Question 1

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 2

Which of the following customer groups represents the leading wave or edge of the mass market?

Accepted Answer

A)  Early adopters 
B)  Early majority 
C)  Innovators 
D)  Late majority 
E)  Laggards 
A)  Early adopters 
B)  Early majority 
C)  Innovators 
D)  Late majority 
E)  Laggards

Question 3

All of these apply to Amazon.com and eBay except:

Accepted Answer

A)  used the Internet to increase retail sales. 
B)  employed technology to consolidate what had previously been a fragmented industry. 
C)  pursue a cost-leadership model. 
D)  merged with each other to compete with Borders. 
E)  all of these apply to Amazon and eBay. 
A)  used the Internet to increase retail sales. 
B)  employed technology to consolidate what had previously been a fragmented industry. 
C)  pursue a cost-leadership model. 
D)  merged with each other to compete with Borders. 
E)  all of these apply to Amazon and eBay.

Question 4

Most market demand and industry profits arise when

Accepted Answer

A)  early adopters leave the market. 
B)  innovators become regular users. 
C)  initial users become regular customers. 
D)  early and late majority users enter the market. 
E)  none of these choices. 
A)  early adopters leave the market. 
B)  innovators become regular users. 
C)  initial users become regular customers. 
D)  early and late majority users enter the market. 
E)  none of these choices.

Question 5

Which of the following factors is crucial in choosing an investment strategy to pursue and thus maximize the profitability of a company's business model?

Accepted Answer

A)  The competitive advantage that a company's business model gives it in an industry relative to competitors 
B)  The stage of the industry life cycle 
C)  The age of the firm 
D)  The competitive advantage that a company's business model gives it in an industry relative to competitors and the stage of the industry life cycle 
E)  All of these choices 
A)  The competitive advantage that a company's business model gives it in an industry relative to competitors 
B)  The stage of the industry life cycle 
C)  The age of the firm 
D)  The competitive advantage that a company's business model gives it in an industry relative to competitors and the stage of the industry life cycle 
E)  All of these choices

Question 6

An embryonic industry is one that

Accepted Answer

A)  has not yet been thought of. 
B)  is just beginning to develop. 
C)  has sufficiently developed so that early industry leaders have already been identified. 
D)  has initial government backing because of its importance to the general populace. 
E)  none of these choices. 
A)  has not yet been thought of. 
B)  is just beginning to develop. 
C)  has sufficiently developed so that early industry leaders have already been identified. 
D)  has initial government backing because of its importance to the general populace. 
E)  none of these choices.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Customers who have a practical interest in using a new technology in the future and who are willing to experiment and envision new uses for the technology are called

Accepted Answer

A)  early adopters. 
B)  the early majority. 
C)  innovators. 
D)  laggards. 
E)  the late majority. 
A)  early adopters. 
B)  the early majority. 
C)  innovators. 
D)  laggards. 
E)  the late majority.

Question 9

Fragmented industries typically have high barriers to entry.

Accepted Answer

A) True 
 B)False

Question 10

Meineke Car Care Centers,Dunkin' Donuts,Burger King,Subway,and Liberty Tax Service all use which of the following strategies for consolidating in a fragmented industry?

Accepted Answer

A)  Horizontal merger 
B)  Chaining 
C)  Divestment strategy 
D)  Niche strategy 
E)  Franchising 
A)  Horizontal merger 
B)  Chaining 
C)  Divestment strategy 
D)  Niche strategy 
E)  Franchising

Question 11

The first group of customers to enter the market for a new product are called

Accepted Answer

A)  early adopters. 
B)  first users. 
C)  innovators. 
D)  adventurers. 
E)  initial customers. 
A)  early adopters. 
B)  first users. 
C)  innovators. 
D)  adventurers. 
E)  initial customers.

Question 12

Which of the following strategies for fragmented industries grants the right to use the parent's name,reputation,and business model in a particular location or area in return for a fee and often a percentage of the profits?

Accepted Answer

A)  Chaining 
B)  Horizontal merger 
C)  Vertical merger 
D)  Franchising 
E)  B2B 
A)  Chaining 
B)  Horizontal merger 
C)  Vertical merger 
D)  Franchising 
E)  B2B

Question 13

In which stage of the industry life cycle do both cost leaders and differentiators adopt a hold-and-maintain strategy to defend their business models and ward off threats from focused companies that might be appearing?

