question

Which of the following is NOT one of the risks of the focus strategy?

answer

the exit of focusers from the industry

question

When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers, they were using the offensive tactic known as a

answer

frontal assault

question

According to Porter, the competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called

answer

differentiation

question

The T in SWOT represents

answer

threat

question

According to Porter, the competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called

answer

lower cost

question

Which of the following is NOT one of the eight dimensions of quality?

answer

value

question

Business strategy is composed of

answer

competitive and cooperative strategy

question

Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively-based incentives is required for which of the following generic competitive strategies?

answer

overall cost leadership

question

Wal-Mart, McDonalds, and Alamo are all examples of companies following which of Porter's competitive strategies?

answer

cost leadership

question

When a company following a differentiation strategy ensure that the higher price it charges for its higher quality is not priced too far above the price of the competition, the company is using the process of

answer

cost proximity

question

Timing tactics answer the question

answer

when a company implements a strategy

question

The text authors note that the essence of strategy is

answer

opportunity divided by capacity

question

Most entrepreneurial ventures follow

answer

focus strategies

question

According to Porter, a business unit a competitive marketplace with no generic competitive strategy is

answer

stuck in the middle

question

Which of the following was NOT one of the questions that development of a competitive strategy should raise?

answer

should we compete by garnering political support of influential leader

question

The concept that advocates management's attempt to find a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses is called

answer

situational analysis

question

A car's cruise control, known as a "bell and whistle" is an example of which of the eight dimensions of quality?

answer

features

question

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is

answer

S.W.O.T.

question

The last stage of a hypercompetititve industry is reached when the remaining large global competitors

answer

work their way to a situation of perfect competition in which no one has any advantage and profits are minimal

question

What are the two generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry?

answer

lower cost and differentiation

question

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called

answer

competitive scope

question

In a TOWS matrix, ST Strategies

answer

consider a company's or unit's strengths as a way to avoid threats

question

Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line segment, or geographic market?

answer

differentiation focus

question

Patagonia uses sustainability in pursuing which of Porter's generic strategies?

answer

differentiation

question

In a TOWS matrix, WT Strategies

answer

are basically defensive and primarily act to minimize weaknesses and avoid threats

question

One company that has successfully found a propitious niche is

answer

Frank J. Zamboni & Company

question

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

answer

differentiation focus

question

Which of the following is NOT one of the risks of a cast leadership strategy?

answer

achieving excessive success causing jealousy amongst competitors

question

The focus strategies will likely predominate when many small and medium sized local companies compete for relatively small shares of the total market in a

answer

fragmented industry

question

A tactic is defined by the text as

answer

a specific operating plan specifying how a strategy is to be implemented in terms of when and where it is to be put into action

question

In the development of a SFAS matrix, the first step is to

answer

list the most important EFAS and IFAS items

question

Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel?

answer

frontal assault

question

Which tactic deals with where a company implements a strategy

answer

a market location tactic

question

Which of the following is NOT an advantage of being a first mover?

answer

first movers may be able to keep R & D cost low by imitating the technological advances of others

question

All of the following reflect criticisms of the SWOT analysis EXCEPT

answer

provides a rational link to strategy implementation

question

Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game?

answer

bypass attack

question

The text the authors note that the essence of strategy

answer

opportunity dived by capacity

question

A corporation specific competitive role while is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it

answer

propitious niche

question

According to Porter, a business unit in a competitive marketplace with no generic competitive strategy is

answer

stuck in the middle

question

Which offensive tactic advocates attacking a part of the market where the competitor is weak?

answer

flanking maneuver

question

The two general types of cooperative strategies are

answer

strategic alliances and collusion

question

The first company to manufacture and sell a new product or service is called

answer

first mover

question

In a TOWS Matrix, SO Strategies

answer

are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities

question

Which of the following is NOT an offensive tactic

answer

raising structural barriers

question

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a

answer

TOWS matrix

question

The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone is the

answer

mutual service consortia

question

The book hypercompetition was written by

answer

D'Aveni

question

Which defensive tactic was used by Southwest airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures

answer

lower the inducement for attack

question

Which of Porter's competitive strategies recommends that a company emphasizes a particular buyer group or geographic market in attempts to seek a cost advantage in its targeted segment

answer

cost focus

question

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a(n)

answer

strategic rollup

question

An industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n)

answer

consolidated industry

question

The particular capabilities and resources a firm posses and the superior way in which the are used is called

