BA 453 STUDY QUESTIONS WITH SOLUTIONS 2025
GRADED A+
✔✔The competitive threat of potential entry is NOT strong when _____________.
A.there will be expected competitive retaliation
B.there are sizable economies of scale
C.there are strong brand preferences and customers are loyal
D.All of these - ✔✔D
✔✔A ____________ is a product or service that can help raise demand in an industry
by indirectly enhancing performance or decreasing prices.
A. core competency
B. substitute
C. complement
D. component - ✔✔C
✔✔Exit barriers are obstacles that determine how easily a firm can leave the industry.
When exit barriers are high, what happens to industry attractiveness?
A.It decreases.
B.It increases.
C.It becomes a complement.
D.It has no impact. - ✔✔A
✔✔The five-forces-plus-complements model is useful in understanding industry profit
potential, but it is only a snapshot in time. Managers must also consider ___________.
A. the cost structure
B. the industry dynamics
C. the competitive landscape
D. the strategic group - ✔✔B
✔✔Industry structures are not stable over time. The U.S. banking industry has seen
major consolidation in recent years. We would expect the result of this dynamic change
to be what? - ✔✔Generally lower industry profits
✔✔Competitive rivalry among firms in the same strategic group is generally - ✔✔More
intense than competition between strategic groups
✔✔The factors that are important to focus on when mapping strategic groups include: -
✔✔Identifying the top competitive factors in your market, such as expenditures on
research and development, pricing, distribution channels, and customers
Choosing two key dimensions from these factors for the horizontal and vertical axes,
plotting your rivals along these axes, and looking for differences among the competition
Analyzing the firms that are closest to your organization on the map, because they will
give your firm the strongest rivalry
, ✔✔Generally, as the level of _____ innovation declines, the level of ____ innovation
increases - ✔✔product; process
✔✔Six sigma, lean manufacturing, and generic engineering are examples of ____ that
delivers new ways to produce or deliver existing products or services. - ✔✔Proccess
innovations
✔✔All of the following are tangible resources EXCEPT:
A. Production equipment.
B. Distribution centers.
C. A firm's reputation.
D. A firm's headquarters building. - ✔✔C
✔✔The resource-based view is in sharp contrast to which model of industry
competition.
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition - ✔✔A
✔✔One of the strategic goals of management is to develop a resource base that is
primarily:
A. Flexible, responsive, and efficient
B. Variable, rare, costly to initiate, and orderly
C. Valuable, rare, costly to imitate, and organized to capture value
D. Unique and difficult to imitate - ✔✔C
✔✔Currently, lean manufacturing is a __________ but ____________ resource, which
leads to competitive parity.
A. Valuable; rare
B. Common; tangible
C. Valuable; common
D. Rare; tangible - ✔✔C
✔✔When it comes to a firm's value chain activities and the essence of strategy, a firm
should ask itself:
A. Which activities should be done? And more importantly, what should not be done?
B. Where can costs be minimized to reflect the greatest profitability?
C. What tangible assets can be acquired to increase competitive advantage?
D. What are the best practices of the closest competitor and can they be easily adapted
by the firm? - ✔✔A
✔✔Situational Analysis - ✔✔• Strategic Goals
GRADED A+
✔✔The competitive threat of potential entry is NOT strong when _____________.
A.there will be expected competitive retaliation
B.there are sizable economies of scale
C.there are strong brand preferences and customers are loyal
D.All of these - ✔✔D
✔✔A ____________ is a product or service that can help raise demand in an industry
by indirectly enhancing performance or decreasing prices.
A. core competency
B. substitute
C. complement
D. component - ✔✔C
✔✔Exit barriers are obstacles that determine how easily a firm can leave the industry.
When exit barriers are high, what happens to industry attractiveness?
A.It decreases.
B.It increases.
C.It becomes a complement.
D.It has no impact. - ✔✔A
✔✔The five-forces-plus-complements model is useful in understanding industry profit
potential, but it is only a snapshot in time. Managers must also consider ___________.
A. the cost structure
B. the industry dynamics
C. the competitive landscape
D. the strategic group - ✔✔B
✔✔Industry structures are not stable over time. The U.S. banking industry has seen
major consolidation in recent years. We would expect the result of this dynamic change
to be what? - ✔✔Generally lower industry profits
✔✔Competitive rivalry among firms in the same strategic group is generally - ✔✔More
intense than competition between strategic groups
✔✔The factors that are important to focus on when mapping strategic groups include: -
✔✔Identifying the top competitive factors in your market, such as expenditures on
research and development, pricing, distribution channels, and customers
Choosing two key dimensions from these factors for the horizontal and vertical axes,
plotting your rivals along these axes, and looking for differences among the competition
Analyzing the firms that are closest to your organization on the map, because they will
give your firm the strongest rivalry
, ✔✔Generally, as the level of _____ innovation declines, the level of ____ innovation
increases - ✔✔product; process
✔✔Six sigma, lean manufacturing, and generic engineering are examples of ____ that
delivers new ways to produce or deliver existing products or services. - ✔✔Proccess
innovations
✔✔All of the following are tangible resources EXCEPT:
A. Production equipment.
B. Distribution centers.
C. A firm's reputation.
D. A firm's headquarters building. - ✔✔C
✔✔The resource-based view is in sharp contrast to which model of industry
competition.
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition - ✔✔A
✔✔One of the strategic goals of management is to develop a resource base that is
primarily:
A. Flexible, responsive, and efficient
B. Variable, rare, costly to initiate, and orderly
C. Valuable, rare, costly to imitate, and organized to capture value
D. Unique and difficult to imitate - ✔✔C
✔✔Currently, lean manufacturing is a __________ but ____________ resource, which
leads to competitive parity.
A. Valuable; rare
B. Common; tangible
C. Valuable; common
D. Rare; tangible - ✔✔C
✔✔When it comes to a firm's value chain activities and the essence of strategy, a firm
should ask itself:
A. Which activities should be done? And more importantly, what should not be done?
B. Where can costs be minimized to reflect the greatest profitability?
C. What tangible assets can be acquired to increase competitive advantage?
D. What are the best practices of the closest competitor and can they be easily adapted
by the firm? - ✔✔A
✔✔Situational Analysis - ✔✔• Strategic Goals
