(MGT490 20353 Spring 2015)Assignment:Chapter 05 Quiz1.award:10 out of10.00 pointsThe industry life cycle is important because ______________.it points out the need to maintain a differentiation advantage and a low-cost advantage simultaneouslyof its ability to serve as a short-run forecasting devicetrends suggested by the market life cycle model are generally not reversible or repeatable the emphasis on various generic strategies varies over the course of an industry life cycle2.award:10 out of10.00 pointsIf a firm is able to achieve above-average returns despite strong competition, it is likely to be using __________ strategy.cost leadership focusdifferentiation focusdifferentiation overall cost leadership3.award:10 out of10.00 pointsCompetitive advantage is affected by the rate of globalization in an industry. TrueFalse4.award:10 out of10.00 pointsIf a company focuses on a small number of value-chain activities, it can be lead to a pitfall of the overall cost leadership strategy.True False5.award:10 out of10.00 pointsA firm that competes on cost leadership can be vulnerable if there is a decrease in the cost of the inputs on which the advantage is based.True False6.award:10 out of10.00 pointsIn technology intensive industries, the competitive advantages decrease over time. TrueFalse7.award:10 out of10.00 pointsEmphasis on process design is high during the __________ stage of the industry life cycle.declinegrowthintroduction maturity8.award:10 out of10.00 pointsCompany competitive advantage can be eroded for all of the following reasons except one. Which is that reason? length of time a company is in businessglobalizationactions by rivals from within and outside of the industryrapid change in technology9.award:10 out of10.00 pointsA cost leadership strategy may lead to a reduction in flexibility. TrueFalse10.award:10 out of10.00 pointsCompetitive advantage that is based solely on a focus strategy on a narrow competitive scope is not sufficient for assuring the sustainabilityof the strategy. TrueFalse11.award:10 out of10.00 pointsA cost leadership strategy can put the firm at a competitive disadvantage, due to a declining base of cost advantage. TrueFalse12.award:10 out of10.00 pointsResearch shows that which of the following is not a strategy used by firms engaged in successful turnarounds? market expansioncost surgerypiecemeal productivity improvementsasset reduction13.award:10 out of10.00 pointsCoca Cola and Caterpillar used first mover advantage in the building of their global presence. TrueFalse14.award:10 out of10.00 pointsOne of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies. Whichone is it?celebrity endorsementsexceptional serviceprestige packaging enabling of mass customization15.award:10 out of10.00 pointsA profit pool is defined as the total revenue in an industry at all points along the industry supply chain.True False16.award:10 out of10.00 pointsA profit pool can be defined as the total profits in an industry at all points along the industry _____ chain.marketseller valuesupply17.award:10 out of10.00 pointsThe French automobile maker, Renault, has designed an ultra-low-cost platform in order to improve its competitive position through costleadership. TrueFalse18.award:10 out of10.00 pointsProducts are unfamiliar to consumers in the ___________stage of a business life cycle. introductiongrowthmaturitydecline19.award:0 out of10.00 pointsA disadvantage of firms that successfully integrate overall cost leadership and differentiation strategies is that they are relatively difficult forcompetitors to imitate.True False20.award:0 out of10.00 pointsIf primary value chain activities involve effective management of inbound logistics and support activities include increased efforts intechnology development, this is representative of which type of competitive advantage?differentiation overall cost leadershipstuck-in-the-middledifferentiation focus21.award:10 out of10.00 pointsThe Internet is lowering transaction costs for several reasons. Which is not one of those reasons?reducing business travel increasing the number of transactionsminimizing office expenseseliminating supply chain intermediaries22.award:0 out of10.00 pointsMany firms facing a turnaround situation try to fix their situation by increasing the financial investment in administrative expenses andinventories.True False23.award:10 out of10.00 pointsOne way the Internet and digital technologies are creating opportunities for firms with differentiation strategies is by improving the response tocustomer wishes through mass customization. TrueFalse24.award:10 out of10.00 pointsThe three generic strategies presented by Michael Porter can be shown on two dimensions: strategic target and product life cycle.True False25.award:10 out of10.00 pointsIf a company is using a cost leadership strategy, which of the following is not a characteristic of that strategy?Too much focus on one value chain activity can lead to greater loss. The strategy is not easily imitated.A lack of parity on differentiation is evident.Cost advantages erode when pricing information is readily available.