question

Firms that enjoy a long-lasting advantage are said to have a

answer

sustainable competitive advantage

question

Organizational assets that are difficult to quantify, such as knowledge, are called

answer

intangible resources

question

Those resources that are most likely to lead to a competitive advantage are

answer

intangible resources

question

A measure of a firm's ability to pay short-term obligations is

answer

liquidity

question

A measure of a firm's total debt relative to its equity is

answer

leverage

question

Dividing organizational processes into distinct activities that create value for the customer is

answer

the value chain

question

In a budget hotel, activities associated with chain-level support are

answer

legal

question

In a budget hotel, activities associated with property-level support are

answer

local purchasing

question

Hotel activities associated with the chain-level core activities are

answer

reservations

question

Activities associated with the property-level core in a hotel are

answer

check-out

question

Core activities with the property-level are

answer

in-room services

question

Support activities with the property-level are

answer

property maintenance

question

What is the first stage of visionary leadership?

answer

Envisioning the organization in the future.

question

Underlying philosophies that guide the decisions and behavior of a firm are

answer

core values

question

Working with other managers to create an environment that would foster fulfillment of a vision is

answer

cultural-style leadership

question

Where the CEO formulates strategy and then directs top managers to implement it, this is a use of

answer

commander-style leadership

question

When the CEO formulates strategy and then plans the changes required to implement it, this is a use of

answer

change-style leadership

question

The style of leadership where the CEO works with other managers to create a strategy uses

answer

Collaborative-style leadership

question

The style of leadership where the CEO formulates a vision and strategy for the company and then works to create a culture that works to fulfill that vision uses

answer

cultural-style leadership

question

The style of leadership where the CEO encourages lower-level managers to formulate and implement their own strategic plans while filtering out inappropriate programs uses

answer

crescive-style leadership

question

When major changes to a firm's direction are needed, the resulting activities are referred to as

answer

radical restructuring

question

A board of directors that ensures that managerial behavior is consistent with shareholder interests is an example of

answer

organizational governance

question

Which type of problem exists when top managers attempt to maximize their own self-interests at the expense of shareholders?

answer

An agency problem

question

Which type of problem best describes managers who gain so much power that they are able to use the firm to further their own interests rather than those of shareholders?

answer

Entrenchment

question

One way to align CEO interests with the long-term interests in the organization is to

answer

link compensation to annual corporate performance

question

An executive from two companies sitting on each other's boards is referred to as an

answer

interlocking directorate

question

Quality is the primary goal of an organization with which type of orientation?

answer

Craftsman-type culture

question

Growth is the primary goal of an organization with which type of culture?

answer

Builder-type culture

question

New products and new technology development are the primary goals of an organization with which type of culture?

answer

Pioneer-type culture

question

Pursuing aggressive advertising and innovative packaging are the primary goals of an organization with which type of culture?

answer

Salesman-type culture

question

The importance of intangible people skills and intellectual assets is referred to as

answer

knowledge economy

question

Scientific or technological knowledge that is associated with the actual creation of a product or service is

answer

core knowledge

question

Knowledge that helps integrate various activities, capabilities and products is

answer

integrative knowledge

question

Knowledge that can be communicated by written means is

answer

codified knowlege

question

Knowledge that is difficult to articulate in a way that is meaningful and complete is

answer

tacit knowledge

question

A real estate investment trust (REIT) is an example of

answer

a special financial arrangement that can provide competitive advantage.

question

An organization's approach to competing in its chosen markets is

answer

business level strategy

question

The moves and countermoves of firms and their competitors are

answer

competitive dynamics

question

The classification system for business-level strategies based on common strategic characteristics is

answer

generic business strategy

question

The strategy used when a firm pursues competitive advantage through efficient cost production is

answer

low-cost leadership strategy

question

What is the strategy used when a firm pursues competitive advantage by distinguishing its products or services on the basis of an attribute?

answer

Differentiation

question

The strategy used when a firm pursues competitive advantage by pursuing both cost leadership and differentiation strategies is

answer

best-value strategy

question

The extent to which the assets of an organization are associated with plants, equipment and other fixed assets is

answer

capital intensity

question

In some industries production costs per unit are less in a large facility than in a small facility. This concept is called

answer

economies of scale

question

If technological improvements result in lower total unit costs then firms have achieved a cost advantage due to

answer

economies of technology

question

The term used to describe when one firm contracts with another firm to provide goods or services that were previously supplied from within the company is

answer

outsourcing

question

The concept that the time required to complete a task will decrease as a predictable function of the number of times the task is repeated demonstrates

answer

the learning curve

question

When pursuing differentiation strategies which are more likely to lead to a sustainable advantage?

