BA499_Business Capstone Week 3 Quiz - Chapters 5 and 6 Answered

BA499_Business Capstone Week 3: Quiz - Chapters 5 and 6 Answered

Attempt History

Question 1

4 / 4 pts

First movers are:

Correct!

firms that take an initial competitive action.

firms that are first to exit a declining industry.

entrepreneurs who lead in the establishment of new industries.

individuals who move frequently as employment opportunities change in a locale.

Question 2

4 / 4 pts

Quality affects competitive rivalry because a competitor whose products suffer from poor quality likely will __________ until __________.

advertise more; customers believe the quality has improved

initiate more competitive actions; the firm returns to profitability

initiate more competitive actions; the quality problems are corrected

Correct!

initiate fewer competitive actions; the quality problems are corrected

Question 3

4 / 4 pts

Research suggests that a firm with greater multimarket contact is __________ likely to initiate an attack, but __________ likely to respond aggressively when attacked.

more; more

Correct!

less; more

less; less

more; less

Question 4

4 / 4 pts

__________ markets are often described as volatile and innovative.

Correct!

Fast-cycle

Sheltered

Standard-cycle

Slow-cycle

Question 5

4 / 4 pts

Hilliard Pharmaceuticals and Ahrens Vitamins, Inc., have high market commonality, both geographically and in the market segments in which they compete. Hilliard, the number two firm in the industry, has undertaken a major strategic attack upon Ahrens, the market leader. Which of the following statements is MOST likely to be true?

As the market leader, Ahrens has little to fear from an attack by Hilliard and will not expend organizational slack on a major response.

Ahrens will respond after a long delay as the nutrition supplement industry is a slow-cycle industry.

Ahrens will not respond aggressively since this is a strategic move and not a tactical action.

Correct!

Ahrens will respond aggressively because of the high multimarket contact between Hilliard and Ahrens.

Question 6

4 / 4 pts

All of Krispy Kreme's revenues come from its one main product, doughnuts. It can be considered a classic example of a firm following a related constrained strategy.

Correct!

False

True

Question 7

4 / 4 pts

Activity sharing limits risk because the ties among a firm's businesses create links between outcomes.

True

Correct!

False

Question 8

4 / 4 pts

The more links among businesses, the more __________ is the level of diversification.

integrated

Correct!

constrained

linked

intense

Question 9

4 / 4 pts

United Technologies Corporation, Textron, and Samsung are examples of diversified firms that have no relationships between their businesses. These firms all use the strategy of unrelated diversification.

Correct!

True

False

Question 10

4 / 4 pts

Market power is gained as the firm develops the ability to save on its operations, avoid sourcing and market costs, improve product quality, possibly protect its technology from imitation by rivals, and potentially exploit underlying capabilities in the marketplace.

False

Correct!

True

Quiz Score: 40 out of 40