The "double-diamond" approach to national competitive advantage is a conceptual framework associated with:

The "double-diamond" approach to national competitive advantage is a conceptual framework associated with:

A) Michael Porter.
B) Gary Hamel and C.K. Prahalad.
C) Richard D'Aveni.
D) Alan Rugman.
E) Antonio Perez.



Answer: D

According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market?

According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market?

A) know-how advantage
B) timing advantage
C) outflanking
D) switching costs
E) countermoves




Answer: B

Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?

Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?

A) cost,quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) buyer and supplier power



Answer: E

According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?

According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?

A) cost,quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) Olympics



Answer: A

Sony's PlayStation 3 (PS3) has a powerful chip that provides new levels of realism, PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive Nintendo Wii has been outselling Sony's game system by a margin of 3-to-1. Based on D'Aveni's model this is reflective of:

Sony's PlayStation 3 (PS3) has a powerful chip that provides new levels of realism, PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive Nintendo Wii has been outselling Sony's game system by a margin of 3-to-1. Based on D'Aveni's model this is reflective of:

A) cost,quality.
B) timing and know how.
C) entry barriers.
D) loose bricks.
E) deep pockets.



Answer: B

In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena:

In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena:

A) cost,quality.
B) timing and know how.
C) entry barriers.
D) deep pockets.
E) sporting events.



Answer: A

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

A) five forces model
B) generic strategies
C) strategic intent
D) hypercompetition
E) factor conditions



Answer: D

Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following:

Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following:

A) major technological breakthroughs.
B) wars and their aftermath.
C) oil crisis.
D) currency fluctuations.
E) annual business meeting.



Answer: E

The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except:

The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except:

A) develop new products.
B) improve existing one.
C) lower costs and prices.
D) develop new technologies.
E) none of the above



Answer: E

According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) formation of European Union.



Answer: D

According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:

According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:

A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) global conditions.



Answer: A

In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?

In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?

A) collaboration
B) layers of advantage
C) changing the rules
D) loose bricks
E) engagement



Answer: A

Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as:

Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as:

A) searching for loose bricks.
B) collaborating.
C) building of layers of advantage.
D) changing the rules of engagement.
E) innovating.



Answer: B

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:

A) searching for loose bricks.
B) changing the rules of engagement.
C) collaborating.
D) building layers of advantage.
E) innovating.



Answer: B

In the 1960s, Honda took advantage of Harley-Davidson's focus on the heavyweight segment of the motorcycle market by offering smaller models and, eventually, larger ones. According to the strategic intent model, Honda was using a ________ strategy.

In the 1960s, Honda took advantage of Harley-Davidson's focus on the heavyweight segment of the motorcycle market by offering smaller models and, eventually, larger ones. According to the strategic intent model, Honda was using a ________ strategy.

A) collaboration
B) layers of advantage
C) loose bricks
D) generic
E) supplier power



Answer: C

An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.

An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.

A) loose bricks
B) collaboration
C) layers of advantage
D) supplier power
E) generic



Answer: A

When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing:

When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing:

A) loose bricks.
B) a "double diamond."
C) attribute diversity.
D) layers of advantage.
E) buyer power.



Answer: D

Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework this is an example of:

Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework this is an example of:

A) changing the rules.
B) collaborating.
C) comparative advantage.
D) layers of advantage.
E) loose bricks.



Answer: E

In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:

In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:

A) attribute diversity.
B) marketing breadth.
C) comparative advantage.
D) layers of advantage.
E) a "double diamond."



Answer: D

Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of:

Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of:

A) building layers of advantage.
B) loose bricks.
C) changing the rules of engagement.
D) collaborating.
E) none of the above



Answer: B