main roles, renting cameras and other equipment, and scouting locations in southern Arizona. which of the following pairs of resources are both intangible? A. Money spent to buy rights to the novel; screenwriter's experience. B. Money spent to buy rights to the novel; locations in southern Arizona. C. Best-selling novel; locations in southern Arizona. D. Best-selling novel; screen writer's experience adapting novels.

D. Best-selling novel; screen writer's experience adapting novels.

NetCap Corp. and Range Inc. are two competing firms in the same industry. NetCap corp.'s tangible assets are valued at $25 billion and its intangible assets are valued at $50 billion. Range inc.'s tangible assets are valued at $10 billion and its intangible assets are valued at $60 billion. What can be concluded from this information? A. Judging from the assets listed, Range Inc. has probably been in the industry a much shorter time than NetCap Corp. B. There is no resource heterogeneity between the two firms, Range Inc. and NetCap Corp., as they operate in the same industry. C. Range Inc. will be less competitive than NetCap Corp. because of its smaller investment in tangible assets. D. It is likely that Range Inc. is better enabled than NetCapt Corp. to gain and sustain a competitive advantage.

D. It is likely that Range Inc. is better enabled than NetCapt Corp. to gain and sustain a competitive advantage.

In the context of the resource-based model of competitive advantage, which of the following scenarios best exemplifies resource immobility? A. Balance Corp. has been able to gain a competitive advantage because of its ability to efficiently move its resources from one manufacturing unit to another. B. Cal Corp. has earned a good reputation among its shareholders by investing more heavily in equipment than in building up brand equity. c. Santy Inc. has lost its market share because its resources are rigid, inflexible, and static. D. Jumpstart Inc. has been able to outperform its competitors because the uniqueness of its employee experience is difficult for competitors to replicate.

D. Jumpstart Inc. has been able to outperform its competitors because the uniqueness of its employee experience is difficult for competitors to replicate.

Based on an analysis of the five forces that increase or decrease competitive pressures in industry in which of the following industries is profitability likely to be highest? A. Electric and gas utilities B. Commerical airlines C. Supermarkets D. Video streaming services E. Tire manufacturing

D. Video streaming services

You are the manager of Fine Tune printing a leading print shop. Fine Tunes' resources include a highly experienced staff and state-of-the-art printing presses. However, your closest competition has started to cut into your market share by offering same-day turnaround on most orders. although your staffing and equipment is not optimized for rapid production you decide to start offering a same-day guarantee to your customers. according to the resource-based view, what is wrong with this decision? A. Your business is not organized to capture value. B. Employees are often resistant to changes in strategy. C. Customers tend to have negative opinions of firms that imitate other firms. D. You have failed to take into account resource immobility.

D. You have failed to take into account resource immobility.

Increasing globalization can be a driving force in an industry because A. market growth rates go up, product innovation speeds up, and new firms are likely to enter the industry. B. the products and services of foreign competitors are nearly always cheaper or of better quality than those of domestic companies activities. C. it results in companies having fewer competitors and a strategic group map with fewer circles. D. companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities. D. foreign producers typically have lower costs, greater technological expertise, and more product innovation capabilities than domestic firms.

D. companies need to spread their operating reach into more and more country markets to meet consumer demand and take advantage of available operating activities.

Which of the following are most unlikely to qualify as driving forces? A. New internet technology applications, new government regulations, and significant changes in government policy toward the industry. B. Changes in who buys the industry's product and how they use it. C. Increasing globalization of the industry and product innovation. D. Changes in long-term industry growth rate, the entry or exit of major firms, and changes in cost and efficiency. E. Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances.

E. Mounting competition from substitutes and increasing efforts to collaborate with suppliers via strategic alliances.