685_prac8to13 - Chapter 8 MGNT 685 practice questions 1....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 – MGNT 685 practice questions 1. The most important drivers shaping a company's most appealing strategic options fall into two broad categories: A) a company's core competencies and the make-up of its value chain. B) the company's financial condition and its current reputation/image with buyers. C) the nature of industry and competitive conditions and the firm's own resource strengths and weaknesses, competitive capabilities, opportunities and threats, and market position. D) a company's internal strengths and weaknesses and its external opportunities and threats. E) the company's competitive strength vis-à-vis rivals and which strategic group it is in. 2. Competitive success in fast-changing or high velocity markets tends to hinge on a company's ability to A) be the first-mover in reacting and responding to change. B) be at worst a fast follower if it is not the first-mover in leading change. C) to do a better job than rivals of anticipating change and being well-prepared for what happens next. D) stay on the cutting-edge of technological change. E) improvise, experiment, adapt, reinvent, and regenerate as market and competitive conditions shift rapidly and sometimes unpredictably. 3. Which one of the following statements does not represent one of the typical fundamental changes in an industry as it reaches maturity? A) Industry profitability decreases, sometimes permanently. B) Competition on an international or global scale begins to intensify. C) New scale economies develop, the industry experience curve drops sharply, and overall costs per unit produced and sold drop significantly. D) Increased competitive emphasis is placed on lowering costs and improving service. E) Firms encounter growing difficulty in coming up with new product innovations and developing new uses and applications for the product. 4. One of the major mistakes a firm can make during the transition to industry maturity is to A) steer a middle course between low cost, differentiation, and focusing because such strategic compromises typically result in a firm ending up "stuck in the middle" with a fuzzy strategy and no competitive advantage. B) expand into foreign markets. C) attack weaker firms and try to capture some of their market share. D) purchase rival companies at bargain prices¾this simply makes the company a bigger slow- growth company. E) dissolve its strategic alliances and partnerships. 5. The typical strategic mistakes companies can make during the transition from fairly rapid growth to industry maturity include A) pursuing a low-cost strategy instead of a differentiation strategy; not capitalizing on economies of scale; and failing to go all out to achieve strong product differentiation so as to set the company's product offering well apart from those of rivals. B)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/03/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

Page1 / 23

685_prac8to13 - Chapter 8 MGNT 685 practice questions 1....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online