Strategic Managment Exam 2

Firms engage in an activity called forward pricing whey they establish, during the early stages of the learning curve , a price for their products that is lower than their actual costs, in anticipation of lower costs later on, after significant learning has occurred. Under which of the following conditions does forward pricing make sense?

• When the firm has international expiernece

• When the firm is launching a new product

• When the firm has had prior experience with a similar product

• when a firm can achieve low costs

which of the following statements is accurate?

• cost leaders are especially vulnerable to substitute

• firms with a low cost position can reduce the threat of rivalry in an industry

• cost leaders are especially vulnerable to the threat of suppliers

• a cost leadership competative strategy increases the threat of new entrants by lowering costs based barriers to entry.

which of the following is more likely to be a rare source of cost advantage?

• technological software

• economies of scale

• policy choices

• technological hardware

The most complicated organizational structure

• the matrix structure

• the functional structure

• the regional structure

• the U structure

A company has the achieve the lowest level of cost or the highest level of differentiation to achieve a competitive advantage?

• true

• false

The ability of a group of firms to work together to reduce competition in their market or industry is called

• Collaboration

• collusion

• differentation

• fragmentation

Collusion can take one of two forms, ______ collusion or _______ collusion.

• Strategic; non-strategic

• market; product

• intra-industry; inter-industry

• explicit; tacit

The reason that collusion is a difficult strategy to maintain over time is that while parties to these cooperative agreements often have strong incentives to cooperate, they also have strong incentives to ____ those cooperative agreements.

• Profit from

• go along with

• cheat on

• maintain

1. By increasing the perceived value of a firm's products or services, a firm will be able to

• charge a higher price than it would otherwise be able to do.

• gain significantly more market share than firms pursuing a cost-leadership strategy.

• charge a lower price than it would otherwise be able to do.

• sell its products at lower prices than firms pursuing a cost-leadership strategy.

1. A firm' is really no more than a socially complex relationship between firm and its customers and can serve as a basis for product differentiation.

• architectural competance

• consumer marketing

• reputation

• location