Question 1

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. What kind of positioning strategy does Rolling Stones, Inc. use?

Accepted Answer

They are attempting to provide unique products and services, a defining characteristic of differentiation.

Question 2

Briefly describe the BCG Matrix and how it is used. Include in your description the types of recommendations that result from use of the BCG Matrix.

Accepted Answer

The answer of Briefly describe the BCG Matrix and how...

Question 3

Which of the adaptive strategies tends to result in the poorest performance?

Accepted Answer

Reactors tend to move inconsistently and face a greater risk of landing in unfavorable market positions relative to their competitors.

Question 4

Explain what is meant by a grand strategy and list and define the three types of grand strategies.

Accepted Answer

The answer of Explain what is meant by a grand...

Question 5

Which of the following organizations are most directly in competition with each other?

Accepted Answer

FedEx and UPS have a very high degree of market commonality and resource similarity.
Kmart and the Gap operate in different markets. The other items differ in one or more dimensions (e.g., Kroger sells flowers but is primarily a grocery store).

Question 6

Identify and differentiate between the positioning strategies and the adaptive strategies used at the industry level.

Accepted Answer

The answer of Identify and differentiate between the positioning strategies...

Question 7

Explain how the concept of strategic group (and its two sub-types) is used in a situational analysis as part of an environmental scanning activity to identify specific opportunities and threats that can either improve or harm the company's ability to sustain its competitive advantage.

Accepted Answer

The answer of Explain how the concept of strategic group...

Question 8

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. Because other music groups cannot duplicate the value the Rolling Stones are providing to customers, the band can be said to have a(n)__________ .

Accepted Answer

A sustainable competitive advantage exists when competitors have quit attempting to copy the source of advantage.

Question 9

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. Prior to 1989, The Stones and all other touring bands would hire a tour director who would cut individual deals with local promoters in each city to set up the shows. In 1989, the Stones were the first group to book their tours themselves, dealing with the venues directly and eliminating the local promoters. The band's income increased from about $400,000 per show to $1 million per show. Obviously The Stones were not guilty of_________ .

Accepted Answer

Competitive inertia involves following familiar strategic paths. Here the Rolling Stones chose an innovative approach to managing their tours.

Question 10

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. What kind of diversification has the Rolling Stones used to grow their business?

Accepted Answer

Their business lines reach beyond music to merchandise and services.

Question 11

From a competitive standpoint, ___________means that the strategic actions your company takes can probably be matched by your direct competitors.

Accepted Answer

Resource similarity refers to how similar the resources and capabilities of your company are compared to your direct competitors. If there is high resource similarity, it means that your competitors can easily match or imitate the strategic actions that you take. This makes competition more intense and challenging as each company tries to gain an advantage over each other. Market commonality refers to the degree to which companies compete in the same markets or offer similar products/services. Character of the rivalry refers to how intense the competition is between companies. Competitive inertia refers to a company's reluctance to change its strategies or competitive approach. Competitive autonomy refers to the ability of a company to act independently and make its own strategic decisions without being heavily influenced by competitors.

Question 12

Resource similarity and____________ are factors that determine the extent to which firms will be in direct competition with each other.

Accepted Answer

Market commonality refers to the degree to which firms compete for the same customers and resources in the same markets. Higher market commonality increases the likelihood of direct competition between firms. The other factors listed may impact competition indirectly but are not as directly related to competition as market commonality.

Question 13

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. When compared to other musicians, The Rolling Stones have demonstrated that they have a __________when it comes to operating as a business.

Accepted Answer

The Rolling Stones are more effective in the business aspects of rock music than their nearest competitors.

Question 14

How do companies use situational analyses and what are the basic components of a situational analysis?

Accepted Answer

The answer of How do companies use situational analyses and...

Question 15

Under conditions ofmeans that the strategic actions your company takes can probably be matched_________ advantage. , a competitive attack by the stronger rival is more likely to produce sustained competitive advantage.

Accepted Answer

Direct competitors would be least able to effectively counter the attack of a stronger rival when they are at a resource disadvantage (low resource similarity + weaker company).

Question 16

List the five industry forces that determine overall levels of competition in an industry. Identify what happens to competition as these forces increase in strength.

Accepted Answer

The answer of List the five industry forces that determine...

Question 17

As direct competitors, UPS and FedEx would have__________ .

Accepted Answer

Direct competitors are competing for the same market(s), a condition known as high market commonality.

Question 18

The Rolling Stones
The Rolling Stones are the most successful act in the music industry largely because they run the band as a business-the Rolling Stones, Inc. Since 1989 (the beginning of the modern age of the Rolling Stone), the band has generated more than $1.5 billion in gross revenues. That total includes sales of records, song rights, merchandising, sponsorship money, and touring. Unlike some other groups, the Stones carry no anti-business baggage. The Rolling Stones, Inc. operates on a combustible mix of talent and intense labor-the product of four decades of trial and error. The company licenses over 50 products from underwear to formalwear. The Voodoo Lounge tour in 1994 grossed $121.2 million, record earnings for a single tour. Over the past decade, the group's song writing has made about $56 million. The next time you see Mick Jagger, think of him as the highly successful CEO of a mid-sized corporation. The goal of the corporation is to continue providing products that differ from its competitors' offerings so that fans will continue to pay a premium price for what it sells.
-Refer to The Rolling Stones. In recent years, what kind of a grand strategy does Rolling Stones, Inc. use?

Accepted Answer

The Rolling Stones are "continuing to do what they do...only better." This approach is most
characteristic of the stability strategy.

Question 19

Differentiate between competitive inertia and strategic dissonance.

Accepted Answer

The answer of Differentiate between competitive inertia and strategic dissonance....

Question 20

Briefly identify the four conditions used to achieve a sustainable competitive advantage by companies.

Accepted Answer

The answer of Briefly identify the four conditions used to...

Quiz 6: Section 1: Organizational Strategy