A strategy is only as good as its execution.
To address the strategic element of differentiators, a firm must decide whether it will
use alliances or acquisitions as international entry strategies.
The Level 5 Hierarchy is a model of leadership skills calling for a wide range of
abilities.
External causes of organizational failure are more common than internal causes.
A firm becomes a prime candidate for takeover when investors suspect the prospect of a
significant diversification discount.
In executing turnaround management, managers may use the strategic change
framework because time is not a factor.
A hallmark of a great leader is knowing when and how to follow the lead of others.
Fragmented markets are more difficult to enter than concentrated markets.
Geographic expansion is typically motivated by a desire to reduce overhead costs.
A firm that has operations in different countries has the opportunity to transfer
knowledge from one market to another.
International strategy must be aligned with corporate strategy in a manner that exploits
firm resources and capabilities.
The United Kingdom Commission was formed to clarify the respective responsibilities
and obligations of relevant entities connected to a firm.
The terms Competences and capabilities are interchangeable.
Adjusting organization structure to eliminate mechanistic processes and to
accommodate more egalitarian models reduces turnover.
With patching, structure is intentionally altered so managers can better focus on core
and growth businesses while protecting new opportunities.
Equity alliances involve equal partners.
A(n) ________ is a form in which innovation efforts are completely integrated into an
existing organization structure.
A) ambidextrous form
B) matrix-style form
C) cross-functional form
D) functional form
During the initial stages of finding a position that works for a firm, strategists decide if
they will compete based on the logic of being a low-cost leader or as a ________.
A)differentiator
B)mid-level competitor
C)unique product operation
D)generic brand
In the return to normal stage, the firm shifts its emphasis from generating cash flow to
________.
A) maintaining a strong balance sheet
B) finding short-term financing
C) setting up emergency control systems
D) correcting accounting problems
All of the following are true about orthodoxies except ________.
A) they inhibit management’s recognition of new opportunities
B) they are deeply held beliefs concerning success within an industry
C) they are usually incorrect conceptualizations of the current market
D) they represent an industry’s status quo
In the cellular 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
All of the following are generic strategies except ________.
A)low-cost leadership
B)better quality
C)differentiation
D)focused low cost
A foreign-country entry vehicle in which a firm uses an intermediary to perform most
foreign marketing functions is referred to as ________.
A)exporting
B)joint ventures
C)licensing
D)comarketing
Information provides buyers with power when ________.
A)the focal industry is concentrated
B)suppliers have switching costs
C)the products are relatively inexpensive
D)when products are highly regulated
There are four major categories of factors that reveal whether an industry has
globalized. They are market, cost, government, and ________.
A)technology
B)environment
C)competition
D)legal factors
The overarching strategic management process flows from vision to goals and
objectives and then to the ________, which sets out how these goals and objectives are
to be achieved.
A) implementation levers
B) strategy diamond
C) organizational structure
D) metrics
A company makes a decision to expand only by developing new stores internally. The
company can best be described as using which of the following?
A.the vehicle of organic growth
B.the vehicle of acquisition
C.the differentiator of alliances
D.the economic logic of customization
Whereas industry ________ results in an industry with fewer players, ________ results
in fewer industries.
A)consolidation; concentration
B)concentration; consolidation
C)conglomerates; oligopolies
D)convergence; conglomerates
One element of the organizational strategy diamond is ________.
A)demographics
B)resources
C)differentiators
D)values
Which of the following strategy components was most helpful for Under Armour’s early
success in the sports apparel industry?
A.The company started in two market segments, t-shirts and footwear, at the same time.
B.The company’s first t-shirt product was highly differentiated from existing products.
C.Instead of starting with the U.S. domestic market, the company began its sales effort
in Europe.
D.The company increased sales by offering t-shirts at lower prices than the competition.
Effective top-management teams require all except which of the following criteria?
A)The team can manage the needs of interdependent but often diverse functional areas.
B)The team has a valuable and effective social network.
C)The team is able to respond to sudden changes in the global economy.
D)The team is able to develop a coherent plan for executive succession.
Variable costs are the costs of ________.
A)raw materials and labor
B)the last unit of production
C)rent and equipment
D)all expenses incurred by the firm
A dimension of cultural differences that pertains to whether more importance is given to
material aspects or a stronger emphasis is laid on interpersonal relationships is called
________.
A)power distance
B)uncertainty avoidance
C)masculinity or predominant values
D)long- or short-term orientation
Union Pacific Railroad has an extensive network of rail-line property. This network
represents a tangible and ________ resource.
A)copied
B)valuable
C)rare
D)common
Which of the following is a condition favoring success in a horizontal alliance?
A)They’re potentially beneficial when partners’ strategic goals diverge.
B)They’re more likely to succeed when partners are chasing industry leaders.
C)They’re more likely to succeed when partners share proprietary skills.
D)They’re potentially beneficial when partners’ competitive goals converge.
The key tasks in the role of management include all but which of the following?
A)perform the daily tasks of producing the firm’s output
B)identify resources and capabilities
C)specify the resources that will create competitive advantage
D)select the strategy that will get the most out of resources and capabilities
Detecting and responding quickly to unexpected customer demands is called ________.
A)anticipating change
B)speed of change
C)reacting to change
D)market segment change
Fixed costs are the costs of ________.
A)raw materials and labor
B)the last 100 units of production
C)rent and equipment
D)all expenses incurred by the firm
An individual who acts on behalf of others is referred to as a(n) ________.
A) principal
B) shareholder
C) agent
D) bondholder
All of the following are basic issues relating to the potential success of mergers and
acquisitions except ________.
A)pricing
B)premiums
C)walk-away price
D)convergence
Explain the three possible self-serving managerial motives for diversification.
What are some of the difficulties with implementing strategies in dynamic contexts?
Discuss the two drawbacks to the bonus-plan incentive.
What are implementation levers?
In terms of strategic and ethical decision making, explain how ethnocentrism and
stereotyping can have disastrous results.
What are capabilities?
How can firms use value-chain activities to create a competitive advantage?
What are the two key components of the strategic management process?