Both _______ and ________ affect the awareness and motivation of a firm to undertake
actions and responses.
a. first-mover advantages; corporate size
b. market commonality; resource similarity
c. management capabilities; competitive analysis
d. speed of management decisions; management actions
Compared to homogeneous top management teams, heterogeneous top management
teams with an internally promoted CEO are more likely to change their firm’s strategies
when necessary and to support innovation.
a. True
b. False
Which pair of industries would NOT be considered as “related and supporting” under
Porter’s diamond model?
a. Japanese cameras and copiers
b. Italian leather-processing and shoes
c. U.S. computers and software
d. highway systems and the supply of debt capital
Large firms with significant slack resources (i.e., are able to launch a greater number of
competitive actions) but who remain flexible and act like small firms (i.e., are able to
launch a variety of actions) will be more successful against rivals.
a. True
b. False
The new generation of lunch trucks serving high-end fare in cities such as New York,
San Francisco, and Los Angeles share which of the following a business strategies?a.
cost leadership
b. focused differentiation
c. integrated cost leadership/differentiation
d. differentiation
A ______ is an integrated and coordinated set of commitments and actions designed to
exploit core competencies and gain a competitive advantage.
a. goal
b. strategy
c. tactic
d. mission
A U.S. manufacturer of adaptive devices for persons with disabilities is considering
expanding internationally. It is a fairly small company, but it is looking for growth
opportunities. This company should primarily consider the option of
a. licensing.
b. exporting.
c. a strategic alliance.
d. a greenfield venture.
The need for the organization to combine local responsiveness and efficiency is most
critical in a strategy.
a. multidomestic
b. transnational
c. global
d. focus
A firm that is LEAST likely to launch competitive actions is one that has
a. organizational slack.
b. advanced research and development.
c. recently improved the quality of its products.
d. large size.
Chelsea Milling Company makes Jiffy packaged baking mixes. It was established in
1930. It has never spent one cent on advertising, which is one reason it is able to pursue
a(n) ______ strategy.
a. differentiation
b. focused differentiation
c. integrated cost leadership/differentiation
d. cost leadership
A multidomestic strategy is an international strategy in which a firm’s home office
determines the strategies business units are to use in each region.
a. True
b. False
Amylin Pharmaceuticals has an alliance with Eli Lilly & Co. to produce diabetes drugs.
Lilly, however, recently signed an alliance agreement with another company to also
produce diabetes drugs. As a result, Amylin sued Lilly for breech of the alliance
agreement. Which of the following risks of cooperative strategies discussed in the
chapter is most likely occurring here?
a. having a true perception of the partner’s trustworthiness
b. failing to make available to its partners the resources and capabilities that it
committed to the cooperative strategy
c. the partner misrepresenting competencies it can bring to the partnership
d. opportunistic behavior
When a firm acquires its supplier, it is engaging in a(n)
a. merger.
b. unrelated acquisition.
c. hostile takeover.
d. vertical acquisition.
Core competencies are capabilities that serve as a source of competitive advantage for a
firm over its rivals.
a. True
b. False
Counterfeiting goods and exporting them from China is
a. ethical and legal.
b. unethical but legal.
c. ethical but illegal.
d. unethical and illegal.