Question 1

According to Miles and Snow, which strategic orientation is demonstrated by companies that have a limited product line and focuses on improving the efficiency of their existing operations?

Accepted Answer

The strategic orientation described in the question is that of defenders, who focus on defending their current market position and improving the efficiency of their existing operations.

Question 2

A study of nearly 500 of the world's largest corporations indicated which of the following to be the most widely practiced form of forecasting?

Accepted Answer

The most widely practiced form of forecasting among the 500 of the world's largest corporations is trend extrapolation. This method involves analyzing past trends and using them to predict future developments. Statistical modeling, scenario-writing, Delphi technique, and brainstorming are also commonly used but not as widely practiced as trend extrapolation.

Question 3

A table which summarizes the key success factors within a particular industry is called a(n)

Accepted Answer

The answer of A table which summarizes the key success...

Question 4

A formal program of gathering information on a company's competitors is referred to as

Accepted Answer

Competitive intelligence refers to the formal program of gathering information on a company's competitors in order to gain insight into their strengths, weaknesses, strategies, and potential areas of threat or opportunity. Statistical modeling refers to the use of mathematical models to analyze data and make predictions, while competitive strategy refers to the actions and decisions a company takes to remain competitive in the market. Quantitative forecasting involves using numerical data to predict future trends, while qualitative matrix is not a commonly recognized term in business.

Question 5

The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1) the pressure for coordination within the MNCs operating in that industry and (2)

Accepted Answer

The pressure for local responsiveness on the part of individual country markets is the second factor that tends to determine whether an industry will be primarily multidomestic or primarily global. This refers to the degree to which MNCs must customize their products or services to meet local market demands and preferences, which can require significant coordination and effort within the MNC.

Question 6

Which of the following is an example of a global industry?

Accepted Answer

Tires are a global industry because tire manufacturers operate and sell their products in multiple countries worldwide. The industry is also highly competitive and requires significant investment in global supply chains, manufacturing facilities, and distribution networks. Retailing, banking, insurance, and healthcare industries are more localized and vary significantly across different countries and regions.

Question 7

What is a set of business units or firms that "pursue similar strategies with similar resources"?

Accepted Answer

A set of business units or firms that "pursue similar strategies with similar resources" is known as a strategic group. This concept is commonly used in competitive analysis and helps to identify direct competitors who are pursuing similar strategic objectives.

Question 8

According to Miles and Snow, most major U.S. airlines have reflected which strategic orientation?

Accepted Answer

The answer of According to Miles and Snow, most major...

Question 9

When the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations in an industry, the industry will tend to become

Accepted Answer

When local responsiveness is strong and coordination is weak, multinational corporations tend to focus on adapting to local markets and tailoring their products and strategies to meet local preferences and demands. This results in a fragmented industry structure where each country or region operates relatively independently. This is known as a multidomestic industry. Consolidation and globalization are less likely to occur when local responsiveness is a priority.

Question 10

Over ________ of large companies use trend extrapolation for forecasting.

Accepted Answer

According to research conducted by McKinsey & Company, approximately 70% of large companies use trend extrapolation for forecasting.

Question 11

Those variables that can affect significantly the overall competitive positions of companies within any particular industry are known as

Accepted Answer

Key success factors are those variables that can significantly affect a company's competitive position in a particular industry. These factors can include a company's reputation, customer service, product quality, innovation, and cost structure. Understanding and leveraging these key success factors can help a company gain a competitive advantage over its rivals.

Question 12

Which type of international industry manufactures and sells the same products with only minor adjustments made for individual countries around the world?

Accepted Answer

A global industry is characterized by the strategy of selling the same products or services across all markets with minimal adjustments to cater to local preferences or regulations. This approach leverages economies of scale and standardization to compete internationally.

Question 13

Which of the following is True in regards to competitive intelligence?

Accepted Answer

All the statements are true regarding competitive intelligence, including the legal and ethical guidelines provided by the Economic Espionage Act and the Society of Competitive Intelligence Professionals.

Question 14

The primary activity of a competitive intelligence unit is to

Accepted Answer

The primary activity of a competitive intelligence unit is to monitor competitors. This involves systematically gathering and analyzing information about the actions and capabilities of competitors, in order to anticipate their strategic moves and respond effectively. Engaging in corporate espionage or reverse engineering competitors' products may be illegal and unethical, and surveying stakeholders or determining industry R&D statistics are not necessarily the primary focus of a competitive intelligence unit.

Question 15

According to Miles and Snow, companies with fairly broad product lines that focus on product innovations and market opportunities such as Frito-Lay, reflect which strategic orientation?

Accepted Answer

Frito-Lay, with its broad product lines and focus on product innovations and market opportunities, reflects the prospector strategic orientation according to Miles and Snow.

Question 16

When the pressure for coordination is strong and the pressure for local responsiveness is weak for multinational corporations within a particular industry, the industry will tend to become

Accepted Answer

When the pressure for coordination is strong and the pressure for local responsiveness is weak, multinational corporations have the ability to standardize their products and operations across different markets. This leads to a global industry where there is little differentiation between products offered by different companies.

Question 17

According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stable and the other one is variable, reflects which strategic orientation?

Accepted Answer

Miles and Snow's strategic orientation model suggests that analyzers are companies that operate in multiple product-market areas, with one product that is stable and one that is variable. Analyzers seek to maintain their stable product while also exploring new opportunities in the variable product area.

Question 18

In which type of international industry do corporations tailor their products to the specific needs of consumers in a particular country?

Accepted Answer

In a multidomestic industry, corporations tailor their products to the specific needs of consumers in a particular country. This means that the products may vary from country to country depending on the local market needs and preferences. This approach is in contrast to a global industry where products are standardized across different markets.

Question 19

To succeed in a hypercompetitive industry, companies must be willing to

Accepted Answer

Cannibalizing a successful product line is a strategy where a company intentionally creates a new product that directly competes with its existing product. While this may seem risky, it allows the company to stay ahead of competitors by constantly innovating and catering to changing customer preferences. By doing so, the company can maintain or increase its market share and potentially push out competitors who cannot keep up with the pace of innovation.

Question 20

Which of the following is NOT one of the general strategic types according to Miles and Snow?

Accepted Answer

Initiators is not one of the general strategic types according to Miles and Snow. The other four options (reactors, analyzers, prospectors, and defenders) are the strategic types identified by Miles and Snow in their typology.

Quiz 4: Environmental Scanning and Industry Analysis