answer

distinctive competencies

question

The focus strategies will likely predominate when many small and medium sized local companies compete for relatively small shares of the total market in a(n)

answer

fragmented industry

question

Business strategy focuses on

answer

improving the competitive position of company's or business units products or services within the specific industry or market segment that the company or business unit serves

question

In the development of a SFAS matrix, the first step is to

answer

list to most important EFAS and IFAS items

question

As an industry becomes hypercompetititve, firms initially respond be

answer

competing on cost and quality

question

If it is to be successful, Porter advices that a division posses strong marketing abilities, product engineering, a creative flair, strong capability in basic research, and a corporate reputation for quality or technology leadership, for which of the following generic competitive strategies?

answer

differentiation

question

Which of the following is NOT one of the risk of a cost leadership strategy?

answer

achieving excessive success causing jealousy amongst competitors

question

When lower cost and differentiation strategies have a narrow focus on a market niches, they are simply called

answer

cost focus and differentiation focus

question

According to the text, unique market opportunities that are available for only a particular time are called

answer

strategic windows

question

Which of the following is NOT one of the risk of the focus strategy?

answer

the exit of focusers from the industry

question

Which of the following is a function of corporate culture

answer

It conveys a sense of identity for employees

question

When scientists concentrate on quality control and the development of design specifications, this is referred to as

answer

engineering R&D

question

Which one of the following best describes a divisional structure

answer

This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities

question

When a company determines a competency's competitive advantage, Barney refers to this issue as

answer

value

question

The second step when analyzing the value-added chain is to

answer

examine the linkages among the product's or service's value activities

question

Through market research, corporations can target their various products or services so that management can discover what niches to seek or develop, and how to minimize competitive pressure. This is descriptive of

answer

market segmentation

question

In order to move more quickly through a product's development stage, companies like Motorola and Chrysler are using

answer

cross-functional work teams

question

What are the two distinct attributes of corporate culture

answer

intensity and integration

question

When a company's core competencies are superior to those of competitors, these are known as

answer

distinctive competencies

question

The ratio of total debt to total assets is known as

answer

financial leverage

question

In Christensen's book, The Innovator's Dilemma, he explains that managers remain with certain technologies based on

answer

return of investment

question

Which of the following is NOT one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's key resources

answer

durability

question

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called

answer

imitability

question

Which of the following best describes a simple structure?

answer

This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.

question

The process of taking a new technology from the laboratory to the marketplace is called

answer

technology transfer

question

When a company takes apart a competitor's product in order to find out how it works, this process is known as

answer

reverse engineering

question

The second step when analyzing the value-added chain is to

answer

examine the linkages among the product's or service's value activities.

question

An example of the promotion variable of the marketing mix is

answer

advertising

question

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's

answer

center of gravity

question

The particular combination of product, place, promotion, and price is called

answer

marketing mix

question

Which of the following describes a typical functional structure?

answer

Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources.

question

When the value chains of two separate products or services share activities, such as the same marketing channels, in order to reduce costs, this is an example of

answer

economies of scope

question

Knowledge that can be easily articulated and communicated is known as

answer

explicit knowledge

question

Things that a corporation can do exceedingly well across the corporation are called

answer

core competencies

question

Those critical strengths and weaknesses that are likely to determine if a firm will be able to take advantage of opportunities while avoiding threats are called

answer

internal strategic factors

question

On the continuum of resource sustainability, where would Sony's Walkman be placed?

answer

fast-cycle resources

question

The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the

answer

customer solutions model

question

When examining the corporate value chain of a particular product or service, which one of the following is NOT one of the PRIMARY activities that usually occur?

answer

auditing and accounting

question

Which one of the following best describes a conglomerate structure?

answer

This is most appropriate for large corporations with many product lines in several unrelated industries; unrelatedness prevents any attempt at gaining synergy among the divisions.

question

Which of the following is NOT a primary activity of the value chain?

answer

purchasing

question

Which of the following is NOT a function of corporate culture?

answer

keeps people guessing what to do next

question

The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as

answer

the experience curve

question

Flexible manufacturing emphasizes

answer

economies of scope over economies of scale

question

The rate at which a firm's underlying resources and capabilities depreciate or become obsolete is called

answer

durability

question

The breadth of an organization's culture is also known as

answer

cultural integration

question

According to the text, which one of the following is NOT descriptive of a corporation's culture?

answer

Corporate cultures are only temporary and can be easily changed.

