MGMT 490 FINAL EXAM QUESTIONS AND VERIFIED
ANSWERS
organizational slack - Answers - makes it possible for firms to have the ability to be first
movers
slack - Answers - the buffer or cushion provided by actual or obtainable resources that
aren't currently in use and are in excess of the minimum resources needed to produce a
given level of organizational output
second mover - Answers - a firm that responds to the first mover's competitive action,
typically through imitation
late mover - Answers - a firm that responds to a competitive action a signification
amount of time after the first mover's action and the second mover's response
small firms - Answers - __________ are more likely to launch competitive actions and
tend to do it more quickly
large firms - Answers - __________ tend to limit the types of competitive actions used
large firms - Answers - _________ likely to initiate more competitive actions along with
more strategic actions during a given time period
quality - Answers - the outcome of how a firm competes through its value chain
activities and support functions
quality - Answers - exists when the firm's goods or services meet or exceed customers'
expectations
quality - Answers - some evidence suggests that _____ may be the most critical
component in satisfying the firm's customers
actor - Answers - the firm taking an action or a response
reputation - Answers - the positive or negative attribute ascribed by one rival to another
based on past competitive behavior
market dependence - Answers - the extent to which a firm's revenues or profits are
derived from a particular market
competitive dynamics - Answers - the ongoing actions and responses among all firms
competing within a market for advantageous positions
, slow cycle markets - Answers - markets in which the firm's competitive advantages are
shielded from imitation, commonly for long periods of time, and where imitation is costly
slow cycle - Answers - competitive advantages are sustainable over long periods of time
in which type of market?
fast cycle markets - Answers - markets in which the firm's capabilities that contribute to
competitive advantage aren't shielded from imitation and where imitation is often rapid
and inexpensive
standard cycle markets - Answers - markets in which the firm's competitive advantages
are partially shielded from imitation, and imitation is moderately costly
standard cycle - Answers - companies competing in which market tend to serve many
customers in what are typically highly competitive markets?
corporate level strategy - Answers - specifies actions a firm takes to gain a competitive
advantage by selecting and managing a group of different businesses competing in
different product markets
product diversification - Answers - concerns the scope of the markets and industries in
which the firm competes as well as "how managers buy, create, and sell different
businesses to match skills and strengths with opportunities presented to the firm"
single business - Answers - 95% or more of revenue comes from a single business
dominant business - Answers - between 70% and 95% of revenue comes from a single
business
related constrained business - Answers - less than 70% of revenue comes from the
dominant business, and all businesses share product, technological, and distribution
linkages
related linked business - Answers - less than 70% of revenue comes from the dominant
business, and there are only limited links between businesses (example: procter &
gamble)
unrelated business - Answers - less than 70% of revenue comes from the dominant
business, and there are no common links between businesses (conglomerates)
economies of scope - Answers - cost savings a firm creates by successfully sharing
resources and capabilities or transferring one or more corporate-level core
competencies that were developed in one of its businesses to another of its businesses
ANSWERS
organizational slack - Answers - makes it possible for firms to have the ability to be first
movers
slack - Answers - the buffer or cushion provided by actual or obtainable resources that
aren't currently in use and are in excess of the minimum resources needed to produce a
given level of organizational output
second mover - Answers - a firm that responds to the first mover's competitive action,
typically through imitation
late mover - Answers - a firm that responds to a competitive action a signification
amount of time after the first mover's action and the second mover's response
small firms - Answers - __________ are more likely to launch competitive actions and
tend to do it more quickly
large firms - Answers - __________ tend to limit the types of competitive actions used
large firms - Answers - _________ likely to initiate more competitive actions along with
more strategic actions during a given time period
quality - Answers - the outcome of how a firm competes through its value chain
activities and support functions
quality - Answers - exists when the firm's goods or services meet or exceed customers'
expectations
quality - Answers - some evidence suggests that _____ may be the most critical
component in satisfying the firm's customers
actor - Answers - the firm taking an action or a response
reputation - Answers - the positive or negative attribute ascribed by one rival to another
based on past competitive behavior
market dependence - Answers - the extent to which a firm's revenues or profits are
derived from a particular market
competitive dynamics - Answers - the ongoing actions and responses among all firms
competing within a market for advantageous positions
, slow cycle markets - Answers - markets in which the firm's competitive advantages are
shielded from imitation, commonly for long periods of time, and where imitation is costly
slow cycle - Answers - competitive advantages are sustainable over long periods of time
in which type of market?
fast cycle markets - Answers - markets in which the firm's capabilities that contribute to
competitive advantage aren't shielded from imitation and where imitation is often rapid
and inexpensive
standard cycle markets - Answers - markets in which the firm's competitive advantages
are partially shielded from imitation, and imitation is moderately costly
standard cycle - Answers - companies competing in which market tend to serve many
customers in what are typically highly competitive markets?
corporate level strategy - Answers - specifies actions a firm takes to gain a competitive
advantage by selecting and managing a group of different businesses competing in
different product markets
product diversification - Answers - concerns the scope of the markets and industries in
which the firm competes as well as "how managers buy, create, and sell different
businesses to match skills and strengths with opportunities presented to the firm"
single business - Answers - 95% or more of revenue comes from a single business
dominant business - Answers - between 70% and 95% of revenue comes from a single
business
related constrained business - Answers - less than 70% of revenue comes from the
dominant business, and all businesses share product, technological, and distribution
linkages
related linked business - Answers - less than 70% of revenue comes from the dominant
business, and there are only limited links between businesses (example: procter &
gamble)
unrelated business - Answers - less than 70% of revenue comes from the dominant
business, and there are no common links between businesses (conglomerates)
economies of scope - Answers - cost savings a firm creates by successfully sharing
resources and capabilities or transferring one or more corporate-level core
competencies that were developed in one of its businesses to another of its businesses
