Final Capstone Exam with Verified Answers
1. Good Competitive Intelli-
gence about rivals' strate-
gies, their financial per-
formance, their competitive
strengths and weakness-
es, the actions and plans
they have announced and
the thinking and leadership
styles of their executives is
val...
1. Good Competitive Intelli- It enables a company to predict or anticipate
gence about rivals' strate- what important actions rivals are likely to take
gies, their financial per- next to be ready with defensive countermoves
formance, their competitive and to take rivals probable actions into ac-
strengths and weakness- count in crafting its own best course of action
es, the actions and plans
they have announced and
the thinking and leadership
styles of their executives is
valuable because...
2. Determining whether an in- The industry's growth potential, the anticipat-
dustry presents a compa- ed strength of competitive forces, whether in-
ny with good prospects for dustry profitability is expected to be favorably
attractive profitability and or unfavorably affected by the prevailing dri-
growth entails such consid- ving forces and the degrees of risk and uncer-
erations as... tainty in the industry's future.
3. Which of the following Supplier bargaining power is stronger when
statements concerning the industry members are major customers and
strength of supplier bar- continuing to secure their business is impor-
gaining power is false? tant to suppliers well-being.
4. Which of the following is Determining whether the driving forces are
NOT an integral part of dri- acting to cause one or more industry rivals to
ving forces analysis? shift to a different strategic group.
5. A strategic group map dis- The different market or competitive positions
plays... that rival firms occupy in an industry and helps
identify each rival's closest competitors.
6. The competitive pressures Substitutes are readily available and attrac-
from substitute products tively priced, and have comparable or better
tend to be stronger when..... performance features.
7. Which of the following con- When there are big differences among the
ditions acts to diminish buy- features, performance, and quality of rival
er bargaining power? brands such that many buyers come to prefer
, Final Capstone Exam with Verified Answers
the brand most suitable to their preferences
and pocketbook.
8. Which of the following Rivalry increases as the products of rival sell-
statements about the rivalry ers become less differentiated and weakens
among competing sellers is as the products of industry rivals become
true? more strongly differentiated.
9. An Industry's key success are those competitive factors that most affect
factors... industry members' ability to prosper in the
marketplace-the particular strategy elements,
product attributes, important resources and
competitive capabilities, an market achieve-
ments that spell the difference between being
a strong competitor and a weak competitor.
10. Which one of the following When buyers are not strongly brand loyal buy-
does NOT represent market er needs and uses of the industry's prod-
circumstances that make uct/service are diverse and change occurs at
a focused low-cost or fo- a slow pace.
cused differentiation strate-
gy attractive?
11. Broad differentiation strate- Few rival firms are following a similar differen-
gies generally work best tiation approach.
in market circumstances
where...
12. To profitably employ a have the capability to incorporate upscale at-
best-cost provider strategy, tributes (appealing features or functionality or
a company must.... quality, or satisfying customer service) into its
product offering at a lower cost than rivals,
putting the company in position to underprice
rivals whose products have similar upscale
attributes and still earn attractive profits.
13. The pitfalls of a differenti- Failing to emphasize and aggressively pursue
ation strategy do NOT in- the use of more value drivers than other rivals
clude... employing a broad differentiation strategy.
, Final Capstone Exam with Verified Answers
14. In which of the follow- When most buyers use the product in different
ing instances is a low-cost ways and buyers incur high costs in switching
provider strategy least like- their purchases from one seller to another.
ly to be appealing and com-
petitively powerful?
15. Best cost provider strate- product differentiation is the norm and attrac-
gies are appealing in those tively large numbers of buyers shopping for
market situations where.... the best value for the money can be induced to
purchase midrange products rather than the
cheap basic products of low-cost producers
or the expensive products of top-of-the-line
differentiators.
16. The two major avenues for revamping the firm's value chain to eliminate
achieving a cost advantage or bypass some cost producing activities and
over rivals include.... doing a better job than rivals of performing
value chain activities more cost effectively.
17. The evolving character of abandoning the strategy elements that are
a company's strategy is a no longer working well, initiating some new-
consequence of..... ly crafted strategy elements to boost finan-
cial performance or pursue competitive ad-
vantage and the ongoing need to make some
strategy adjustments in response to shifting
market conditions and other unanticipated de-
velopments.
18. A company's strategy quali- if it does not entail actions or behaviors that
fies as "ethical".... cross the moral line from "can do" to "should
not do" (because such actions are deceitful,
unfair or harmful to others, disreputable or
unreasonably damaging to the environment).
19. A company's business Consists of both a customer value proposition
model.... and a profit proposition.
20. What makes a competitive actions or elements in the strategy that cause
advantage sustainable or an attractive number of buyers to have lasting
reasons to purchase a company's products or
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