.
True
False
Has been dominated by a “bull” market in technology stocks
Has been one of optimism and prosperity
Has been characterised by increasing levels of complexity and volatility
Has been characterised by economic depression and declining economic growth rates
Dynamism counts for a lot in business
They directly create new value added
They are harder to imitate
They can be used in many different industries
Manages both evolutionary and revolutionary change successfully
Operates successfully in more than industry sector
Successfully combines a differentiation and a cost leadership strategy
Answers b and c
True
False
The human race is naturally inventive
Competitive advantages tend to erode over time – so new ones need to be found
Consumers are always looking for the next new gadget
It gets boring doing the same old things
Are interchangeable terms- they mean the same
Are different, unrelated concepts
Are linked concepts and innovation is the commercialisation of invention
Largely a matter of personal opinion
Shared equally among the players
Determined by customer loyalty
Captured by the player possessing the largest market share of the industry
Distributed amongst the various players involved in no certain way
Luck and past experience in the industry
Characteristics of the innovation and a firm’s financial resources
Characteristics of the innovation and a firm’s resources and capabilities
The nature of the innovation, and how large the firm is
True
False
Classifying the environmental influences by source
Classifying the environmental influences by proximity
Understanding the value of the product to customers and suppliers
Understanding the value of the product to customers, the intensity of competition and the bargaining power of producers relative to their suppliers
The appeal of the industry to a particular firm
Overall industry profitability
The extent to which the industry draws in new entrants
The potential for one firm to dominate the industry
New entrants face a disadvantage from retailers who are reluctant to carry their new products
Retailers have limited capacity of distribution to offer to new entrants
Retailers are risk-averse
Carrying new products induces fixed costs
Borders for foreign workers
Doors for commercial spies
Domestic markets to foreign competitors
Answers a and c
Imports
Imports and exports
Inward direct investment and imports
Direct and indirect inward investment
Determine a country’s competitive advantage for a sector
Determine a country’s national income
Determine the growth rate of a country’s national income
Determine the growth rate of its exports
Governments to share national resources
Retailers to control their suppliers
Strong firms to dominate weak ones without having to buy them
Firms to share resources and capabilities
True
False
True
False
Inter-governmental bond borrowing, and inter-bank capital flows
Inter-bank capital flows and trade
Inter-bank capital flows and direct investment
Direct investment and trade
The outside-in approach
The inside-out approach
The positioning approach
The planning approach
We should take the historic cost book value
We must update historic cost assets to current cost (modern replacement cost) assets
We need to understand their potential for creating competitive advantage
We need to rely on the services of professional accountants
It is difficult to copy
It is based on word-of-mouth
It is essential for a firm to do business
It is easily destroyed by bad publicity
Seeking to liven up boring production manuals
Learning by doing
In the mature stage of an industry’s life cycle
In the declining stage of an industry’s life cycle
A threshold resource
A unique resource
A threshold competence
A core competence