Managing in Complex Environments QUIZ #2 Name:________ANSWERS____Fall 2009Professor Atkin My lecture time is: _____ This closed-book, closed-note quiz has 35 3-point questions. Answers go on optical scansheets. To get a grade, you must return (a) the quiz, (b) the answer sheet, and (c) the peerevaluation. Good luck!1. The domestic operations of US Steel are substantially vertically integrated while American Eagle is not verically integrated. From just this information, we can reasonably conclude that: Aa. US Steel is a diversified firm b. American Eagle is a conglomeratec. both of the above d. none of the above2. Assume we do a Porter type analysis and learn the industry in 2009 is unattractive. Given this, we can reasonably infer that this industry will be unattractive 3-5 years from now. Ba. true b. false3. We know that industries can be nested within another industry. For example, the movieindustry is nested withing the entertainment industry. Assume we do a Porter analysis on the entertainment industry and conclude it is unattractive. From that finding, we canalso conclude the movie industry is also unattractive. Ba. true b. false4. As branding becomes more important in an industry… Aa. entry barriers tend to increase b. customer power tends to increasec. scale economies tend to increase d. all of the above2. An analysis of the domestic automobile market in 2009 would probably suggest it is an unattrative industry. Yet Ford’s most recent quartely earnings statement showed it (unexpectedly) profitable and in significantly better financial condition than last year at this time. From this we can reasonably conclude that… Da. Porter analyses are inaccurate b. Ford is vertically integrated c. both of the above d. none of the above5. A major assumption of the Porter analysis is that entry and exit from an industry are costless. Ba. true b. false6. Assume we learn the following about an industry: Entry is expensive, there are substantial economies of scale, demand is growing, there is undercapacity, and existingcustomers are brand loyal. Given just this information… Da. most industry rivals are focused b. most rivals in the industry are profitablec. both of the above d. none of the above7. When suppliers have relatively greater power over the rivals in an industry… Ca. supplier prices are likely to be higher than when rivals have greater power oversuppliers b. rivals’ costs are likely to be higher than when rivals have greater power oversuppliersc. both of the above d. none of the above8. For which portion ot he life cycle is a Porter Analysis most appropriate? Ca. introduction b. growthc. maturity d. all of the above9. Patents, branding, and distribution channel lock-up are all examples of… Ca. first mover advantages b. barriers to entryc. both of the above d. none of the above10. For a transaction to occur, Da. there must be at least two partiesb. each party must have something that is of value to the other partyc. each party can freely accept or reject the exchanged. all of the above11. Exchange generally occurs as a means to increase the benefit (or utility) of all parties tothe transaction. Aa. true b. false12. A product is an offering by one party to a transaction that can satisfy a need of the other party to the transaction. Aa. true b. false13. Many first mover advantages… Ca. are also barriers to entry b. require the firm to make an investmentc. both of the above d. none of the above14. A brand name is an identifier, such as the McDonald’s “Golden Arches.” Ba. true b. false15. As developed in class, ______ is “how much” one party gets relative to what that party gives in order to strike and consummate the transaction. Ca. utility b. pricec. value d. none of the above16. In this course, we assume parties to a transaction are rational in the sense of seeking and striking transactions that are lowest cost. Ba. true b. false 17. At Burger King, ___________ may include regular walk-up, drive-through, and perhaps internet or fax ordering. Ca. marketing channels b. selling channelsc. both of the above d. none of the above18. CRM refers to the firm’s choice of products based on what they know best how to make.Ba. true b. false19. In the same transaction, Aa. each party can be engaged in marketing a different productb. one party seeks the lowest price and the other party seeks the lowest costc. both of the above d. none of the above20. If we change the packaging of a product such that buyers view the difference as important, we have… Ca. extended the product b. refined the productc. differentiated the product d. standardized the product21. Market research and product development are both examples of transaction related marketing functions. Ba. true b. false22. Product lines vary over time by.. Ca. product extension b. product refinementc. both of the above d. none of the above23. When a firm extends a product, it also… Da. changes its product mix b. increases the number of SKUs it sellsc. changes its marketing mix d. all of the above24. Segments are groups of sellers with similar utility profiles. Ba. true b. false25. Head-to-head competitors are rivals in the same market segments. Aa. true b. false26. Trade names are brand marks or brand names that are legally registered and protected.Ba. true b. false27. Store brands and private labels are examples of… Da. knockoffs b. producer brandsc. both of the above d. none of the above28. A generally good measure of brand equity is… Da. net income b. current period accounting profitc. the economic cost of building the brand d. none of the above29. The make/buy/lease problem concerns… Ca. the decision whether or not to manufacture the productb. the decision whether or not to purchase the product from a contract manufacturerc. both of the above d. none of the above30. Higher priced goods produce more value for the buyer than do lower priced goods. Ba. true b. false31. Data presented in the readings imply that… Ca. first movers usually dominate second moversb. fast second movers usually dominate slow second moversc. second movers can enter usuing a leapfrogging strategyd. all of the above32. Products are often in different stages of the life cycle in different parts of the world. Aa. true b. false33. Apple has developed a