TRUE/FALSE QUESTIONS Answer whether the following statements are true or false
1 Describe the concept of competitive advantage and the three types of competitive advantages
2. With the launch of the Macintosh, Apple Computer was able to provide consumers with a computer that was user friendly compared to IBM and other personal computers in the 1980s. This is an example of a differential competitive advantage. true false
3. A small company with limited resources can use a niche competitive strategy in order to circumvent its larger, richer competitors. true false
2 Discuss the concept of competitive intelligence
4. Competitive intelligence is basically the same as marketing intelligence: they both help managers in firms make good decisions about the future. true false
3 Identify the sources of internal competitive intelligence data
5. Probably the best source of internal competitive intelligence data is a company's sales people, since they are the closest to the customers and to competitors. true false 6. A database management file that contains employees' knowledge of competitive activities, independent databases maintained on non-network computers, and collections of marketing research studies is called a CI audit. true false
5. Probably the best source of internal competitive intelligence data is a company's sales people, since they are the closest to the customers and to competitors. true false
6. A database management file that contains employees' knowledge of competitive activities, independent databases maintained on non-network computers, and collections of marketing research studies is called a CI audit. true false
4 Identify the non-computer-based external sources of competitive intelligence
7. Advisory boards are a good source of internal competitive intelligence since they have access to information at outside firms. true false 8. Sarah, a CI consultant, checks UCC filings to identify which goods have been leased by competitors. Sarah is engaging in unethical industrial espionage. true false
7. Advisory boards are a good source of internal competitive intelligence since they have access to information at outside firms. true false
8. Sarah, a CI consultant, checks UCC filings to identify which goods have been leased by competitors. Sarah is engaging in unethical industrial espionage. true false
6 Discuss the problem of industrial espionage
9. The largest threat of industrial espionage by another country against North American companies is France, which has stolen many software trade secrets. true false
MULTIPLE-CHOICE QUESTIONS Select the response that best answers the question, and write the corresponding letter in the space provided.
11. WestJet offers low airfares because of its no frills service, its general efficiency in operations, and its short haul flights. WestJet is an example of a company that has a(n): a. cost competitive advantage b. distinctive competence c. differential competitive advantage d. augmented product e. niche competitive advantage
12. Some firms can maintain a low cost competitive advantage by producing mass quantities and by gaining learning from production technologies. Management is able to predict that per unit costs will decline over time by analyzing: a. production curves b. economies of scale c. efficient labour d. value impressions e. experience curves
13. All of the following explain how a firm can maintain a cost competitive advantage EXCEPT: a. no frills goods and services b. government subsidies c. augmented products d. efficient labour e. experience curves
14. FedEx is a delivery company that competes with Canada Post and UPS. Though FedEx charges somewhat higher prices than its competitors, the company offers high quality customer service, including guarantees on on-time delivery and a sophisticated tracking system. FedEx enjoys a(n): a. cost competitive advantage b. experience curve c. differential competitive advantage d. efficient labour force e. niche competitive advantage
15. High-end cosmetics brands, such as Lancome, probably spend more on packaging than on the products themselves. The beautiful designs of the packaging are what appeal to consumers. These cosmetics companies enjoy a differential competitive advantage due to: a. an augmented product b. an efficient labour force c. extraordinary customer service d. a value impression e. an experience curve
16. The Hudson School is an expensive private school serving children who come from affluent families around the world but who need remedial education. Hudson is the only school in the metropolitan area that targets this group of people and "owns" this positioning. Hudson has a(n): a. cost competitive advantage b. experience curve advantage c. differential competitive advantage d. augmented product e. niche competitive advantage
17. In order for managers to assess competition to become a more efficient and effective competitor, a company should engage in: a. a competitive advantage b. competitive intelligence c. industrial espionage d. an audit e. a differential competitive advantage 18. Which of the following is NOT an advantage of competitive intelligence? a. It guarantees the long-term success of a company. b. It allows managers to predict changes in business relationships. c. It identifies marketplace opportunities. d. It helps companies guard against threats, such as new product launches. e. It helps companies learn from the successes and failures of others.
17. In order for managers to assess competition to become a more efficient and effective competitor, a company should engage in: a. a competitive advantage b. competitive intelligence c. industrial espionage d. an audit e. a differential competitive advantage
18. Which of the following is NOT an advantage of competitive intelligence? a. It guarantees the long-term success of a company. b. It allows managers to predict changes in business relationships. c. It identifies marketplace opportunities. d. It helps companies guard against threats, such as new product launches. e. It helps companies learn from the successes and failures of others.
19. High-Tech, Inc, is in a very competitive industry and would like to create a world class ompetitive intelligence system. Some of the company's best sources are its own employees. In order to create the system, High-Tech should conduct a(n): a. CI directory b. comprehensive marketing research project c. employee skills inventory d. industrial espionage e. CI audit 20. CI audit data entered into a database management file is known as a(n): a. decision support system (DSS) b. management information system (MIS) c. competitive intelligence directory d. marketing intelligence system e. computer information system 21. Which of the following is NOT an internal source for competitive intelligence? a. Company salespeople. b. Company engineers. c. Marketing research studies commissioned by the company. d. Company advisory board. e. Company engineers.
