MIE 480 CH 8 EXAM QUESTIONS AND
ANSWERS GRADED A+ 2026
It can be seen in the opening vignette for the chapter that the introduction of MP3 players has
caused a decline in the sales of CDs but has has few other effects - ANS False
The stages of the industry life cycle are introduction, growth, maturity, and decline or renewal -
ANS True
Value creation in the introduction stage of the industry life cycle occurs internally through
product design and externally by building upstream and downstream relationships - ANS True
Standardization is an industry condition in which companies tend to adopt identical
manufacturing processes because of intense rivalry - ANS False
In the maturity stage of the industry life cycle companies shift value creation activities toward
identifying cost efficiencies - ANS True
As an alternative to decline, the renewal of an entire industry depends solely on its ability to
shift to complementary products or services. - ANS False
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Products or services that come bundled with another product at no extra charge - such as a trail
size sample of a consumer product - are called complements - ANS False
The passage of industries through the life cycle stages has become significantly faster for all
industries in the past two or three decades - ANS False
The successes of a focused differentiation strategy in a consolidated industry in part depends
upon the existence of mobility barriers - ANS True
Fragmented industries behave much more like perfectly competitive markets than other types
of industries and, therefore, there are few opportunities to earn superior profits - ANS True
The consolidation of an industry that occurs when many small competitors are combined into a
larger company is called an industry roll-up. - ANS True
The organizational life cycle has the same stages as the industry life cycle - ANS False
Founders of a company in the conception stage of the organizational life cycle face the tasks of
having a product or service that works, developing a market entry strategy, and obtaining
financial capital - ANS True
In the commercialization stage of the organizational life cycle the company must develop a
prototype product or service - ANS False
In the growth stage of the organizational life cycle flaws in the systems and processes developed
by the business are exposed - ANS True
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
ANSWERS GRADED A+ 2026
It can be seen in the opening vignette for the chapter that the introduction of MP3 players has
caused a decline in the sales of CDs but has has few other effects - ANS False
The stages of the industry life cycle are introduction, growth, maturity, and decline or renewal -
ANS True
Value creation in the introduction stage of the industry life cycle occurs internally through
product design and externally by building upstream and downstream relationships - ANS True
Standardization is an industry condition in which companies tend to adopt identical
manufacturing processes because of intense rivalry - ANS False
In the maturity stage of the industry life cycle companies shift value creation activities toward
identifying cost efficiencies - ANS True
As an alternative to decline, the renewal of an entire industry depends solely on its ability to
shift to complementary products or services. - ANS False
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Products or services that come bundled with another product at no extra charge - such as a trail
size sample of a consumer product - are called complements - ANS False
The passage of industries through the life cycle stages has become significantly faster for all
industries in the past two or three decades - ANS False
The successes of a focused differentiation strategy in a consolidated industry in part depends
upon the existence of mobility barriers - ANS True
Fragmented industries behave much more like perfectly competitive markets than other types
of industries and, therefore, there are few opportunities to earn superior profits - ANS True
The consolidation of an industry that occurs when many small competitors are combined into a
larger company is called an industry roll-up. - ANS True
The organizational life cycle has the same stages as the industry life cycle - ANS False
Founders of a company in the conception stage of the organizational life cycle face the tasks of
having a product or service that works, developing a market entry strategy, and obtaining
financial capital - ANS True
In the commercialization stage of the organizational life cycle the company must develop a
prototype product or service - ANS False
In the growth stage of the organizational life cycle flaws in the systems and processes developed
by the business are exposed - ANS True
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