(MGT490 20353 Spring 2015)Assignment:Chapter 05 Quiz1.award:10 out of10.00 pointsThe industry life cycle is important because ______________.it points out the need to maintain a differentiation advantage and a low-cost advantage simultaneouslyof its ability to serve as a short-run forecasting devicetrends suggested by the market life cycle model are generally not reversible or repeatable the emphasis on various generic strategies varies over the course of an industry life cycle2.award:10 out of10.00 pointsIf a firm is able to achieve above-average returns despite strong competition, it is likely to be using __________ strategy.cost leadership focusdifferentiation focusdifferentiation overall cost leadership3.award:10 out of10.00 pointsCompetitive advantage is affected by the rate of globalization in an industry. TrueFalse4.award:10 out of10.00 pointsIf a company focuses on a small number of value-chain activities, it can be lead to a pitfall of the overall cost leadership strategy.True False5.award:10 out of10.00 pointsA firm that competes on cost leadership can be vulnerable if there is a decrease in the cost of the inputs on which the advantage is based.True False6.award:10 out of10.00 pointsIn technology intensive industries, the competitive advantages decrease over time. TrueFalse7.award:10 out of10.00 pointsEmphasis on process design is high during the __________ stage of the industry life cycle.declinegrowthintroduction maturity8.award:10 out of10.00 pointsCompany competitive advantage can be eroded for all of the following reasons except one. Which is that reason? length of time a company is in businessglobalizationactions by rivals from within and outside of the industryrapid change in technology9.award:10 out of10.00 pointsA cost leadership strategy may lead to a reduction in flexibility. TrueFalse10.award:10 out of10.00 pointsCompetitive advantage that is based solely on a focus strategy on a narrow competitive scope is not sufficient for assuring the sustainabilityof the strategy. TrueFalse11.award:10 out of10.00 pointsA cost leadership strategy can put the firm at a competitive disadvantage, due to a declining base of cost advantage. TrueFalse12.award:10 out of10.00 pointsResearch shows that which of the following is not a strategy used by firms engaged in successful turnarounds? market expansioncost surgerypiecemeal productivity improvementsasset reduction13.award:10 out of10.00 pointsCoca Cola and Caterpillar used first mover advantage in the building of their global presence. TrueFalse14.award:10 out of10.00 pointsOne of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies. Whichone is it?celebrity endorsementsexceptional serviceprestige packaging enabling of mass customization15.award:10 out of10.00 pointsA profit pool is defined as the total revenue in an industry at all points along the industry supply chain.True False16.award:10 out of10.00 pointsA profit pool can be defined as the total profits in an industry at all points along the industry _____ chain.marketseller valuesupply17.award:10 out of10.00 pointsThe French automobile maker, Renault, has designed an ultra-low-cost platform in order to improve its competitive position through costleadership. TrueFalse18.award:10 out of10.00 pointsProducts are unfamiliar to consumers in the ___________stage of a business life cycle. introductiongrowthmaturitydecline19.award:0 out of10.00 pointsA disadvantage of firms that successfully integrate overall cost leadership and differentiation strategies is that they are relatively difficult forcompetitors to imitate.True False20.award:0 out of10.00 pointsIf primary value chain activities involve effective management of inbound logistics and support activities include increased efforts intechnology development, this is representative of which type of competitive advantage?differentiation overall cost leadershipstuck-in-the-middledifferentiation focus21.award:10 out of10.00 pointsThe Internet is lowering transaction costs for several reasons. Which is not one of those reasons?reducing business travel increasing the number of transactionsminimizing office expenseseliminating supply chain intermediaries22.award:0 out of10.00 pointsMany firms facing a turnaround situation try to fix their situation by increasing the financial investment in administrative expenses andinventories.True False23.award:10 out of10.00 pointsOne way the Internet and digital technologies are creating opportunities for firms with differentiation strategies is by improving the response tocustomer wishes through mass customization. TrueFalse24.award:10 out of10.00 pointsThe three generic strategies presented by Michael Porter can be shown on two dimensions: strategic target and product life cycle.True False25.award:10 out of10.00 pointsIf a company is using a cost leadership strategy, which of the following is not a characteristic of that strategy?Too much focus on one value chain activity can lead to greater loss. The strategy is not easily imitated.A lack of parity on differentiation is evident.Cost advantages erode when pricing information is readily available.