Strategic Management chapter 5 part 2

64. (p. 189) The growth stage of the industry life cycle is characterized by A. "in-kind"; competition (from the same type of product). B. premium pricing. C. a growing trend to compete on the basis of price. D. retaliation by competitors whose customers are stolen.

A. "in-kind"; competition (from the same type of product).

63. (p. 187) In the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low. A. introduction B. growth C. maturity D. decline

A. introduction

56. (p. 183) Which of the following is NOT one of the ways the Internet is lowering transaction costs? A. eliminating supply chain intermediaries B. evaluating employee performance C. minimizing office expenses D. reducing business travel

B. evaluating employee performance

73. (p. 192) During the decline stage of the industry life cycle, __________ refers to obtaining as much profit as possible and requires that costs be decreased quickly. A. maintaining B. harvesting C. exiting D. consolidating

B. harvesting

70. (p. 189) Which of the following is most often true of mature markets? A. Some competitors enjoy a significant operating advantage due to increasing experience effects. B. The market supports premium pricing, which attracts additional competitors. C. Advantages that cannot be duplicated by other competitors are difficult to achieve. D. The magnitude of pricing differences and product differentiation is larger than in the growth stage.

C. Advantages that cannot be duplicated by other competitors are difficult to achieve.

61. (p. 187) Which of these statements regarding the industry life cycle is correct? A. Part of the power of the market life cycle is its ability to serve as a short-run forecasting device. B. Trends suggested by the market life cycle model are generally not reversible or repeatable. C. It has important implications for a firm's generic strategies, functional areas, value-creating activities, and overall objectives. D. It points out the need to maintain a differentiation advantage and a low cost advantage simultaneously.

C. It has important implications for a firm's generic strategies, functional areas, value-creating activities, and overall objectives.

74. (p. 193) Research shows that the following are all strategies used by firms engaged in successful turnarounds EXCEPT A. asset and cost surgery. B. selective product and market pruning. C. global expansion. D. piecemeal productivity improvements.

C. global expansion.

65. (p. 188) In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high. A. introduction B. growth C. maturity D. decline

C. maturity

66. (p. 189) In a given market, key technology no longer has patent protection, experience is not an advantage, and there is a growing need to compete on price. What stage of its life cycle is the market in? A. introduction B. growth C. maturity D. decline

C. maturity

67. (p. 189) A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage? A. introduction B. growth C. maturity D. decline

C. maturity

69. (p. 189) The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle? A. introduction B. growth C. maturity D. decline

C. maturity

72. (p. 191) The most likely time to pursue a harvest strategy is in a situation of A. high growth. B. strong competitive advantage. C. mergers and acquisitions. D. decline in the market life cycle.

D. decline in the market life cycle.

75. (p. 193) Piecemeal productivity improvements during a turnaround typically does NOT involve A. business process reengineering. B. increased capacity utilization. C. benchmarking. D. expansion of a firm's product market scope.

D. expansion of a firm's product market scope.

58. (p. 183) Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies? A. celebrity endorsements B. prestige packaging C. exceptional service D. mass customization

D. mass customization

57. (p. 183) Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of A. electronic data interchange. B. knowledge management. C. collaborative design. D. mass customization.

D. mass customization.

68. (p. 189) As markets mature, A. costs continue to increase. B. application for patents increase. C. differentiation opportunities increase. D. there is increasing emphasis on efficiency.

D. there is increasing emphasis on efficiency.

60. (p. 185) One of the reasons the Internet is eroding sustainable competitive advantages is A. incumbent firms are entering market segments that they previously considered to be too small. B. nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage. C. differentiators have been able to preserve the unique advantages that have always been the hallmark of their success. D. firms are ignoring opportunities to offer high-end services in niche markets.

B. nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage.

62. (p. 187) Which of the following statements about the introduction stage of the market life cycle is TRUE? A. It produces relatively large, positive cash flows. B. Strong brand recognition seldom serves as an important switching cost. C. Market share gains by pioneers are usually easily sustained for many years. D. Products or services offered by pioneers may be perceived as differentiated simply because they are new.

D. Products or services offered by pioneers may be perceived as differentiated simply because they are new.

59. (p. 184) Which of the following phrases best completes this sentence: Because of the Internet, firms that use a focus strategy have new opportunities to A. respond quickly to customer requests. B. provide more services and features. C. access markets less expensively. D. access niche markets in a highly specialized fashion.

D. access niche markets in a highly specialized fashion.

71. (p. 191) In the __________ stage of the industry life cycle, there are few segments, the emphasis on process design is low, and the major functional areas of concern are general management and finance. A. introduction B. growth C. maturity D. decline

D. decline