STR 581 Wk 3 – Practice: Knowledge Check

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STR 581 Wk 3 - Practice: Knowledge Check
STR 581 Wk 3 – Practice: Knowledge Check
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STR 581 Wk 3 – Practice: Knowledge Check

The most widely encountered barriers entry candidates must overcome include all of the following, except

Multiple Choice

  • restrictive government policies.
  • the difficulties of building a network of distributors.
  • strong buyer loyalty to existing brands.
  • sizable economies of scale in production.
  • small market size and special customer requirements.

 

 

Good competitive intelligence

Multiple Choice

  • entails drawing the conclusion that companies seem destined to struggle because of their position.
  • helps in determining whether a rival is gaining or losing market share.
  • points to those things that every firm in the industry needs to attend to in order to retain customers and weather the competition.
  • helps managers construct up-to-date strategic profiles of rivals.
  • enables more accurate predictions about how long it will take a rival to copy most of what the strategy leader is doing.

 

 

You are considering starting a business to provide high-quality bookkeeping services targeted to restaurants and other food service providers in your region. Which factors would you evaluate to determine whether or not the food service industry offers good prospects for attractive profits?

Multiple Choice

  • the industry’s growth potential, whether competition appears destined to become stronger or weaker, how the industry’s driving forces might affect overall industry profitability, the company’s competitive position relative to rivals, and the company’s proficiency in performing industry key success factors
  • an assessment of which firms in the industry have the best and worst competitive strategies, whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor
  • whether there are more than five key success factors, more than five barriers to entry, and more than five industry drivers
  • whether the market leaders enjoy competitive advantages and how difficult it is to promote innovation to develop a strongly differentiated product or service for which a price premium may be charged
  • constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group

 

An analysis of driving forces does not normally involve

Multiple Choice

  • evaluating increasing efforts on the part of industry members to collaborate closely with their suppliers.
  • assessing technological change and manufacturing process innovation.
  • understanding diffusion of technical know-how across more companies and more countries.
  • monitoring changing societal concerns, attitudes, and lifestyles.
  • observing the entry or exit of major firms.

 

A potential market opportunity for a company does NOT include

Multiple Choice

  • sharply rising buyer demand for the industry’s product.
  • acquiring rival firms or companies with attractive technological expertise or capabilities.
  • expanding into new geographic markets.
  • expanding the company’s product line to meet a broader range of customer needs.
  • increased trade barriers in attractive foreign markets

 

 

Company managers need to address and resolve a comprehensive set of strategy-related issues and problems EXCEPT

Multiple Choice

  • evaluations of the company’s own resources, internal circumstances, value chain, and competitiveness.
  • diversification moves of corporations competing in similar industries.
  • a “worry list” of “how to…,” “whether to…,” and “what to do about…”
  • what was learned from analyses of the company’s industry and competitive environment.
  • challenges the company has to overcome in order to be financially and competitively successful in the short-run.

 

 

Angie, CEO of a local alternative energy company that provides power for residential and commercial customers in your community, is engaged in the process of developing a list of questions to evaluate her company’s internal situation. Which question would Angie NOT raise to complete the task of her company’s resources and competitive position?

Multiple Choice

  • How do our value chain activities impact our company’s cost structure and customer value proposition?
  • Which are our least and most profitable geographic market segments?
  • How well is our present strategy working?
  • Is our company competitively stronger or weaker than key rivals?
  • What strategic issues and problems merit front-burner managerial attention?

 

 

Which of the following strategic approaches becomes most appealing when a market is not important to industry leaders?

Multiple Choice

  • a broad differentiation strategy
  • a best-cost provider strategy
  • a low-cost provider strategy
  • an offensive strategy
  • a focused strategy

 

From the list below, identify the company that is NOT the lowest-cost provider in its industry

Multiple Choice

  • Southwest Airlines
  • CNN
  • Walmart
  • Amazon
  • Nucor Steel

 

 

What are the two ways a company can translate its low-cost advantage over rivals into attractive profit performance?

Multiple Choice

  • either going beyond the segment of price-sensitive buyers or increasing production to achieve greater economies of scale and even lower costs
  • either using the cost advantage to add a few inexpensive differentiating features or cutting its price to levels significantly below the prices of rivals
  • either entering other market segments where price is an important competitive weapon or using its cost advantage to add other products to widen market appeal
  • either using its cost advantage to spend heavily on advertising or increasing price to earn the biggest possible profit margin on each unit sold
  • either using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold