Question 1

An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.
A) loose bricks
B) collaboration
C) layers of advantage
D) supplier power
E) generic

Accepted Answer

A "loose bricks" strategy specifically targets the weaknesses in competitors' focused or narrow strategies, aiming to exploit these gaps for competitive advantage.

Question 2

When managers at Matsushita realized that cost advantages in TV production were often fleeting,they added quality and reliability advantages,thus establishing:
A) loose bricks.
B) a "double diamond."
C) attribute diversity.
D) layers of advantage.
E) buyer power.

Accepted Answer

Matsushita established layers of advantage by adding quality and reliability advantages to their cost advantages in TV production, realizing that cost advantages were often fleeting in the industry. This strategy allowed them to create a sustainable competitive advantage.

Question 3

Del Vecchio,the Italian entrepreneur's business principles include all but one of the following:
A) "Made in Italy" is important.
B) Must cut costs to keep production at home.
C) Invest in automation.
D) Hire qualified personnel.
E) Invest in Robots, not workers.

Accepted Answer

The answer of Del Vecchio,the Italian entrepreneur's business principles include...

Question 4

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.
A) five forces model
B) generic strategies
C) strategic intent
D) hypercompetition
E) factor conditions

Accepted Answer

The hypercompetition framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

Question 5

Chance events play a role in shaping the competitive environment.Chance events are occurrences which include all but one of the following:
A) major technological breakthroughs.
B) wars and their aftermath.
C) oil crisis.
D) currency fluctuations.
E) annual business meeting.

Accepted Answer

Annual business meetings are not chance events because they are planned and scheduled in advance, unlike the other options which are unexpected and not within human control.

Question 6

Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery.By the time Acer was ready to target the United States in earnest,it was already the number one PC brand in key countries in Latin America,Southeast Asia,and the Middle East.This is an example of which component of competitive innovation?
A) collaboration
B) layers of advantage
C) loose bricks
D) generic
E) supplier power

Accepted Answer

C) Loose bricks strategy involves targeting weaker or less contested markets to build strength and resources before moving on to more competitive areas. Acer's approach of first becoming dominant in less contested markets (Latin America, Southeast Asia, and the Middle East) before targeting the highly competitive US market exemplifies this strategy.

Question 7

The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model,failed due to all but one of the following reasons:
A) resistance on the part of German unions.
B) confusion among American dealers about where it was made.
C) investment of billions of dollars in Skoda autoworks in Czechoslovakia.
D) investment in SEAT in Spain.
E) continued demand for Beetle model in the United States.

Accepted Answer

The continued demand for the Beetle model in the United States was not a reason for the failure of the strategy; rather, it was a factor that could have supported the strategy by maintaining sales.

Question 8

According to the hypercompetition model of competitive advantage,which of the following allows the firm to create an entirely new product or market?
A) know-how advantage
B) timing advantage
C) outflanking
D) switching costs
E) countermoves

Accepted Answer

According to the hypercompetition model, a timing advantage allows the firm to create an entirely new product or market by being the first one to enter a particular market or by introducing a new product at the right time. This timing advantage can create a significant barrier to entry for competitors and can allow the firm to establish itself as a market leader. Therefore, option B is the correct choice. The other options, such as know-how advantage, outflanking, switching costs, and countermoves, do not necessarily allow the firm to create an entirely new product or market.

Question 9

In the global watch industry,the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland.In the strategic framework known as hypercompetition,Swatch's success is an example of interactions in which arena?
A) cost/quality
B) timing and know how
C) entry barriers
D) deep pockets
E) sporting events

Accepted Answer

The answer of In the global watch industry,the success of...

Question 10

According to Michael Porter's research on the competitive advantage of nations,Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:
A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) formation of the European Union.

Accepted Answer

The answer of According to Michael Porter's research on the...

Question 11

The automobile industry has become fiercely competitive on a global basis.The initial success of foreign automakers in the United States was due to all of the following reasons except:
A) reluctance of U.S. manufacturers to design high-quality cars.
B) inability of U.S. manufacturers to manufacture high-quality cars.
C) reluctance of U.S. manufacturers to make inexpensive small cars.
D) bigger cars meant bigger profits for U.S. manufacturers.
E) U.S. manufacturers did not realize drivers' preferences.

Accepted Answer

The initial success of foreign automakers in the United States was not due to U.S. manufacturers not realizing drivers' preferences. The other options (A, B, C, D) directly relate to the competitive advantages foreign automakers had, such as focusing on quality, affordability, and smaller car sizes, which were areas U.S. manufacturers were either reluctant to enter or struggled with. However, U.S. manufacturers were aware of drivers' preferences but often prioritized other aspects such as profit margins from bigger cars.

Question 12

Mitsubishi Heavy Industries Ltd.and other Japanese companies manufacture airplanes under license to U.S.firms and also work as subcontractors for aircraft parts and systems.This type of effort is known as:
A) searching for loose bricks.
B) collaborating.
C) building of layers of advantage.
D) changing the rules of engagement.
E) innovating.

