Florida International University

MAR 3023

TRUE/FALSE Questions

Chapter 5 -Competitors and Complemente

1)A critical issue in identifying direct competitors is the presence or absence of a capable workforce.

 

 

2. Describing competitors is the first step in the framework for gaining competitive insight.

 

 

3. Quantitative data about competitors includes measures like profitability and market share.

 

 

4. Qualitative data includes the expertise of competitors’ managers and their anticipated strategic moves.

 

 

5. Direct competitors are those firms offering similar benefits as the firm’s products but in a significantly different way.

 

 

6. When customers believe they have the competence to fulfill the supplier function and that potential for additional profit margin is sufficiently attractive, they sometimes integrate backward.

 

 

7. When a supplier believes it has the competence to fulfill the functions currently carried out by a customer firm and that the potential for additional profit margin is sufficiently attractive, it may integrate backward.

 

8. The line organization that sets out the basic responsibilities and reporting relationships in a competitor’s organization is referred to as culture.

 

 

9. According to the text, the value chain is the set of major work activities conducted by the competitor and the manner in which these are connected to external entities such as suppliers and customers.

 

 

10. Corporate, business unit, and market segment are important levels of data to consider when collecting information on competitors.

 

 

11. Constrained what-if scenarios start with the competitor’s current strategy and consider what might emerge.

 

 

12. Emergent scenarios describe the scenario that starts with the competitor’s current strategy and considers what might emerge.

 

 

13. Primary data implies that the information is already available but needs to be collected, sorted, and given meaning in the context of the questions management wants to answer.

 

 

14. A company’s annual report is an example of secondary data.

 

 

15. A broad definition of complementer would include any organization (except customers) whose activities positively impact the firm’s sales.

 

 

Multiple Choice Questions

 

16. According to the text, all of the following are new ways in the changing view of analyzing the competition EXCEPT:

a.) Suppliers are potential competitors.

b.) Focus only on direct competitors.

c.) The firm operates interdependently.

d.) Collaborative arrangements are more common.

 

17. Which of the following is a new way in the changing view of analyzing the competition?

a.) Active and proactive competitive strategy

b.) Passive and reactive competitive strategy c.) Industry structure is fixed.

d.) The firm operates independently.

 

18. Which of the following is the FIRST step in the framework for gaining competitive insight?

a.) Identify

b.) Describe c.) Evaluate d.) Manage

 

19. Which of the following is the LAST step in the framework for gaining competitive insight? a.) Identify

b.) Describe c.) Evaluate

d.) Manage

 

20. All of the following are key areas to consider when identifying competitors EXCEPT:

a.) All selections are recognized as key areas to consider.

b.) The structure of competition c.) Competitive dynamics

d.) The firm itself

 

21. According to the five-forces model, three of the five forces the firm faces are competition and includes all of the following EXCEPT:

a.) Current direct competitors b.)   New direct competitors c.) Indirect competitors

d.) Shadow competitors

 

22. According to the text, describing competitors involves all of the following key areas EXCEPT: a.) What competitor data should the firm collect?

b.) What processes should the firm use for competitive data-gathering?

c.) All of the selections are key areas. 

d.) What frameworks can the firm use to describe competitors?

 

23.     includes measures like profitability and market share.

a.) Quantitative data

b.) Qualitative data c.) Subjective data d.) Nominal data

 

24.                                                 includes the expertise of competitors’ managers and their anticipated strategic moves.

a.) Quantitative data

b.) Qualitative data

c.) Objective data d.) Nominal data

 

25. Which of the following prohibits former employees from working for competitors for a defined time period?

a.)   Nondisclosure agreement b.) Strategic alliance agreement

c.) Non-compete agreement

d.) Novo start-up agreement

 

26.                                             prohibit revealing information to third parties and are standard for consultants and others who work for the firm on a contract basis.

a.) Nondisclosure agreements

b.) Strategic alliance agreements c.) Non-compete agreements

d.) Novo start-up agreements

 

27. Which of the following is NOT one of the core questions about the value chain that a firm asks when analyzing the competition?

a.) Where does the competitor have a cost advantage? b.) Where does the competitor have a value advantage? c.) Where is the competitor at a value disadvantage?

d.) Where does the competitor break even?

 

28.                                       are those firms offering similar benefits but with different products, technology, and/or business models?

a.) Direct competitors

b.) Indirect competitors

c.) De novo start-ups d.) Strategic alliances

 

29. Which of the following best describes Xerox as a competitor in the following example? “Xerox copying machines compete with computers, fax machines, computer modems, and video conferencing.”

a.) Xerox is a direct competitor.

b.) Xerox is an indirect competitor.

c.) Xerox is a de novo start-up. d.) Xerox is a merger.

 

30. Which of the following best describes the competitive threat that occurs when the firms’ customers decide to incorporate into its own operations functions that the firm currently performs?

a.) Customers integrating backward

b.) Customers integrating forward c.) Suppliers integrating forward d.) Suppliers integrating backward

 

31. When the customer believes it has the competence to fulfill the supplier function and that potential for additional profit margin is sufficiently attractive,                               .

a.) customers may integrate forward b.) suppliers may integrate forward

c.) customers may integrate backward

d.) suppliers may integrate backward

 

32.                                        is the competitive threat that occurs when the firm’s supplier decides to incorporate functions that the firm currently performs into its own operations.

a.) Customers integrating backward b.) Customers integrating forward

c.) Suppliers integrating forward

d.) Suppliers integrating backward

 

33. Which of the following is NOT one of the competitive evaluation questions that competitor assessment analysis and game theory helps to answer?

a.) What options does the competitor have to be successful in the market? b.) Is the competitor capable?

c.) What is the profitability index of the firm’s competitor?

d.) Does the competitor have the resources to implement a particular option?

