Question 1

Walden Inc.,a well-established finance company,hires the most valuable scientists and experts.Hence,start-ups and other small businesses find it difficult to compete with Walden.Which of the following is exemplified in this case?
A) A tit-for-tat strategy
B) A limited competitive access to scarce resources
C) A parallel game strategy
D) The Nash equilibrium

Accepted Answer

This case exemplifies a limited competitive access to scarce resources where Walden Inc. holds a significant advantage over start-ups and small businesses by hiring the most valuable scientists and experts. This makes it difficult for others to compete with Walden due to the limited availability of such high-value resources.

Question 2

A company wants to form the foundation of a competitive strategy.It decides to assess its strengths and weaknesses.In this case,the company should first assess its _____.
A) resources and capabilities
B) organizational structure
C) structural chart
D) competitors' strategies

Accepted Answer

To form a competitive strategy, a company needs to evaluate its internal resources and capabilities. This will help the company to identify what it can do better than its competitors and where it needs to improve. By assessing its strengths and weaknesses, the company can develop a strategy that takes advantage of its resources and capabilities to gain a competitive advantage. Therefore, the company should first assess its resources and capabilities.

Question 3

An organization watches it rivals closely and chooses actions that mimic what its rivals are doing.This is an example of a _____.
A) structural analysis
B) tit-for-tat strategy
C) parallel game
D) simultaneous game

Accepted Answer

This is an example of the tit-for-tat strategy, where one organization imitates the actions of its rival.

Question 4

An insurance company has procured all the capacity available in its market for $100 million.Thus,the company has placed a lock on the resources that other firms may require to develop their products.Which of the following is being exemplified in this case?
A) A tit-for-tat strategy
B) A limited competitive access to scarce resources
C) A low-end disruptive innovation
D) The Nash equilibrium

Accepted Answer

The situation exemplifies a limited competitive access to scarce resources, where one firm has procured all the capacity available in the market and has placed a lock on the resources that other firms may require to develop their products. This limits the competition and access to these resources for other firms, creating a monopolistic or oligopolistic market structure.

Question 5

An automobile manufacturing firm has dominated its market by consistently releasing automobile upgrades and enhancements.Which of the following is being exemplified in this case?
A) Implementing a tit-for-tat strategy
B) Limiting competitive access to scarce resources
C) Introducing new products frequently
D) Representing the Nash equilibrium

Accepted Answer

The automobile manufacturing firm is exemplifying introducing new products frequently by consistently releasing automobile upgrades and enhancements. By doing so, the firm is keeping up with changing customer preferences and staying competitive in the market. The other options are not relevant in this case.

Question 6

Laser Tech.,a leading printing firm,launches a new printing technique to meet the changing demands of the market.Blue Corp.,its prime competitor,had been rigid in adapting to the changes in the market and is put out of business because of the launch of the new technique by Laser.Which of the following is exemplified in this case?
A) Knowing the strengths and weaknesses
B) Bringing strength against weakness
C) Neutralizing vulnerability
D) Developing strategies that cannot be easily copied

Accepted Answer

The situation exemplifies bringing strength against weakness, as Laser Tech. adapted to the changing demands of the market, while its competitor remained rigid and ultimately went out of business.

Question 7

Which of the following statements is true about an infinitely repeated game?
A) In this game, players always believe there is a future.
B) In this game, each player's best choice is to implicate the rivals.
C) It is the solution concept used to predict the outcome of competitive interactions.
D) It removes incentive to defect in the sense that no firm can improve its payoffs.

Accepted Answer

In an infinitely repeated game, players always believe there is a future because the game will continue indefinitely. This can affect their strategic choices as they must take into consideration the potential impact of their actions in future rounds of the game. Option B is incorrect because in an infinitely repeated game, cooperation and coordination can lead to mutually beneficial outcomes for all players. Option C is incorrect because it is a type of game, not a solution concept. Option D is incorrect because an infinitely repeated game can still allow for strategic behavior and the potential to improve payoffs in subsequent rounds.

Question 8

A restaurant chain serves common dishes that are also available in other restaurants.As it does not offer any unique dishes,it introduces other options to customize the products such as the choice of cheese,bread,and spices.It also promises a short waiting time for take-away and free home deliveries.In this case,the restaurant chain is _____.
A) learning its strengths and weaknesses
B) bringing strength against weakness
C) neutralizing vulnerability
D) developing strategies that cannot be easily copied

Accepted Answer

By offering customized options and promising short waiting times and free delivery, the restaurant chain is neutralizing its vulnerability of not having unique dishes. It is not necessarily learning its strengths and weaknesses or developing strategies that cannot be easily copied, and there is no mention of bringing strength against weakness in this scenario.

