CHAPTER 10: Strategic Thinking and Achieving Competitive Advantage
MULTIPLE CHOICE
1. ____ is the long-term market position and uniqueness that is not easily duplicable by rivals.
a.
Competitive advantage
c.
Systems advantage
b.
Competitive identity
d.
Systems identity
2. ____ is the development of a broad formula prescribing a way in which a business competes and
collaborates, sets goals, and establishes policies to carry out those goals in order to achieve the
organizational mission.
a.
Designing
c.
Collaboration
b.
Planning
d.
Strategy
3. The existence and enactment of a company ____ is critical to a firm’s success.
a.
metaphor
c.
formula
b.
policy
d.
mission
4. A number of factors affect uncertainty in the environment and therefore strategic planning for an
organization: 1) political/legislative changes, 2) technology innovation and 3) changing ____.
a.
trends
c.
organizational policy
b.
customer demand
d.
cultures
5. The ____ Framework has often been employed to understand the competitive forces in industries.
a.
Forward Financial
c.
Five Forces
b.
Five Fingers
d.
Forward Forces
6. ____ costs are the costs incurred when a customer changes from one supplier or product to another.
a.
Detrimental
c.
Oscillating
b.
Rotating
d.
Switching
7. ____ power is when customers seek to drive down price and improve quality.
a.
Buyer
c.
Supplier
b.
Intentional
d.
Group
8. The analytical tool used for evaluating organizational capabilities, SWOT, stands for ____.
a.
strengths, weakness, organization, and teamwork
b.
strengths, weakness, opportunities, and threats
c.
structure, weakness, opportunities and teamwork
d.
structure, weakness, organization and threats
9. When competing products or services are similar, buyers may obtain value based on the company’s
____.
a.
portfolio
c.
efficiency
b.
image
d.
efforts
10. ____ analysis compares the value of the strategic business units (SBUs) of firms.
a.
Creative
c.
Organizational
b.
Systems
d.
Portfolio
COMPLETION
1. ____________________ involves the creation, implementation, and overall direction for a firm.
2. ____________________ are the expression of the ethics which guide employees’ actions.
3. The four expressed values of All Saints Healthcare System are respect, sharing with the poor,
excellence and ____________________.
4. A(n) ____________________ is a statement about what the organization wants to become.
5. A(n) ____________________ makes up the core elements of a firm and how it is organized to deliver
value to its customers and generates revenues.
6. A(n) ____________________ is defined as the conditions and elements within an organization,
including employees, management, culture that affect the firm’s choices and activities.
7. ____________________ are the existence of obstacles that prevent competitors from attempting to
enter an industry or market.
8. ____________________ is likely to occur in markets where competitors differ substantially from one
to another.
9. To have lasting importance, ____________________ must be valuable, rare, difficult to imitate, and
lack substitutes.
10. The ____________________ is a recognized strategic move to gain advantage by being the initial
occupant of a market segment and/or product.
MATCHING
Match each item with a statement below:
a.
oligopoly
b.
perfect competition
c.
low cost leadership
d.
economies of scale
e.
external environment
f.
strategic group
g.
monopolistic competition
h.
market niche
i.
monopolies
j.
value chain
1. An example of a generic strategy
2. Conditions, entities, and factors surrounding an organization that influences its activities and choices
3. Concept to identify organizations within an industry that have similar business models and/or strategic
orientations so that they directly compete with each other
4. Targeted to a narrow market segment
5. Fully consolidated markets with only one firm
6. Characterized by many buyers and sellers, many products that are similar and undifferentiated
7. Assumes a systems approach where there are two subsystems: service delivery and support activities
8. Market dominated by a few large companies
9. Occurs when the average cost per unit lowers from increased volumes
10. Characterized by a large number of small firms that have similar, but not identical products