question

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

answer

higher earnings per share

question

A corporation's ability to exploit its resources is referred to as its

answer

capabilities

question

When examining the corporate value chain of a particular product or service, which of the following is NOT one of the PRIMARY activities that usually occur?

answer

auditing and accounting

question

A linked set of value creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a(n)

answer

value chain

question

An automobile assembly line is an example of which approach to manufacturing?

answer

continuos system

question

According to Barney's VRIO framework, the exploitation of a resource pertains to the ____ of the resource

answer

organization

question

The proposition that silicon chips double in complexity every 18 months is referred to as

answer

moore's law

question

According to the text, the primary task of the operations manager is to

answer

develop and operate a system that will produce the requires number of products or services with a certain quality, at a given cost, within an allotted time

question

Which of the following is NOT a responsibility of a research and development manager?

answer

taking the design and opertionalizing the plan into mass production

question

What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit?

answer

intensity

question

The business model used by Hp is selling printers and printer cartridges is the

answer

multi-compnent system/installed base model

question

The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the

answer

customer solutions model

question

Human Resource departments have found that to reduce employee dissatisfaction and unionization efforts, they must

answer

consider the quality of work life in the design of jobs

question

Which of the following is NOT a primary activity of the value chain?

answer

purchasing

question

The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firms strategy is called

answer

transparency

question

The particular combination of product, place, promotion, and price is called

answer

marketing mix

question

When a company determines a competency's competitive advantage, Barney refers to this issue as

answer

value

question

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

answer

higher earnings per share

question

According to te text, which one of the following is NOT descriptive of a corporation's culture?

answer

corporate cultures are only temporary and can be easily changed

question

______ is more valuable because it can provide companies with a sustainable competitive advantage that is harder for competitors to imitate

answer

tacit knowledge

question

Through market research, corporations can target their various products or services so that management can discover what niches to seek or develop, and how to minimize competitive pressure. This is descriptive of

answer

market segmentation

question

According to Barney's VRIO framework, the exploitation of a resource pertains to the ___ of the resource

answer

organization

question

When the value chains of two separate products or service share activities, such as the same marketing channels, in order to reduce costs is an example of

answer

economies of scope

question

Which one of the following best describes a conglomerate structure?

answer

this is the most appropriate of large corporations with many product lines in several unrelated industries; unrelatedness prevents any attempt in gaining synergy among the divisions

question

A graph showing time plotted against the dollar sales of a product as it moves from introduction through growth and maturity to decline is called the

answer

product life cycle

question

Which of the following is NOT a function of corporate culture>

answer

keeps people guessing about what to do next

question

Flexible manufacturing emphasizes

answer

economies of scope over economies of scale

question

Which of the following is NOT descriptive of a high level of bargaining powers of buyers?

answer

A buyer earns high profits and is very insensitive to costs and service differences.

question

Which environment was generally perceived by business people to be a given until the 20th century?

answer

the natural environment

question

Other software companies could not compete with Microsoft based on the hesitation of consumers to try a new software. Which of Porter's forces does this reflect?

answer

bargaining power of suppliers

question

Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system?

answer

cost disadvantages independent of size

question

When the pressure for coordination is strong and the pressure for local responsiveness is weak for multinational corporations within a particular industry, the industry will tend to become

answer

global

question

Which of the following is NOT descriptive of "threat of substitute products or services?"

answer

Identifying substitutes is relatively easy since they look similar.

question

The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called

answer

environmental uncertainty.

question

Which strategic orientation is demonstrated by companies that have a limited product line and focuses on improving the efficiency of their existing operations?

answer

defenders

question

A company or an industry whose product works well with a firm's product and without which the product would lose much of its value is considered to be a(n)

answer

complementor

question

A company that operates in at least two different product-market areas in which one product is stable and the other one is variable, reflects which strategic orientation?

answer

analyzers

question

Which of the following is NOT descriptive of the "threat of new entrants?"

answer

Does not impact industry attractiveness.

question

A study of nearly 500 of the world's largest corporations indicated which of the following to be the most widely practiced form of forecasting?

answer

trend extrapolation

question

According to the text, the strength of each of the six driving forces of industry competition varies according to the

answer

stage of industry evolution.

question

When strategic managers have a willingness to reject unfamiliar as well as negative information it is referred to as

answer

strategic myopia

question

Industry analysis is primarily concerned with a corporation's

answer

task environment

question

All of the following are technological breakthroughs already having a significant impact on many industries EXCEPT

answer

growing health consciousness.

