Question 1

One characteristic of embryonic industries is poorly developed distribution channels.

Accepted Answer

A) True 
 B)False

Question 2

A company uses when it focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability.

Accepted Answer

A) acquisition strategy 
B) chaining 
C) divestment strategy 
D) niche strategy 
E) franchising 
A) acquisition strategy 
B) chaining 
C) divestment strategy 
D) niche strategy 
E) franchising

Question 3

In a bid to expand its business and gain cost advantages, Omega Inc.has established several merchandising outlets in different locations.All the outlets share a good network and are interconnected by information technology.The entire network of outlets operates in the industry as one large company.Which of the following strategies has Omega Inc.most likely used ?

Accepted Answer

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

Question 4

Competitive intensity in a declining industry is greatest when:

Accepted Answer

A) the industry is declining slowly instead of rapidly. 
B) the product is easy to differentiate. 
C) exit barriers are high. 
D) entry barriers are high. 
E) technology is stable. 
A) the industry is declining slowly instead of rapidly. 
B) the product is easy to differentiate. 
C) exit barriers are high. 
D) entry barriers are high. 
E) technology is stable.

Question 5

Which of the following statements is true about customer categories in the context of 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 6

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 7

Through chaining, companies increase their buying power, which allows them to negotiate large price reductions with their suppliers, which in tum promotes their competitive advantage.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a disadvantage of franchising?

Accepted Answer

A) It restricts the franchisor from expanding. 
B) It results in the franchisor taking all the financial burden of the franchisees. 
C) It results in the delegation of authority to franchisees and thus, the franchisor may not enjoy complete control. 
D) It does not provide sufficient incentive to the franchisees to run operations effectively as the franchisees are not entrepreneurs. 
E) It requires the franchisees to create a new business model and plan strategies. 
A) It restricts the franchisor from expanding. 
B) It results in the franchisor taking all the financial burden of the franchisees. 
C) It results in the delegation of authority to franchisees and thus, the franchisor may not enjoy complete control. 
D) It does not provide sufficient incentive to the franchisees to run operations effectively as the franchisees are not entrepreneurs. 
E) It requires the franchisees to create a new business model and plan strategies.

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

Which of the following statements is true about horizontal mergers?

Accepted Answer

A) Horizontal mergers result from an intention to achieve economies of scale. 
B) Horizontal mergers result in the fragmentation of the industry. 
C) Horizontal mergers has been a very successful concept so far with zero cases of failure. 
D) Companies that establish a network of linked merchandising outlets to obtain advantages of cost leadership 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 result from an intention to achieve economies of scale. 
B) Horizontal mergers result in the fragmentation of the industry. 
C) Horizontal mergers has been a very successful concept so far with zero cases of failure. 
D) Companies that establish a network of linked merchandising outlets to obtain advantages of cost leadership 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 11

Which of the following factors that affect market growth rates refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people?

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 12

Which of the following strategies allows interdependent fmns 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

A fragmented industry is composed of a large number of small and medium-sized companies.

Accepted Answer

A) True 
 B)False

Question 14

Hydralicious, a juice parlor, 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 are given the permission to use the company's reputation and the business model to run operations.The entrepreneurs will be charged a fee but will also get a percentage of the profits made.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 15

Which of the following statements is true in the context of embryonic industries?

Accepted Answer

A) They are characterized by very a high initial customer demand. 
B) They are characterized by well-developed distribution channels. 
C) They involve low production costs because of large volumes of production. 
D) They face the challenge of customers not being familiar with product benefits. 
E) They enjoy the abundance of complementary products that help increase sales. 
A) They are characterized by very a high initial customer demand. 
B) They are characterized by well-developed distribution channels. 
C) They involve low production costs because of large volumes of production. 
D) They face the challenge of customers not being familiar with product benefits. 
E) They enjoy the abundance of complementary products that help increase sales.

Question 16

When a company decides to exit an industry by selling off its business assets to another company, it is said to be using a(n) strategy.

Accepted Answer

A) market penetration 
B) divestment 
C) niche 
D) downsizing 
E) outsourcing 
A) market penetration 
B) divestment 
C) niche 
D) downsizing 
E) outsourcing

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) laggards. 
B) late majority. 
C) innovators. 
D) early majority. 
E) passive shoppers. 
A) laggards. 
B) late majority. 
C) innovators. 
D) early majority. 
E) passive shoppers.

Question 19

Gadgetbug, an electronic gadgets company, has established itself as one of the industry leaders.The company recently has been facing some amount of competition from certain new entrants.The new entrants offer gadgets in different colors and with interesting artwork embossed.Recognizing that there is a special market for gadgets that are designed uniquely, Gadgetbug has now introduced its own range of uniquely designed gadgets.In this scenario, Gadgetbug's attempt to cater to all the different segments of customers to deter competition demonstrates:

Accepted Answer

A) price signaling 
B) product proliferation 
C) harvest strategy 
D) limit price strategy 
E) diseconomies of scale 
A) price signaling 
B) product proliferation 
C) harvest strategy 
D) limit price strategy 
E) diseconomies of scale

Question 20

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

One characteristic of embryonic industries is poorly developed distribution channels.

A company uses when it focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability.

Competitive intensity in a declining industry is greatest when:

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

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:

Through chaining, companies increase their buying power, which allows them to negotiate large price reductions with their suppliers, which in tum promotes their competitive advantage.

Which of the following is a disadvantage of franchising?

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.

Which of the following statements is true about horizontal mergers?

Which of the following factors that affect market growth rates refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people?

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

A fragmented industry is composed of a large number of small and medium-sized companies.

Which of the following statements is true in the context of embryonic industries?

When a company decides to exit an industry by selling off its business assets to another company, it is said to be using a(n) strategy.

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

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

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

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

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

One characteristic of embryonic industries is poorly developed distribution channels.

A company uses when it focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability.

Competitive intensity in a declining industry is greatest when:

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

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:

Through chaining, companies increase their buying power, which allows them to negotiate large price reductions with their suppliers, which in tum promotes their competitive advantage.

Which of the following is a disadvantage of franchising?

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.

Which of the following statements is true about horizontal mergers?

Which of the following factors that affect market growth rates refers to the degree to which the results of using and enjoying a new product can be seen and appreciated by other people?

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

A fragmented industry is composed of a large number of small and medium-sized companies.

Which of the following statements is true in the context of embryonic industries?

When a company decides to exit an industry by selling off its business assets to another company, it is said to be using a(n) strategy.

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

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

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

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

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