Question

1

Which of the following forms of IP are specifically limited in how long they are likely to be competitive advantage

trade secrets

patents

trademarks

2

A firm is in an industry that has seen major changes that have led to plummeting profits for the firm. The CEO has decided to make radical change to the firm's strategy and go in an entirely new direction, changing from a differentiator strategy in the industry to a cost leadership strategy that has been successful for several firms during the change. Which is the best response to this proposed strategic change from the CEO?

Do it because there are plenty of examples to imitate and make this strategy successful.

Do not do it because it is unlikely our firm can succeed against established cost leaders.

Do not do it because it is very risky to make any major change.

3

Which of the following is the most important reason a strategic analyst should always do an industry structure analysis when evaluating a single firm’s strategy?

Helps identify all the competitors trying to take profits from the firm.

Helps identify the ways the firm should try to change the industry structure through its strategy.

None of these.

Helps identify if it is impossible for the firm to gain a competitive advantage in the future.

Answer 1

1. Trade secrets

They are something specific to an organization but their tenure is very short because other organizations are always trying to understand the trade secret of other successful organization and it is difficult to maintain a secret that benefits the business.

2. Do it because there are plenty of examples to imitate and make this strategy successful.

Anyways the business has lost a huge amount of profit because of various changes and therefore there is nothing to lose at this moment but if there is any profit or impact that the organization can make it will be beneficial for the organization itself that will help the organization do good in the market and there are references which can be used to some extent.

3. None of these

I believe that the most important reason behind the analysis is t understand the industry and the strength, weakness, opportunities and threats of the organization.