Question 1

A divestment strategy's success is often dependent upon good timing.

Accepted Answer

A) True 
 B)False

Question 2

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly upgrades that potential entrants would have trouble matching.?

Accepted Answer

A) True 
 B)False

Question 3

A leadership strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a characteristic of a fragmented industry?

Accepted Answer

A) Low barriers to entry 
B) Diseconomies of scale 
C) Brand loyalty in the industry that may primarily be local 
D) Very specialized customer needs 
E) Large mass-production operation 
A) Low barriers to entry 
B) Diseconomies of scale 
C) Brand loyalty in the industry that may primarily be local 
D) Very specialized customer needs 
E) Large mass-production operation

Question 5

A new product's relative advantage refers to the degree to which a new product is perceived as better at satisfying customer needs than the product that it supersedes.

Accepted Answer

A) True 
 B)False

Question 6

The franchisor typically owns and funds each of its franchisees.

Accepted Answer

A) True 
 B)False

Question 7

A_____ strategy aims to help a company grow in a declining industry by picking up the market share of companies that are leaving the industry.

Accepted Answer

A) divestment 
B) harvest 
C) price signaling 
D) leadership 
E) capacity control 
A) divestment 
B) harvest 
C) price signaling 
D) leadership 
E) capacity control

Question 8

Laggards are the customers who are the first ones to try and adopt a new technology.

Accepted Answer

A) True 
 B)False

Question 9

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Accepted Answer

A) True 
 B)False

Question 10

Relish Inc.created the first national chain of fast-food restaurants in a previously fragmented industry.This is called divestment.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract,or milk,the proceeds of its investment as much as it can?

Accepted Answer

A) Market concentration strategy 
B) Share-increasing strategy 
C) Cost-leadership strategy 
D) Hold-and-maintain strategy 
E) Harvest strategy 
A) Market concentration strategy 
B) Share-increasing strategy 
C) Cost-leadership strategy 
D) Hold-and-maintain strategy 
E) Harvest strategy

Question 12

Which of the following strategies allows interdependent firms indirectly to coordinate their actions?

Accepted Answer

A) Market development 
B) Harvest strategy 
C) Divestment strategy 
D) Price signaling 
E) Market penetration 
A) Market development 
B) Harvest strategy 
C) Divestment strategy 
D) Price signaling 
E) Market penetration

Question 13

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

Accepted Answer

A) True 
 B)False

Question 14

An app development firm is working on a new product to identify and consolidate a smartphone users' favorite and most used apps into one place on the phone. If the new product will be sold to existing customers,the firm is pursuing a strategy of:

Accepted Answer

A) product development. 
B) market penetration. 
C) product proliferation. 
D) market signaling. 
E) market development 
A) product development. 
B) market penetration. 
C) product proliferation. 
D) market signaling. 
E) market development

Question 15

The late majority customers are typically reached through specialized distribution channels,and products are often sold by word of mouth.

Accepted Answer

A) True 
 B)False

Question 16

Price signaling in mature industries happens when:

Accepted Answer

A) the government intervenes to regulate prices of products. 
B) companies decide to invest in slow-growing markets. 
C) companies decide to sell its patents to generate revenue. 
D) companies increase or decrease product prices to convey their intentions to other companies. 
E) a company concentrates on expanding market share in its existing product markets. 
A) the government intervenes to regulate prices of products. 
B) companies decide to invest in slow-growing markets. 
C) companies decide to sell its patents to generate revenue. 
D) companies increase or decrease product prices to convey their intentions to other companies. 
E) a company concentrates on expanding market share in its existing product markets.

Question 17

Which of the following statements is true about customer categories in growing industries?

Accepted Answer

A) Laggards frequently adopt new products even when the benefits are not obvious. 
B) Innovators are the customers who are the last ones to adopt a new product. 
C) A typical late majority customer group is a behaviorally conservative set of customers. 
D) Customers in the early majority generally do not understand the value of new technology. 
E) Laggards form the leading wave or edge of the mass market. 
A) Laggards frequently adopt new products even when the benefits are not obvious. 
B) Innovators are the customers who are the last ones to adopt a new product. 
C) A typical late majority customer group is a behaviorally conservative set of customers. 
D) Customers in the early majority generally do not understand the value of new technology. 
E) Laggards form the leading wave or edge of the mass market.

