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3293 Words Jun 2nd, 2014 14 Pages
Chapter 2
Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers

True/False Questions

1. Financial performance that consistently outperforms industry averages is known as operational effectiveness. False; Easy

2. According to Michael Porter, the reason so many firms suffer aggressive, margin-eroding competition is because they have defined themselves according to strategic positioning rather than operational effectiveness. False; Moderate

3. When technology can be matched quickly, it is rarely a source of competitive advantage. True; Easy

4. According to the resource-based view of competitive advantage, if a firm is to maintain sustainable competitive advantage,
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False; Moderate

14. Technology-centered businesses offer low barriers to entry. True; Easy

15. Once the difficult phase of market entry is achieved, tech-centric business can be reasonably assured of survival. False; Moderate

16. Timing and technology alone will not yield sustainable competitive advantage. True; Easy

17. Changes that impact one industry do not necessarily impact other industries in the same way. True; Easy

18. In cases where network effects are strong or a seller’s goods are highly differentiated, the Internet can lessen supplier bargaining power. False; Moderate

19. High switching costs of firms weaken buyer bargaining power. True; Easy

20. Technology plays the most significant role in shaping and reshaping Porter’s five forces. False; Easy

21. Political shock and social changes can help alter the competitive landscape. True; Easy

Multiple Choice Questions

1. Financial performance that consistently outperforms industry averages is known as: a. comparative advantage. b. absolute advantage. c. sustainable competitive advantage. d. first mover advantage. e. operational efficiency advantage. c; Easy

2. Which of the following statements about technology is true? a. Technology alone is enough for providing sustainable advantage to a firm. b. Technology plays a marginal role in creating

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