Question 1

A horizontal merger is a

Accepted Answer

A)  consolidation of small firms from disparate industries. 
B)  consolidation of suppliers in an effort to ensure availability of vital components. 
C)  merger of firms within the same industry. 
D)  conglomerate acquisition. 
E)  violation of antitrust regulations. 
A)  consolidation of small firms from disparate industries. 
B)  consolidation of suppliers in an effort to ensure availability of vital components. 
C)  merger of firms within the same industry. 
D)  conglomerate acquisition. 
E)  violation of antitrust regulations. C

Question 2

Franchising is a business-level strategy that allows companies to

Accepted Answer

A)  spread overhead and administrative costs over a large number of franchises. 
B)  enjoy the competitive advantages of cost leadership or differentiation. 
C)  hedge the costs of supplies. 
D)  expand beyond their base of support. 
E)  engage in new businesses that were previously beyond reach. 
A)  spread overhead and administrative costs over a large number of franchises. 
B)  enjoy the competitive advantages of cost leadership or differentiation. 
C)  hedge the costs of supplies. 
D)  expand beyond their base of support. 
E)  engage in new businesses that were previously beyond reach. B

Question 3

One characteristic of embryonic industries is poorly developed distribution channels.

Accepted Answer

A) True 
 B)False  True

Question 4

Mature industries are generally characterized by

Accepted Answer

A)  low entry barriers. 
B)  few economies of scale. 
C)  high transportation costs. 
D)  a small number of large firms. 
E)  rapidly fluctuating demand. 
A)  low entry barriers. 
B)  few economies of scale. 
C)  high transportation costs. 
D)  a small number of large firms. 
E)  rapidly fluctuating demand.

Question 5

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

Accepted Answer

A)  Cost cutting 
B)  Vertical integration 
C)  Preemption 
D)  Price signaling 
E)  Horizontal mergers 
A)  Cost cutting 
B)  Vertical integration 
C)  Preemption 
D)  Price signaling 
E)  Horizontal mergers

Question 6

Explain why a company in a fragmented industry would want to consolidate the industry.Discuss the strategies that they might use to do this.

Accepted Answer

Companies in a fragmented industry have

Question 7

The early adopters refers to the customers who purchase a new technology or product only when it is clear it will be around for a long time.

Accepted Answer

A) True 
 B)False

Question 8

Companies in a weak competitive position in the growth stage of the industry life cycle can use a market concentration strategy to find a viable competitive position.

Accepted Answer

A) True 
 B)False

Question 9

By the shakeout stage of a product's life cycle,demand is

Accepted Answer

A)  holding steady. 
B)  decreasing rapidly. 
C)  increasing slowly. 
D)  increasing rapidly but showing signs of slacking off. 
E)  increasing and decreasing in alternate cycles. 
A)  holding steady. 
B)  decreasing rapidly. 
C)  increasing slowly. 
D)  increasing rapidly but showing signs of slacking off. 
E)  increasing and decreasing in alternate cycles.

Question 10

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 11

Imagine that a new product becomes available to the public tomorrow-a personal transportation device that can move individuals or cargo from place to place instantly (yes,just like Star Trek).Industries such as airlines,auto manufacturing,railroads,and delivery services would immediately enter a severe decline.What advice would you give the firms in those industries? What strategies should they pursue,and why?

Accepted Answer

The answer to this question depends on w

Question 12

Broad cost leadership is the most appropriate generic strategy for a fragmented industry.

Accepted Answer

A) True 
 B)False

Question 13

A price-cutting strategy will keep out an entrant that plans to adopt a new production technology.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Consumer demand for products of an embryonic industry is

Accepted Answer

A)  high and ready to explode. 
B)  frequently limited at first. 
C)  nonexistent because consumers lack product information. 
D)  tentative for the first two years. 
E)  insatiable. 
A)  high and ready to explode. 
B)  frequently limited at first. 
C)  nonexistent because consumers lack product information. 
D)  tentative for the first two years. 
E)  insatiable.

Question 16

In embryonic industries,customer demand is typically

Accepted Answer

A)  high. 
B)  low. 
C)  growing rapidly. 
D)  variable. 
E)  slowly declining. 
A)  high. 
B)  low. 
C)  growing rapidly. 
D)  variable. 
E)  slowly declining.

Question 17

Because franchisees essentially own their own businesses,they are less motivated to make the companywide business model work and instead pursue strategies that they feel are appropriate for their unique circumstances.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best describes an industry that consists of many small firms?

Accepted Answer

A)  Mature 
B)  Growth 
C)  Fragmented 
D)  Declining 
E)  Diverse 
A)  Mature 
B)  Growth 
C)  Fragmented 
D)  Declining 
E)  Diverse

Question 19

Alyse is a manager at Across-the-Nation Railroads,a company that wishes to exit a declining industy and optimize cash flow in the process.Alyse and other managers should utilize a harvest strategy.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

A horizontal merger is a

Franchising is a business-level strategy that allows companies to

One characteristic of embryonic industries is poorly developed distribution channels.

Mature industries are generally characterized by

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

Explain why a company in a fragmented industry would want to consolidate the industry.Discuss the strategies that they might use to do this.

The early adopters refers to the customers who purchase a new technology or product only when it is clear it will be around for a long time.

Companies in a weak competitive position in the growth stage of the industry life cycle can use a market concentration strategy to find a viable competitive position.

By the shakeout stage of a product's life cycle,demand is

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.

Broad cost leadership is the most appropriate generic strategy for a fragmented industry.

A price-cutting strategy will keep out an entrant that plans to adopt a new production technology.

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.

Consumer demand for products of an embryonic industry is

In embryonic industries,customer demand is typically

Because franchisees essentially own their own businesses,they are less motivated to make the companywide business model work and instead pursue strategies that they feel are appropriate for their unique circumstances.

Which of the following best describes an industry that consists of many small firms?

Alyse is a manager at Across-the-Nation Railroads,a company that wishes to exit a declining industy and optimize cash flow in the process.Alyse and other managers should utilize a harvest strategy.

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

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 6: Business-Level Strategy and the Industry Environment

A horizontal merger is a

Franchising is a business-level strategy that allows companies to

One characteristic of embryonic industries is poorly developed distribution channels.

Mature industries are generally characterized by

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

Explain why a company in a fragmented industry would want to consolidate the industry.Discuss the strategies that they might use to do this.

The early adopters refers to the customers who purchase a new technology or product only when it is clear it will be around for a long time.

Companies in a weak competitive position in the growth stage of the industry life cycle can use a market concentration strategy to find a viable competitive position.

By the shakeout stage of a product's life cycle,demand is

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.

Broad cost leadership is the most appropriate generic strategy for a fragmented industry.

A price-cutting strategy will keep out an entrant that plans to adopt a new production technology.

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.

Consumer demand for products of an embryonic industry is

In embryonic industries,customer demand is typically

Because franchisees essentially own their own businesses,they are less motivated to make the companywide business model work and instead pursue strategies that they feel are appropriate for their unique circumstances.

Which of the following best describes an industry that consists of many small firms?

Alyse is a manager at Across-the-Nation Railroads,a company that wishes to exit a declining industy and optimize cash flow in the process.Alyse and other managers should utilize a harvest strategy.

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

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through 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 in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters