Check

________ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors. Behavior modification Strategy Credo Competency managemen

Strategy

Suppose you conduct an analysis of a specific industry by calculating the average number of competitors and the average profitability per firm for each year. You then plot these data points on a graph, with the number of firms on the horizontal axis and average profitability on the vertical axis. After fitting a line to the data points, you obtain the following result: Now, assume that this industry is projected to experience high growth over the next few years. If growth is the only variable that changes in this industry, what would you expect the shape of the curve to be in the future?

C Slight decline

According to the crossing-the-chasm framework, the biggest chasm between customer segments is between early adopters and the mass market made up of the laggards.

FALSE(100%)

High demand for online video streaming options is one of Netfix's core competencies

False (100%)

In the market, competitors are always trying to copy successful firms. The best way for a firm to keep its proprietary technologies, recipes, or formulas secret is to obtain a patent.

False(100%

Accounting, human resources, and research and development (R&D) are examples of primary activities that add value directly to the value chain.

False(100%)

Due to the dynamic nature of business competition, a firm's strategic position should remain fixed over time.

False(100%)

Once a strategy has been formulated and implemented, it is important that the firm sticks to it no matter what happens.

False(100%)

Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to the end user.

False(100%)

GE'S CEO calls you to perform a five forces analysis. If you don't know, GE is a large conglomerate that operates in many sectors, including healthcare, aviation, power, renewable energy, and finance. Your colleague suggests starting the five forces by identifying GE's competitors. Do you agree? Why or why not? You can answer this question in as little as two/three short sentences. Be as brief as you can be - unfocused answers will have a grade discount. Short response

I disagree with them. GE is in to many sectors each with very different dynamic and industries They would need to do each sub division in order to use the 5 forces

According to the book and our class, which of the following is NOT a valid criticism or limitation of the Five Forces Framework for industry analysis? • It does not explain competitive advantage. • It ignores important factors affecting the industry environment. • It does not predict how specific competitors will respond to strategic moves. • It is not very useful in finding entirely new ways of competing. • It is not very helpful in dealing with industries whose structures are evolving rapidly.

It ignores important factors affecting the industry environment. (100%)

You've been contracted to conduct a comprehensive anatysis of the competitive environment for Firm A, an Ohio-based stioo manufacturer Luckily, you come across a recent, tharough analysis for Firm B, a well-known ice-creem maker also located in Ohio. Which section of Firm B's analysis is most likely to be relevant to your analysis of Firm A? • PESTEL framework O VRIO framework • Porter Five forces • SWOT analysis

PESTEL framework(100%)

The first step to gain and sustain a competitive advantage is to define a firm's vision, mission, and values. understand the strategies of the competitors. put the guiding policies of a firm into practice. develop functional and business-level strategies.

define a firm's vision, mission, and values.

Under what conditions is industry analysis NOT as powerful? • In well-defined industries • In fast-changing industries • None of the answers is correct. • In times of stagnation

• In fast-changing industries(100%)

Cutting costs and boosting productivity are strategies for achieving sustained competitive advantage.

True(mayBe) False

Regardless of the industry life cycle stage, both differentiation and cost leadership are equally good strategies to adopt.

True(100%)

According to our class, disruptive innovation happens when an Invention is successful in Increasing a firm's market share.

True False

Porter's Five Forces Framework suggests which of the following? • Complementary products are most likely to rise in importance as substitutes to existing technologies. • The entrepreneurial abilities of managers are a central requirement for competing successfully in an industry. • Switching costs are lower for suppliers than for buyers. • Changes in suppliers' technologies can alter the competitive environment within the focal industry. • Firms can gain competitive advantage leveraging their strengths regardless of environmental factors.

Changes in suppliers' technologies can alter the competitive environment within the focal industry.(100%)

Which of the following statements about competition and rivalry is TRUE? • Tacit collusion leads generally to more intense competition. • Competition on price occurs when there is rivalry within an industry. • There is little competition in industries in which growth is slow. • The competition in the luxury goods industries will always be fiercer than it will be in commoditics. • High switching costs increase rivalry.

Competition on price occurs when there is rivalry within an industry. High switching cost maybe

According to the Wikipedia entry on "Smartphone patent wars", the main smartphone manufacturers frequently engage in expensive litigation to protect their patents. This shows that patents are firms' main tool to protect their innovation from imitation.

True(100%)

In response to a recent entry on its markets, two large Incumbent radio retailers. Firm B and Firm C, lowered their prices. Also, they spent more money to improve their products' quality and on additional marketing. By doing this. Firm B and Firm C • Increased industry exit barriers. • decreased industry profit potential. • decreased industry exit barriers. • increased industry profit potential.

