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Q:
The Komatsu/Caterpillar saga illustrates the fact that global competitive battles can be shaped by factors other than the pursuit of generic strategies. Explain this statement giving examples and impact on competitive strategies.
Q:
Analyzed in terms of Porter's five forces model, Walmart's ability to dictate terms to the music industry is one indication of the retail giant's supplier power.
Q:
Which of the following is the best example of a direct channel?
A) J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers.
B) Family Dollar Store sells modeling clay to school-age children.
C) A wholesaler sells candy to convenience stores, who then sell it to store patrons.
D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
E) A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.
Q:
In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM) and retailers (e.g. Walmart), rather than consumers.
Q:
What are demand conditions? Why is the nature of home demand conditions for the firm's or industry's products and services important?
Q:
A new company called LidRock is prospering because it figured out a novel way to get music, video games, and movies into the hands of consumers: on mini-CDs tucked into the lids of soft drinks. LidRock is focusing on which one of the four Ps?
A) product
B) price
C) promotion
D) place
E) profit
Q:
Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry in the form of a substitute product.
Q:
It is the number of domestic rivals, intensity of the competition, as well as the quality of the competitors that make the difference.
Q:
Which of the following is most likely to force a manufacturer to pay a slotting allowance?
A) a selling agent
B) a merchandise broker
C) a large retail chain
D) a small retailer
E) a rack jobber
Q:
The strong rivalry in the U.S. market between Dell, Gateway, Hewlett-Packard, Apple, and other computer companies has helped make the United States a world leader in personal computers.
Q:
Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make substantial investments in research or advertising.
Q:
Which of the following is a distribution system that uses different channels and communication methods to reach and serve a target market?
A) a vertical marketing system
B) a horizontal marketing system
C) a hybrid marketing system
D) a logistics system
E) an intensive distribution system
Q:
Unique product attributes represent a barrier to industry entry known as differentiation.
Q:
"Factor conditions" refers to a country's endowment with resources which may have been created or inherited.
Q:
Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?
A) dual or multiple distribution system
B) intermediation
C) knowledge management
D) supply chain management
E) vertical marketing system
Q:
"Switching costs" are one of the barriers to entry in Porter's five forces model.
Q:
Which of the following statements about business-to-business channels is true?
A) Direct channels are more common in business-to-business markets than consumer markets.
B) Business-to-business channels have few parallels with consumer channels.
C) The size of business markets makes indirect channels more efficient.
D) Indirect channels are more common in business-to-business markets than consumer markets.
E) When an industrial distributor is included in a business-to-business channel, the channel is by definition direct.
Q:
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following:
A) "Made in Italy" is important.
B) cutting costs to keep production at home.
C) investing in automation.
D) hiring qualified personnel.
E) investing in Robots, not workers.
Q:
Apple's success with iPhone prompted Samsung and others to enter the market. This is an example of the "perfect competition."
Q:
A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business.
A) knowledge
B) physical
C) human
D) infrastructure
E) capital
Q:
In business-to-business channels, the functions of a merchant wholesaler are performed by a(n) ________.
A) sales office
B) commission merchant
C) merchant broker
D) business retailer
E) industrial distributor
Q:
The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as "’20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business.
A) knowledge
B) physical
C) human
D) infrastructure
E) capital
Q:
Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."
Q:
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
Q:
The producer-retailer-consumer channel is ________.
A) the most efficient channel
B) also referred to as a triple channel
C) the shortest indirect channel
D) the shortest direct channel
E) a rarely used channel form
Q:
A useful way of gaining insight into competitors is through industry analysis.
Q:
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.
Q:
To a producer of goods, a greater number of channel levels means ________.
A) less distance between producer and end consumer
B) less control
C) more creativity
D) higher taxes
E) multiple distribution systems
Q:
Cybersquatting is the practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it.
Q:
Ed Barney owns a chain of small gift shops. Before buying merchandise to carry in his store, Barney can visit a ________ where he can examine a manufacturer's products before he stocks his stores.
A) sales office
B) manufacturer's showroom
C) commission merchandise mart
D) merchandise brokerage
E) manufacturer's office
Q:
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.
Q:
An important trend in the use of information technology is "paid search advertising," whereby companies pay to have their ads appear when users type certain search terms.
Q:
Which of the following are manufacturer-owned facilities that do not carry inventory but provide selling functions for the manufacturer in a specific geographic area?
A) commission merchandise marts
B) merchandise brokerages
C) sales offices
D) sales branches
E) manufacturers' showrooms
Q:
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.
Q:
As Pandora CEO Joe Kennedy recently remarked, "The good news is that the Internet is global; however, the bad news is that copyright law is country by country."
Q:
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.
Q:
Which of the following are manufacturer-owned facilities that carry inventory and provide sales and services to customers?
A) sales offices
B) sales branches
C) manufacturers' showrooms
D) manufacturers' offices
E) merchandise brokerages
Q:
Apple's iTunes Music Store was a global transaction site effective day one of its launch.
Q:
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
Q:
Which of the following is true about sales branches, sales offices, and manufacturers' showrooms?
A) They are all manufacturer-owned intermediaries.
B) They all determine the marketing strategy for the products they sell.
C) They are all independent intermediaries.
D) They all carry inventory and take title to the inventory they carry.
E) They perform the same functions as self-service wholesalers.
Q:
Between 2003 and 2010, the number of Internet users in China increased from 68 million to 450 million. This makes China the world's largest e-commerce market.
Q:
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.
Q:
A commission merchant would most likely sell which of the following?
A) agricultural products
B) extractive materials such as coal and iron
C) convenience goods such as gum and candy
D) fresh fruits and vegetables
E) real estate
Q:
An innovation that is disrupting to one firm can be sustaining to another firm.
