Question 1

Factors leading to the slow growth of demand in embryonic industries include all of the following except the:

Accepted Answer

A) poor quality of the first products. 
B) lack of complementary products. 
C) customer passion for the products. 
D) high production costs of the products. 
E) lack of distribution channels for the products. 
A) poor quality of the first products. 
B) lack of complementary products. 
C) customer passion for the products. 
D) high production costs of the products. 
E) lack of distribution channels for the products.

Question 2

Who among the following is most likely to fall under the category of laggards in the context of customer groups?

Accepted Answer

A) Lauren is tech-savvy and tends to actively seek out for new and innovative products in the market. 
B) Suresh appreciates technology but tends to refrain from trying products that are extremely new. 
C) Phillip is ignorant about the newest uses of technology and buys new products only when they become an absolute necessity. 
D) Charlotte is aware of the value that technology offers; she tends to weigh costs and benefits of a product before making a buying decision. 
E) Maria tends to be a little apprehensive about buying new technology but buys nevertheless when he observes that a lot of people are using the new technology. 
A) Lauren is tech-savvy and tends to actively seek out for new and innovative products in the market. 
B) Suresh appreciates technology but tends to refrain from trying products that are extremely new. 
C) Phillip is ignorant about the newest uses of technology and buys new products only when they become an absolute necessity. 
D) Charlotte is aware of the value that technology offers; she tends to weigh costs and benefits of a product before making a buying decision. 
E) Maria tends to be a little apprehensive about buying new technology but buys nevertheless when he observes that a lot of people are using the new technology.

Question 3

Which of the following statements is true about fragmented industries?

Accepted Answer

A) They are usually characterized by large mass-production operations. 
B) They essentially enjoy a national brand loyalty. 
C) They require companies to use focus strategies to meet specialized customer needs. 
D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale. 
E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices. 
A) They are usually characterized by large mass-production operations. 
B) They essentially enjoy a national brand loyalty. 
C) They require companies to use focus strategies to meet specialized customer needs. 
D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale. 
E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices.

Question 4

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true about horizontal mergers?

Accepted Answer

A) Horizontal mergers enable companies to achieve economies of scale. 
B) Horizontal mergers result in the fragmentation of the industry. 
C) The horizontal merger strategy has been very successful in businesses with zero cases of failure. 
D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost postition are known as horizontal mergers. 
E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers. 
A) Horizontal mergers enable companies to achieve economies of scale. 
B) Horizontal mergers result in the fragmentation of the industry. 
C) The horizontal merger strategy has been very successful in businesses with zero cases of failure. 
D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost postition are known as horizontal mergers. 
E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.

Question 6

Highest market demand and industry profits arise when:

Accepted Answer

A) early adopters leave the market. 
B) innovators and early adopters enter the market. 
C) when laggards and late majority leave the market. 
D) early and late majority users enter the market. 
E) when the production costs become high. 
A) early adopters leave the market. 
B) innovators and early adopters enter the market. 
C) when laggards and late majority leave the market. 
D) early and late majority users enter the market. 
E) when the production costs become high.

Question 7

Armando,a technology enthusiast,is often willing to pay premium prices to always have the newest tech gadgets.Armando most likely belongs to the _____ group of customers.

Accepted Answer

A) laggard 
B) early majority 
C) early adopter 
D) late majority 
E) innovator 
A) laggard 
B) early majority 
C) early adopter 
D) late majority 
E) innovator

Question 8

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as:

Accepted Answer

A) product proliferation. 
B) technology upgrading. 
C) market penetration. 
D) capacity control. 
E) product development. 
A) product proliferation. 
B) technology upgrading. 
C) market penetration. 
D) capacity control. 
E) product development.

Question 9

By their choices of competitive actions and decisions about product attributes,managers can speed up or slow down the rate of progress of an industry through the stages of the industry life cycle.

Accepted Answer

A) True 
 B)False

Question 10

Different strategies are often required to support and strengthen a company's business model as a market develops over time.

Accepted Answer

A) True 
 B)False

Question 11

Hydralicious,a juice bar,has been looking to expand its business.The company has given a few entrepreneurs in different locations the license to operate under its name.The entrepreneurs have permission to use the company's reputation and the business model to run operations.The entrepreneurs will be charged a fee,but they will also get a percentage of the profits.Which of the following strategies is Hydralicious most likely to be using ?

Accepted Answer

A) Chaining 
B) Horizontal merger 
C) Vertical merger 
D) Franchising 
E) Centralization 
A) Chaining 
B) Horizontal merger 
C) Vertical merger 
D) Franchising 
E) Centralization

Question 12

Which of the following strategies helps companies with high cost structures,allowing them to survive without having to implement strategies to become more productive and efficient?

Accepted Answer

A) Price signaling 
B) Nonprice competition 
C) Capacity control 
D) Market development 
E) Price leadership 
A) Price signaling 
B) Nonprice competition 
C) Capacity control 
D) Market development 
E) Price leadership

Question 13

An industry moves from embryonic to growth stage when:

Accepted Answer

A) the sales of complementary products decline. 
B) the production costs increase. 
C) companies manufacture products in very small quantities. 
D) ongoing technological progress makes its product easier to use. 
E) mass markets for its products decline. 
A) the sales of complementary products decline. 
B) the production costs increase. 
C) companies manufacture products in very small quantities. 
D) ongoing technological progress makes its product easier to use. 
E) mass markets for its products decline.

