|
Q18. Smith would categorize the French wine industry into which of the following life cycle phases? ffice ffice" />
A) Pioneer Phase.
B) Mature Phase.
C) Decline Phase.
Correct answer is C)
The decline life cycle phase has the following characteristics:
§ Shifting tastes or technologies have overtaken the industry
§ A decline in demand
§ Lower profit margins
§ Participants must either consolidate, reinvent themselves, or fail
(Study Session 11, LOS 39.b)
Q19. VanDriesen tells Smith that he likes the fact that the conclusions in her report are backed up with facts, but tells her that he is concerned about the section concerning the Bargaining Power of Buyers. He says that while all of the points she listed may be factual, they do not all support her conclusion. Which of Smith’s points support the conclusion that consumers have strong bargaining power over the industry?
A) Points 2, 3, and 4.
B) Points 2 and 4.
C) Points 1, 2, and 4.
Correct answer is C)
Determinants of buyer power include buyer concentration, buyer volume, buyer information, available substitutes, switching costs, brand identity, and product differences. Point 1 addresses available substitutes, Point 2 addresses buyer information, and Point 4 addresses buyer and buyer concentration. Point 3, which addresses the number of competitors in the industry and Point 5, new entrants, may be factual statements but do not support the conclusion that consumers have strong bargaining power. (Study Session 11, LOS 37.d)
Q20. Smith notes in her report that the West Winery might differentiate its wine product on attributes that buyers perceive to be important. Which of the following attributes would be the most likely area of focus for the West Winery to create a differentiated product?
A) The method of delivery for the product.
B) The price of the product.
C) A focus on customers aged 30 to 45.
Correct answer is A)
Product differentiation can be based on the product itself, the method of delivery, or the marketing approach. (Study Session 11, LOS 38.b)
Q21. Regarding Smith and VanDriesen's statements made about the competitive strategy of the South Winery:
A) both are incorrect.
B) only one is correct.
C) both are correct.
Correct answer is C)
A 'stuck in the middle' firm is one that tries to attain both cost leadership and product differentiation and fails. Such firms compete at a disadvantage to those that have achieved cost leadership or differentiation. Smith’s explanation correctly identifies a “stuck in the middle” firm and the issues such a firm faces. VanDriesen’s statement is also correct. A firm can achieve both cost leadership and product differentiation if it operates separate and distinct operating units with each pursuing a different strategy. (Study Session 11, LOS 38.a)
Q22. Smith knows that a firm’s generic strategy should be the centerpiece of a firm’s strategic plan. Based on a compilation of research and documents, Smith makes four observations about the North Winery and their strategic planning process.
1. North Winery’s price and cost forecasts account for future changes in the structure of the French wine industry.
2. North Winery places each of its business units into one of three categories: build, hold, or harvest.
3. North Winery uses market share as the key measure of their competitive position.
Which observation(s) least likely support the conclusion that the North Winery’s strategic planning process is guided and informed by their generic competitive strategy?
A) Observations 2 and 3.
B) Observation 2 only.
C) Observations 1 and 3.
Correct answer is A)
A firm that fails to allow their strategic planning process to be guided by their generic competitive strategy usually makes one or more of the following four mistakes:
1. The strategic plan is a list of unrelated action items that does not lead to a sustainable competitive advantage.
2. Price and cost forecasts are based on current market conditions and fail to take into account how industry structure will influence future long-term industry profitability.
3. Business units are placed into categories such as build, hold, and harvest, with the business failing to realize that these are not business strategies, but rather the means to achieve the strategy.
4. The firm focuses on market share as a measure of competitive position, failing to realize that market share is the result and not the cause of a sustainable competitive advantage.
Smith’s observations 2 and 3 describe two of these mistakes and therefore do not support the conclusion that the North Winery’s strategic planning process is guided and informed by their generic competitive strategy. (Study Session 11, LOS 38.e)
Q23. Which one of the following is least likely a competitive force according to Porter's article?
A) Bargaining power of buyers.
B) Availability of resources such as cheap labor.
C) Entry of new competitors.
Correct answer is B)
Porter’s five competitive forces are the threat of new entrants, the threat of substitutes, bargaining power of suppliers, bargaining power of customers, and the rivalry among existing competitors.
Q24. Which of the following changes to the widget industry is most likely to result in higher profits for all ffice:smarttags" />U.S. widget makers 10 years from now?
A) A sharp increase in the global demand for widgets.
B) Creation of a widget-makers’ coalition that brokers all widget deals.
C) Creation of a series of new products that require widgets as components.
Correct answer is B)
An increase in demand for widgets is likely to boost profits in the short run, but could attract new competitors. The same can be said for new products that create a wider market for widgets. However, the creation of a widget-makers’ coalition could change the balance of power in the market. One of Porter’s five forces is the bargaining power of suppliers. A coalition that brokers all widget deals could skew the field in favor of producers, raising widget prices and the profits of companies that make them.
| 
发表于 2009-3-6 14:11
| 