Managing in Complex Environments QUIZ #2 (Form A) Name (Last, First)_______________________Fall Semester, 2012Professor Atkin My lecture time is: _____PeopleSoft#____________________________This closed-book, closed-note quiz has 35 3-point questions to be answered on optical scansheets. To get a grade, you must return (a) the quiz, (b) the answer sheet, and (c) the completedpeer evaluation. Please take your time and read questions carefully. Good luck!--------------------------------------------------------------------------Statistics:AVG MED #As can be seen in the data on the left, there was a huge improvement inperformance from quiz 1 to quiz 2. Thanks for the push. Some of us arestill not where we want to be – please contact me to discuss if youwish. More than happy to try to help you design a more effective studyplan.Total – Quiz 2 80.09 81.0 222Total – Quiz 1 67.39 69.0 228--------------------------------------------------------------------------Below 9 questions are in red font. These are questions on which the class did not dowell (25% or more incorrect), but are (in my opinion) easy questions. The goal is toreduce this from 9 to 4 or 5, which would add 15-18 points to the class median. 1. A diversified firm is most likely… Aa. divisionalized b. vertically integrated c. a conglomerate d. all ofthese2. The starting point for a Porter analysis is… Ca. setting industry boundaries b. defining the industry c. both of these d.none of these3. Considering only its retail and roasting businesses, Starbucks is a/an _________ firm. Ba. focused b. related diversified c. unrelated diversified d. conglomerate4. In a related diversified firm, situations that negatively affect one business are likely to affectother businesses. Aa. true b. false5. A conglomerate is a firm that… Da. does business in many countries b. is focused on one target marketc. is attractive in the Porter sense d. none of these6. When an industry has no new entrants, we can reasonably conclude… Aa. entry barriers are high b. the industry is unattractivec. both of the above d. none of the above7. Assume we study two industries X and Y. In X, the key suppliers are monopolists while in Ythe key suppliers are small and numerous. All other forces equal. This leads us to concludethat… Ca. supplier power is greater in X than in Y b. industry X is less attractive than Yc. both of the above d. none of the above8. 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. Bb. true b. false2. As branding becomes more important in an industry… Ca. entry barriers tend to increase b. customer power tends to decreasec. both of the above d. none of the above10. As the definition of an industry is tightened… Aa. the number of rivals typically decreases b. the number of substitutes typically decreasesc. exit costs typically decrease d. all of these11. Entrance costs are costs incurred by…Aa. new entrants to the industry b. new customers to the industryc. new suppliers to the industry d. all of these12. If we observe an industry and find that one of the rivals is a division, we can reasonably conclude that all industry rivals are __________. D1a. focused b. diversified c. conglomerates d. insufficient information to determine13. The goal of industry analysis is to understand why some firms are more attractive than others. Ba. true b. false14. 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… Aa. industry X is more attractive than Y b. industry X is less attractive than Yc. industry X is probably a monopoly d. insufficient information to determine15. Our guest speaker, Mr. Mitchell spoke extensively about his firm, Crane Company. From thatdiscussion, we learned that Crane is a focused firm. B (Please note: Form B and theDRS form had a different question with A as the answer.)a. true b. false16. 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 these17. In a diversified firm, the CEO’s responsibilities include… Aa. managing the firm’s portfolio of businesses b. day-to-day management of eachbusinessc. both of the above d. none of the above 18. First mover advantages can also be thought of… Ca. entry barriers b. a component of entrance costs c. both of these d. none of these19. The presence of strong affiliation programs (such a frequent flyer miles) tends to… Aa. reduce a repeat buyer’s willingness to shop on price b. reduce the attractiveness of theindustryc. both of the above d. none of the above20. In a given transaction… Ca. exchange is either spot or future b. each party can be engaged in marketing a different product c. both of the above d. none of the above21. Many air flights that used to provide free meals now provide only peanuts. This is an exampleof… Ba. product extension b. product refinement c. brand extension d. segmentation22. Building a strong brand is likely to include… Ca. building strong relationships with buyers b. building strong brand associationsc. both of the above d. none of the above23. As the number of SKUs sold by a firm decreases, we are reasonably certain to observe… Da. an decrease in NI b. an decrease in economic profit c. both of these d. none of these 24. A segment is a group of __________ with similar utility profiles. Aa. buyers b. sellers c. third parties d. regulatory mechanisms25. Since product differentiation usually requires significant investment, we would expect most newly differentiated products are reasonably successful. Ba. true b. false26. In which phase of the product like cycle would we most expect to observe serious price competition.a. introduction b. growth c. maturity d. all of these about equally C27. A fast second mover may enter the market… Da. by leapfrogging b. with a family brand c. with a private label d. all of these28. A Table in the text