MGT 491 Midterm – Flashcards
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The industrial organization (I/O) model argues that
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the key factor in success is choosing the correct industry in which to compete.
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The three parts of the external environment which affect a firms strategic actions are
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general, industry, and competitor
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The environmental segments that comprise the general environment typically will NOT include
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substitute products or services.
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Which of the following is NOT an activity used in the external environmental analysis process?
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Decrypting
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When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in
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Forecasting
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The likelihood of entry of new competitors is affected by ____ and ____.
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barriers to entry, expected retaliation of current industry organizations
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Which of the following is NOT a factor affecting sustainability of a competitive advantage?
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The length of time the core competence has existed.
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Internal analysis enables a firm to determine what the firm
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can do.
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Which of the following is not a component of internal analysis leading to competitive advantage?
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Analysis of supplier power
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Valuable capabilities
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allow the firm to exploit opportunities or neutralize threats in its external environment.
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Capabilities that other firms cannot develop easily are classified as
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costly to imitate.
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Business-level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in
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specific product markets.
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In order to meet and exceed customer's expectations, firms must
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continuously improve, innovate, and upgrade their core competencies.
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The three dimensions of a firm's relationships with customers include all the following EXCEPT
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Exclusiveness
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What is not considered a generic business-level strategies?
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Product Diversification
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A company using a narrow target market in its business strategy is
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Limiting the group of customer segments served
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The effectiveness of any of the generic business-level strategies is contingent upon
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The match between the opportunities and threats in its external market and the strengths of its internal environment
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A cost leadership strategy provides goods or services with features that are
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Acceptable
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Research suggests that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy.
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Logistics
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A company pursuing the differentiation or focused differentiation strategy would tend to
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Develop flexible systems that allow rapid response to customers changing needs
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Ever improving levels of efficiency enhance profit margins for a cost leader. This affects which of the five forces of industry structure most directly?
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Potential Entrants
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Competitive rivalry has the most effect on the firm's ____ strategies than the firm's other strategies
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Business-level
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Multimarket competition occurs when firms
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compete against each other in several geographic or product markets.
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Firms with ______ market commonality and _____ resource similarity are direct and mutually acknowledged competitors.
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high; high
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The competitive actions and responses in __________ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers.
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Standard-cycle
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Lawsuits over patent and copyright infringements are more common and intense in
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slow-cycle markets, because of the ability to shelter the company from imitation of its competitive advantage.
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