Described as a slow cycle market

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Reference no: EM131270031

1. Both Honda and Sony took many decades to build their core competencies, and these competencies are based primarily by decisions made in the past. This process is called:

A. Social complexity

B. Causal ambiguity

C. Path dependence

D. Path immobility

2. Which industry can be LEAST described as a slow cycle market?

A. Pharmaceuticals

B. Cell phone provider

C. Construction

D. Freight railroads

3. An ideal competitive environment from a profit-making standpoint is when:

a. Rivalry is moderate, and high entry barriers and good substitutes do not exist

b. Rivalry is high, entry barriers are low, and there are many substitutes

c. Rivalry is high, buyers and sellers have strong bargaining power, and entry barriers are low

d. Rivalry is moderate, entry and exit barriers are low, and there are many substitutes

4. Google's fixed assets, including its headquarters ("The Googleplex") and server farms, are valued at $5 billion, while the Google brand is valued at over $100 billion. Apple's physical attributes are valued at $2 billion, while its brand is valued at over $63 billion. What can be derived from this?

A. Physical attributes are not effective resources in the quest for competitive advantage.

B. Intangible assets, while invisible, contribute more to competitive advantage than do tangible assets.

C. There is a high degree of resource mobility in this strategic group.

D. Google will have a sustained competitive advantage over Apple.

5. Among the value-neutral incentives to diversify, some come from the firm's external environment while others are internal to the firm. External incentives to diversify include:

a. Other firms in an industry are diversifying.

b. Pressure from stockholders who demand that the firm diversify.

c. The low performance of a firm.

d. Changes in antitrust regulations and tax laws.

Reference no: EM131270031

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