1.Which of the following is implied when applying the Principle of Competitive E
ID: 423082 • Letter: 1
Question
1.Which of the following is implied when applying the Principle of Competitive Exclusion to industry competition?
a.both (of two) organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
b.neither (of two) organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
c.only one of two organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
d.only one of two organizations pursuing similar strategies can expect to sustain competitive advantage
2.In later experiments, Gause was able to alter resource conditions such that two similar organisms could coexist in the same bottle. If, as Henderson suggests, it is useful to apply these principles to industry competition, this finding might imply:
a.regardless of environmental conditions, it may be possible for two organizations pursuing different strategies to sustain themselves
b.under some environmental conditions, it may be possible for two organizations pursuing different strategies to sustain themselves
c.regardless of environmental conditions, it may be possible for two organizations pursuing similar strategies to sustain themselves
d.under some environmental conditions, it may be possible for two organizations pursuing similar strategies to sustain themselves
3.What makes it possible for businesses to coexist in the same industry over time?
a.government regulation
b.numerous companies can coexist if some are poor competitors
c.differentiation, or unique advantages
d.any companies can survive that can achieve adequate market share
4.What is Henderson's advice for avoiding exclusion resulting from industrial competition?
a.that industry competitors adopt different approaches to maximizing their market share
b.that industry competitors adopt similar strategies for securing resources from their shared environments
c.that industry competitors adopt similar strategies, aimed at maximizing market-share to gain scale economies
d.that industry competitors differentiate their strategies for securing resources from their shared environments
5.Why are long periods of stability the norm in industries, whereas significant disruption is rare?
a.industry attackers have better access to an industry's resources than do defenders
b.industry defenders have better access to an industry's resources than do attackers
c.because there are very seldom wars in industry
d.disruption is more normal than stability; the assumption in the question is false
6.Porter and Kramer argued that business people in prior eras better understood the need to maintain support from local resource providers and broader influencers. What do they think happened that changed the focus of business people in recent decades?
a.the shareholder maximization principle emerged and was misused to focus on short-term profit at the expense of longer term capacity for value creation
b.the social value principle emerged and was misused to focus on short-term profit at the expense of longer-term capacity to maximize shareholder value
c.the shareholder maximization principle emerged and was misused to focus on long-term value creation at the expense of short-term profit
d.the profit maximization principle emerged and was misused to focus on long-term value creation at the expense of shareholder value
7.Porter argued that organizations need to create shared wealth in order to:
a.do what is legal
b.do what is morally right
c.maintain community support, including access to essential resources
d.maintain government support, including access to policy makers
8.The notion of Corporate Shared Value refers to which of the following:
a.organizations profit only when they also benefit employees
b.organizations profit only when they also benefit charities
c.organizations profit only when they also benefit societal stakeholders
d.organizations profit only when they also benefit stockholders
9.Which of the following is NOT one of the primary benefits included in authors' argument advocating for the shared value approach to business?
a.shared value initiatives expand opportunities for differentiation and cost control
b.shared value initiatives will likely assist a company to maximize its size
c.shared value initiatives can induce sustained commitment to creation of both economic and social value
d.shared value initiatives can help business as an institution to repair damaged social legitimacy
10.Porter & Kramer developed the concept of shared value to overcome what important business problem?
a.loss of market share in recent decades
b.loss of business legitimacy in the eyes of the public in recent decades
c.increase in corporations' share of the national income in recent decades
d.increase in corporate profitability in recent decades
a.both (of two) organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
b.neither (of two) organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
c.only one of two organizations can sustain competitive advantage, regardless of whether strategies are similar or dissimilar
d.only one of two organizations pursuing similar strategies can expect to sustain competitive advantage
Explanation / Answer
1. Which of the following is implied when applying the Principle of Competitive Exclusion to industry competition?
d. only one of two organizations pursuing similar strategies can expect to sustain competitive advantage
2.In later experiments, Gause was able to alter resource conditions such that two similar organisms could coexist in the same bottle. If, as Henderson suggests, it is useful to apply these principles to industry competition, this finding might imply:
d. under some environmental conditions, it may be possible for two organizations pursuing similar strategies to sustain themselves
3.What makes it possible for businesses to coexist in the same industry over time?
c. differentiation, or unique advantages
4.What is Henderson's advice for avoiding exclusion resulting from industrial competition?
d. that industry competitors differentiate their strategies for securing resources from their shared environments
Explanation:
Principle of competitive exclusion- Professor G.F. Gause of Moscow University
It states that if the ecological requirements/niches of competing species—are very similar, then the one competitor with the slightly superior advantage will win over and drive the other to extinction. The other species can exist if it gets adapted (evolved) towards a slightly different niche, thus requiring different requirements. So, in the end, two competing species often evolve with different characteristics and enable them to co-exist in the same area.
If two businesses compete in the same industry with same competitive advantages and strategies, one of them will outrun in the long run and the other may have to exit. Only one of two organizations pursuing similar strategies can expect to sustain competitive advantage. Competitors must be different enough to have a unique advantage and exist in the industry
So the other competitor will have to evolve with different strategies to sustain in the long runs, in the same industry ‘
Environmental conditions, however, affect their existence. Counterbalancing forces can offer each species an advantage thus helping them to coexist. So in the presence of counterbalancing forces / certain environmental conditions, it may be possible for two organizations pursuing similar strategies to sustain themselves
But in reality, we cannot expect to have those specific environmental conditions. So if an organization want to co-exist with other (who may have a slightly superior competitive advantage), it has to have a different set of competitive advantages. They should have different strategies to exist in the same environment ( for securing resources from their shared environments )
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