Capstone Test 2 bus 4476 Final Exam
Questions and All Correct Answers
2025-2026 Updated.
Blue Ocean Strategy - Answer Avoids the strengths of opponents by creating a new, untapped
market rather than competing with rivals in an existing market.
Foothold - Answer A small position that a firm intentionally establishes within a market in
which it does not yet compete.
Bricolage - Answer A concept that is borrowed from the arts and that stresses moves that
create new markets.
Bricolage means using whatever materials and resources happen to be available as the inputs
into a creative process.
AMC Framework - Answer Awareness - (be aware of competitors moves)
Motivation - (execs will be motivated to retaliate when a rival makes a competitive move)
Capability - (have plans/resources to respond to competitor moves)
Competitive Responses to Disruptive Innovation - Answer Disruptive Innovation: An innovation
that conflicts with, and threatens to replace, traditional approaches to competing within an
industry.
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Speed of Response: Minimizing delay of a response from an attack. Fast responses remove the
edge an attacker may gain. (Coke's quick response to Pepsi's low-calorie niche they were going
after)
Multi-Point Competition: Firm faces the same rival in more than one market. (cigarette makers
RJR and Phillip Morris)
Mutual forbearance: Rivals do not act aggressively because each recognizes that the other can
retaliate in multiple markets. (airlines moving into another's market)
Responding to a Disruptive Innovation: Ignore the disruption (Barnes & Noble to Amazon),
, Cooperative Moves - Answer Joint Ventures: A cooperative arrangement that involves two or
more organizations each contributing to the creation of a new entity. (MillerCoors)
Strategic Alliances: A cooperative arrangement between two or more organizations that does
not involve the creation of a new entity. (Twitter with Yahoo! Japan)
Co-Location: Occurs when goods and services offered under different brands are located very
close to each other. (A&W with Long John Silvers)
Coopetition - Answer A blending of competition and cooperation between two firms. (Toyota
and GM manufactured together by jointly owned company, but still compete)
Why Go Global? Risks? Market Entry Methods - Answer Why?: Access to new customers,
Lowering costs, and/or Diversification of business risk.
--------------
Risks: Political (Iraq), Economic (policies, exchange rates), and/or cultural (language/tradition
differences).
--------------
Market Entry Methods: Exporting, wholly-owned subsidiary, franchising, licensing, joint
ventures/strategic alliances.
International Strategy Types - Answer Global: High need for global integration, low need for
local responsiveness. Little or no need for modification of products. Coca-Cola.
Transitional: High need for global integration, high need for local responsiveness. Some
products are worldwide, some are only in select markets. Nestle.
Multi-domestic: Low need for global integration, high need for local responsiveness. Everything
is customized to that specific market. Heinz.
Porter's Determinants of National Advantage (Diamond Model) - Answer Strategy, Structure,
and Rivalry: US has trade deficit but enjoys trade surplus in the service sector.
Factor Conditions: The inputs present in a country shape firms' global competitiveness.
Questions and All Correct Answers
2025-2026 Updated.
Blue Ocean Strategy - Answer Avoids the strengths of opponents by creating a new, untapped
market rather than competing with rivals in an existing market.
Foothold - Answer A small position that a firm intentionally establishes within a market in
which it does not yet compete.
Bricolage - Answer A concept that is borrowed from the arts and that stresses moves that
create new markets.
Bricolage means using whatever materials and resources happen to be available as the inputs
into a creative process.
AMC Framework - Answer Awareness - (be aware of competitors moves)
Motivation - (execs will be motivated to retaliate when a rival makes a competitive move)
Capability - (have plans/resources to respond to competitor moves)
Competitive Responses to Disruptive Innovation - Answer Disruptive Innovation: An innovation
that conflicts with, and threatens to replace, traditional approaches to competing within an
industry.
----------------------------------------------
Speed of Response: Minimizing delay of a response from an attack. Fast responses remove the
edge an attacker may gain. (Coke's quick response to Pepsi's low-calorie niche they were going
after)
Multi-Point Competition: Firm faces the same rival in more than one market. (cigarette makers
RJR and Phillip Morris)
Mutual forbearance: Rivals do not act aggressively because each recognizes that the other can
retaliate in multiple markets. (airlines moving into another's market)
Responding to a Disruptive Innovation: Ignore the disruption (Barnes & Noble to Amazon),
, Cooperative Moves - Answer Joint Ventures: A cooperative arrangement that involves two or
more organizations each contributing to the creation of a new entity. (MillerCoors)
Strategic Alliances: A cooperative arrangement between two or more organizations that does
not involve the creation of a new entity. (Twitter with Yahoo! Japan)
Co-Location: Occurs when goods and services offered under different brands are located very
close to each other. (A&W with Long John Silvers)
Coopetition - Answer A blending of competition and cooperation between two firms. (Toyota
and GM manufactured together by jointly owned company, but still compete)
Why Go Global? Risks? Market Entry Methods - Answer Why?: Access to new customers,
Lowering costs, and/or Diversification of business risk.
--------------
Risks: Political (Iraq), Economic (policies, exchange rates), and/or cultural (language/tradition
differences).
--------------
Market Entry Methods: Exporting, wholly-owned subsidiary, franchising, licensing, joint
ventures/strategic alliances.
International Strategy Types - Answer Global: High need for global integration, low need for
local responsiveness. Little or no need for modification of products. Coca-Cola.
Transitional: High need for global integration, high need for local responsiveness. Some
products are worldwide, some are only in select markets. Nestle.
Multi-domestic: Low need for global integration, high need for local responsiveness. Everything
is customized to that specific market. Heinz.
Porter's Determinants of National Advantage (Diamond Model) - Answer Strategy, Structure,
and Rivalry: US has trade deficit but enjoys trade surplus in the service sector.
Factor Conditions: The inputs present in a country shape firms' global competitiveness.
