WPC 480 – FINAL EXAM WITH COMPLETE SOLUTION(LATEST 2021 GRADED A+)Combined exams all finals

WPC 480 – FINAL EXAM

Firms operating in the same market, offering similar products and targeting similar

customers are competitors.

a. True

b. False correct answer- True

Competitive rivalry is the contest to be the first mover in an international market.

a. True

b. False correct answer- False

Competitive rivalry is the set of competitive actions and responses that occur among

firms as they maneuver for an advantageous market position.

a. True

b. False correct answer- True

"Competitive dynamics" indicates that firms and their strategic actions are independent.

a. True

b. False correct answer- False

A strategy's success is determined not only by the firm's initial competitive actions but

also by how well it anticipates competitors' responses to them and by how well the firm

anticipates and responds to its competitors initial actions.

a. True

b. False correct answer- True

Firms with high market commonality and highly similar resources are direct and

mutually acknowledged competitors.

a. True

b. False correct answer- True

Market commonality 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. True

b. False correct answer- True

Coca Cola and PepsiCo compete across a number of products (e.g., soft drinks, bottled

water) and geographic markets (U.S. and foreign markets) indicating that both

companies have market commonality.

a. True

b. False correct answer- True

Research suggests that a firm with greater multimarket contact is less likely to initiate an

attack, but more likely to respond aggressively when attacked.

a. True

b. False correct answer- True

Extensive market commonality guarantees intense competition in an industry.

a. True

b. False correct answer- False

Bayou Belle Water markets water drawn only from a single artesian well in Southern

Louisiana. It has a loyal following in its region. Since Bayou Belle markets the water,

just as Coca-Cola, Nestle, and PepsiCo do, Bayou Belle has high resource similarity

with these international firms.

a. True

b. False correct answer- False

Two firms, such as Fed Ex and UPS that have similar resources and common markets

would be direct and mutually acknowledged competitors.

a. True

b. False correct answer- True

Two firms, such as a small local, family-owned Italian restaurant and Olive Garden

share few markets and have little similarity in resources, but are nonetheless direct and

mutually acknowledged competitors.

a. True

b. False correct answer- False

Awareness tends to be greatest when firms have highly similar resources and compete

in multiple markets.

a. True

b. False correct answer- True

Under the framework of competitive action and response, "ability" refers to an attacking

or responding firm's knowledge of the competitive market characteristics.

a. True

b. False correct answer- False

Walmart has recently opened a store in Alsatia, Missouri. Several local small retailers

have decided that choosing not to respond to Walmart's competitive actions is a viable

long-term option, because although the companies have high market commonality they

have little resource similarity. These small retailers are correct in their decision.

a. True

b. False correct answer- False

A tactical competitive action involves a significant commitment of specific and distinctive

organizational resources.

a. True

b. False correct answer- False

Boeing's decision to commit the resources required to build the super-efficient 787

midsized jetliner is an example of a tactical action.

a. True

b. False correct answer- False

Walmart's aggressive pricing strategy is a strategic action that plays a major role in how

it competes.

a. True

b. False correct answer- False

First movers can gain a sustained competitive advantage when they reduce their costs

through reverse engineering.

a. True

b. False correct answer- False

To be a first mover, the firm must have readily available resources to invest in R&D as

well as to rapidly and successfully produce and market a stream of innovative products.

a. True

b. False correct answer- True

An organization with high profitability, such as Walmart, will be able to develop high

organizational slack.

a. True

b. False correct answer- True

Mighty Mike's, a manufacturer of power tools for the home hobbyist, has seen its main

competitor, MyTools, bring out a line of power tools that are smaller sized, lighter

weight, and suitable for women and older hobbyists who have weaker hands than the

typical male workshop hobbyist. Mighty Mike is waiting to see whether MyTool's new

line

is a success. Mighty Mike could be classified as a second mover.

a. True

b. False correct answer- True

Firms that are typically late movers usually have little organizational slack.

a. True

b. False correct answer- True

. Large firms with significant slack resources (i.e., are able to launch a greater number

of competitive actions) but who remain flexible and act like small firms (i.e., are able to

launch a variety of actions) will be more successful against rivals.

a. True

b. False correct answer- True

The need for quality products and services is so high that quality alone can assure a

firm that it will achieve strategic competitiveness and earn above-average returns.

a. True

b. False correct answer- False

Quality begins at the bottom of the organization where employees must create values

for quality that permeate the entire organization.

a. True

b. False correct answer- False

A firm can predict that a competitor whose products suffer from poor quality is likely to

be less aggressive in its competitive actions until those quality problems are corrected.

a. True

b. False correct answer- True