WPC 480 – FINAL EXAM WITH COMPLETE
SOLUTION (LATEST 2021 GRADED A+) Combined
exams all finals
Firms operating in the same market, offering similar products and targeting similar customers are
competitors.
a. True
b. False
True
Competitive rivalry is the contest to be the first mover in an international market.
a. True
b. False
False
Competitive rivalry is the set of competitive actions and responses that occur among firms as
they maneuver for an advantageous market position.
a. True
b. False
True
"Competitive dynamics" indicates that firms and their strategic actions are independent.
a. True
b. False
False
A strategy's success is determined not only by the firm's initial competitive actions but also by
how well it anticipates competitors' responses to them and by how well the firm anticipates and
responds to its competitors initial actions.
a. True
b. False
True
Firms with high market commonality and highly similar resources are direct and mutually
acknowledged competitors.
,a. True
b. False
True
Market commonality is concerned with the number of markets with which the firm and a
competitor are jointly involved and the degree of importance of the individual markets to each.
a. True
b. False
True
Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water)
and geographic markets (U.S. and foreign markets) indicating that both companies have market
commonality.
a. True
b. False
True
Research suggests that a firm with greater multimarket contact is less likely to initiate an attack,
but more likely to respond aggressively when attacked.
a. True
b. False
True
Extensive market commonality guarantees intense competition in an industry.
a. True
b. False
False
Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana.
It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola,
Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.
a. True
b. False
False
Two firms, such as Fed Ex and UPS that have similar resources and common markets would be
direct and mutually acknowledged competitors.
a. True
b. False
True
,Two firms, such as a small local, family-owned Italian restaurant and Olive Garden share few
markets and have little similarity in resources, but are nonetheless direct and mutually
acknowledged competitors.
a. True
b. False
False
Awareness tends to be greatest when firms have highly similar resources and compete in
multiple markets.
a. True
b. False
True
Under the framework of competitive action and response, "ability" refers to an attacking or
responding firm's knowledge of the competitive market characteristics.
a. True
b. False
False
Walmart has recently opened a store in Alsatia, Missouri. Several local small retailers have
decided that choosing not to respond to Walmart's competitive actions is a viable long-term
option, because although the companies have high market commonality they have little resource
similarity. These small retailers are correct in their decision.
a. True
b. False
False
A tactical competitive action involves a significant commitment of specific and distinctive
organizational resources.
a. True
b. False
False
Boeing's decision to commit the resources required to build the super-efficient 787 midsized
jetliner is an example of a tactical action.
a. True
b. False
False
Walmart's aggressive pricing strategy is a strategic action that plays a major role in how it
competes.
, a. True
b. False
False
First movers can gain a sustained competitive advantage when they reduce their costs through
reverse engineering.
a. True
b. False
False
To be a first mover, the firm must have readily available resources to invest in R&D as well as to
rapidly and successfully produce and market a stream of innovative products.
a. True
b. False
True
An organization with high profitability, such as Walmart, will be able to develop high
organizational slack.
a. True
b. False
True
Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main
competitor, My Tools, bring out a line of power tools that are smaller sized, lighter weight, and
suitable for women and older hobbyists who have weaker hands than the typical male workshop
hobbyist. Mighty Mike is waiting to see whether My Tool’s new line
is a success. Mighty Mike could be classified as a second mover.
a. True
b. False
True
Firms that are typically late movers usually have little organizational slack.
a. True
b. False
True
. Large firms with significant slack resources (i.e., are able to launch a greater number of
competitive actions) but who remain flexible and act like small firms (i.e., are able to launch a
variety of actions) will be more successful against rivals.
SOLUTION (LATEST 2021 GRADED A+) Combined
exams all finals
Firms operating in the same market, offering similar products and targeting similar customers are
competitors.
a. True
b. False
True
Competitive rivalry is the contest to be the first mover in an international market.
a. True
b. False
False
Competitive rivalry is the set of competitive actions and responses that occur among firms as
they maneuver for an advantageous market position.
a. True
b. False
True
"Competitive dynamics" indicates that firms and their strategic actions are independent.
a. True
b. False
False
A strategy's success is determined not only by the firm's initial competitive actions but also by
how well it anticipates competitors' responses to them and by how well the firm anticipates and
responds to its competitors initial actions.
a. True
b. False
True
Firms with high market commonality and highly similar resources are direct and mutually
acknowledged competitors.
,a. True
b. False
True
Market commonality is concerned with the number of markets with which the firm and a
competitor are jointly involved and the degree of importance of the individual markets to each.
a. True
b. False
True
Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled water)
and geographic markets (U.S. and foreign markets) indicating that both companies have market
commonality.
a. True
b. False
True
Research suggests that a firm with greater multimarket contact is less likely to initiate an attack,
but more likely to respond aggressively when attacked.
a. True
b. False
True
Extensive market commonality guarantees intense competition in an industry.
a. True
b. False
False
Bayou Belle Water markets water drawn only from a single artesian well in Southern Louisiana.
It has a loyal following in its region. Since Bayou Belle markets the water, just as Coca-Cola,
Nestle, and PepsiCo do, Bayou Belle has high resource similarity with these international firms.
a. True
b. False
False
Two firms, such as Fed Ex and UPS that have similar resources and common markets would be
direct and mutually acknowledged competitors.
a. True
b. False
True
,Two firms, such as a small local, family-owned Italian restaurant and Olive Garden share few
markets and have little similarity in resources, but are nonetheless direct and mutually
acknowledged competitors.
a. True
b. False
False
Awareness tends to be greatest when firms have highly similar resources and compete in
multiple markets.
a. True
b. False
True
Under the framework of competitive action and response, "ability" refers to an attacking or
responding firm's knowledge of the competitive market characteristics.
a. True
b. False
False
Walmart has recently opened a store in Alsatia, Missouri. Several local small retailers have
decided that choosing not to respond to Walmart's competitive actions is a viable long-term
option, because although the companies have high market commonality they have little resource
similarity. These small retailers are correct in their decision.
a. True
b. False
False
A tactical competitive action involves a significant commitment of specific and distinctive
organizational resources.
a. True
b. False
False
Boeing's decision to commit the resources required to build the super-efficient 787 midsized
jetliner is an example of a tactical action.
a. True
b. False
False
Walmart's aggressive pricing strategy is a strategic action that plays a major role in how it
competes.
, a. True
b. False
False
First movers can gain a sustained competitive advantage when they reduce their costs through
reverse engineering.
a. True
b. False
False
To be a first mover, the firm must have readily available resources to invest in R&D as well as to
rapidly and successfully produce and market a stream of innovative products.
a. True
b. False
True
An organization with high profitability, such as Walmart, will be able to develop high
organizational slack.
a. True
b. False
True
Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main
competitor, My Tools, bring out a line of power tools that are smaller sized, lighter weight, and
suitable for women and older hobbyists who have weaker hands than the typical male workshop
hobbyist. Mighty Mike is waiting to see whether My Tool’s new line
is a success. Mighty Mike could be classified as a second mover.
a. True
b. False
True
Firms that are typically late movers usually have little organizational slack.
a. True
b. False
True
. Large firms with significant slack resources (i.e., are able to launch a greater number of
competitive actions) but who remain flexible and act like small firms (i.e., are able to launch a
variety of actions) will be more successful against rivals.
