BSM600 QUESTIONS WITH ACCURATE
ANSWERS
2 competitive advantages correct answer 1. External sources of
change
2. Internal sources of change
3 aspects that go into Successful strategy, and what kind of
implementation. correct answer 1. Simple consistent long-term
goals
2. Profound understanding of the competitive environment
3. Objective appraisal of resources
4 stages of the industry life cycle correct answer -Introduction
-Growth
-Maturity
-Decline
8 driving forces that impact an industry correct answer 1.
Demographics
2.Globalization
3. Technology changes
4. Social and structural changes
5. New products/ services
6. Government policies and new laws
7. New market entries and exits
8. Internet, apps, etc.
Beneficiaries of innovation correct answer -Customers
-Suppliers
-Imitators and other "followers"
-Innovator
Buyer Power correct answer Price Sensitivity:
- cost of product relative to total cost
- Product differentiation
- Competition between buyers
Bargaining Power:
, - size and concentration of buyers relative to producers
- buyers' switching costs
- buyers' ability to backward integrate
- buyers' information
Capacity utilization (CA) correct answer -ratio of fixed to variable
costs
-fast and flexible capacity adjustment
Complementary resources correct answer -distribution
-service
-complementary technologies
-marketing
-finance
-competitive manufacturing
cost advantage correct answer similar product at a lower cost
differentiation advantage correct answer unique product at
premium cost
Dominant design correct answer a new technological design or
process that becomes the accepted market standard
economies of learning (CA) correct answer -increased individual
skills
-improved organizational routines
economies of scale (CA) correct answer -technical input-output
relationships
-specialization
Examples of External sources of change. Why does it help?
correct answer -changing customer demand
-changing prices
-technological change
resource heterogeneity among firms means differential impact
some firms are faster and more effective in exploiting change
ANSWERS
2 competitive advantages correct answer 1. External sources of
change
2. Internal sources of change
3 aspects that go into Successful strategy, and what kind of
implementation. correct answer 1. Simple consistent long-term
goals
2. Profound understanding of the competitive environment
3. Objective appraisal of resources
4 stages of the industry life cycle correct answer -Introduction
-Growth
-Maturity
-Decline
8 driving forces that impact an industry correct answer 1.
Demographics
2.Globalization
3. Technology changes
4. Social and structural changes
5. New products/ services
6. Government policies and new laws
7. New market entries and exits
8. Internet, apps, etc.
Beneficiaries of innovation correct answer -Customers
-Suppliers
-Imitators and other "followers"
-Innovator
Buyer Power correct answer Price Sensitivity:
- cost of product relative to total cost
- Product differentiation
- Competition between buyers
Bargaining Power:
, - size and concentration of buyers relative to producers
- buyers' switching costs
- buyers' ability to backward integrate
- buyers' information
Capacity utilization (CA) correct answer -ratio of fixed to variable
costs
-fast and flexible capacity adjustment
Complementary resources correct answer -distribution
-service
-complementary technologies
-marketing
-finance
-competitive manufacturing
cost advantage correct answer similar product at a lower cost
differentiation advantage correct answer unique product at
premium cost
Dominant design correct answer a new technological design or
process that becomes the accepted market standard
economies of learning (CA) correct answer -increased individual
skills
-improved organizational routines
economies of scale (CA) correct answer -technical input-output
relationships
-specialization
Examples of External sources of change. Why does it help?
correct answer -changing customer demand
-changing prices
-technological change
resource heterogeneity among firms means differential impact
some firms are faster and more effective in exploiting change