Decreased industry profit potential (100%)

In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity? • an increase in customers' disposable income • an increase in financial resources • an increase in brand equity • an increase in employee productivity

an increase in customers' disposable income(100%)

A new company named Waves Inc. entered the radio retail business, which is a fairly consolidated industry. In response, two large incumbent radio retailers, SMS Radio and TruRadio, lowered the price of their radios. Also, they spent more money to improve their radios and on additional marketing. By doing this, SMS Radio and TruRadio decreased industry exit barriers. increased industry exit barriers. decreased industry profit potential. increased industry profit potential.

decreased industry profit potential.

Jack and Jill both love hot coffee. Jack likes to keep his coffee hot during the day while Jill doesn't mind drinking room temperature coffee. Jack is willing to spend more money on a thermos than Jill is willing to spend. This example illustrates the following major limitation of employing the Economic Value Creation framework because overall macroeconomic factors such as the unemployment rate, and interest and exchange rates all have a direct bearing on stock prices. determining the value of a good/service through the perspective of a consumers is not a simple task because consumers have different spending habits. accounting data focus mainly on tangible assets, which are no longer the most important. accounting data are historical and thus backward-looking.

determining the value of a good/service through the perspective of a consumers is not a simple task because consumers have different spending habits.

The ___________________ suggest(s) that because the external environment changes, strategic leaders must choose their current and future investments carefully over time in order to best maintain their firm's competitive advantage. dynamic capabilities perspective VRIO framework SWOT analysis framework law of diminishing returns

dynamic capabilities perspective

According to the industry life cycle model, the presence of a great number of product designs will coincide with a large growth in demand, since consumers like the avallability of different options.

false 100%

WeBreak4Bikes Inc. has a new U.S.-based client in the bicycle industry. The client's company produces only bicycles for riding on the road. The bicycles are used for reliable general purpose transportation. When asked to identify a potential substitute for the bicycle industry from the Five Forces perspective, you would select motorcycles. hot air balloons. tractors. None of these are substitutes.

motorcycles.

John is a bit confused about the difference between stakeholders and stockholders. You meet with John and inform him that the main difference is that stakeholders are both internal and external to the firm while stockholders are considered external to the firm. stakeholders are considered internal to the firm while stockholders are external to the firm. stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm. stakeholders are external to the firm while stockholders are considered internal to the firm.

stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm.

In ________, a firm frames a guiding policy to address the competitive challenge. strategy control strategy implementation strategy formulation strategy analysis

strategy formulation

Why might disruptive technologies (according to Clayton Christensen) present a potent threat to Industry incumbents? (A) Incumbents may dismiss them because they offer inferior performance. (B) They directly target the incumbent's customers. (C) They offer lower margins. (D) The threat they pose may be difficult to detect. • A, C, and D • A, B. C. and D • A, B, and Cl • C and D • A and B Proctorio

• A, B. C. and D Might be ACD

Which of the following are reasons why the earliest entrants into a market with an offering based on a new technology might fall to achieve first-mover advantage? (A) A proliferation of different designs may cause the early majority of the market to wait for a dominant design to emerge. (B) The market is growing slowly. (C) The technology is changing very rapidly. (D) The existence of a weak (intellectual property) appropriation regime. • A, C. and D • A, B, C, and D • 8 and D • A and B • A and D

• A, C. and D (100%)

Which of the following is a primary requirement for a successful strategy? • The ability to achieve lower costs than competitors can • The ability to deal with uncertainty • Innovation and creative thinking • Choice of position on the business landscape

• Choice of position on the business landscape(maybe) • The ability to deal with uncertainty

What is the main assumption behind the crossing-the-chasm framework? • Each stage of the Industry life cycle is dominated by a different customer group. • The supply and demand sides of the market remain constant irrespective of the phase of the Industry life cycle. • The number and size of competitors remain constant throughout the industry life cycle. • Industries concentration depend on the rate of entry and exit.

• Each stage of the Industry life cycle is dominated by a different customer group.(100%)

Your firm developed an amazing new product - an affordable robot that can handle all your house chores; there is nothing like it in the market! This product takes advantage of the enormous computation power generated by a brand new chip released by Intel, alongside the advancement of Machine Learning techniques. The law department at your firm guarantees you that your patents will be able to protect your product for 20 years. Which of the five forces should you be more worried about in the short run? • Threat of New Entrants • Bargaining Power of Buyers • Threat of Substitute Products or Services • Complementary Products or Services • Rivalry Among Existing Competitors • Bargaining Power of Suppliers

• Threat of New Entrants(Maybe) • Threat of Substitute Products or Services

Suppose that firm A operates in an industry where competition is high. Which of the following practices is more likely to result in inferior performance? • focusing on creating value for customers • trying to be everything to everybody by combining different competitive strategles • working toward increasing the difference between value creation and cost • choosing a cost leadership position

• trying to be everything to everybody by combining different competitive strategies(100%)