answer

Intangible resources

question

A differentiation strategy could have sustainable differentiation based on

answer

brand or reputation

question

The essence of a best-value strategy is

answer

finding a uniqueness that will bring a premium price at a reasonable cost

question

The key to a best-value strategy is

answer

product differentiation

question

A cost leader does

answer

need to cut costs in every aspect of the firm at all times

question

The strategy used when a firm targets a particular market segment is called

answer

Focus strategy

question

What portrays how sales volume for a product category changes over time?

answer

product life cycle

question

Which term best describes the inevitable decline of leading firms due to competitive moves and countermoves?

answer

Creative destruction

question

The strategy used when firms use every available resource in an effort to overwhelm rivals and reduce the change that countermoves will be successful is

answer

aggressive strategy

question

Firms that stay at the forefront of technological advances in their industries are said to have a

answer

first mover advantage

question

Domino's pizza has done well using which approach to gain the market share in the pizza industry?

answer

First mover advantage

question

What is used when firms combine resources in an effort to gain a stronger resource position?

answer

Collaboration strategy

question

The strategy used to prevent competitors from imitating sources of cost savings or differentiation, is called

answer

barriers to imitation

question

What is used when a firm moves its resources out of declining markets into more prosperous ones in a short amount of time?

answer

Strategic flexibility

question

What occurs when a firm focuses completely on a particular market niche in which other firms have little interest?

answer

Avoidance strategy

question

A strategic group map categorizes

answer

competitors into groups that follow similar strategies

question

Corporate level strategy is developed by the

answer

CEO and other top managers

question

The corporate strategy formulation activities typically include all of the following EXCEPT

answer

establishing a marketing budget

question

Concentration refers to

answer

virtually all of a firm's resource investments in a single business area

question

The benefits of the concentration corporate level strategy include all of the following EXCEPT

answer

helping the firm overcome any instability in industry

question

The potential problems that can impact a concentration corporate strategy include all of the following EXCEPT

answer

focusing on a single industry which results in too much knowledge about that single industry

question

Successful firms in a given industry

answer

may pursue a wide variety of strategies

question

The advantages of vertical integration include all of the following EXCEPT

answer

avoiding excess capacity at different levels of integration

question

If Wal-Mart were to purchase a fleet of trucks, this would be an example of

answer

backward integration

question

All of the following are potential sources of synergy from related diversification except

answer

financial portfolio model

question

The benefits associated with synergy are greatest when

answer

the cost related to corporate level administration is greatest

question

Large unrelated firms are called

answer

conglomerates

question

Forces that undermine synergies include all of the following EXCEPT

answer

shared R programs

question

For corporations the best performance results are produces by

answer

related diversification

question

The benefits of an acquisition include all of the following EXCEPT

answer

preventing industry consolidation

question

Corporate raiders participate in

answer

hostile acquisitions

question

The greatest benefits of acquisition typically go to

answer

the shareholders of the acquiring firm

question

The problems that can impact a merger or acquisition negatively include all of the following except

answer

cultural similarities

question

Activities that corporations can pursue to develop core capabilities and competencies include all of the following except

answer

diversification

question

Retrenchment in a decline situation involves all of the following except

answer

increased advertising to increase sales

question

Downscoping involves

answer

reducing the diversification of the firm by selling of units

question

The term Chapter XI refers to

answer

a legal filing that allows a firm to reorganize while it solves its financial problems

question

A successful bankruptcy filing requires all of the following characteristics except

answer

the ability to move quickly so that court approval is not necessary

question

LBO stands for

answer

leveraged buyout

question

A breakup restructuring strategy refers to

answer

spinning off units into new public corporations

question

The Boston Consulting Group matrix is based on which two factors?

answer

Business growth rate and relative market share

question

Stars in a BCG grid represent

answer

high business growth rates and high relative market share

question

A fish and seafood restaurant buying a catfish farm is an example of

answer

backward integration

Business Strategies 4-6 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards