My lecture time is Managing in Complex Environments QUIZ 2 Name Fall semester 2006 ID Professor Atkin SAMPLE QUIZ 2 PLEASE NOTE QUESTIONS 1 12 ARE FROM CHAPTER 3 13 28 ARE FROM CHAPTER 4 OTHERS WERE FROM CHAPTER 5 FOR WHICH YOU ARE NOT RESPONSIBLE AT THIS TIME HENCE ARE NOT INCLUDED HERE This closed book closed note quiz has 35 3 point questions to be answered on optical scan sheets When done with the quiz please complete the peer evaluation To get a grade you must return a the quiz b the answer sheet and c the completed peer evaluation Good luck 1 All other things equal a supply side industry definition A a identifies more rivals than a demand side definition b is more appropriate for goods industries than for service industries c both of the above d none of the above 2 The goal of industry analysis is to understand why some firms do well even in unattractive industries a true 3 Most industries are B a monopolies c perfect competitions b false B b oligopolies d insufficient information to determine 4 Focused firms are firms that engage in D a related diversification c both of the above b unrelated diversification d none of the above 5 When suppliers have relatively greater power than the industry rivals C a raw material prices charged by the suppliers tend to increase b rivals expenditures tend to increase c both of the above d none of the above 6 In Industry 1 we observe many new entrants Industry 2 we observe many substitutes All other things equal we can conclude D a Industry 1 is more attractive than Industry 2 b Industry 1 is less attractive than Industry 2 c both industries are equally attractive d insufficient information to determine 7 If an industry is attractive then we can conclude that there are few rivals and they are probably large a true b false B 8 Consider two industries In Industry 1 the product is standardized aggregate demand is flat to declining and capacity exceeds demand In Industry 2 supplier power is high customer power is high and there are many new entrants Given just this information we can conclude a Industry 1 is probably mature c both of the above Exit costs B b Industry 2 is attractive d none of the above A 9 a are costs incurred by customers of the industry when a rival exits the industry b are costs incurred by a rival attempting to leave the industry c are costs incurred by suppliers to the industry when a rival exits the industry d All of the above 10 When a firm spends one resource to build another resource we say the firm B a has diversified c has pursued a niche strategy b has invested d all of the above 11 A bona fide transaction is an actual exchange among parties that have some form of communication is freely made and is expected to produce benefits to all parties a true b false A 12 In the Porter model marketing channels are assumed to exist between C a rivals and customers c both of the above b rivals and suppliers d none of the above 13 Since premium goods are higher priced than discount goods D 1 a premium goods provide greater value b discount goods provide greater value switching costs are typically greater for premium goods c b none of the above Marketing is 14 C a the process of planning and executing various functions to create exchanges that satisfy individual and organizational goals b the process by which one party attempts to increase the likelihood of striking the transaction they wish to strike c both of the above d all of the above 15 The dominant driving force of the products made by most firms today is to make whatever is hot B a true b false 16 Product development buying selling and risk management are all A a marketing functions c segmentation variables 17 Decisions to extend a product line a require a risky investment c changes the marketing mix b activities of third parties d all of the above D b changes the product mix d all of the above 18 We assume the parties to a transaction are rational This implies that buyers B a search all alternatives c alternatives choose the lowest cost alternative can afford b chose from among a constrained set of d choose the highest cost alternative they 19 American Eagle and Abercrombie Fitch each market apparel using B a a total market approach both of the above c 1 A knock off is D a c a steeply discounted national brand mover a plot twist in an episode of the Sopranos 2 High levels of brand loyalty C 2 2 C family branding both of the above increases brand equity both of the above a c First movers use a c Early adopters a c may be a source of new product ideas d both of the above C b a proprietary brand strategy d none of the above b a product produced by a rapid second d none of the above b reduces customer power d none of the above b individual branding d none of the above tend to reduce the risk associated with being a first mover 20 Goods scarcity is most likely to be observed during the phase of the life cycle B d none of the above a introduction c mature b growth d decline 21 The trigger for the entry of slow second movers is typically A a market characteristics become well understood b capacity shortages disappear c both of the above d none of the above 2
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