Question 9

Noah,a researcher,identifies various resources and capabilities of an organization that are subjected to rapid obsolescence,easy imitation,and high cost not recouped by value.In this case,Noah is:
A) learning the organization's weaknesses.
B) bringing strength against weakness.
C) neutralizing vulnerability.
D) developing strategies that cannot be easily copied.

Accepted Answer

Noah is identifying weaknesses of the organization, specifically resources and capabilities that are subject to rapid obsolescence, easy imitation, and high cost not recouped by value. Therefore, the best choice is A, learning the organization's weaknesses.

Question 10

Plateus Inc.,a food manufacturing company,has brand equity worth a billion dollars that has been accomplished through consistent delivery of quality products and long-term advertising.These strategies make entering the industry a formidable task for any other firm.Which of the following is exemplified in this case?
A) An entry barrier
B) A tit-for-tat strategy
C) A complementary strategy
D) The Nash equilibrium

Accepted Answer

The case describes how Plateus Inc.'s strong brand equity and consistent delivery of quality products make it difficult for new firms to enter the industry. This is an example of an entry barrier, which is a condition or circumstance that makes it difficult or costly for a new entrant to enter and compete in an industry.

Question 11

A manufacturing firm maintains its price unless it observes its rival choosing to lower price.Any time the rival lowers price,the firm responds by lowering its own price.This is an example of a _____.
A) structural analysis
B) tit-for-tat strategy
C) strategic canvas
D) complementary game

Accepted Answer

The described strategy is known as "tit-for-tat," in which one player responds to an action by the other player with a similar action. In this case, the firm is responding to its rival's price reduction by lowering its own price, in the hopes of maintaining its market share.

Question 12

Zeal Inc.,an electronic goods manufacturer,launches an air conditioner that contributes to the downfall of Ochre Corp.,a company struggling to stay in the market amidst bankruptcy.Which of the following concepts is exemplified in this scenario?
A) Knowing the strengths and weaknesses
B) Bringing strength against weakness
C) Neutralizing vulnerability
D) Developing strategies that cannot be easily copied

Accepted Answer

Bringing strength against weakness is exemplified in this scenario as Zeal Inc. uses their strength of launching a new product to contribute to the weakness of a struggling competitor.

Question 13

Most companies are in competition with their rivals each and every day,month,or year with no certain end date.This is an example of _____.
A) a parallel game
B) an infinitely repeated game
C) a simultaneous game
D) the Nash equilibrium

Accepted Answer

An infinitely repeated game is a situation where two or more companies are in competition with each other on an ongoing and indefinite basis. In this type of game, each company must make strategic decisions not only based on the current round of competition but also based on the potential impact of their decisions on future rounds. As there is no certain end date for the competition, the game is considered infinitely repeated.

Question 14

Which of the following statements is true about the Nash equilibrium?
A) It is the solution concept used in games that are played forever.
B) It reduces the possibility of compromise.
C) It is the solution concept used to predict the outcome of competitive interaction.
D) It is a set of moves in a game that simultaneously minimize each firm's payoff.

Accepted Answer

The Nash equilibrium is a solution concept used to predict the outcome of competitive interaction. It is a situation in which each player chooses the best strategy given the strategies chosen by the other players. This concept is often used in economics and game theory to analyze situations such as pricing and market competition. Option A is incorrect because the Nash equilibrium applies to games with finite or infinite time horizons. Option B is incorrect because the Nash equilibrium can sometimes lead to compromise, depending on the situation. Option D is incorrect because the Nash equilibrium is a set of strategies, not just moves, that simultaneously minimize each player's payoff.

Question 15

A well-established manufacturing firm decides to set the market price of a product just low enough so that a new firm cannot pay the cost of entering a market and eventually be profitable.Which of the following is exemplified in this case?
A) A tit-for-tat strategy
B) An entry barrier
C) A strategic canvas
D) The Nash equilibrium

Accepted Answer

This is an example of an entry barrier strategy, where the established firm uses pricing as a tool to prevent new competitors from entering the market by making it difficult for them to be profitable. This can help the established firm maintain its market share and reduce competition.

Question 16

An insurance firm decides to recognize its resources and capabilities.It observes that a few resources and capabilities deliver unique value,but others are subjected to easy imitation.In this case,the organization is _____.
A) learning its strengths and weaknesses
B) bringing strength against weakness
C) neutralizing vulnerability
D) developing strategies that cannot be easily copied

Accepted Answer

The insurance firm is learning its strengths (resources and capabilities that deliver unique value) and weaknesses (resources and capabilities that are easily imitated). This process involves identifying what sets the firm apart and what areas may be vulnerable to competition, which is crucial for strategic planning and improvement.