Question 14

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Accepted Answer

A) True 
 B)False

Question 15

Formal price leadership,or when companies collaborate to set prices,is illegal under antitrust laws.

Accepted Answer

A) True 
 B)False

Question 16

The growth stage of an industry's life cycle is the:

Accepted Answer

A) time when companies attempt to secure their grip over customers in existing market segments. 
B) time when customers start exiting the markets. 
C) time to plan an exit strategy. 
D) time to reduce investment in a product. 
E) time when the demand for products is low because customers are not familiar with the product. 
A) time when companies attempt to secure their grip over customers in existing market segments. 
B) time when customers start exiting the markets. 
C) time to plan an exit strategy. 
D) time to reduce investment in a product. 
E) time when the demand for products is low because customers are not familiar with the product.

Question 17

Product proliferation often results in lowering of entry barriers in a mature industry.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following factors of a particular product tends to accelerate customer demand for it?

Accepted Answer

A) High observability 
B) Minimum relative advantage 
C) High complexity 
D) Minimal value 
E) Low trialability 
A) High observability 
B) Minimum relative advantage 
C) High complexity 
D) Minimal value 
E) Low trialability

Question 19

To compete in the fragmented restaurant industry,Starbucks built,and now operates hundreds of restaurants across the United States and Canada.Which of the following strategies is Starbucks using ?

Accepted Answer

A) Acquisitions 
B) Horizontal mergers 
C) Franchising 
D) Licensing 
E) Chaining 
A) Acquisitions 
B) Horizontal mergers 
C) Franchising 
D) Licensing 
E) Chaining

Question 20

Mature industries are generally characterized by:

Accepted Answer

A) low entry barriers. 
B) diseconomies of scale. 
C) absence of large-scale production. 
D) a small number of large firms. 
E) very low customer demand. 
A) low entry barriers. 
B) diseconomies of scale. 
C) absence of large-scale production. 
D) a small number of large firms. 
E) very low customer demand.

Factors leading to the slow growth of demand in embryonic industries include all of the following except the:

Who among the following is most likely to fall under the category of laggards in the context of customer groups?

Which of the following statements is true about fragmented industries?

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Which of the following statements is true about horizontal mergers?

Highest market demand and industry profits arise when:

Armando,a technology enthusiast,is often willing to pay premium prices to always have the newest tech gadgets.Armando most likely belongs to the _____ group of customers.

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as:

By their choices of competitive actions and decisions about product attributes,managers can speed up or slow down the rate of progress of an industry through the stages of the industry life cycle.

Different strategies are often required to support and strengthen a company's business model as a market develops over time.

Which of the following strategies helps companies with high cost structures,allowing them to survive without having to implement strategies to become more productive and efficient?

An industry moves from embryonic to growth stage when:

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Formal price leadership,or when companies collaborate to set prices,is illegal under antitrust laws.

The growth stage of an industry's life cycle is the:

Product proliferation often results in lowering of entry barriers in a mature industry.

Which of the following factors of a particular product tends to accelerate customer demand for it?

To compete in the fragmented restaurant industry,Starbucks built,and now operates hundreds of restaurants across the United States and Canada.Which of the following strategies is Starbucks using ?

Mature industries are generally characterized by:

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters

Exam 6: Business Level Strategy and the Industry Environment

Factors leading to the slow growth of demand in embryonic industries include all of the following except the:

Who among the following is most likely to fall under the category of laggards in the context of customer groups?

Which of the following statements is true about fragmented industries?

Development of a mass market is the stimulus for an industry to change from growth to embryonic.

Which of the following statements is true about horizontal mergers?

Highest market demand and industry profits arise when:

Armando,a technology enthusiast,is often willing to pay premium prices to always have the newest tech gadgets.Armando most likely belongs to the _____ group of customers.

The strategy in a mature industry to invest in infrastructure that would be cost-prohibitive for new entrants to deter new competition from entering the market is known as:

By their choices of competitive actions and decisions about product attributes,managers can speed up or slow down the rate of progress of an industry through the stages of the industry life cycle.

Different strategies are often required to support and strengthen a company's business model as a market develops over time.

Which of the following strategies helps companies with high cost structures,allowing them to survive without having to implement strategies to become more productive and efficient?

An industry moves from embryonic to growth stage when:

The goal for companies in the growth stage of the industry life cycle is to maintain its relative competitive position in a rapidly expanding market.

Formal price leadership,or when companies collaborate to set prices,is illegal under antitrust laws.

The growth stage of an industry's life cycle is the:

Product proliferation often results in lowering of entry barriers in a mature industry.

Which of the following factors of a particular product tends to accelerate customer demand for it?

To compete in the fragmented restaurant industry,Starbucks built,and now operates hundreds of restaurants across the United States and Canada.Which of the following strategies is Starbucks using ?

Mature industries are generally characterized by:

Strategic Leadership: Managing the Strategy Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Building Competitive Advantage Through Functional Level Strategies

Business Level Strategy

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy Through Organization

Filters