19. High-Tech, Inc, is in a very competitive industry and would like to create a world class ompetitive intelligence system. Some of the company's best sources are its own employees. In order to create the system, High-Tech should conduct a(n): a. CI directory b. comprehensive marketing research project c. employee skills inventory d. industrial espionage e. CI audit
20. CI audit data entered into a database management file is known as a(n): a. decision support system (DSS) b. management information system (MIS) c. competitive intelligence directory d. marketing intelligence system e. computer information system
21. Which of the following is NOT an internal source for competitive intelligence? a. Company salespeople. b. Company engineers. c. Marketing research studies commissioned by the company. d. Company advisory board. e. Company engineers.
22. Geena Maven has over twenty years of experience at marketing financial services. She recently resigned from her post of Vice-President of marketing at a major financial institution and started her own business to help other organizations gather competitive intelligence in the same industry. Geena would be considered a(n): a. expert b. financial services consultant c. marketing consultant d. management consultant e. CI consultant 23. Darren would like to set up a tool and die business in his hometown but has no idea who his competitors might be. Darren should first use which of the following external sources of competitive intelligence? a. yellow pages of his hometown phone book b. the Internet c. regional trade shows d. UCC filings e. advertisements in the local newspaper 24. Which of the following would NOT be considered a government agency from which competitive intelligence data can be gathered? a. OSHA b. FCC c. SEC d. FOIA e. EPA 25. Fred Jones is a marketing manager at a large computer manufacturer. He is trying to find some information about a competitor's financial position, including detailed reports about the company's financial performance. Fred should check with: a. the Securities and Exchange Commission (SEC) b. the Occupational Safety and Health Administration (OSHA) c. the Federal Communications Commission (FCC) d. the Food and Drug Administration (FDA) e. the Federal Trade Commission (FTC) 26. Managers at a car manufacturer would like to find out if their major competitors have leased goods or have pledged certain goods as collateral. This will help them understand if the competitors are planning major expansion of production capacity. These managers should search: a. competitors' banks b. UCC filings c. the Internet d. FDA reports e. SEC filings 27. The yellow pages can be used for competitive intelligence in all of the following ways EXCEPT: a. to define a realistic trading area b. to locate suppliers and distributors c. to gather information about competitors' manufacturing costs d. to retrieve marketing and product line information e. to determine how many competitors exist in a specified area 28. The best way of picking up competitors' sales literature quickly is to: a. have the entire sales force go to competitors' headquarters. b. ask your advisory board to get the information for you. c. call all competitors and ask them to send you the literature. d. find out who prints the literature and get copies from their files. e. attend an industry trade show.
22. Geena Maven has over twenty years of experience at marketing financial services. She recently resigned from her post of Vice-President of marketing at a major financial institution and started her own business to help other organizations gather competitive intelligence in the same industry. Geena would be considered a(n): a. expert b. financial services consultant c. marketing consultant d. management consultant e. CI consultant
23. Darren would like to set up a tool and die business in his hometown but has no idea who his competitors might be. Darren should first use which of the following external sources of competitive intelligence? a. yellow pages of his hometown phone book b. the Internet c. regional trade shows d. UCC filings e. advertisements in the local newspaper
24. Which of the following would NOT be considered a government agency from which competitive intelligence data can be gathered? a. OSHA b. FCC c. SEC d. FOIA e. EPA
25. Fred Jones is a marketing manager at a large computer manufacturer. He is trying to find some information about a competitor's financial position, including detailed reports about the company's financial performance. Fred should check with: a. the Securities and Exchange Commission (SEC) b. the Occupational Safety and Health Administration (OSHA) c. the Federal Communications Commission (FCC) d. the Food and Drug Administration (FDA) e. the Federal Trade Commission (FTC)
26. Managers at a car manufacturer would like to find out if their major competitors have leased goods or have pledged certain goods as collateral. This will help them understand if the competitors are planning major expansion of production capacity. These managers should search: a. competitors' banks b. UCC filings c. the Internet d. FDA reports e. SEC filings
27. The yellow pages can be used for competitive intelligence in all of the following ways EXCEPT: a. to define a realistic trading area b. to locate suppliers and distributors c. to gather information about competitors' manufacturing costs d. to retrieve marketing and product line information e. to determine how many competitors exist in a specified area
28. The best way of picking up competitors' sales literature quickly is to: a. have the entire sales force go to competitors' headquarters. b. ask your advisory board to get the information for you. c. call all competitors and ask them to send you the literature. d. find out who prints the literature and get copies from their files. e. attend an industry trade show.
29. A woman posing as a janitor is cleaning the offices of a cosmetics manufacturer. When all the managers leave for the evening, the woman turns on computers and searches for any information that would help her client, a competitor of the cosmetics company. The woman posing as a janitor is engaging in: a. competitive intelligence b. corporate espionage c. industrial espionage d. infringement of intellectual property e. contract violation 30. The country that poses the biggest threat to North American companies in industrial espionage is: a. France b. Japan c. Taiwan d. Russia e. China
29. A woman posing as a janitor is cleaning the offices of a cosmetics manufacturer. When all the managers leave for the evening, the woman turns on computers and searches for any information that would help her client, a competitor of the cosmetics company. The woman posing as a janitor is engaging in: a. competitive intelligence b. corporate espionage c. industrial espionage d. infringement of intellectual property e. contract violation
30. The country that poses the biggest threat to North American companies in industrial espionage is: a. France b. Japan c. Taiwan d. Russia e. China
