Economies of scale refers to the fact that as the quantity of product produced in a
given time period __________, the cost of manufacturing each unit __________.
a. increases; increases
b. increases; remains constant
c. increases; decreases
d. decreases; decreases
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c. increases; decreases
Goods or services in standard-cycle markets reflect:
a. organizations that serve a mass market.
b. numerous first-mover advantages.
c. an inability to sustain a competitive advantage except for brief periods of time.
d. competitive advantages that are shielded from imitation.
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a. organizations that serve a mass market.
Above-average returns are:
a. higher profits than the firm earned the previous year.
b. higher profits than the industry averaged over the last 10 years.
c. profits in excess of what an investor expects to earn from a historical pattern of
performance of the firm.
d. returns in excess of what an investor expects to earn from other investments with a
similar level of risk.
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d- returns in excess of what an investor expects to earn from other
investments with a similar level of risk.
Suppose another firm found a way to offer IKEA's customers (young buyers interested
in stylish furniture at low cost) additional sources of differentiation while charging the
same price or to provide the same service with the same sources of differentiation at
a lower price. Which of the following categories of competitive risk to a focus strategy
would this be?
a. An industry-wide competitor decides that the market segment served by IKEA is
worth entering.
b. A competitor may focus on a more narrowly defined segment and thereby "out-
focus" the focuser.
c. The needs of the customers in this narrow segment have become more similar to
those of industry-wide competitors.
d. Experience can narrow customer's perceptions of value of the firm's differentiated
features.
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, b. A competitor may focus on a more narrowly defined segment and
thereby "out-focus" the focuser.
Demographic changes include variations in income distribution. Which of the
following statements is true?
a. Firms are most interested in the consumers in the top 10 percent of household
income.
b. In general, living standards have deteriorated over time.
c. The general loss in real income has been somewhat offset by the increase in dual-
career couples.
d. Workforce diversity is making the concept of average income obsolete.
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c. The general loss in real income has been somewhat offset by the
increase in dual-career couples.
It is increasingly difficult for a firm to develop and sustain a competitive advantage
because of the effects of globalization and:
a. the rapid development of the Internet's capabilities.
b. extensive use of outsourcing within the borders of the United States.
c. the declining number of inventions and patents developed by U.S. citizens.
d. the simultaneous erosion of the U.S. work ethic and the U.S. education system.
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a. the rapid development of the Internet's capabilities.
Which of the following statements is true?
a. As customer loyalty increases, customers are more sensitive to price increases.
, b. Customer satisfaction has a positive relationship with firm profitability.
c. Customer loyalty is fragile and cannot reliably be considered a factor in firm
success.
d. Customer loyalty is of importance only to firms using the differentiation strategy.
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b. Customer satisfaction has a positive relationship with firm profitability.
283. When analysts develop feasible projections of future events and how quickly
they will occur based on observed changes and trends, they are engaged in:
a. scanning.
b. monitoring.
c. forecasting.
d. assessing.
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c. forecasting.
A competitor analysis includes all of the following about competitors EXCEPT:
a. future objectives.
b. current strategy.
c. assumptions.
d. traditions.
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d. traditions.
given time period __________, the cost of manufacturing each unit __________.
a. increases; increases
b. increases; remains constant
c. increases; decreases
d. decreases; decreases
Give this one a try later!
c. increases; decreases
Goods or services in standard-cycle markets reflect:
a. organizations that serve a mass market.
b. numerous first-mover advantages.
c. an inability to sustain a competitive advantage except for brief periods of time.
d. competitive advantages that are shielded from imitation.
,Give this one a try later!
a. organizations that serve a mass market.
Above-average returns are:
a. higher profits than the firm earned the previous year.
b. higher profits than the industry averaged over the last 10 years.
c. profits in excess of what an investor expects to earn from a historical pattern of
performance of the firm.
d. returns in excess of what an investor expects to earn from other investments with a
similar level of risk.
Give this one a try later!
d- returns in excess of what an investor expects to earn from other
investments with a similar level of risk.
Suppose another firm found a way to offer IKEA's customers (young buyers interested
in stylish furniture at low cost) additional sources of differentiation while charging the
same price or to provide the same service with the same sources of differentiation at
a lower price. Which of the following categories of competitive risk to a focus strategy
would this be?
a. An industry-wide competitor decides that the market segment served by IKEA is
worth entering.
b. A competitor may focus on a more narrowly defined segment and thereby "out-
focus" the focuser.
c. The needs of the customers in this narrow segment have become more similar to
those of industry-wide competitors.
d. Experience can narrow customer's perceptions of value of the firm's differentiated
features.
Give this one a try later!
, b. A competitor may focus on a more narrowly defined segment and
thereby "out-focus" the focuser.
Demographic changes include variations in income distribution. Which of the
following statements is true?
a. Firms are most interested in the consumers in the top 10 percent of household
income.
b. In general, living standards have deteriorated over time.
c. The general loss in real income has been somewhat offset by the increase in dual-
career couples.
d. Workforce diversity is making the concept of average income obsolete.
Give this one a try later!
c. The general loss in real income has been somewhat offset by the
increase in dual-career couples.
It is increasingly difficult for a firm to develop and sustain a competitive advantage
because of the effects of globalization and:
a. the rapid development of the Internet's capabilities.
b. extensive use of outsourcing within the borders of the United States.
c. the declining number of inventions and patents developed by U.S. citizens.
d. the simultaneous erosion of the U.S. work ethic and the U.S. education system.
Give this one a try later!
a. the rapid development of the Internet's capabilities.
Which of the following statements is true?
a. As customer loyalty increases, customers are more sensitive to price increases.
, b. Customer satisfaction has a positive relationship with firm profitability.
c. Customer loyalty is fragile and cannot reliably be considered a factor in firm
success.
d. Customer loyalty is of importance only to firms using the differentiation strategy.
Give this one a try later!
b. Customer satisfaction has a positive relationship with firm profitability.
283. When analysts develop feasible projections of future events and how quickly
they will occur based on observed changes and trends, they are engaged in:
a. scanning.
b. monitoring.
c. forecasting.
d. assessing.
Give this one a try later!
c. forecasting.
A competitor analysis includes all of the following about competitors EXCEPT:
a. future objectives.
b. current strategy.
c. assumptions.
d. traditions.
Give this one a try later!
d. traditions.
