The profit pool incorporates key complementary businesses near the point at which a
firm is directly involved in customer transactions.
Buyer power is shaped by product differentiation, bargaining leverage, and brand
identity.
The speed of change is a critical factor in keeping up with the basis of competition in an
industry.
Homogeneous groups tend to make better decisions because all group members have
similar backgrounds and see things in similar ways.
Low-cost leadership creates a unique product that causes customers to be willing to pay
premium prices.
Dynamic capabilities are processes by which a firm integrates, reconfigures, acquires,
or divests resources.
Successful strategies are often formulated without input from those who will later
implement the strategies.
Research suggests that even good governance has a minimal impact on firm
performance.
The tradeoff between costs and benefits of internationalization results in a U-curve
relationship between internationalization and firm performance.
Intangible assets are easily identified and valued.
Two firms of the same size may have significantly different operating costs because one
has progressed farther down the learning curve.
If companies use the retention form of stock ownership, they are concerned with
keeping track of the total stock option granted.
SWOT is an acronym for strengths, weaknesses, opportunities, and threats.
In a roll-up, the acquiring company usually replaces the management of acquired
companies.
Globalization has been stimulated in the cell-phone industry as a result of the problem
of multiple standards and the entry of large global competitors into the market.
Governments may actually become consortia partners.
Businesses that are managed separately always have an advantage over a corporation
that maintains ownership over multiple business units because of their ability to gain
specialized knowledge.
The big-picture perspective of a business strategy differs significantly from the tactics
used to implement the strategy.
The financial perspective of the balanced scorecard may focus on issues such as
enhancing customer value and increasing asset utilization.
A component of knowledge transfer learning is to locate a firm in a part of the world
where competition is the weakest.
The three particularly important phases that can punctuate the life cycle of a firm do not
include the ________.
A) birth of new ventures
B) rescue of established ventures
C) transition from new venture to a more established firm
D) stock split of new ventures
When the succession process founders, it can destroy the CEO’s legacy by all but which
of the following?
A)undermining investor confidence
B)depressing the stock price
C)creating dissention on the board
D)causing an inferior CEO to be hired
Disney’s successful launch of its “Princess Line” is representative of a ________.
A)tangible resource
B)intangible resource
C)dynamic capability
D)distinctive competence
_____ do not make executives bear any financial risk.
A) Futures
B) Bonds
C) Stocks
D) Options
When the collective market value of a firm exceeds the independent market values of
the firm’s portfolio of business units, financial markets recognize the existence of a
________.
A)parenting advantage
B)separate firm advantage
C)parenting disadvantage
D)separate firm disadvantage
Before executing an international acquisition, companies need to examine the issues of
differing competitors, laws, and ________.
A)strategies
B)products
C)cultures
D)technologies
The Public Company Accounting Oversight Board was created by the ________.
A) Cadbury Code
B) Securities and Exchange Commission
C) Executive Order
D) Sarbanes-Oxley Act
Incumbent firms can respond to industry dynamism through all of the following
strategies except ________.
A)expression
B)containment
C)neutralization
D)annulment
_____ goals serve as an overarching reference point for other goals and objectives.
A)Superordinate
B)Subordinate
C)Umbrella
D)Mission
What are some possible explanations for the increasing globalization of industries?
Explain the alliance risk associated with being held hostage through specific
investments. Give an example from the text.
What are some the advantages and disadvantages of low-cost leadership?
Define entrepreneurship. How does this differ from the entrepreneurial process?
Explain the four perspectives on performance encouraged by the balanced scorecard
approach.
What is an ambidextrous organization and why is it used?
In what ways is corporate governance related to strategy formulation and
implementation?
What are the four most commonly examined personality determinants of strategic
leadership?
According to the CAGE framework, what are some of the possible attributes
responsible for creating cultural distance?
What is the PESTEL analysis and how is it used?