Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGMT 466 > MGMT 466 Exam 2 - FLASHCARDS - Chapter 5 > Flashcards

MGMT 466 Exam 2 - FLASHCARDS - Chapter 5

1
Q

True or false: firms interact with competitors as part of the broad context within which they operate while attempting to earn above-average returns?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

True or false: Industries evolve through the competitive give and take of direct competitors as well as the actions of other firms within their ecosystems?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What describes competitive actions and competitive responses among firms as they maneuver for an advantageous market position?

A

Competitive rivalry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the set of competitive actions and responses a firm takes to build or defend its competitive advantages and to improve its market position?

A

Competitive behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What occurs when firms compete against each other in several product or geographic markets?

A

Multipoint competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the total set of competitive actions and responses taken by all firms competing within a market?

A

Competitive dynamics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a strategy’s success a function of?

A

−the firm’s initial competitive actions.
−how well the firm anticipates competitors’ responses to them.
−how well the firm anticipates and responds to its competitors’
initial actions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

True or false: a strategy’s success is a function of a firm’s initial competitive actions?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

True or false: a strategy’s success is a function of how well a firm anticipates competitors’ responses to them?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

True or false: a strategy’s success a function of how well a firm anticipates and responds to its competitors’ initial actions?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

True or false: Competitive rivalry affects all types of strategies, but its dominant influence is on business-level strategy?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position?

A

Competitive action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action?

A

Competitive response

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse?

A

Strategic action or response

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a market-based move that firms take to fine-tune a strategy; these actions and responses involve fewer resources and are relatively easy to implement and reverse?

A

Tactical action or response

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What do non market strategies focus on?

A

Altering a firm’s institutional environment as part of its competitive strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What does the institutional environment include?

A

− Government influences such as regulations that establish the “rules of thegame.”

− Informal rules or norms that are predominant within a market or industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What evolves from the pattern of actions and responses as one firm’s competitive actions have noticeable effects on competitors, eliciting competitive responses from them?

A

Competitive rivalry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

True or false: competitive rivalry suggests that firms are mutually interdependent?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

True or false: competitive rivalry suggests that competitors’ actions and responses affect them?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is marketplace success a function of?

A

individual strategies.
the consequences of their use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a strategy’s success a function of?

A

• The firm’s initial competitive actions
• How well the firm anticipates competitors’ responses to them
• How well the firm anticipates and responds to its competitors’ initial actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

True or false: A competitor analysis is the first step the firm takes to be able to predict its competitors’ actions and responses?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Competitor analysis is a technique firms use to understand their competitive environment by studying competitors’ what?

A

−Future objectives
−Current strategies
−Assumptions
−Capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

True or false: When firms understand their competitors, they can use competitor analysis to predict competitors’ behavior in the form of their competitive actions and responses?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each?

A

Market commonality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What do firms competing against one another in several markets engage in?

A

Multipoint competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is the extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount?

A

Resource similarity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Do firms with similar types and amounts of resources have similar strengths and weaknesses?

A

Yes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the drivers of competitive behavior?

A

Awareness
Motivation
Ability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is the extent to which competitors recognize the degree of their mutual interdependence?

A

Awareness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

True or false: Awareness tends to be greatest when firms have highly similar resources?

A

TRUE

33
Q

What is the firm’s incentive to take action or to respond to a competitor’s attack?

A

Motivation

34
Q

True or false: A firm may not be motivated to engage in competitive rivalry if it perceives that its market position will neither improve nor suffer if it does not respond?

A

TRUE

35
Q

What is the quality of the resources available to the firm to attack and respond?

A

Ability

36
Q

True or false: The more significant the difference between resources, the longer is the delay by the firm with a resource disadvantage?

A

TRUE

37
Q

True or false: Even when facing competitors with greater resources or more attractive market positions, firms should eventually respond, no matter how daunting the task seems?

A

True. Choosing not to respond can ultimately result in failure

38
Q

What is a firm that takes an initial competitive action to build or defend its competitive advantages or to improve its market position?

A

First mover

39
Q

First movers emphasize research and development (R&D) as a path to developing innovative products that customers will value

A

.

40
Q

Are first-mover benefits often critical to a firm’s success in industries experiencing rapid technological
developments?

A

Yes

41
Q

Are first-mover benefits often critical to a firm’s success in industries with relatively short product life cycles?

A

Yes

42
Q

In addition to earning above-average returns until its competitors respond to its successful competitive action, the first mover can gain what?

A

−the loyalty of customers.
−market share

43
Q

True or false: first movers tend to be aggressive?