question

According to Porter's model, a low force can enable the company to earn greater profits and can be regarded as a(n)

answer

opportunity

question

An industry dominated by a few large firms, all of which struggle with product differentiation, is known as

answer

consolidated

question

To succeed in a hypercompetitive industry, companies by be willing to

answer

cannibalize their own successful product lines

question

A company with significant assets and activities in multiple countries is known as ___

answer

multinational corporation

question

Which societal force includes demographic trends?

answer

sociocultural forces

question

In which type of international industry do corporations tailor their products to the specific needs of consumers in a particular country?

answer

multidomestic industry

question

Companies with fairly broad product lines that focus on product innovations and market opportunities, reflect which strategic orientation?

answer

prospectors

question

Which of the following is NOT a major force in the societal environment?

answer

labor forces

question

The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1) the pressure for coordination with the MNCs operating in the industry and (2)

answer

the pressure for local responsiveness on the part of individual country markets

question

When General Motors considered making their own automative parts, Delphi Automotive Supply Company would be concerned with the

answer

bargaining power of buyers

question

Which type of international industry manufactures and sells the same product with only minor adjustments made for individual countries around the world?

answer

global industry

question

The collective strength of the interaction of potential entrants, buyers, substitutes, firm rivalry, and other stakeholders determine

answer

the ultimate profit potential in the industry measured in terms of long-run return on invested capital

question

The corporations task environment

answer

includes those elements or groups within an organization's industry

question

Which barrier to entry uses cost advantage associated with large size?

answer

economies of scale

question

According to Porters model, a strong or high force is likely to reduce profits and can be regarded as a

answer

threat

question

Which of the following in NOT descriptive of external environmental scanning?

answer

used to identify strengths and weaknesses

question

What are the key environmental trends that are judges to have a medium to high probability of occurrence and a medium to high probability of impact on the corporation?

answer

external strategic forces

question

According to the text, one reason environmental uncertainty is a threat to strategic managers is because

answer

it hampers their ability to develop long-range plans

question

Which of the following is NOT descriptive of a high level of bargaining power of suppliers?

answer

substitues are readily available

question

Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because of

answer

economies of scale

question

The issues priority matrix is used in environmental scanning is composed of two axis or dimensions which are labeled

answer

probability of occurrence and probable impact on the corporation

question

Which is the largest of the current US generations?

answer

baby boomers

question

Which environment was generally perceived by business people to be a given until the 20th century?

answer

the natural environment

question

Which barrier to entry uses brand identification to force new entrants to spend heavily to overcome existing customer loyalty?

answer

product differentiation

question

In addition to Porter's five Forces, another force added in the text is

answer

other stakeholders

question

Which of the following is NOT one of the general strategic types?

answer

initiators

question

Which of the following is an example of a global industry?

answer

tires

question

Which of the following is NOT descriptive of external environmental scanning?

answer

used to identify strengths and weaknesses

question

What is the set of business units or firms that "pursue similar strategies with similar resources?"

answer

strategic groups

question

A company or an industry whose product works well with a firm's product and without which the product would lose much of its value is considered to be a

answer

complementor

question

An industry dominated by a few large firms all of which struggle with product differentiation is knowns as

answer

consolidated

question

A study of nearly 500 of the world's largest corporations indicated which of the followings to be the most widely practiced form of forecasting?

answer

trend extrapolation

question

All of the following are technological breakthroughs already heaving a significant impact on many industries EXCEPT

answer

growing health consciousness

question

The U.S. major home appliance industry, including the companies of Maytag, Whirlpool, General Electric, and Electrolux, is an example of an industry

answer

that was once fragmented, but now is consolidated

question

Which of the following is NOT descriptive of intense rivalry among firms?

answer

product offerings that are highly differentiated

question

Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system?

answer

cost disadvantage independent of size

question

A relationship that illustrated the term complementor is

answer

microsoft and intel

question

Which of the following is NOT one of the general strategic types?

answer

initiators

question

Which of the following is NOT an element of the organization's task environment?

answer

technological developments

question

According to Porter, the corporation is most concerned with

answer

the intensity of competition within its industry

question

Those variables that can affect significantly the overall competitive positions of companies within any particular industry are known as

answer

key success factors

question

Which of the following is NOT descriptive of "threat of substitute products or services?"

answer

identifying substitutes is relatively easy since they look similar

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