Managing in Complex Environments QUIZ 2 Form A First Fall Semester 2012 Professor Atkin My lecture time is PeopleSoft Name Last This closed book closed note quiz has 35 3 point questions to be answered on optical scan sheets To get a grade you must return a the quiz b the answer sheet and c the completed peer evaluation Please take your time and read questions carefully Good luck Statistics Total Quiz 2 AVG MED 81 0 80 09 222 As can be seen in the data on the left there was a huge improvement in performance from quiz 1 to quiz 2 Thanks for the push Some of us are still not where we want to be please contact me to discuss if you wish More than happy to try to help you design a more effective study plan 67 39 69 0 Total Quiz 1 Below 9 questions are in red font These are questions on which the class did not do well 25 or more incorrect but are in my opinion easy questions The goal is to reduce this from 9 to 4 or 5 which would add 15 18 points to the class median 228 b defining the industry c both of these d b vertically integrated c a conglomerate d all of 1 A diversified firm is most likely A a divisionalized these The starting point for a Porter analysis is C a setting industry boundaries none of these 2 4 3 Considering only its retail and roasting businesses Starbucks is a an firm B focused b related diversified c unrelated diversified d conglomerate a In a related diversified firm situations that negatively affect one business are likely to affect other businesses A a b false true 5 A conglomerate is a firm that D does business in many countries b is focused on one target market is attractive in the Porter sense d none of these 6 When an industry has no new entrants we can reasonably conclude A entry barriers are high both of the above b the industry is unattractive d none of the above a c a c 7 Assume we study two industries X and Y In X the key suppliers are monopolists while in Y the key suppliers are small and numerous All other forces equal This leads us to conclude that C a c supplier power is greater in X than in Y b industry X is less attractive than Y both of the above d none of the above 8 Assume we do a Porter analysis on an industry that has only a first mover Given that most newly differentiated products fail we can reasonably conclude that the industry is unattractive B b b false 2 As branding becomes more important in an industry C true a c entry barriers tend to increase both of the above b customer power tends to decrease d none of the above 10 As the definition of an industry is tightened A c a the number of rivals typically decreases b the number of substitutes typically decreases exit costs typically decrease 11 Entrance costs are costs incurred by A new entrants to the industry new suppliers to the industry a c If we observe an industry and find that one of the rivals is a division we can reasonably conclude that all industry rivals are D b new customers to the industry d all of these d all of these 12 1 a focused b diversified c conglomerates d insufficient information to determine 13 The goal of industry analysis is to understand why some firms are more attractive than others B a true b false 14 Assume we analyze two industries X and Y and learn that X has less competition among rivals X has stronger brand loyalty and that X has much higher switching costs all relative to Y All other forces are equal Given this we can reasonably conclude A a c b industry X is less attractive than Y d insufficient information to determine industry X is more attractive than Y industry X is probably a monopoly 15 Our guest speaker Mr Mitchell spoke extensively about his firm Crane Company From that discussion we learned that Crane is a focused firm B Please note Form B and the DRS form had a different question with A as the answer a b false true 16 The resources of industry rivals are assumed to be B a more or less identical b unique c very similar if the industry is attractive d none of 17 In a diversified firm the CEO s responsibilities include A a managing the firm s portfolio of businesses b day to day management of each these business both of the above d none of the above 18 First mover advantages can also be thought of C entry barriers b a component of entrance costs these c both of these d none of 19 The presence of strong affiliation programs such a frequent flyer miles tends to A reduce a repeat buyer s willingness to shop on price b reduce the attractiveness of the industry both of the above d none of the above 20 c In a given transaction C a b c exchange is either spot or future each party can be engaged in marketing a different product both of the above d none of the above 21 Many air flights that used to provide free meals now provide only peanuts This is an example product extension b product refinement c brand extension d segmentation 22 Building a strong brand is likely to include C building strong relationships with buyers b building strong brand associations both of the above d none of the above 23 As the number of SKUs sold by a firm decreases we are reasonably certain to observe D an decrease in NI b an decrease in economic profit c both of these of these d none 24 A segment is a group of with similar utility profiles A a buyers b sellers c third parties d regulatory mechanisms 25 Since product differentiation usually requires significant investment we would expect most 26 true newly differentiated products are reasonably successful a b false In which phase of the product like cycle would we most expect to observe serious price competition a d all of these about equally B C c maturity 27 A fast second mover may enter the market D introduction b growth a by leapfrogging b with a family brand these c with a private label d all of 28 A Table in the text describes the product mix at General Mills From that example General Mills is a firm B a focused b diversified c conglomerate d none of these 29 A second mover may find that existing market channels are C a c locked up both of the above d none of the above b well established and available 30 Once Coca Cola was available only in 6 oz glass bottles Today it is available in many different sizes This is an example of A c a a a c a of B a 2 a a a …