Question 1

In the context of game theory, what is a pay-off?

Accepted Answer

A)  The greatest profit that is delivered when rivals make moves
B)  A choice that rivals have to consider to reach their best outcome
C)  The logic of anticipating what is in a rival's best profit interest
D)  A strategy that cannot be easily imitated or copied A

Question 2

An organization wants to compete at an international level. It sets the company objectives and the assumptions to reinforce the objectives. Which of the following is being exemplified in this case?

Accepted Answer

A)  Organizational chart
B)  Structural graph
C)  Strategic application
D)  Competitor response profile D

Question 3

Which of the following is a characteristic of markets with perfect competition?

Accepted Answer

A)  They are markets with one highly dominant firm.
B)  Attempts to use price strategically are not effective in these markets.
C)  Dropping price increases total margin by more than it increases sales.
D)  The firms in these markets are price setters. B

Question 4

Nash equilibrium is represented by a set of moves in a game that ________.

Accepted Answer

A)  improves the firms' payoffs by changing the choice
B)  sustains an incentive to defect by changing the choice
C)  minimizes each firm's input based on the number of rivals
D)  maximizes each firm's payoff given the choices of rivals

Question 5

An organization studies the strategies of its competitors closely. At the current stage, it studies factors such as geographic location, characteristics of business model, services provided, and time management. At this stage, the organization is identifying the competitor's __________.

Accepted Answer

A)  resources and capabilities
B)  objectives
C)  organizational structure
D)  goals and achievements

Question 6

An airline service provider watches its rivals closely. It studies the potential for reliable, timely, and service-oriented international travel offered by its competitors. In this case, the firm is focusing on the competitors' __________.

Accepted Answer

A)  resources and capabilities
B)  objectives
C)  organizational structure
D)  market risks

Question 7

Zara, a research analyst, is studying the business decisions of some restaurant owners. During the data analysis stage, she employs a strategic canvas. Which of the following is likely to be her primary reason to employ this tool?

Accepted Answer

A)  To understand the pricing strategy used for different dishes within each restaurant
B)  To study the differences in the ways the restaurants compete with each other
C)  To identify the combined target audience of strategic groups as a whole
D)  To observe the similarities in the employees' views of their respective organizations

Question 8

Briefly describe competition under monopoly.

Accepted Answer

The answer of Briefly describe competition under monopoly....

Question 9

A company wants to form the foundation of a competitive strategy. It decides to assess its strengths and weaknesses. In this case, the company should first assess its __________.

Accepted Answer

A)  resources and capabilities
B)  organizational structure
C)  structural chart
D)  competitors' strategies

Question 10

A ___ profile identifies characteristics of a competitor in order to assess how it might respond in the face of rival actions.

Accepted Answer

The answer of A ___ profile identifies characteristics of a...

Question 11

Zeal Inc., an electronic goods manufacturer, launches an air conditioner that contributes to the downfall of Ochre Corp., a company struggling to stay in the market amidst bankruptcy. Which of the following concepts is exemplified in this scenario?

Accepted Answer

A)  Knowing the strengths and weaknesses
B)  Bringing strength against weakness
C)  Neutralizing vulnerability
D)  Developing strategies that cannot be easily copied

Question 12

Marcel, the owner and president of a three-star hotel, believes that only competitors within the same strategic group need to be analyzed. Nina, the chief of client services, believes that other groups must also be considered in order to stay ahead of competition. Which of the following situations strengthens Nina's argument?

Accepted Answer

A)  A new café on the same lane as Marcel's hotel is being frequented by business people.
B)  A grocery store close to Marcel's hotel has all the ingredients required for her restaurant.
C)  The customers of Marcel's hotel are class conscious and do not prefer routine services available elsewhere.
D)  The hotel owned by Marcel enjoys monopoly as it is located in a suburb with few similar service providers.

Question 13

Which of the following statements is true about the principles of competitive strategy?

