Question 1

The banking industry has introduced mobile banking and you can now take a photo of a cheque and email it to the bank. This industry is an example of the growth phase of the industry lifecycle model.

Accepted Answer

The banking industry is generally considered to be in the maturity phase of the industry lifecycle model, as it is well-established with slow growth; innovations like mobile banking represent efforts to maintain or slightly increase market share rather than indicators of rapid growth typical of the growth phase.

Question 2

Extraordinary creativity and innovation is typical in the growth phase of the industry lifecycle model.

Accepted Answer

False

Question 3

Despite fierce competition and many exits, the high growth and reduction in uncertainty attracts many new entrants to the industry.

Accepted Answer

The statement suggests that despite competition and exits, the industry is still attractive for new entrants due to its high growth and reduced uncertainty.

Question 4

Changes in demographics can be associated with the decline phase of an industry.

Accepted Answer

As demographics change, the demand for products and services may decrease, leading to a decline in the industry. For example, as the population ages, the demand for products and services geared towards younger demographics may decrease, leading to a decline in industries that cater to those age groups.

Question 5

Sociopolitical legitimacy refers to the endorsement of an industry, activity, or organizational form by key stakeholders and institutions such as the state and government officials, opinion leaders, or the general public.

Accepted Answer

Sociopolitical legitimacy refers to the perceived acceptability or approval of an industry, activity, or organizational form by important social and political actors and groups such as government officials, opinion leaders, and the general public. It is an important factor in determining the trustworthiness and credibility of an organization in the eyes of its stakeholders, and it can have significant effects on its ability to function effectively and achieve its goals.

Question 6

Convincing stakeholders of the potential viability of a new product or concept occurs in the introduction phase.

Accepted Answer

During the introduction phase, it is important to convince stakeholders of the potential viability of a new product or concept in order to generate interest and support for its development and launch. This phase typically involves conducting market research, developing prototypes, and presenting the product or concept to key stakeholders such as investors, customers, and partners.

Question 7

Laying off workers is the only way to curtail an industry while in the decline phase of the industry lifecycle model.

Accepted Answer

Laying off workers is one strategy to reduce costs in a declining industry, but it is not the only way to curtail the industry. Other strategies may include diversifying into new products or services, pursuing mergers or acquisitions with other companies, seeking government assistance, and investing in research and development to innovate new products or processes.

Question 8

Customers will often pay a premium for a product in the maturity phase of the lifecycle model.

Accepted Answer

Customers typically expect prices to decrease in the maturity phase as competitors enter the market, causing companies to lower prices to remain competitive. Therefore, customers are less likely to pay a premium for a product in this phase of the lifecycle model.

Question 9

Once an industry enters the decline phase, its profits will continue to spiral downward.

Accepted Answer

While it is true that an industry in decline will experience a decrease in profits, it is not necessarily true that the profits will spiral downward without any potential for stabilization or recovery. Some companies may be able to find ways to adapt and remain profitable, while others may choose to exit the industry altogether.

Question 10

Microsoft Windows is an example of a de jure standard.

Accepted Answer

Microsoft Windows is an example of a de facto standard, meaning it has become a standard not because of formal approval by any standards organization, but rather through widespread use and acceptance by the industry and consumers.

Deck 7: Section 5: Strategy: How Do Businesses Generate a Successful Strategy