Final 189
The pace of innovation has slowed in the 21st Century
False
Process innovation typically overtakes product innovation in importance during the shakeout stage of the industry life cycle
True
When wireless service providers offer free or discounted mobile phones for subscriptions to their wireless voice and data service, the perceived value of the service offering increases. In this case, the value driver would be
Availability of complements
Which of the following is a feature of the shakeout phase of the industry life cycle?
Competitive intensity within the industry increases
A _____ is best defined as a company that combines two or more strategic, business units under one overarching corporation and follows an unrelated diversification strategy.
Conglomerate
Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)
Disruptive innovation
______ is best described as decreases in cost per unit as output increases
Economies of scale
The partnership between Toyota and Tesla Motors, in which Toyota has made a $50 million investment in the california startup company to learn new knowledge, is an example of a(n)
Equity Alliance
The concept of a(n) ________ attempts to capture both learning effects and process improvements at firms.
Experience curve
Differentiation and cost leadership strategies are only effective in manufacturing industries
False
In contrast to a differentiator, a cost-leader will
Focus its research and development on process technologies to improve efficiency.
____ is best described as changes in an industry value chain that involve moving ownerships of activities closer to the end (customer) point of the value chain
Forward vertical integration
Which of the following best illustrates a merger between the two companies GD Inc and VS inc
GD Inc and VS Inc join together to form a single new company called GDVS Inc
To be successful and to survive the shakeout stage of the industry life cycle, a firm should
Gain economies of scale
When a differentiator charges a similar price as its competitors in the same strategic group but offers more perceived value, it
Gains market share from other firms
In the market for used cars, which of the following is a reason behind the crowding out of desirable cars by lemons or inferior ones?
Information asymmetry
When entering new geographic markets, some governments, such as those of Saudia Arabia and China require that foreign firms have a local
Joint venture partner
____ is best described as a form of long-term contracting in the manufacturing sector that enables firms to commercialize intellectual property.
Licensing
In a radical innovation, a firm targets
New markets by using technologies
Supply distribution and licensing contractual agreements between firms which result in vertical strategic alliances are all example of
Non equity alliances
Equity alliances are less common than non-equity alliances because they
Often require larger investments
A firm's resistance to changes in the status quo is referred to as
Organizational inertia
Which of the following alternatives on the make-or-buy continuum allows for most integration?
Parent-Subsidiary relationship
A firm's business strategy can lead to a competitive advantage if it allows the firm to
Perform different activities than its rivals
The main reason behind Google's decision to acquire the Israeli start-up company Waze for $1 billion was to
Preempt its competitors from buying waze
The most efficient way to overcome the principal-agent problem in a firm is to
Provide stock options to managers
A ____ is best described as an approach to strategic decision making that breaks down a larger investment decision into a set of smaller decisions that are staged sequentially over time.
Real-options perspective
Which of the following customer segments as described in the chasm framework make up the mass market?
The early and late majority together
When a firm is said to be pursuing a geographic diversification strategy, it means that the firm will
Sell its products in several different regional, national, and international markets
____ are best described as voluntary arrangements between firms that involve the sharing of knowledge resources and capabilities with the intent of developing processes products or services to lead to competitive advantage.
Strategic alliances
When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in
Strategic trade-offs
When a blue ocean strategy goes bad, a firm is neither a clear differentiation nor a clear cost-leadership profile. This situation is referred to as
Stuck in the middle
Apple and Nike have their own retail outlets and also use other independent retailers, both the brick-and-mortar type and online, to sell their products. This is an example of
Taper integration
Which of the following reasons motivated Facebook to acquire Instagram, a photo and video-sharing social media sire for $1 billion in 2012?
The desire for new capabilities
Value drivers contribute to a firm's competitive advantage only if
The increase in value creation exceeds the increase in costs
The typical four-step innovation process begins with
The presentation of an idea as findings derived from basic research
The success of the Pixar-Disney strategic alliance demonstrated that
The two entities complementary assets matched.
One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that
They are able to take advantage of physical properties and maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently.
Which of the following statements is true of transaction costs?
Transaction costs are necessary to explain and predict the boundaries of a firm.
How did the recent horizontal integration in the US airline industry provide benefits to the surviving carriers?
By lowering competitive intensity in the industry overall
In which of the following stages of the industry life cycle is a standard first established?
Growth stage