Q:
Which of the following statements about manufacturers' agents is true?
A) Manufacturers' agents are also called manufacturers' brokers.
B) Manufacturers' agents most typically work for only one manufacturer.
C) Manufacturers' agents are compensated with commissions based on a percentage of what they sell.
D) Manufacturers' agents have unlimited sales territories.
E) Manufacturers' agents are entirely supervised by the manufacturer for whom they sell.
Q:
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of:
A) changing the rules.
B) collaborating.
C) comparative advantage.
D) layers of advantage.
E) loose bricks.
Q:
According to innovation expert Clayton Christensen an organization's capabilities define its disabilities.
Q:
According to innovation expert Clayton Christensen, a sustaining technology is an incremental or radical innovation that improves product performance.
Q:
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:
A) attribute diversity.
B) marketing breadth.
C) comparative advantage.
D) layers of advantage.
E) a "double diamond."
Q:
Which of the following statements about merchandise brokers is true?
A) Brokers are paid salaries by the manufacturers for whom they work.
B) Brokers never take title to the merchandise they sell.
C) Brokers work for manufacturer-owned intermediaries.
D) Brokers typically represent sellers on an ongoing basis.
E) Brokers work in industries with only a few, very large buyers and sellers.
Q:
The value network for the personal computer industry is not different from the value network for mainframe computers.
Q:
Intel's loose brick was:
A) it's narrow focus on complex microprocessors for PCs.
B) demand for non-PC products.
C) getting into the smartphone market.
D) unbeatable in computer market.
E) developing new chips incorporating 3D technology.
Q:
Manufacturers' ________, also called manufacturers' representatives, represent a buyer or seller on an ongoing basis.
A) brokers
B) franchisers
C) agents
D) retailers
E) intermediaries
Q:
Some company executives become so committed to a current, profitable technology that they fail to provide adequate levels of investment in new, apparently riskier technologies.
Q:
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of:
A) building layers of advantage.
B) loose bricks.
C) changing the rules of engagement.
D) collaborating.
E) none of the above
Q:
Which of the following are intermediaries that receive fees for facilitating transactions in markets such as real estate, food, and used equipment in which there are a lot of small buyers and sellers?
A) manufacturers' agents
B) selling agents
C) commission merchants
D) merchandise brokers
E) sale mediators
Q:
According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.
Q:
Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under:
A) collaborating.
B) loose bricks.
C) changing the rules.
D) layers of advantage.
E) differentiation.
Q:
A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.
A) cash-and-carry wholesaler
B) broker
C) retailer
D) wholesaler
E) commission merchant
Q:
Disruptive technologies enable something to be done that was previously deemed impossible.
Q:
Rack jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
A) imported plants
B) precious minerals
C) agricultural products
D) perishable food items
E) magazines
Q:
Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of:
A) collaborating.
B) loose bricks.
C) changing the rules.
D) layers of advantage.
E) differentiation.
Q:
Although IBM tried to regain its position by creating its first PC, it was slow to recognize the growing demand for laptops.
Q:
Building layers of advantage is one of the elements of Hamel and Prahalad's framework for:
A) quality advantage.
B) positioning.
C) competitive innovation.
D) marketing management.
E) innovation leadership.
Q:
Drop shippers do all of the following EXCEPT which of the following?
A) take title to the merchandise
B) take actual possession of the merchandise
C) take orders from retailers and industry buyers
D) bill retailers and industry buyers
E) assume the same risks as other types of limited-service merchant wholesalers
Q:
Ironically, Motorola, a key player in the cell phone business, could have been first to market with a cell phone camera.
Q:
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by:
A) W.E. Deming.
B) Hamel and Prahalad.
C) Porter.
D) Drucker.
E) D'Aveni.
Q:
Mail-order wholesalers are associated with all of the following EXCEPT which one?
A) selling products to small retailers and other industrial customers
B) selling products to retailers in remote locations
C) allowing shipment prior to receiving payment
D) carrying products in inventory
E) selling through catalogs
Q:
Kodak has easily made the transition from industry leadership in chemical-based photography to industry leadership in digital photography.
Q:
The key to maintaining competitive advantage, according to Dr. W.E. Deming is:
A) being committed to constant improvement.
B) being first to market with all products.
C) outsourcing key components.
D) challenging all market leaders.
E) stressing low-price advantage in all areas.
Q:
Truck jobbers are limited-service merchant wholesalers who would most likely handle which of the following?
A) building materials
B) fruits and vegetables
C) coal and lumber
D) cosmetics
E) magazines
Q:
"Convergence" is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each other's markets.
Q:
The owner of a grocery store wants to have non-food items delivered, priced, displayed, and inventoried by a wholesaler. Which type of wholesaler best fits the owner's needs?
A) drop shipper
B) cash-and-carry wholesaler
C) truck jobber
D) rack jobber
E) mail-order wholesaler
Q:
Many firms have gained competitive advantage by disadvantaging rivals through:
A) cost leadership.
B) differentiation.
C) competitive innovation.
D) focused differentiation.
E) consumer differentiation
Q:
The digital revolution is causing dramatic, disruptive changes in industry structures.
Q:
What does the phrase factor condition refer to? How can these factors be inherited or created? Describe Porter's categories of factor conditions.
Q:
An intermediary who ________ legally owns the goods being handled.
A) breaks bulk
B) takes title
C) creates assortments
D) takes consignments
E) selectively distributes
Q:
Because the Internet is global, no single country controls it.
Q:
Which group of independent intermediaries can be divided into the two broad types of full-service and limited-service?
A) brokers
B) agents
C) sales branches
D) specialty wholesalers
E) merchant wholesalers
Q:
Describe how competitive advantage can be created via strategic intent, giving examples of successful approaches of competitors.