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CH05_Testbank_HIH9e - Chapter 5Competitive Rivalry and...

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Chapter 5—Competitive Rivalry and Competitive Dynamics TRUE/FALSE 1. Competitive rivalry often increases during recessions and some selected businesses in particular indus- tries experience heightened demand. ANS: T PTS: 1 DIF: Medium REF: 129 OBJ: 05-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 2. Movie studios and theaters, and videogame developers and distributors are examples of businesses that do poorly during recessionary times. ANS: F PTS: 1 DIF: Medium REF: 129 OBJ: 05-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 3. A Nielsen survey revealed that pasta, candy, and beer were relatively immune from the negative ef- fects of a recession. ANS: T PTS: 1 DIF: Medium REF: 129 OBJ: 05-01 TYPE: application NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 4. Firms operating in the same market, offering similar products and targeting similar customers are com- petitors. ANS: T PTS: 1 DIF: Easy REF: 130 OBJ: 05-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing strategy & innovation 5. Competitive rivalry is the contest to be the first mover in an international market. ANS: F PTS: 1 DIF: Easy REF: 130 OBJ: 05-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Strategic & systems skills 6. Competitive rivalry is the set of competitive actions and responses that occur among firms as they maneuver for an advantageous market position. ANS: T PTS: 1 DIF: Easy REF: 130 OBJ: 05-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Strategic & systems skills 7. “Competitive dynamics” indicates that firms and their strategic actions are independent.
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ANS: F PTS: 1 DIF: Medium REF: 131 OBJ: 05-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Strategic & systems skills 8. Competitive dynamics refers to the total set of actions and responses taken by all firms competing within a market. ANS: T PTS: 1 DIF: Easy REF: 131 OBJ: 05-01 TYPE: knowledge NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Strategic & systems skills 9. A strategy’s success is determined not only by the firm’s initial competitive actions but also by how well it anticipates competitors’ responses to them and by how well the firm anticipates and responds to its competitors initial actions. ANS: T PTS: 1 DIF: Medium REF: 131 OBJ: 05-01 TYPE: comprehension NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Ru- bin: Managing the task environment 10. Intensified rivalry within an industry results in decreased average profitability for the firms within it.
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