The generic strategy typology is helpful in selecting a starting strategic position.
The market will frequently place higher valuations on risky firms with poor governance
characteristics.
Rebundling resources and capabilities can be accomplished through alliances and
acquisitions.
In the music industry, products that are in low demand can collectively make up a
market share that rivals the relatively few current bestsellers.
When a multinational relies more on parent-country nationals than local managers, the
information-asymmetry problem gradually diminishes.
Brand equity can be purchased without buying an existing brand from another
company.
Bureaucratic and management costs actually decline at extreme levels of
internationalization.
Employees, customers, governments, and even competitors may be considered
stakeholders.
Good intentions on the part of the partner firms are enough to make alliances work.
The role of liaison represents a vertical relationship.
Anything that enables an executive to get leverage to execute change can be considered
an implementation lever.
Good corporate governance can reduce the risk of unethical and illegal activities.
Executives decrease their commitment to an initiative as they proceed through a
transaction.
Unrelated diversification is the form of diversification in which the business units that a
firm operates are highly dissimilar.
Firms need some degree of ability to thrive in chaotic environments in order to survive.
A rapid and unpredictable environment requires firms to pursue dynamic strategies.
All of a firm’s capabilities contribute equally to its competitive advantage.
The ability to join the procurement function across more than one business unit and buy
materials jointly creates an economy of scope.
To be effective, visions and missions must be put in action in terms of specific goals
and objectives for directing strategic actions.
According to the text, Collins’ research suggests that above-average companies are
typically headed up by arrogant leaders.
Firms that choose to initiate strategic actions are called ________.
A)first movers
B)second movers
C)strategic leaders
D)fast followers
Successful differentiation enables firms to set prices at the industry average and gain
market share or ________.
A)lower prices over those of competitors and gain higher margins
B)raise prices over those of competitors and gain higher margins
C)set prices above industry average and gain a smaller market share
D)set prices below industry average and gain a larger market share
When a firm in one industry provides products that tend to increase sales in another
industry, it is called a ________.
A)supplier
B)new entrant
C)rival
D)complementor
The text discusses three sets of theories about the conditions under which we make
decisions. These theories are about ________.
A)ourselves, other people, and our world
B)ourselves, our government, and our environment
C)other people, our world, and our families
D)other people, ourselves, and our families
Examples of industry convergence include all but which of the following?
A)computing and entertainment
B)airline and rail
C)entertainment and communications
D)wireless communications and photography
Real-option investments are attractive to managers in industries that are characterized
by ________ and ________.
A)low capital investments; low degrees of uncertainty
B)large capital investments; high degrees of uncertainty
C)small market share; lots of research and development data
D)large market share; little research and development data
Process technologies refer to the devices, tools, and ________ used to transform inputs
into outputs.
A)gadgets
B)electronics
C)knowledge
D)skills
Vertical alliances can create lean value chains by reducing total supply chain costs in all
of the following areas except ________.
A)transaction
B)communication
C)quality
D)logistics
When a firm achieves economies of scope across its portfolio by bundling two outlets
in a single facility, it is using ________ store strategy.
A)vertical
B)multibrand
C)horizontal
D)complementary
Resources and capabilities are the basis of competitive advantage only when they
satisfy all of the following criteria except ________.
A)they must be marketable
B)they must be valuable
C)they must be rare
D)they must be difficult to imitate
In the mass-batch method of production, products are ________.
A) made one at a time immediately
B) shipped abroad for assembly
C) individually made by a single worker
D) processed and set aside for assembly
The structure that most enables a firm to grow rapidly is the ________ structure.
A) multidivisional
B) network
C) partnership
D) franchise
All of the following represent stakeholder groups who must be communicated with
during Stage 2 of turnaround except ________.
A) creditors
B) employees
C) vendors
D) competitors
Michael Porter’s generic strategies are known as strategic positions, which are
________ of several elements of a firm’s strategy.
A)configurations
B)highlights
C)descriptions
D)lists
A strategy in which elements of one position support a strong standing in the other is
called a(n) ________.
A)focused differentiation position
B)integrated position
C)low-cost leadership position
D)combined strategic position
Which concept describes how a firm determines the objectives and tasks that are
required to put a plan into action?
A.strategy alignment
B.strategy implementation
C.strategy formulation
D.strategy integration
First movers bear significant risks including the costs of all but which of the following?
A)designing and producing new products
B)distributing new products
C)educating customers
D)evolving new products
In the typical ________ structured organization, employees work in small teams and are
encouraged to participate in direct one-on-one communications with other associates,
customers, and suppliers.
A) multidivisional
B) matrix
C) functional
D) network
Acme Wholesale Supply is considering expanding its sales operations overseas. Which
of the following factors is most likely to have a major impact on Acme’s decision
regarding staging of the expansion?
A.Prices
B.Channels
C.Resources
D.Locations
According to the CAGE framework, which of the following attributes creates
geographic distance?
A)different ethnicities
B)differences in quality of natural resources
C)weak transportation links
D)differences in consumer incomes
All of the following are phases of competitive interaction except ________.
A)customer reaction
B)competitor reaction
C)discovery and competitive new action
D)competitive unpredictability
Coke and PepsiCo have increased market share by about 11% since the mid-1960s.
Much of this profitability can be explained by all except ________.
A)exclusive sources of ingredients
B)entry barriers created by large market shares
C)tremendous brand equity
D)ownership or control of regional bottlers
Horizontal alliances can create value in all of the following ways except ________.
A)reduce risk
B)help partners achieve greater efficiency
C)leverage partners’ resources
D)foster learning in developing and innovating new products
What are the conditions that favor success in horizontal alliances?
How is international strategy reflected in all facets of the strategy diamond?
What are the five recommendations to consider concerning the stages of turnaround
management?
What is the “knowing-doing gap” found among managers?
Discuss the most traditional types of strategic change processes that can include cost
reduction, asset reduction or redeployment, or restructuring.