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Management Chapter 1 1 For the purposes of this book, a firm’s strategy is defined as its theory about how to gain competitive advantages.
1 Answer: TRUE Diff: 1 Page Ref: 4 Objective: 1.2 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 1 What Is Strategy and the Strategic Management Process? 1) One of the central questions that all strategic managers must address, regardless […]
Management Chapter 1 2 Ratios that focus on the level of a firm’s financial flexibility, including its ability to obtain more debt, are known as
12 Answer: D Diff: 2 Page Ref: 17 Objective: 1.4 65) ________ are ratios with some measure of profit in the numerator and some measure of firms’ size or assets in the denominator. A) Liquidity ratios B) Leverage ratios C) […]
Management Chapter 10 1 When the management of a target firm wants the firm to be acquired, this is known as a hostile takeover
1 Answer: FALSE Diff: 2 Page Ref: 279 Objective: 10.2 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 10 Mergers and Acquisitions 1) A firm engages in an acquisition when it purchases a second firm. Answer: TRUE Diff: 1 Page […]
Management Chapter 10 2 Discuss the differences between mergers and acquisitions and differentiate between friendly and unfriendly acquisitions
14 Answer: A Diff: 2 Page Ref: 298 Objective: 10.7 71) ________ is (are) a maneuver in which a target firm’s management purchases any of the target firm’s stock owned by a bidder and does so for a price that […]
Management Chapter 11 1 To the extent that customers outside a firm’s domestic market are willing and able to buy a firm’s current products or services
1 Answer: TRUE Diff: 2 Page Ref: 310 Objective: 11.3 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 11 International Strategies 1) At some level, international strategies have existed since before the beginning of recorded time. Answer: TRUE Diff: 1 […]
Management Chapter 11 2 Which one of the following structural options combines a high level of both global integration and local responsiveness
12 Answer: B Diff: 2 Page Ref: 336 Objective: 11.7 67) Which one of the following is not a structural option for firms pursuing international strategies? A) Corporate federation B) Decentralized federation C) Transnational structure D) Centralized hub Answer: A […]
Management Chapter 2 1 Culture is the values, beliefs and norms that guide a behavior in a society, and culture is largely the same across the world
1 Answer: FALSE Diff: 2 Page Ref: 34 Objective: 2.2 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 2 Evaluating a Firm’s External Environment 1) A firm’s general environment consists of broad trends in the context within which the firm […]
Management Chapter 2 2 If your customers value your products more when they have your product and another firm’s product rather than when they have your product alone
12 Answer: D Diff: 2 Page Ref: 51 Objective: 2.6 66) Overall, the average level of performance in an industry is likely to be highest when A) the threat level of all five forces is high. B) the threat level […]
Management Chapter 3 1 Financial resources include only the profits a firm has made earlier in its history and that it has reinvested in itself
1 Answer: FALSE Diff: 2 Page Ref: 68 Objective: 3.1 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 3 Evaluating a Firm’s Internal Capabilities 1) Capabilities are a subset of a firm’s resources and are defined as tangible and intangible […]
Management Chapter 3 2 The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm’s strategies are referred to as
12 Answer: C Diff: 2 Page Ref: 81 Objective: 3.6 63) According to the research in strategic human resources management, A) firms that are able to use human resource practices to develop socially complex human and organizational resources are able […]
Management Chapter 4 1 Cost leadership and product differentiation are so widely recognized that they are often called generic business strategies
1 Answer: TRUE Diff: 2 Page Ref: 105 Objective: 4.3 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 4 Cost Leadership 1) Corporate level strategies are actions firms take to gain competitive advantages in a single market or industry. Answer: […]
Management Chapter 4 2 When managers committed to an incorrect course of action increase their commitment to this action even as its limitations become manifest
13 Answer: C Diff: 2 Page Ref: 119 Objective: 4.6 66) Which of the following is less likely to be a rare source of cost advantage? A) Technological software B) Learning-curve advantages C) Differential low-cost access to productive inputs D) […]
Management Chapter 5 1 While firms often alter the objective properties of their products or services in order to implement a product-differentiation strategy
1 Answer: TRUE Diff: 3 Page Ref: 134 Objective: 5.2 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 5 Product Differentiation 1) Wal-Mart exemplifies a firm pursuing a product-differentiation strategy while Victoria’s Secret exemplifies a firm pursuing a cost-leadership strategy. […]
Management Chapter 5 2 Which of the following bases of product differentiation is generally viewed as the most difficult to duplicate
13 Answer: D Diff: 2 Page Ref: 150 Objective: 5.7 67) Research on architectural competence in pharmaceutical firms suggests that A) not only do some firms possess this competence, but that other firms do not; firms without this competence have, […]
Management Chapter 6 1 Business strategy is a firm’s theory of how to gain competitive advantage by operating in several businesses simultaneously
1 Answer: FALSE Diff: 3 Page Ref: 164 Objective: 6.1 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 6 Vertical Integration 1) Business strategy is a firm’s theory of how to gain competitive advantage by operating in several businesses simultaneously. […]
Management Chapter 6 2 Investments made by employees that have more value in a particular company than in alternative companies are known as
13 Answer: C Diff: 2 Page Ref: 181 Objective: 6.6 67) If Brenda Thompson, Tom Mix’s supervisor, wanted to use a budgeting process to help evaluate Tom’s performance but wanted to ensure that using a budget did not encourage Tom […]
Management Chapter 7 1 A firm implements a corporate diversification strategy when it operates in multiple industries or markets simultaneously
1 Answer: TRUE Diff: 2 Page Ref: 192 Objective: 7.1 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 7 Corporate Diversification 1) A firm implements a corporate diversification strategy when it operates in multiple industries or markets simultaneously. Answer: TRUE […]
Management Chapter 7 2 Research over the years has demonstrated conclusively that the primary determinant of the compensation of top managers in a firm is
13 Answer: C Diff: 2 Page Ref: 209 Objective: 7.3 67) ________ exists when two or more diversified firms simultaneously compete in multiple markets. A) Multipoint competition B) Dynamic competition C) Multipoint cooperation D) Dynamic cooperation Answer: A Diff: 1 […]
Management Chapter 8 1 The most common organization structure for implementing a corporate diversification strategy is the U-form
1 Answer: FALSE Diff: 2 Page Ref: 223 Objective: 8.1 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 8 Organizing to Implement Corporate Diversification 1) The most common organization structure for implementing a corporate diversification strategy is the U-form. Answer: […]
Management Chapter 8 2 If Span do Corp wanted to measure the performance of its divisions with a method that would minimize any potential short-term bias
15 Answer: A Diff: 2 Page Ref: 241 Objective: 8.4 75) Which of the following statements regarding CEO compensation is accurate? A) Differences in CEO cash compensation are very responsive to differences in firm performance. B) If a substantial percentage […]
Management Chapter 9 1 The use of strategic alliances to manage economic exchanges has grown substantially over the last several years
1 Answer: TRUE Diff: 2 Page Ref: 252 Objective: 9.2 Strategic Management and Competitive Advantage, 4e (Barney) Chapter 9 Strategic Alliances 1) The use of strategic alliances to manage economic exchanges has grown substantially over the last several years. Answer: […]
Management Chapter 9 2 Which of the following is a limitation of the reputational control of cheating in a strategic alliance
13 Answer: D Diff: 2 Page Ref: 265 Objective: 9.5 67) To the extent that a strategic alliance is based on ________ relations, it will make the alliances costly to imitate. A) socially complex B) tacit collusion C) explicit collusion […]