Question 1

As a result of fierce competition in the shakeout stage,an industry becomes fragmented.

Accepted Answer

A) True 
 B)False  False

Question 2

The shakeout strategy of share-increasing is put in place by allocating resources to attract customers from weak companies exiting the market.

Accepted Answer

A) True 
 B)False  True

Question 3

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  False

Question 4

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 5

Firms sometimes pursue a chaining strategy to

Accepted Answer

A) obtain the advantages of cost leadership. 
B) create product diversity. 
C) retain current market share. 
D) spread overhead costs. 
E) establish a number of unrelated business units. 
A) obtain the advantages of cost leadership. 
B) create product diversity. 
C) retain current market share. 
D) spread overhead costs. 
E) establish a number of unrelated business units.

Question 6

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 7

In a harvest strategy,a company

Accepted Answer

A) limits its investment in a business. 
B) decreases its investment in a business. 
C) reduces to a minimum the assets it uses in a business. 
D) extracts as much investment or profit from the business as it can. 
E) all of these choices. 
A) limits its investment in a business. 
B) decreases its investment in a business. 
C) reduces to a minimum the assets it uses in a business. 
D) extracts as much investment or profit from the business as it can. 
E) all of these choices.

Question 8

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

Accepted Answer

A) Low barriers to entry 
B) Diseconomies of scale 
C) Constant entry of new competitors 
D) Very specialized customer needs 
E) High barriers to exit 
A) Low barriers to entry 
B) Diseconomies of scale 
C) Constant entry of new competitors 
D) Very specialized customer needs 
E) High barriers to exit

Question 9

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

Accepted Answer

A) A large number of small competitors 
B) Low economies of scale 
C) Many custom-made or specialty firms 
D) High barriers to entry 
E) Low consolidation 
A) A large number of small competitors 
B) Low economies of scale 
C) Many custom-made or specialty firms 
D) High barriers to entry 
E) Low consolidation

Question 10

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 11

Amazon.com and eBay are examples of companies that

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) all of these choices. 
E) none of these choices. 
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) all of these choices. 
E) none of these choices.

Question 12

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 13

Some researchers claim that the spread of new products is similar to a viral infection,suggesting that

Accepted Answer

A) products that are too new can hurt you. 
B) new products change and mutate as rapidly as a virus does. 
C) only high-technology products can stop the diffusion. 
D) lead adopters become "infected" or enthused with the new product and subsequently infect others by telling them about it. 
E) medical professionals are the first to hear of most new technologies. 
A) products that are too new can hurt you. 
B) new products change and mutate as rapidly as a virus does. 
C) only high-technology products can stop the diffusion. 
D) lead adopters become "infected" or enthused with the new product and subsequently infect others by telling them about it. 
E) medical professionals are the first to hear of most new technologies.

Question 14

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 15

In deciding on a strategy,a company in a declining industry must do all of the following except

Accepted Answer

A) lower prices. 
B) manage industry capacity. 
C) evaluate its strengths relative to the remaining pockets of demand. 
D) evaluate the severity of decline. 
E) monitor its cash flow. 
A) lower prices. 
B) manage industry capacity. 
C) evaluate its strengths relative to the remaining pockets of demand. 
D) evaluate the severity of decline. 
E) monitor its cash flow.

Question 16

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 17

A telecommunications firm is working on the next generation of switching equipment that allows calls to be digitally transmitted from sender to receiver.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 18

John,a computer scientist,is willing to pay premium prices to be one of the first to have new versions of software packages.John is in the ____ customer group.

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 19

Reaching the early majority requires successful niche marketing and narrow market segmentation.

Accepted Answer

A) True 
 B)False

Question 20

Strategic managers at Clear Channel Communications recognized from the beginning that the major way to make small radio stations profitable was to obtain economies of scale.

Accepted Answer

A) True 
 B)False

As a result of fierce competition in the shakeout stage,an industry becomes fragmented.

The shakeout strategy of share-increasing is put in place by allocating resources to attract customers from weak companies exiting the market.

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.

In some situations,pricing strategies can be used to

Firms sometimes pursue a chaining strategy to

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

In a harvest strategy,a company

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

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

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?

Amazon.com and eBay are examples of companies that

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

Some researchers claim that the spread of new products is similar to a viral infection,suggesting that

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

In deciding on a strategy,a company in a declining industry must do all of the following except

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?

A telecommunications firm is working on the next generation of switching equipment that allows calls to be digitally transmitted from sender to receiver.If the new product will be sold to existing customers,the firm is pursuing a strategy of

John,a computer scientist,is willing to pay premium prices to be one of the first to have new versions of software packages.John is in the ____ customer group.

Reaching the early majority requires successful niche marketing and narrow market segmentation.

Strategic managers at Clear Channel Communications recognized from the beginning that the major way to make small radio stations profitable was to obtain economies of scale.

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

As a result of fierce competition in the shakeout stage,an industry becomes fragmented.

The shakeout strategy of share-increasing is put in place by allocating resources to attract customers from weak companies exiting the market.

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.

In some situations,pricing strategies can be used to

Firms sometimes pursue a chaining strategy to

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

In a harvest strategy,a company

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

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

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?

Amazon.com and eBay are examples of companies that

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

Some researchers claim that the spread of new products is similar to a viral infection,suggesting that

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

In deciding on a strategy,a company in a declining industry must do all of the following except

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?

A telecommunications firm is working on the next generation of switching equipment that allows calls to be digitally transmitted from sender to receiver.If the new product will be sold to existing customers,the firm is pursuing a strategy of

John,a computer scientist,is willing to pay premium prices to be one of the first to have new versions of software packages.John is in the ____ customer group.

Reaching the early majority requires successful niche marketing and narrow market segmentation.

Strategic managers at Clear Channel Communications recognized from the beginning that the major way to make small radio stations profitable was to obtain economies of scale.

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