Accepted Answer

The activity described in the question is collaboration, which involves working together with other companies or organizations to achieve a common goal. In this case, Japanese companies are collaborating with U.S. firms to manufacture airplanes and aircraft parts.

Question 13

Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) buyer and supplier power

Accepted Answer

In the context of dynamic strategic interactions in hypercompetitive industries, the four arenas typically include cost/quality, timing and know-how, entry barriers, and deep pockets. Buyer and supplier power, while important in strategic management and competitive analysis, is not listed among these specific arenas focused on dynamic interactions.

Question 14

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage,it might be said to be:
A) searching for loose bricks.
B) changing the rules of engagement.
C) collaborating.
D) building layers of advantage.
E) innovating.

Accepted Answer

The answer of When company management decides that it is...

Question 15

The country with the highest number of companies with Global Competitive Advantage is:
A) the United Kingdom.
B) the United States.
C) Japan.
D) France.
E) Germany.

Accepted Answer

The United States is home to many global corporations with competitive advantage, including Apple, Microsoft, Coca-Cola, and Proctor & Gamble. The other countries listed also have successful companies, but the US has the highest number overall.

Question 16

According to Michael Porter's research on the competitive advantage of nations,human,physical,knowledge,capital,and infrastructure resources are all components of a country's:
A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) global conditions.

Accepted Answer

According to Michael Porter's research, factor conditions refer to a country's endowment of resources, including human, physical, knowledge, capital, and infrastructure resources. Therefore, A) factor conditions is the best choice. B) demand conditions refer to the size and structure of a country's domestic market, C) strategy, structure, and rivalry refer to the conditions that shape how firms are created, organized, and managed, D) related and supporting industries refer to the presence or absence of supplier or related industries that are internationally competitive, and E) global conditions refer to the broader context in which the nation competes, such as international trade agreements or cultural norms.

Question 17

The characteristics of home demand for a firm's products or services include all but one of the following:
A) the composition of home demand.
B) the size of the home demand.
C) pattern of the growth of the home demand.
D) means by which the home demand pushes or pulls foreign markets.
E) the size of the competitors share of the home demand.

Accepted Answer

The size of the competitors' share of the home demand is not a characteristic of home demand itself, but rather a characteristic of the competitive environment within the home market.

Question 18

In the 1950s,Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios.Which strategy was Sony using to gain competitive advantage?
A) collaboration
B) layers of advantage
C) changing the rules
D) loose bricks
E) engagement

Accepted Answer

The answer of In the 1950s,Sony licensed the technology for...

Question 19

The rivalry between Dell,Hewlett-Packard,Gateway,Compaq,and Apple forces all the players to undertake all of the following except:
A) develop new products.
B) improve existing products.
C) lower costs and prices.
D) develop new technologies.
E) change the rules of engagement.

Accepted Answer

The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple does force all the players to develop new products, improve existing products, lower costs and prices, and develop new technologies in order to stay competitive. However, it does not necessarily force them to change the rules of engagement (such as how they approach competition or conduct business).

Question 20

According to strategy expert Richard D'Aveni,the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics

Accepted Answer

The answer of According to strategy expert Richard D'Aveni,the actions...

Quiz 16: Strategic Elements of Competitive Advantage

An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.

When managers at Matsushita realized that cost advantages in TV production were often fleeting,they added quality and reliability advantages,thus establishing:

Del Vecchio,the Italian entrepreneur's business principles include all but one of the following:

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

Chance events play a role in shaping the competitive environment.Chance events are occurrences which include all but one of the following:

The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model,failed due to all but one of the following reasons:

According to the hypercompetition model of competitive advantage,which of the following allows the firm to create an entirely new product or market?

In the global watch industry,the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland.In the strategic framework known as hypercompetition,Swatch's success is an example of interactions in which arena?

According to Michael Porter's research on the competitive advantage of nations,Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

The automobile industry has become fiercely competitive on a global basis.The initial success of foreign automakers in the United States was due to all of the following reasons except:

Mitsubishi Heavy Industries Ltd.and other Japanese companies manufacture airplanes under license to U.S.firms and also work as subcontractors for aircraft parts and systems.This type of effort is known as:

Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage,it might be said to be:

The country with the highest number of companies with Global Competitive Advantage is:

According to Michael Porter's research on the competitive advantage of nations,human,physical,knowledge,capital,and infrastructure resources are all components of a country's:

The characteristics of home demand for a firm's products or services include all but one of the following:

In the 1950s,Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios.Which strategy was Sony using to gain competitive advantage?

The rivalry between Dell,Hewlett-Packard,Gateway,Compaq,and Apple forces all the players to undertake all of the following except:

According to strategy expert Richard D'Aveni,the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?