Question 1

Which industry has the largest average firm size?

Accepted Answer

A)   construction
B)   transportation, communications, and public utilities
C)   retail trade
D)   manufacturingE) C) and D)
F) A) and C)

Question 2

Buyer power measures the degree of power that customers have over companies in the industry.

Accepted Answer

A) True 
 B)False

Question 3

The value chain is a description of activities that are used to produce and deliver a product to customers.

Accepted Answer

A) True 
 B)False

Question 4

What are the capabilities that are used to generate values across many firm activities called?

Accepted Answer

A)   sustainable competitive advantage
B)   resources
C)   core competency
D)   capabilitiesE) All of the above
F) A) and D)

Question 5

In creatively destructive industries, entrepreneurs enter with new firms; challenge established firms on the basis on new ideas; disrupt the old ways of production, organization, and distribution; and replace the old firms.

Accepted Answer

A) True 
 B)False  True

Question 6

What is the description of activities that are used to produce and deliver a product to customers called?

Accepted Answer

A)   concentration rate
B)   value chain
C)   core rigidities
D)   core competenciesE) B) and D)
F) A) and D)

Question 7

Under which category of resources would you classify trade secrets?

Accepted Answer

A)   tangible
B)   intangible
C)   human
D)   all of the aboveE) C) and D)
F) A) and D)

Question 8

What generally happens when advertising is initially introduced?

Accepted Answer

A)   significant effect
B)   diminishing effect
C)   no effect
D)   little effectE) A) and D)
F) C) and D)

Question 9

Which industry had the most significant decline in average firm size from 1980 to 1993?

Accepted Answer

A)   wholesale trade
B)   retail trade
C)   manufacturing
D)   finance, insurance, and real estateE) C) and D)
F) A) and B)

Question 10

If your company had a core competency of quality control, what would it be classified as?

Accepted Answer

A)   persuading customers
B)   infrastructure management
C)   technology development
D)   manufacturingE) B) and C)
F) A) and C)

Question 11

How many firms are typically used in determining an industry's concentration rate?

Accepted Answer

A)   2
B)   4
C)   10
D)   top 10 percentE) A) and D)
F) All of the above B

Question 12

Telecommunications is an industry in which the process of creative destruction tends to be found.

Accepted Answer

A) True 
 B)False

Question 13

When a company is analyzing an industry, which factor would lead the company to believe that they have low buyer power?

Accepted Answer

A)   cannot integrate forward into production
B)   face high costs to switching suppliers
C)   offer supplies that add little value to later stages
D)   capital cost are largeE) None of the above
F) B) and C) B

Question 14

What are the assets that a firm employs in its efforts to generate economic value called?

Accepted Answer

A)   resources
B)   capabilities
C)   sustainable competitive advantage
D)   strategic competencyE) None of the above
F) B) and C)

Question 15

Overall the average firm size within industries rose between 1980 and 1983.

Accepted Answer

A) True 
 B)False

Question 16

What approach to making products is most likely to rely on tacit knowledge where the relationship between cause and effect is not well understood?

Accepted Answer

A)   strategic dissonance
B)   socially complexity
C)   core rigidity
D)   causal ambiguityE) A) and D)
F) B) and D)

Question 17

The degree of rivalry is high if products are commodities and cannot be easily differentiated.

Accepted Answer

A) True 
 B)False

Question 18

If your company had a core competency of inventory logistics, what would it be classified as?

Accepted Answer

A)   persuading customers
B)   infrastructure management
C)   technology development
D)   manufacturingE) B) and D)
F) B) and C)

Question 19

When determining the rivalry among existing firms, you need to examine the industry growth rate.

Accepted Answer

A) True 
 B)False

Question 20

Under which of Porter's five forces do you need to consider exit barriers?

Accepted Answer

A)   threat of new entrants
B)   rivalry among existing firms
C)   threat of substitute products
D)   determination of supplier powerE) B) and C)
F) A) and C)

Exam 11: Competitive Advantage in High-Tech Industries

Which industry has the largest average firm size?

Correct AnswerverifiedShow Answer

Buyer power measures the degree of power that customers have over companies in the industry.

Correct AnswerverifiedShow Answer

The value chain is a description of activities that are used to produce and deliver a product to customers.

Correct AnswerverifiedShow Answer

What are the capabilities that are used to generate values across many firm activities called?

Correct AnswerverifiedShow Answer

In creatively destructive industries, entrepreneurs enter with new firms; challenge established firms on the basis on new ideas; disrupt the old ways of production, organization, and distribution; and replace the old firms.

Correct AnswerverifiedTrue

What is the description of activities that are used to produce and deliver a product to customers called?

Correct AnswerverifiedShow Answer

Under which category of resources would you classify trade secrets?

Correct AnswerverifiedShow Answer

What generally happens when advertising is initially introduced?

Correct AnswerverifiedShow Answer

Which industry had the most significant decline in average firm size from 1980 to 1993?

Correct AnswerverifiedShow Answer

If your company had a core competency of quality control, what would it be classified as?

Correct AnswerverifiedShow Answer

How many firms are typically used in determining an industry's concentration rate?

Correct AnswerverifiedB

Telecommunications is an industry in which the process of creative destruction tends to be found.

Correct AnswerverifiedShow Answer

When a company is analyzing an industry, which factor would lead the company to believe that they have low buyer power?

Correct AnswerverifiedB

What are the assets that a firm employs in its efforts to generate economic value called?

Correct AnswerverifiedShow Answer

Overall the average firm size within industries rose between 1980 and 1983.

Correct AnswerverifiedShow Answer

What approach to making products is most likely to rely on tacit knowledge where the relationship between cause and effect is not well understood?

Correct AnswerverifiedShow Answer

The degree of rivalry is high if products are commodities and cannot be easily differentiated.

Correct AnswerverifiedShow Answer

If your company had a core competency of inventory logistics, what would it be classified as?

Correct AnswerverifiedShow Answer

When determining the rivalry among existing firms, you need to examine the industry growth rate.

Correct AnswerverifiedShow Answer

Under which of Porter's five forces do you need to consider exit barriers?

Correct AnswerverifiedShow Answer

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True

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B

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B

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