Pearson Quiz 12 (Chapter 16)

In the tech​ world, Intel and Microsoft have substantial supplier power. Why might that supplier power be​ diminishing? A. Lower consumer perception of value B. New processor and software competitors C. Consumer focus on substitute products like smartphones and tablets D. Rivalry between Intel and Microsoft E. Buying power of Amazon

C. Consumer focus on substitute products like smartphones and tablets

The nation with the most favorable​ ________ will be the one most likely to take advantage of chance events and convert them into competitive advantage. A. competitive strategy B. product strategy C. Diamond D. natural resources E. capital resources

C. Diamond

Which of the following terms is used to describe a dynamic competitive world in which no action or advantage can be sustained for​ long? A. The macro environment B. Operational efficiency C. Hypercompetition D. Short-term competitive advantage E. Dynamic strategy interaction

C. Hypercompetition

Many firms have gained competitive advantage by disadvantaging rivals through​ ________. A. aggressive rivalry B. value chains C. competitive innovation D. digital technology E. continual improvements

C. competitive innovation

By virtue of its roles as a buyer of products and services and a maker of policies on​ labor, education, capital​ formation, natural​ resources, and product​ standards, government plays a role in a​ nation's competitive environment by​ ______________________. A. signing a free trade agreement B. adopting protectionism C. its influence on determinants D. participating in the World Trade Organization E. creating competitive advantage

C. its influence on determinants

The presence or absence of particular attributes in individual​ countries, which influences industrial​ development, is described by Porter through​ ________. A. the creation of a diamond gem from a rough diamond B. analysis of a diamond as a basic shape C. the visualization of a baseball diamond D. the setting of diamonds in jewelry E. the process of mining diamonds

C. the visualization of a baseball diamond

Short product life​ cycles, short product design​ cycles, new​ technologies, and globalization are all factors and forces to​ ________. A. create perception of newness B. create competitive advantage C. undermine market stability D. develop firm structure E. create home market demand

C. undermine market stability

Which of the following terms refers to uncontested market space where hypercompetitive forces are not​ present? A. Open Space B. A Flagship C. No-Man's Land D. Blue Ocean E. Global markets

D. Blue Ocean

In South​ Africa, Massmart and Pick n Pay engage in price​ competition, advertising​ battles, product​ positioning, and attempts at differentiation. These are all indications of which of the five forces​ model? A. Bargaining power of suppliers B. Threat of substitute products C. Bargaining power of buyers D. Rivalry among competitors E. Threat of new entrants

D. Rivalry among competitors

According to​ D'Aveni's model, hypercompetition unfolds in a series of dynamic strategic interactions in four arenas. Which of the following is NOT one of these​ arenas? A. Entry barriers B. Deep pockets C. Timing and​ know-how D. The old and obsolete E. Cost/quality

D. The old and obsolete

Cost leadership will be a sustainable source of competitive advantage only if barriers exist that​ ________________. A. keep new entries into the industry B. limit globalization C. diminish buying power of suppliers D. prevent competitors from achieving the same low costs E. prevent substitute products

D. prevent competitors from achieving the same low costs

Hard discounters like Aldi and Lidl are using which of the competitive advantage​ frameworks? A. Cost leadership B. Product differentiation C. Focused differentiation D. Strategic intent E. Cost focus

E. Cost focus

Which of the following is NOT one of the forces that may be present in the national​ "diamond" described by​ Porter? A. Factor conditions B. Related and supporting industries C. Demand conditions D. The​ firms' structure and strategy E. Cost leadership

E. Cost leadership

Which of the following national or country attribute categories includes human​ resources, physical​ resources, knowledge,​ capital, and​ infrastructure? A. Competitive rivalry B. Organization strategy C. Related and supporting industries D. Demand conditions E. Factor conditions

E. Factor conditions

Which of the frameworks for competitive advantage was conceptualized by W. Edwards Deming and first adopted for use by the​ Japanese? A. Cost leadership B. Product differentiation C. Cost focus D. Strategic intent E. Focused differentiation

E. Focused differentiation

Why does the threat of substitute products place a limit on the prices market leaders can​ charge? A. Consumers will no longer perceive value B. Low-cost is more effective than differentiation C. Competitive advantage is always achieved through price D. New entrants always have lower prices E. High prices may induce buyers to switch to the substitute

E. High prices may induce buyers to switch to the substitute

Cost​ leadership, product​ differentiation, cost​ focus, and focused differentiation are types of​ ________. A. strategic intent B. layers of advantage C. loose bricks D. Collaboration E. generic strategies

E. generic strategies

The merger of Fiat and Chrysler is an example of which of the following approaches to competitive​ innovation? A. Collaboration B. Layers of advantage C. Changing the rules of engagement D. Development E. Searching for loose bricks

A. Collaboration

Bose, the audio equipment​ company, targets a very narrow market creating a perception of product uniqueness at a premium price. They are achieving competitive advantage through which of the​ following? A. Focused differentiation B. Broad market strategy C. Generic strategy D. Strategic intent E. Cost focus

A. Focused differentiation

A​ nation's banking​ system, health-care​ system, transportation​ system, and communication systems are all part of which of the​ following? A. Infrastructure B. Knowledge C. Physical resources D. Human resources E. Capital resources

A. Infrastructure

In​ Japan, the Toyota group includes Toyota​ Motors, Aichi​ Steel, Idemitsu Kosan​ petroleum, Toyoda Gosei​ (component parts), Toyota Financial​ Services, plus many others. This is the Toyota keiretsu based on which of the​ following? A. The Flagship model B. Porter's Five Forces model C. The Red Ocean model D. Japan's national diamond E. The Blue Ocean model

A. The Flagship model

Which of the following five forces of competition bring increased​ capacity, a desire to gain market share and​ position, and new approaches to serving customer​ needs? A. Threat of new entrants B. Rivalry among competitors C. Bargaining power of buyers D. Threat of substitute products E. Bargaining power of suppliers

A. Threat of new entrants

In​ 1949, Jeep introduced the 4X4 Willys Jeep station wagon in the United States. Automotive writers and journalists consider this the first true​ "SUV." This allowed Jeep to manage its dynamic strategic interactions with competitors by means of​ _____________________. A. timing and​ know-how B. creating entry barriers C. maintaining deep pockets D. receiving patents for the 4X4 technology E. maintaining cost and quality advantage

A. timing and​ know-how

Red Bull introduced the first energy drink as an alternative to Pepsi and​ Coca-Cola products. Which of the following approaches for competitive innovation was used by Red​ Bull? A. Rivalry B. Searching for loose bricks C. Building layers of advantage D. Changing the rules of engagement E. Collaboration

B. Searching for loose bricks

Walmart is such a​ large-volume retailer that it is in a position to dictate terms to any vendor wanting to have its products available at Walmart stores. This is an example of​ ________. A. threat of new entrants B. bargaining power of buyers C. bargaining power of suppliers D. rivalry among competitors E. threat of substitute products

B. bargaining power of buyers