Question 18

Which of the following factors in an industry is most likely to cause excess capacity?

Accepted Answer

A) Technologically outdated production units 
B) High customer demand 
C) A company's investments in newer production technology 
D) Lack of competition from new entrants 
E) Limited number of outlets in certain locations 
A) Technologically outdated production units 
B) High customer demand 
C) A company's investments in newer production technology 
D) Lack of competition from new entrants 
E) Limited number of outlets in certain locations

Question 19

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run,but is above the cost structure of potential entrants.

Accepted Answer

A) True 
 B)False

Question 20

Nutrimax Corp.,a breakfast cereal company,has designed extensive and elaborate advertising campaigns for its existing products.The campaigns mainly focus on the features and benefits of the products that differentiate the cereals from the competition.The massive advertising and marketing initiatives are also intended to intimidate new entrants and rivals.Nutrimax Corp.is most likely to be using which of the following strategies?

Accepted Answer

A) Market penetration 
B) Product development 
C) Product proliferation 
D) Market development 
E) Capacity control 
A) Market penetration 
B) Product development 
C) Product proliferation 
D) Market development 
E) Capacity control

A divestment strategy's success is often dependent upon good timing.

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly upgrades that potential entrants would have trouble matching.?

A leadership strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Which of the following is not a characteristic of a fragmented industry?

A new product's relative advantage refers to the degree to which a new product is perceived as better at satisfying customer needs than the product that it supersedes.

The franchisor typically owns and funds each of its franchisees.

A_____ strategy aims to help a company grow in a declining industry by picking up the market share of companies that are leaving the industry.

Laggards are the customers who are the first ones to try and adopt a new technology.

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Relish Inc.created the first national chain of fast-food restaurants in a previously fragmented industry.This is called divestment.

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract,or milk,the proceeds of its investment as much as it can?

Which of the following strategies allows interdependent firms indirectly to coordinate their actions?

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

An app development firm is working on a new product to identify and consolidate a smartphone users' favorite and most used apps into one place on the phone. If the new product will be sold to existing customers,the firm is pursuing a strategy of:

The late majority customers are typically reached through specialized distribution channels,and products are often sold by word of mouth.

Price signaling in mature industries happens when:

Which of the following statements is true about customer categories in growing industries?

Which of the following factors in an industry is most likely to cause excess capacity?

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run,but is above the cost structure of potential entrants.

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

A divestment strategy's success is often dependent upon good timing.

A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly upgrades that potential entrants would have trouble matching.?

A leadership strategy aims at growing in a declining industry by picking up the market share of companies that are leaving the industry.

Which of the following is not a characteristic of a fragmented industry?

A new product's relative advantage refers to the degree to which a new product is perceived as better at satisfying customer needs than the product that it supersedes.

The franchisor typically owns and funds each of its franchisees.

A_____ strategy aims to help a company grow in a declining industry by picking up the market share of companies that are leaving the industry.

Laggards are the customers who are the first ones to try and adopt a new technology.

The challenge in a fragmented industry is to figure out the best set of strategies to overcome a fragmented market so that the competitive advantages associated with pursuing one of the different business models can be realized.

Relish Inc.created the first national chain of fast-food restaurants in a previously fragmented industry.This is called divestment.

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract,or milk,the proceeds of its investment as much as it can?

Which of the following strategies allows interdependent firms indirectly to coordinate their actions?

Laggards are technologically sophisticated customers willing to tolerate the limitations of the product.

An app development firm is working on a new product to identify and consolidate a smartphone users' favorite and most used apps into one place on the phone. If the new product will be sold to existing customers,the firm is pursuing a strategy of:

The late majority customers are typically reached through specialized distribution channels,and products are often sold by word of mouth.

Price signaling in mature industries happens when:

Which of the following statements is true about customer categories in growing industries?

Which of the following factors in an industry is most likely to cause excess capacity?

A limit price strategy involves charging a price that is lower than that required to maximize profits in the short run,but is above the cost structure of potential entrants.

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