Question 1

Under conditions of _____, a competitive attack by a rival is more likely to produce sustained competitive advantage.

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Question 2

Resource similarity and _____ are factors that determine the extent to which firms will be in direct competition with each other.

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Market commonality and resource similarity are the two primary factors that determine the extent to which firms will be in direct competition with each other. Market commonality refers to the degree to which two firms compete in the same product and geographic markets, while resource similarity refers to the extent to which their tangible and intangible resources and capabilities are comparable. The higher the market commonality and resource similarity between two firms, the greater the likelihood of direct competition. Therefore, option A (market commonality) is the correct choice. Options B (resource quality), C (related diversification), D (product differentiation), and E (customer autonomy) are not directly related to determining the degree of competition between firms.

Question 3

Identify and differentiate between the positioning strategies and the adaptive strategies used at the industry level.

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Question 4

Explain what is meant by direct competition. Identify the factors that determine it, and specify the basic strategic moves involved in such competition. If you were heading a company engaged in direct competition with other firms, explain the circumstances under which you would prefer to engage in direct competition in order to develop a sustained competitive advantage.

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Question 5

From a competitive standpoint, _____ means that the strategic actions your company takes can probably be matched by your direct competitors.

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Resource similarity refers to the degree to which rivals possess comparable resources. If rivals have similar resources, they are more likely to be able to match each other's strategic actions. Therefore, option B is the correct answer. Option A, market commonality, refers to the degree to which two firms have overlapping products or services, and it doesn't necessarily guarantee that competitors can match strategic actions. Option C, character of the rivalry, refers to the intensity of competition among firms, and doesn't necessarily relate to the ability to match strategic actions. Option D, competitive inertia, refers to the tendency of established firms to continue with their current strategies despite changes in the competitive landscape, and doesn't relate to the ability to match strategic actions. Option E, competitive autonomy, refers to the degree to which firms can act independently of their competitors, and it isn't related to the ability to match strategic actions.

Question 6

Explain how the concepts of competitive inertia and strategic dissonance are related to the strategy-making process. Explain the importance of gathering input regarding strategic plans from multiple levels of management.

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Question 7

Explain what is meant by a grand strategy and list and define the three types of grand strategies.

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Question 8

Differentiate between competitive inertia and strategic dissonance.

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Question 9

Briefly identify the four conditions used to achieve a sustainable competitive advantage by companies.

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Question 10

​Briefly describe the BCG Matrix and how it is used. Include in your description the types of recommendations that result from use of the BCG Matrix.

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Question 11

Explain how the concept of strategic group (and its two sub-types) is used in a situational analysis as part of an environmental scanning activity to identify specific opportunities and threats that can either improve or harm a company's ability to sustain its competitive advantage.

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Question 12

List the four different adaptive strategies. One of them tends to have poorer performance than the others. Explain why.

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Question 13

Explain the basics of portfolio strategy. Identify the best approach to diversification using this strategy. Be sure to explain your rationale for arguing that the specified approach to diversification is the best.

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Question 14

How do companies use situational analyses, and what are the basic components of a situational analysis?

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Question 15

Identify Porter's five industry forces and their role in industry-level strategy. Identify which one among these five forces could be considered the central one, with its value impacted by the relative values of the four other forces.

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Question 16

List the five industry forces that determine overall levels of competition in an industry. Identify what happens to competition as these forces increase in strength.

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Question 17

When videocassette recorders first became popular in the mid-1980s, a new form of mom-and-pop (i.e., small) business sprang up across the country: the video rental store. At the time, new videotapes of popular movies cost anywhere from $80-$200, and as the popularity of videocassette recorders grew, these small, independent video rental stores grew rapidly to meet the demand of consumers for inexpensive rentals of movies. There was considerable competition among them to be the first to have expensive, new movies available for rental. However, some stores disappointed customers by not having enough copies of new films when they were most in demand, i.e., upon their initial release on video. Within about 5 to 8 years of competition, most of these mom-and-pop video rental stores were ultimately put out of business by the large regional and national chains such as Blockbuster. Using the concept of sustainable competitive advantage along with the four conditions required to produce it, explain how such a transition from hundreds of independent mom-and-pop video stores to a few national chains could have taken place so quickly.

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Quiz 6: Organizational Strategy