 

34.                                              is a net benefit or cluster of benefits, offered to a sizable group of customers, which they value and are willing to pay for but cannot get, or believe they cannot get, elsewhere.

a.) Virtual advantage

b.) Cross-sectional advantage c.) Fundamental advantage

d.) Differential advantage

 

35. Which of the following is NOT mentioned in the text as a level of data that is important when collecting competitor data?

a.) Governmental

b.) Corporate

c.)   Business unit d.) Market segment

 

36. The question “How does GE allocate resources across its home appliance portfolio: refrigerators, dishwashers, washers, and driers?” is an example of which level of collecting competitor data?

a.) Governmental b.) Corporate

c.) Business unit

d.) Market segment

 

37. The question “What effort is GE placing into innovation versus increasing efficiency?” is an example of which level of collecting competitor data?

a.) Governmental

b.) Corporate

c.)   Business unit d.) Market segment

 

38. In a competitor’s organization, the behaviors, norms, beliefs, and values that together describe what the competitor stands for and how its members operate and behave is called                       .

a.) infrastructure b.) processes

c.) culture

d.) value chain

 

39. According to the text, the                                     is the set of major work activities conducted by the competitor and the manner in which these are connected to external entities such as suppliers and customers.

a.) infrastructure b.) culture

c.) processes

d.) value chain

 

40. Which of the following is NOT mentioned in the text as an important attribute of effective scenarios? a.) Articulated plot and logic

b.) Internally consistent logic c.) Specific time frame

d.) Perceptual maps

 

41. According to the text, all of the following are important attributes of scenarios EXCEPT: a.) Articulated plot and logics

b.) Specified time frame

c.) Decision/action oriented

d.) External consistency

 

42. Which of the following is NOT an example of a major type of scenario used to project future competitor actions?

a.) Emergent scenarios

b.) Unconstrained what-if scenarios c.) Constrained what-if scenarios

d.) Technological scenarios

 

43. Which of the following best describes the scenario that starts with the competitor’s current strategy and considers what might emerge?

a.) Emergent scenarios  b.) Unconstrained what-if scenarios c.) Constrained what-if scenarios

d.) Technological scenarios

44. Scenarios based on open-end “what-if” questions that suggest possible end states are referred to as

                                     .

a.) emergent scenarios

b.) unconstrained what-if scenarios

c.) constrained what-if scenarios d.) technological scenarios

 

45. Which of the following best describes the scenario that asks what the competitor might do under different sets of market or industry conditions?

a.) Emergent scenarios

b.) Unconstrained what-if scenarios

c.) Constrained what-if scenarios

d.) Technological scenarios

 

46. Which of the following is NOT mentioned in the text as an important attribute to incorporate when building scenarios?

a.) Conjoint analysis

b.) An end state c.) A plot

d.) Driving forces

 

47. Examples of primary data include all of the following EXCEPT: a.) The firm’s executives

b.) The firm’s sales force c.) The firm’s employees

d.) The firm’s annual report

 

48.                                       implies that the information is already available but needs to be collected, sorted, and given meaning in the context of the questions management wants to answer.

a.) Primary data

b.) Secondary data

c.) Hypothetical data d.) Syndicated data

 

49. Which of the following is NOT mentioned in the text as an important source of secondary data? a.) Trade associations

b.) The competitor’s suppliers

c.) Investment bankers d.) Stock market analysts

 

50. Sources of secondary data include all of the following EXCEPT: a.) News releases

b.) The Internet c.) Patent filings

d.) Customer surveys

 

51. All of the following are examples of external sources of data that relate to the firm’s product line EXCEPT: a.) Competitors’ product catalogs

b.) Industry trade associations c.) Trade industry press

d.) Industry studies conducted by the firm’s own personnel

 

52. Which of the following is NOT an example of an internal source of data that relates the functionality dimension of competition?

a.) Reverse engineering

b.) Manufacturing sales and other personnel assessments c.) Product comparison studies

d.) Competitors’ sales literature

 

53. External sources of analyzing the availability dimension of competition include all of the following sources EXCEPT:

a.) Customers’ surveys

b.) Distribution and logistic personnel

c.) Reports of channels

d.) Competitors’ statements

 

54. All of the following are examples of external sources of information where the price dimension of competition can be obtained EXCEPT:

a.) Competitors’ price lists

b.) Sales force reports

c.) Retail and channel price lists and actual prices d.) Interviews with end customers

 

55. A broad definition of                                        would include any organization (except customers) whose activities impact the firm’s sales.

a.) competitor

b.) complementer

c.) supplementer d.) none of these

 

Essay Questions

 

56. In a short essay, list and discuss the five-step framework commonly used for gaining competitor insight.

 

 

 

57. In a short essay, list the four key areas used when describing competitors.

 

58. In a short essay, list and discuss five internal processes for securing competitive data.

 

 

 

59. In a short essay, list and discuss the three major types of scenarios used in competitor analysis.

 

 

 

60. In a short essay, discuss primary and secondary data. Include specific examples of each type of data to support your answer.