Question 37

The following is an excerpt from a recent New York Times article about the last remaining Glamour Shots studios in the country.

While the portrait studio business overall remained stable census figures showed modest growth in the industry from the late '90s until the 2008 recession many of the 350 Glamour Shots stores folded by the end of the 20th century, unable to escape their association with the outdated style.

"It just became pass," said Bob Eveleth, the first Glamour Shots licensee and owner of nearly 50 stores at the company's peak. "We did one focus group in North Carolina. One of the guys was talking about giving Glamour Shots gift certificates as a joke. And I thought we kind of crossed that threshold."

The remaining stores wilted in failing malls that charged steep rents. Then Apple and Samsung equipped every cellphone with a quality camera. About five years ago, with 30 to 40 stores left, a popular Groupon promotion provided a fleeting burst of new customers before technology almost completely wiped out Glamour Shots altogether.

Mr. Eng, the owner of the two remaining New Jersey locations, was the go-to guy for Glamour Shots modernization in the early 2000s. He traveled all over the country, advising stores to ditch the old wardrobes, offer boudoir sessions and business headshots, take full-body photos and emphasize a more luxurious, more expensive spa experience. The average sale at his stores is around $500, compared to $100 for typical stores in the '90s. The high prices are the only way for Mr. Eng to cover his $12,000-and-up monthly rents, which he said he was currently trying to negotiate down.

Based on this reading, answer the following two questions:

The joke make by the focus group member suggests that Glamour Shots was dealing with a change in the

Political environment

Economic environment

Sociocultural environment

Technological environment

Question 39

In terms of the VRIO framework, what best explains the importance of her contracts with El Paso schools?(NYT:The Last Five GlamourShots Locations in the US)

Value

Rarity

Imitability

Organization

40

Question 42

One of the challenges in avoiding imitation of differentiation strategies is that to work,the differentiation should generally be observable.

True

False

Question 45

The article on ExxonMobildescribes

Horizontal diversification

Vertical integration

Differentiation

Cost leadership

Question 46

Which of the following is least likely a benefit AirAsia will enjoy from its launch of AirAsiaX?

Risk reduction

Increases in management incentives

Core competencies

Shared activities