Quiz 1 Bus 401

When automobile magazines face competition from blogs on the web which force gets stronger?

Threat of substitutes

Competitive rivalry based solely on what is destructive to firms?

Price cutting

To gain competitive advantage in a highly competitive industry what should a firm do?

Stake out a unique position within the industry

Stronger five forces leads to lower what?

Profit potential

In a cost leadership strategy what must firms ensure?

Quality is acceptable to buyers

What creates high entry barriers in the US auto industry?

Need for large scale production to be cost competitive

They pursued distinct strategic positions

They pursued distinct strategic positions

If a differentiator offers more value at the same price what happens?

Gains market share from other firms

A firm with superior performance relative to others has what?

Competitive advantage

A firm always has a competitive disadvantage when ROI is what?

Below the industry average

Why is there low threat of entry in aircraft manufacturing?

Requires huge capital investments

A company with competitive advantage earns greater margins than competitors True or False

True

Which is NOT recommended in where to play choices?

Start battles with competitors on multiple fronts

What does a winning aspiration define?

Purpose and guiding mission of the enterprise

What does winning aspiration set?

Context for all strategic choices

What is true about winning in strategy?

Winning matters because value accrues to the winner

If you cannot create a credible how to win choice what should you do?

Find a new playing field or exit

What must support a strong where to play choice?

A robust and actionable how to win choice + Find a new playing field or exit

When setting a Winning Aspiration, you must look at all competitors, but should focus on the best competitor in your space?

False

Strategic positioning is about what?

Creating a unique sustainable differentiated position

ignore

ignore

What is another example of operational effectiveness?

Creating and extending best practices + financial plan

Who is Michael Porter?

Leading strategy expert and Harvard professor

What is the final step before finalizing where to play and how to win choices?

Predicting competitor responses

ignore

ignore

ignore

ignore

What is the five forces actions?

Position where forces are weakest, Reshape forces, Start price war, Position where forces are weakest

Strategy logic flow leads to multiple where to play and how to win options True or False

True

Does a low cost player have to offer the lowest price?

False

Does five forces help firms become more profitable and less vulnerable?

True

In a large organization, there are multiple levels of choices and interconnected cascades. Nested cascades mean that choices happen at every level of the organization?

True