Question 1

Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery.By the time Acer was ready to target the United States in earnest,it was already the number one PC brand in key countries in Latin America,Southeast Asia,and the Middle East.This is an example of which component of competitive innovation?

Accepted Answer

A)  collaboration
B)  layers of advantage
C)  loose bricks
D)  generic
E)  supplier power C

Question 2

Building layers of advantage is one of the elements of Hamel and Prahalad's framework for:

Accepted Answer

A)  quality advantage.
B)  positioning.
C)  competitive innovation.
D)  marketing management.
E)  innovation leadership. C

Question 3

In the shipbuilding industry,Polish and Chinese shipyards offer simple,standard vessel types at low prices that reflect low production costs.This represents generic strategy related to:

Accepted Answer

A)  cost leadership.
B)  differentiation.
C)  cost focus.
D)  focused differentiation.
E)  cost differentiation. C

Question 4

Michael Porter's five forces model and Rugman and D'Cruz's flagship model are both based on the concept of corporate individualism.

Accepted Answer

A) True 
 B)False

Question 5

Intel's focus on designing complex,expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices.In the strategic intent model of competitive advantage,this is an example of:

Accepted Answer

A)  building layers of advantage.
B)  loose bricks.
C)  changing the rules of engagement.
D)  collaborating.
E)  none of the above

Question 6

The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.

Accepted Answer

A) True 
 B)False

Question 7

According to Michael Porter's research on the competitive advantage of nations,Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

Accepted Answer

A)  factor conditions.
B)  demand conditions.
C)  strategy,structure,and rivalry.
D)  related and supporting industries.
E)  formation of the European Union.

Question 8

There have been considerable changes that have taken effect since Porter presented his theories.One such impact is due to the tremendous technological advancement.In light of these changes,examine what potential impact technology has on some of his theories.

Accepted Answer

The answer of There have been considerable changes that have...

Question 9

Which of the following is not an element of Rugman and D'Cruz's flagship model?

Accepted Answer

A)  key suppliers
B)  key customers
C)  key consumers
D)  selected competitors
E)  focused differentiation

Question 10

Mitsubishi Heavy Industries Ltd.and other Japanese companies manufacture airplanes under license to U.S.firms,and also work as subcontractors for aircraft parts and systems.This type of effort is known as:

Accepted Answer

A)  searching for loose bricks.
B)  collaborating.
C)  building of layers of advantage.
D)  changing the rules of engagement.
E)  innovating.

Question 11

Intel's "loose bricks" approach was its broad focus on complex microprocessors for PCs.

Accepted Answer

A) True 
 B)False

Question 12

In the case of Volkswagen,dealers are its key consumers while individual car buyers are the key consumers of the dealers.

Accepted Answer

A) True 
 B)False

Question 13

The leading country among the "World's Most Competitive Countries" is:

Accepted Answer

A)  the United Kingdom.
B)  the United States.
C)  Japan.
D)  France.
E)  Germany.

Question 14

According to the model developed by Rugman and D'Cruz,the flagship firm is at the center of a collection of three partners.

Accepted Answer

A) True 
 B)False

Question 15

According to Porter,the nature of the interaction between potential industry entrants,buyers,substitute products,suppliers,and rival firms determines:

Accepted Answer

A)  whether or not the government will launch an antitrust investigation.
B)  the industry's profit potential in terms of long-run return on invested capital.
C)  whether a country can generate a balance of payments surplus.
D)  whether a country can create a comparative advantage in the production of differentiated products.
E)  whether a country can generate income by innovation.

Question 16

The Komatsu\Caterpillar saga illustrates the fact that global competitive battles can be shaped by factors other than the pursuit of generic strategies.Explain this statement giving examples and impact on competitive strategies.

Accepted Answer

The answer of The Komatsu\Caterpillar saga illustrates the fact that...

Question 17

Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune,a high-tech machine,at a substantially higher than regular washer price.This is an example of:

Accepted Answer

A)  cost leadership.
B)  differentiation.
C)  cost focus.
D)  focused differentiation.
E)  consumer focus.

Question 18

Chance events play a role in shaping the competitive environment.Chance events are occurrences which include all of the following except:

Accepted Answer

A)  major technological breakthroughs.
B)  wars and their aftermath.
C)  oil crisis.
D)  currency fluctuations.
E)  annual business meeting.

Question 19

Describe some of the factors that create intense rivalry among business competitors.

Accepted Answer

The answer of Describe some of the factors that create...

Question 20

India's Tata Group participates in a variety of industries.Which one of the following statements is incorrect?

Accepted Answer

A)  Tata Group industries include heavy vehicles,cars,department stores,and tea.
B)  Tata Group's management team is hoping to maintain the image as an international brand.
C)  Tata Group's competitive advantage was based on scouring the globe for the highest quality materials.
D)  Tata Group's Taj Hotels acquired Ritz Carlton in Boston and sold it at a loss.
E)  Tata Group's advantage is based on highest quality raw materials irrespective of price.

Exam 16: Strategic Elements of Competitive Advantage

Building layers of advantage is one of the elements of Hamel and Prahalad's framework for:

In the shipbuilding industry,Polish and Chinese shipyards offer simple,standard vessel types at low prices that reflect low production costs.This represents generic strategy related to:

Michael Porter's five forces model and Rugman and D'Cruz's flagship model are both based on the concept of corporate individualism.

Intel's focus on designing complex,expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices.In the strategic intent model of competitive advantage,this is an example of:

The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.

According to Michael Porter's research on the competitive advantage of nations,Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

There have been considerable changes that have taken effect since Porter presented his theories.One such impact is due to the tremendous technological advancement.In light of these changes,examine what potential impact technology has on some of his theories.

Which of the following is not an element of Rugman and D'Cruz's flagship model?

Mitsubishi Heavy Industries Ltd.and other Japanese companies manufacture airplanes under license to U.S.firms,and also work as subcontractors for aircraft parts and systems.This type of effort is known as:

Intel's "loose bricks" approach was its broad focus on complex microprocessors for PCs.

In the case of Volkswagen,dealers are its key consumers while individual car buyers are the key consumers of the dealers.

The leading country among the "World's Most Competitive Countries" is:

According to the model developed by Rugman and D'Cruz,the flagship firm is at the center of a collection of three partners.

According to Porter,the nature of the interaction between potential industry entrants,buyers,substitute products,suppliers,and rival firms determines:

The Komatsu\Caterpillar saga illustrates the fact that global competitive battles can be shaped by factors other than the pursuit of generic strategies.Explain this statement giving examples and impact on competitive strategies.

Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune,a high-tech machine,at a substantially higher than regular washer price.This is an example of:

Chance events play a role in shaping the competitive environment.Chance events are occurrences which include all of the following except:

Describe some of the factors that create intense rivalry among business competitors.

India's Tata Group participates in a variety of industries.Which one of the following statements is incorrect?