Question 17

Lieme Inc.and Pola Inc.are oligopolistic rivals in the automobile industry.Lieme has staked out a price position that is slightly higher than that of Pola.Even so,if Pola raises its price,Lieme would too,in order to maintain the differential.Which of the following is being exemplified in this case?
A) Implementing an entry barrier
B) Limiting competitive access to scarce resources
C) Introducing new products frequently
D) Monitoring and mimicking rival behaviour

Accepted Answer

Lieme Inc.'s behavior of monitoring and mimicking Pola Inc.'s price changes reflects that Lieme is following the price leadership strategy in oligopoly, where the leader firm (in this case, Pola) sets the price and other firms (in this case, Lieme) simply follow the price changes to maintain their market share and profit margins. This strategy requires monitoring and mimicking the behavior of rivals, as seen in this case, in order to maintain the price differential.

Question 18

A successful chain of restaurants is successful in securing the most advantageous geographic positions.This effectively bars competition.Which of the following is exemplified in this case?
A) A tit-for-tat strategy
B) A limited competitive access to scarce resources
C) A low-end disruptive innovation
D) The Nash equilibrium

Accepted Answer

This scenario exemplifies a limited competitive access to scarce resources. The successful restaurant chain has secured the most advantageous geographic positions, which limits the availability of desirable locations for potential competitors. This creates a barrier to entry and limits competition in the marketplace.

Question 19

A researcher wants to study an organization that strives at achieving the best outcome and ensures that the outcome is stable.In this case,the organization has developed the concept of _____.
A) D'Aveni's hypercompetition
B) infinitely repeated game
C) strategic canvas
D) Nash equilibrium

Accepted Answer

The concept of Nash equilibrium is relevant in this case, as it refers to a state in which no player has an incentive to change their strategy. In other words, the organization is able to achieve the best possible outcome and maintain it over time. D'Aveni's hypercompetition, infinitely repeated game, and strategic canvas do not necessarily relate to the specific situation of striving for the best outcome while ensuring stability.

Question 20

Peach Line Inc.,manufacturers of furniture,identifies that its choice of suppliers is its weakness and makes this irrelevant by standardizing the production process irrespective of the source of raw materials.This way,its choice of suppliers does not become the target of competitors.Which of the following is exemplified in this case?
A) Knowing the strengths and weaknesses
B) Bringing strength against weakness
C) Neutralizing vulnerability
D) Developing strategies that cannot be easily copied

Accepted Answer

The case exemplifies neutralizing vulnerability as the company standardizes the production process to make its choice of suppliers irrelevant, thus minimizing the vulnerability of being targeted by competitors.

Quiz 11: Competitive Strategy

Walden Inc.,a well-established finance company,hires the most valuable scientists and experts.Hence,start-ups and other small businesses find it difficult to compete with Walden.Which of the following is exemplified in this case?

A company wants to form the foundation of a competitive strategy.It decides to assess its strengths and weaknesses.In this case,the company should first assess its _____.

An organization watches it rivals closely and chooses actions that mimic what its rivals are doing.This is an example of a _____.

An insurance company has procured all the capacity available in its market for $100 million.Thus,the company has placed a lock on the resources that other firms may require to develop their products.Which of the following is being exemplified in this case?

An automobile manufacturing firm has dominated its market by consistently releasing automobile upgrades and enhancements.Which of the following is being exemplified in this case?

Which of the following statements is true about an infinitely repeated game?

Noah,a researcher,identifies various resources and capabilities of an organization that are subjected to rapid obsolescence,easy imitation,and high cost not recouped by value.In this case,Noah is:

A manufacturing firm maintains its price unless it observes its rival choosing to lower price.Any time the rival lowers price,the firm responds by lowering its own price.This is an example of a _____.

Zeal Inc.,an electronic goods manufacturer,launches an air conditioner that contributes to the downfall of Ochre Corp.,a company struggling to stay in the market amidst bankruptcy.Which of the following concepts is exemplified in this scenario?

Most companies are in competition with their rivals each and every day,month,or year with no certain end date.This is an example of _____.

Which of the following statements is true about the Nash equilibrium?

A well-established manufacturing firm decides to set the market price of a product just low enough so that a new firm cannot pay the cost of entering a market and eventually be profitable.Which of the following is exemplified in this case?

An insurance firm decides to recognize its resources and capabilities.It observes that a few resources and capabilities deliver unique value,but others are subjected to easy imitation.In this case,the organization is _____.

Lieme Inc.and Pola Inc.are oligopolistic rivals in the automobile industry.Lieme has staked out a price position that is slightly higher than that of Pola.Even so,if Pola raises its price,Lieme would too,in order to maintain the differential.Which of the following is being exemplified in this case?

A successful chain of restaurants is successful in securing the most advantageous geographic positions.This effectively bars competition.Which of the following is exemplified in this case?

A researcher wants to study an organization that strives at achieving the best outcome and ensures that the outcome is stable.In this case,the organization has developed the concept of _____.