Question 1

Which of the following is a way to achieve competitive advantage in mature industry environments?

Accepted Answer

Benchmarking allows companies to compare their performance with industry leaders and identify areas for improvement to achieve competitive advantage. Value-totaling, chain-processing, and best practice buy-in are not commonly used in this context.

Question 2

Benchmarking can only result in competitive parity.

Accepted Answer

Benchmarking can result in both competitive parity and competitive advantage. It depends on how well the organization implementing benchmarking is able to learn from and apply the best practices of other organizations in order to improve their own performance.

Question 3

The fewer the differences or disparity between the focal firm and the firm being benchmarked, then the greater the need for learning and innovation on the
part of the benchmarking firm.

Accepted Answer

Benchmarking typically aims to identify areas for improvement by learning from firms with superior performance or practices, so greater differences or disparities might actually indicate a higher need for learning and innovation.

Question 4

Effective organizational processes will prove very difficult for other firms to imitate.

Accepted Answer

Effective organizational processes can involve a combination of various factors such as a unique culture, skilled employees, and advanced technology. It takes time, effort and resources to develop such processes and even more to maintain them. Therefore, it is less likely for other firms to imitate them successfully.

Question 5

Although distinctly unrelated to benchmarking, rethinking the value chain involves careful analysis of each of the various links in firms' value chains.

Accepted Answer

The answer of Although distinctly unrelated to benchmarking, rethinking the...

Question 6

Rethinking the value chain is a process that involves a change in managers' mental models regarding the ways in which various value-adding activities contribute value to the firm.

Accepted Answer

Rethinking the value chain requires managers to shift their thinking about how different activities add value to the company.

Question 7

Firms seldom find significant competitive advantage in improving existing components of their value chains.

Accepted Answer

Firms can often find significant competitive advantage in improving existing components of their value chains by making them more efficient, reducing costs, or enhancing quality or speed.

Question 8

Product innovations have a remarkable record of revitalizing mature markets.

Accepted Answer

Product innovations have been shown to create new demand and attract new customers, which can help to revitalize markets that may have become stagnant or mature. Examples of this can be seen in industries such as technology, where new products and features constantly drive growth and interest.

Question 9

Only after the successful invasion of the U.S. market by Japanese manufacturers in the 1970s and 1980s did the U.S. manufacturers begin to emphasize the importance of product innovations that would improve quality.

Accepted Answer

U.S. manufacturers have historically emphasized product innovation and quality improvement, but the significant impact of Japanese manufacturers in the 1970s and 1980s notably intensified the focus on these aspects due to increased competition. U.S. manufacturers were already engaged in innovation and quality improvement efforts before this period.

Question 10

Although reengineering efforts can be effective at cutting costs, they do little to increase revenue or market penetration.

Accepted Answer

Reengineering efforts typically focus on streamlining processes and reducing inefficiencies, which can result in cost savings. However, they do not directly address revenue generation or market penetration strategies. These efforts would typically require different approaches such as marketing and sales initiatives, product innovation, or market research.

Question 11

Service sector employment has been growing much less rapidly than employment in the other sectors of the U.S. labor force.

Accepted Answer

Service sector employment has actually been growing more rapidly than employment in the other sectors of the U.S. labor force. According to the Bureau of Labor Statistics, as of January 2021, the service-providing sector accounted for 83.2% of nonfarm payroll employment, with industries such as education, healthcare, leisure and hospitality, and professional and business services showing significant growth in recent years.

Question 12

Automation in the service sector does not always result in job cuts.

Accepted Answer

While there may be some job displacement due to automation in the service sector, it can also lead to the creation of new jobs and increased efficiency, resulting in potential job growth. Additionally, the nature of some service jobs may require human interaction and cannot be fully automated, ensuring job security for those roles.

Question 13

Cross selling involves exposing customers to a broader array of a company's service offerings.

Accepted Answer

Cross selling is a sales technique where a company encourages customers to purchase complementary or related products or services to what they have already purchased or expressed interest in. The goal is to increase revenue and customer loyalty by providing a wider range of options for the customer.

Question 14

Chain restaurants once dominated the restaurant industry but, due to an increasing desire for variety by busy customers, independent restaurants now generate more than half of all sales in the industry.

Accepted Answer

Chain restaurants still dominate the restaurant industry in terms of sales, although independent restaurants have been gaining popularity and market share.

Question 15

Unlike most entrepreneurial activity, the chain or franchise is pursuing a concept that has already proven itself at another location.

Accepted Answer

A chain or franchise replicates a successful business model or concept that has already been proven at other locations, which reduces the risk of failure compared to starting a new business from scratch.

Question 16

The rigidity of chains and franchise organizations makes them poorly designed to promote organizational learning.

Accepted Answer

Chains and franchise organizations often have structured systems in place for sharing best practices and innovations across their network, which can promote organizational learning and continuous improvement.

Question 17

There is little need for firms in mature industry environments to continue innovating.

Accepted Answer

Even in mature industries, firms need to continue innovating in order to remain competitive and adapt to changing market conditions. Failure to innovate can result in a decline in market share and profitability.

Question 18

Which of the following is not an unattractive characteristic of mature industry environment?

Accepted Answer

Insufficient capacity is typically not considered an unattractive characteristic of a mature industry. Mature industries often face issues like high exit barriers, a lack of innovation, and pressure from new entrants, but they usually have sufficient capacity due to the growth phase they have already passed through.

Question 19

What is the principal market risk to a firm that employs a strategy of differentiation using products based on a common platform or modular design?

Accepted Answer

The answer of What is the principal market risk to...

Quiz 9: The Challenges of Mature Industry Environments and Competition in Manufacturing and Service Sectors