A

TRUE

44
Q

True or false: first movers tend to be willing to experiment with innovation?

A

TRUE

45
Q

True or false: first movers tend to take higher yet reasonable levels of risk?

A

TRUE

46
Q

To be a first mover, the firm must have the readily available resources to what?

A

−invest significantly in R & D.
−rapidly and successfully produce and market a stream of innovative products

47
Q

What makes it possible for firms to have the ability to be first movers?

A

Organizational slack

48
Q

What is the buffer provided by actual or obtainable resources not in use currently and that exceed the minimum resources needed to produce a given level of organizational output?

A

Slack

49
Q

What is a firm that responds to the first mover’s competitive action, typically through imitation?

A

Second mover

50
Q

Who tries to find any mistakes the first mover made so that it can avoid them and the problems they created?

A

Second mover

51
Q

True or false: a second mover has the time to develop processes and technologies that are more efficient than those the first mover used?

A

TRUE

52
Q

Do the most successful second movers act too fast or too slow?

A

Rarely

53
Q

What is a firm that responds to a competitive action a significant amount of time after the first mover’s action and the second mover’s response?

A

Late mover

54
Q

True or false: late movers achieve considerably less success than do first and second movers?

A

TRUE

55
Q

What does an organization’s size affect?

A

The likelihood it will take competitive actions as well as the types and timing of those actions

56
Q

True or false: small firms are more likely to launch competitive actions more quickly?

A

TRUE

57
Q

True or false: small firms have the capacity to be nimble and flexible competitors?

A

TRUE

58
Q

True or false: small firms tend to rely on speed and surprise to defend their competitive advantages?

A

TRUE

59
Q

True or false: Large firms typically have a greater amount of slack resources that allows them to initiate a larger total number of competitive actions and strategic actions during a given period?

A

TRUE

60
Q

What exists when the firm’s products meet or exceed customers’ expectations?

A

Quality

61
Q

Do customers perceive quality as doing the right things relative to performance measures that are important to them?

A

Yes

62
Q

When is a firm likely to respond to a competitor’s action?

A

−the action leads to better use of the competitor’s capabilities to develop a stronger competitive advantage or an improvement in its market position.
−the action damages the firm’s ability to use its core competencies to create or maintain an advantage.
−the firm’s market position becomes harder to defend.

63
Q

True or false: In general, the number of tactical responses firms take exceed the number of strategic responses they take?

A

TRUE

64
Q

What is the firm taking an action or a response called?

A

Actor

65
Q

What is the positive or negative attribute ascribed by one rival to another based on past competitive behavior?

A

Reputation

66
Q

True or false: competitors are more likely to respond to strategic or tactical actions when market leaders take them?

A

TRUE

67
Q

True or false: Competitors are less likely to respond to actions taken by a company with a reputation for risky, complex, and unpredictable competitive behavior?

A

TRUE

68
Q

What denotes the extent to which a firm derives its revenues or profits from a particular market?

A

Market dependence

69
Q

True or false: competitors with high market dependence are likely to respond strongly to attacks threatening their market position?

A

TRUE

70
Q

What are markets in which competitors lack the ability to imitate the focal firm’s competitive advantages that commonly last for long periods, and where imitation would be costly?

A

Slow cycle markets

71
Q

True or false: in a slow cycle market, firms may be able to sustain a competitive advantage over longer periods?

A

TRUE

72
Q

True or false: in a slow cycle market, building a unique and proprietary capability produces a competitive advantage?

A

TRUE

73
Q

True or false: in a slow cycle market, the competitive actions and responses a firm takes are oriented to protecting, maintaining, and extending a competitive advantage?

A

TRUE

74
Q

True or false: in a slow cycle market, the firm launches a product it developed through a proprietary advantage?

A

TRUE

75
Q

What are markets in which competitors can imitate the focal firm’s capabilities that contribute to its competitive advantages and where that imitation is often rapid and inexpensive?

A

Fast cycle markets

76
Q

True or false: in a fast cycle market, the velocity of change places considerable pressure on top-level managers to make quick and effective strategic decisions?

A

TRUE

77
Q

In a fast cycle market, is the technology firms use, protected by patents?

A

No

78
Q

True or false: in a fast cycle market, companies focus on forming the capabilities and core competencies that will allow them to develop new competitive advantages continuously and rapidly?

A

TRUE

79
Q

What are markets in which some competitors may be able to imitate the focal firm’s competitive advantages and where that imitation is moderately costly?

A

Standard cycle markets

MGMT 466 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions