Question 1

Industrial analysis seeks to:
A)Assess industry and the firm within an industry.
B)Analyze trends and risk associated with them.
C)Segment industries into vertical and horizontal segments.
D)Trace product elements through the value chain.

Accepted Answer

Industrial analysis seeks to assess industry and the firm within an industry.

Question 2

The following are all limitations of Porter's Five Forces except
A)It ignores changes in consumer tastes and income.
B)It is overall quantitative rather than qualitative.
C)It does not account for all external pressures on firms.
D)It takes a very narrow view of firm strategy.

Accepted Answer

Porter's Five Forces is primarily a qualitative tool used for analyzing the competitive environment in which a firm operates. It is not quantitative. The other options are all valid limitations of Porter's Five Forces.

Question 3

Based on the chapter, a firm's resources are:
A)Used to support the firm's market targeting.
B)Tangible
C)Reusable
D)None of the above.

Accepted Answer

D

Question 4

The critical component to developing a sound strategy is:
A)Transparency of purpose with all stakeholders and their agents.
B)Developing a strong competitive advantage by exploiting resources.
C)Analyzing the industry from various perspectives to identify risks.
D)Developing clear principles to guide operations and decision-making.

Accepted Answer

The answer of The critical component to developing a sound...

Question 5

Perfectly competitive industries:
A)Have no barriers to entry or exit.
B)Offer a variety of products and services.
C)Are similar to oligopolies
D)Have limited number of firms.

Accepted Answer

Perfectly competitive industries are characterized by having no barriers to entry or exit, meaning that new firms can easily enter the market and existing firms can leave without facing significant obstacles or costs. This creates free and fair competition among a large number of firms, with no individual firm able to influence the market price of the product or service being sold. Choices B, C, and D are all incorrect: perfectly competitive industries do not necessarily offer a variety of products and services, as they may all produce identical goods or services; they are not similar to oligopolies, which are characterized by a small number of dominant firms in the market; and they do not have a limited number of firms, as there can be many firms competing in a perfectly competitive industry.

Question 6

Which of the following is FALSE:
A)Most firms spend more time discovering how to compete rather than where to compete
B)Sustainability creates additional costs, but is supported by most stakeholders.
C)Firms are unique and the key to profitability is exploiting that uniqueness.
D)Environmental Sustainability is a method to increase a firm's value.

Accepted Answer

Sustainability may create additional costs, which may not always be supported by stakeholders. While stakeholders may appreciate sustainable practices, they may not always be willing to pay extra for them.

Question 7

The Resource Based view of the firm states:
A)The major source of competitive advantage is within the firm.
B)Exploitation of resources creates superior economic value.
C)Both A and B
D)Neither A and B

Accepted Answer

The Resource Based view of the firm states that the major source of competitive advantage is within the firm (Option A) and that the exploitation of resources creates superior economic value (Option B). Therefore, both Option A and Option B are correct, making Option C the best choice. Option D can be eliminated as it contradicts the Resource Based view altogether.

Question 8

The process of disaggregating industries based on certain characteristics is called:
A)Positioning
B)Segmentation
C)Strategic Grouping
D)Industrial Analysis

Accepted Answer

Segmentation is the process of dividing a larger market or industry into smaller subgroups based on specific characteristics, such as demographics or behaviors. This allows companies to tailor their products and marketing efforts to better meet the needs of specific segments. Positioning refers to the way a company wants consumers to perceive their brand or product, while strategic grouping and industrial analysis are broader terms that encompass a variety of analytical techniques for understanding industries and markets.

Question 9

Tools and frameworks to inform strategy includes all of the following except:
A)Porter's Five Forces Framework
B)SLEEP-AT Model
C)Strategic Group Analysis
D)Margin Analysis

Accepted Answer

All of the options listed are tools and frameworks that can inform strategy except for Margin Analysis. Margin Analysis is a specific type of financial analysis focused on understanding the profit margins of a business, and while it may be important in certain strategic decisions, it is not a framework or tool used to inform overall strategy.

Question 10

The Value Net Framework includes:
A)Competitors and Barriers
B)Substitutes and Legislators
C)Complementors and Suppliers
D)Customers and Pressures

Accepted Answer

The Value Net Framework includes four components: customers, complementors, suppliers, and competitors. Choice A and D mention only two components each and do not include one or more of the vital components. Choice B includes substitutes and legislators, which are not included in the Value Net Framework. The correct choice is therefore C, which includes the two component pairs that make up the Value Net Framework.

Quiz 5: Strategy Principles and Analyses to Inform Strategy

Industrial analysis seeks to:

The following are all limitations of Porter's Five Forces except

Based on the chapter, a firm's resources are:

The critical component to developing a sound strategy is:

Perfectly competitive industries:

Which of the following is FALSE:

The Resource Based view of the firm states:

The process of disaggregating industries based on certain characteristics is called:

Tools and frameworks to inform strategy includes all of the following except:

The Value Net Framework includes: