Behavioral barriers to change occur because of conflicts between departments, conflicts
arising from power relationships, and refusal to share information.
From the individual perspective, social networks deliver three unique advantages:
private information, access to diverse skill sets, and power.
In recent years, many high tech firms such as Priceline.com have suffered from the
negative impact of uncontrolled growth.
Unexpected events have little effect on short-term objectives, because short-term
objectives are not changeable.
Social network analysis can be used to help identify groups or clusters of individuals
that comprise the network, individuals who link the clusters, and other network
members.
Exporting is an expensive way to enter foreign markets.
A mission statement encompasses both the purpose of the organization as well as its
basis of competition, and the basis of its competitive advantage.
Rivalry will be most intense when there is a lack of differentiation or switching costs.
Adaptive new entry involves offering a radical new product or highly innovative
service.
Cutting prices or increasing marketing efforts are examples of tactical competitive
actions.
Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses,
Opportunities, Threats) analysis?
A. Organizational strengths may not lead to competitive advantage.
B. The SWOT focus on the external environment is too broad and integrative.
C. SWOT gives a one-shot view of a moving target.
D. SWOT overemphasizes a single dimension of strategy.
Which of these categories of financial ratios is used to measure the ability of a firm to
meet its short-term financial obligations?
A. leverage ratios
B. profitability ratios
C. activity ratios
D. liquidity ratios
Apple combines and packages proven technology in new and innovative ways. This is
an example of its use of ____________.
A. tangible resources
B. intangible resources
C. organizational capabilities
D. strong primary activities
In the general environment, many relationships exist among the various elements.
General environmental trends can have positive and negative impacts on various
industries. For example, the aging population might have a ______ impact on the health
care industry and a ______ impact on the baby product industry. These are called
_____________ impacts.
A. negative; positive; demographic
B. positive; negative; technological
C. negative; positive; sociocultural
D. positive; negative; demographic
Effective ambidextrous organizations maintain adaptability, which means that
_____________.
A. managers are focused on growth opportunities
B. there is a clear sense of how value is being created in the short-term and how
activities are properly integrated and coordinated
C. divisional-goals are consistent with overall corporate goals
D. managers must remain proactive in expanding and/or modifying their
product-market scope to anticipate and satisfy market conditions
In the resource-based view of the firm, examples of tangible resources include:
A. financial resources, human resources, and firm competencies
B. financial resources, physical resources, and technological resources
C. financial resources, physical resources, and the capacity to combine intangible
resources
D. outstanding customer service, innovativeness of products, and reputation
Whereas ______________ are willing to violate procedures and operate outside normal
channels, ______________ gather hard data and develop a strong case for why a
project should be killed.
A. senior managers; entrepreneurial leaders
B. strategic managers; financial managers
C. exit champions; product champions
D. product champions; exit champions
Which of the following types of international firms are most likely to benefit from a
global strategy as opposed to a multidomestic strategy?
A. firms that compete in industries in which consumer preferences vary substantially in
each country
B. firms in industries that are expanding very rapidly
C. firms in industries that have value added by sales and marketing departments
D. firms in industries that have much value added in research and design or
manufacturing
One of the main reasons the Internet is eroding sustainable competitive advantages is
that _______.
A. incumbent firms are entering market segments that they previously considered to be
too small
B. nearly all competitors will have greater access to tools for managing costs
C. differentiators have been able to preserve their unique advantages
D. firms are ignoring opportunities to offer high-end services in niche markets
According to the text, which of the following is not one of the methods companies can
use to enhance their competitive position via innovativeness?
A. fostering creativity and experimentation
B. investing in new technology, R and D, and continuous improvement
C. copying the business practices or techniques of successful competitors
D. departing from existing technologies to develop products and practices that go
beyond the current state of the art
If an international firm has a multidomestic strategy and a relatively high level of
product diversity, the best choice for its organizational structure is ______________
structure.
A. a worldwide functional
B. a worldwide product division
C. a worldwide matrix
D. an international division
Boards of directors have responded to financial crises, corporate scandals, regulator
obligations, and investor requests for structural changes. In looking at the 2011 Harvard
Business Review study of the changes in configuration of boards since 1987, which
change has been brought about by government legislation?
A. Percentage of boards that have an average age of 64 or older has increased.
B. Average pay for directors has increased.
C. Percentage of boards with 12 or fewer members has increased.
D. Percentage of the directors that are independent has increased. The Sarbanes-Oxley
Act and pressure from investors have led to an increase in the number of independent
directors. In fact, over half the S&P 500 firms now have no insiders other than the CEO
on the board.
Social capital is a source of strength to many firms. Firms leverage their social capital
in an effort to create competitive advantages. The social capital of a firm is based on
___________.
A. the individual abilities of employees
B. the allocation of the financial resources of the firm
C. the relationships among the employees of the firm
D. the knowledge of an individual
With experience, unit costs of production decline as _________ increases in most
industries.
A. costs
B. output
C. price
D. volume
Human capital includes ________________.
A. the relationships between people
B. an individual’s capabilities, knowledge, and skills
C. the output from assembly line employees
D. an improved product
ABC, Incorporated desires to have the most qualified people in every position
throughout its organization. This is an example of a concern for _________.
A. decreasing labor intensive training
B. developing social networks
C. developing human capital
D. leveraging organizational structure
An automobile manufacturer acquires a rental car company. This is an example of
_____.
A. backward integration
B. economies of scale
C. forward integration
D. product differentiation
Members of boards of directors are:
A. appointed by the Securities and Exchange Commission
B. elected by the shareholders as their representatives
C. elected by the public
D. only allowed to serve one term of four years
What value is the strategic group concept as a tool in analyzing an industry?
Explain the difficulties a small company faces when making the decision to internalize.
How can a firm develop (or enhance) its advantages in the marketplace by having
strong, positive interrelationships among its value chain activities and those of its
suppliers and customers? Provide an example.
What are the differences between strategic actions and tactical actions? What are the
implications of each approach to the competitive dynamics process?
The painters, Vincent van Gogh and Pablo Picasso, had different personalities that
resulted in their relative wealth at the time of their death. Van Gogh died penniless;
Picasso died with an estate valued at $750 million. Explain this result in terms of social
network analysis.
Discuss the five dimensions of entrepreneurial orientation. What are the benefits and
risks associated with using each of these?
Explain why going green might help to attract good talent. Give an example of an
organization that has had positive talent acquisition and retention as a result of going
green.