Accepted Answer

A)  Late majority 
B)  Growth 
C)  Shakeout 
D)  Mature 
E)  Decline 
A)  Late majority 
B)  Growth 
C)  Shakeout 
D)  Mature 
E)  Decline

Question 14

In some situations,pricing strategies can be used to

Accepted Answer

A)  deter entry by other companies. 
B)  create exit barriers. 
C)  create emotional attachment to a product. 
D)  all of these choices. 
E)  none of these choices. 
A)  deter entry by other companies. 
B)  create exit barriers. 
C)  create emotional attachment to a product. 
D)  all of these choices. 
E)  none of these choices.

Question 15

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

Accepted Answer

A)  Complexity 
B)  Relative advantage 
C)  Compatibility 
D)  Trialability 
E)  Observability 
A)  Complexity 
B)  Relative advantage 
C)  Compatibility 
D)  Trialability 
E)  Observability

Question 16

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

Accepted Answer

A)  The product's relative advantage 
B)  The product's compatibility 
C)  The simplicity of the product's use 
D)  The degree to which a product can be experimented with 
E)  All of these 
A)  The product's relative advantage 
B)  The product's compatibility 
C)  The simplicity of the product's use 
D)  The degree to which a product can be experimented with 
E)  All of these

Question 17

There are many real estate offices in most locations.Some of them are small independent firms; some are larger and affiliated with national chains.Thus,the real estate sales industry is

Accepted Answer

A)  fragmented. 
B)  vertically integrated. 
C)  homogeneous. 
D)  mature. 
E)  embryonic. 
A)  fragmented. 
B)  vertically integrated. 
C)  homogeneous. 
D)  mature. 
E)  embryonic.

Question 18

Market penetration involves the creation of new or improved products to replace existing ones.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract,or milk,the 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 20

McDonald's created the first national chain of fast-food restaurants in a previously fragmented industry.This is called consolidation.

Accepted Answer

A) True 
 B)False

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

Which of the following customer groups represents the leading wave or edge of the mass market?

All of these apply to Amazon.com and eBay except:

Most market demand and industry profits arise when

Which of the following factors is crucial in choosing an investment strategy to pursue and thus maximize the profitability of a company's business model?

An embryonic industry is one that

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

Customers who have a practical interest in using a new technology in the future and who are willing to experiment and envision new uses for the technology are called

Fragmented industries typically have high barriers to entry.

Meineke Car Care Centers,Dunkin' Donuts,Burger King,Subway,and Liberty Tax Service all use which of the following strategies for consolidating in a fragmented industry?

The first group of customers to enter the market for a new product are called

Which of the following strategies for fragmented industries grants the right to use the parent's name,reputation,and business model in a particular location or area in return for a fee and often a percentage of the profits?

In which stage of the industry life cycle do both cost leaders and differentiators adopt a hold-and-maintain strategy to defend their business models and ward off threats from focused companies that might be appearing?

In some situations,pricing strategies can be used to

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

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

There are many real estate offices in most locations.Some of them are small independent firms; some are larger and affiliated with national chains.Thus,the real estate sales industry is

Market penetration involves the creation of new or improved products to replace existing ones.

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

McDonald's created the first national chain of fast-food restaurants in a previously fragmented industry.This is called consolidation.

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

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

Which of the following customer groups represents the leading wave or edge of the mass market?

All of these apply to Amazon.com and eBay except:

Most market demand and industry profits arise when

Which of the following factors is crucial in choosing an investment strategy to pursue and thus maximize the profitability of a company's business model?

An embryonic industry is one that

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

Customers who have a practical interest in using a new technology in the future and who are willing to experiment and envision new uses for the technology are called

Fragmented industries typically have high barriers to entry.

Meineke Car Care Centers,Dunkin' Donuts,Burger King,Subway,and Liberty Tax Service all use which of the following strategies for consolidating in a fragmented industry?

The first group of customers to enter the market for a new product are called

Which of the following strategies for fragmented industries grants the right to use the parent's name,reputation,and business model in a particular location or area in return for a fee and often a percentage of the profits?

In which stage of the industry life cycle do both cost leaders and differentiators adopt a hold-and-maintain strategy to defend their business models and ward off threats from focused companies that might be appearing?

In some situations,pricing strategies can be used to

Which of the following factors that affect market growth rates refers to the degree to which a new product is perceived as difficult to understand and use?

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

There are many real estate offices in most locations.Some of them are small independent firms; some are larger and affiliated with national chains.Thus,the real estate sales industry is

Market penetration involves the creation of new or improved products to replace existing ones.

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

McDonald's created the first national chain of fast-food restaurants in a previously fragmented industry.This is called consolidation.

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