Accepted Answer

A)  A company's strengths are the resources and capabilities that deliver unique value.
B)  A company's strengths are the resources and capabilities that are subject to rapid obsolescence.
C)  A company's weaknesses should always be masqueraded as strengths so that companies are afraid of attacking competitive strengths.
D)  A company's own weaknesses must be strengthened instead of being neutralized.

Question 14

Identify a feature of the tit-for-tat strategy.

Accepted Answer

A)  It is generally used to take a cooperative stance.
B)  It always ends in a collusion.
C)  It responds in kind to the moves of rivals.
D)  It is used to do the exact opposite of what a company's rivals are doing.

Question 15

Which of the following is a feature of infinitely repeated games?

Accepted Answer

A)  They are literally played forever.
B)  The ending period is known.
C)  The competitors interact over and over again.
D)  The competitors engage in a one-shot game.

Question 16

A successful chain of restaurants is successful in securing the most advantageous geographic positions. This effectively bars competition. Which of the following is exemplified in this case?

Accepted Answer

A)  A tit-for-tat strategy
B)  A limited competitive access to scarce resources
C)  A low-end disruptive innovation
D)  The Nash equilibrium

Question 17

Laser Tech., a leading printing firm, launches a new printing technique to meet the changing demands of the market. Blue Corp., its prime competitor, had been rigid in adapting to the changes in the market and is put out of business because of the launch of the new technique by Laser. Which of the following is exemplified in this case?

Accepted Answer

A)  Knowing the strengths and weaknesses
B)  Bringing strength against weakness
C)  Neutralizing vulnerability
D)  Developing strategies that cannot be easily copied

Question 18

The word "theory" in game theory refers to __________.

Accepted Answer

A)  the strategic interaction among competitors
B)  a set of predictions
C)  a competitor's objectives
D)  the resources and capabilities of a competitor

Question 19

In game theory, a set of actions that are always played no matter what a rival chooses to do is referred to as the ___.

Accepted Answer

The answer of In game theory, a set of actions...

Question 20

A research institute plans to build a competitor response profile for a study. Which of the following is the first step to build such a profile?

Accepted Answer

A)  Identifying the assumptions
B)  Studying the strategic ideas of competitors
C)  Creating a structural chart
D)  Focusing on productivity

Exam 11: Competitive Strategy

In the context of game theory, what is a pay-off?

An organization wants to compete at an international level. It sets the company objectives and the assumptions to reinforce the objectives. Which of the following is being exemplified in this case?

Which of the following is a characteristic of markets with perfect competition?

Nash equilibrium is represented by a set of moves in a game that ________.

An organization studies the strategies of its competitors closely. At the current stage, it studies factors such as geographic location, characteristics of business model, services provided, and time management. At this stage, the organization is identifying the competitor's __________.

An airline service provider watches its rivals closely. It studies the potential for reliable, timely, and service-oriented international travel offered by its competitors. In this case, the firm is focusing on the competitors' __________.

Zara, a research analyst, is studying the business decisions of some restaurant owners. During the data analysis stage, she employs a strategic canvas. Which of the following is likely to be her primary reason to employ this tool?

Briefly describe competition under monopoly.

A company wants to form the foundation of a competitive strategy. It decides to assess its strengths and weaknesses. In this case, the company should first assess its __________.

A ___ profile identifies characteristics of a competitor in order to assess how it might respond in the face of rival actions.

Zeal Inc., an electronic goods manufacturer, launches an air conditioner that contributes to the downfall of Ochre Corp., a company struggling to stay in the market amidst bankruptcy. Which of the following concepts is exemplified in this scenario?

Which of the following statements is true about the principles of competitive strategy?

Identify a feature of the tit-for-tat strategy.

Which of the following is a feature of infinitely repeated games?

A successful chain of restaurants is successful in securing the most advantageous geographic positions. This effectively bars competition. Which of the following is exemplified in this case?

The word "theory" in game theory refers to __________.

In game theory, a set of actions that are always played no matter what a rival chooses to do is referred to as the ___.

A research institute plans to build a competitor response profile for a study. Which of the following is the first step to build such a profile?