Information systems provide managers with a means for monitoring all of the following
EXCEPT:
A. the results that flow from the actions of subordinates.
B. the performance of empowered workers.
C. weekly operating statistics.
D. employees with over-the-shoulder supervision.
E. daily operating statistics.
The competitive battles among rival sellers striving for better market positions, higher
sales and market shares, and competitive advantage, suggest the rivalry force:
A. is stronger when firms strive to be low-cost producers than when they use
differentiation and focus strategies.
B. is often weak when rivals have emotional stakes in business or face high exit
barriers.
C. is largely unaffected by whether industry conditions tempt rivals to use price cuts or
other competitive weapons to boost unit sales.
D. tends to intensify when strong companies with sizable financial resources, proven
competitive capabilities, and respected brand names hurdle entry barriers looking for
growth opportunities and launch aggressive, well-funded moves to transform into
strong market contenders.
E. is weaker when more firms have weakly differentiated products, buyer demand is
growing slowly, and buyers have moderate switching costs.
External threats may pose various degrees of adversity upon the company and can
surface from many sources and examples, EXCEPT for:
A. the advent of cheaper or better technologies.
B. the entry of lower-cost foreign competitors and restrictive foreign trade policies.
C. new burdensome regulations.
D. higher overall unit costs relative to those of key competitors.
E. rising prices on key inputs (such as energy costs).
Which of the following statements concerning the effects of fluctuating exchange rates
on companies competing in foreign markets is NOT accurate?
A. Fluctuating exchange rates pose significant risks to a company’s competitiveness in
foreign markets.
B. The advantages of manufacturing goods in a particular country are largely unaffected
by fluctuating exchange rates.
C. Exporters win when the currency of the country from which the goods are being
exported grows weaker relative to the currencies of the countries that the goods are
being exported to.
D. The advantages of manufacturing goods in a particular country can be undermined
when that country’s currency grows stronger relative to the currencies of the countries
where the output is being sold.
E. Domestic companies under pressure from lower-cost imports are benefited when
their government’s currency grows weaker in relation to the currencies of the countries
where the imported goods are being made.
The hallmarks of a high-performance corporate culture include:
A. a deep commitment to employee training, unusually attractive fringe benefit
packages for company personnel, and frequently revised and updated values and ethics
statements.
B. a “can-do” spirit, pride in doing things right, no-excuses accountability, and a
pervasive results-oriented work climate where people go the extra mile to meet or beat
stretch objectives.
C. a strong emphasis on teamwork, strict enforcement of company policies and
procedures, and incentive compensation for all employees aligned with a balanced
scorecard approach to measuring performance.
D. a deep commitment to pioneering new best practices, a preference for being a
fast-follower as opposed to a first-mover or late-mover, and across-the-board bonuses
for all personnel when the company meets or beats stretch objectives.
E. a deep commitment to top-notch quality and superior customer service, dedicated use
of TQM and/or Six Sigma quality control programs, and the payment of big
performance bonuses and stock options.
Whether buyer bargaining power poses a strong or weak source of competitive pressure
on industry members depends in part on:
A. the degree to which buyers have any bargaining preferences and the extent to which
buyers are price-sensitive.
B. how many buyers are engaged in collaborative partnerships with sellers.
C. whether entry barriers are high or low and the size of the pool of likely entry
candidates.
D. whether the overall quality of the items being furnished by industry members is
rising or falling.
E. whether demand-supply conditions represent a buyer’s market or a seller’s market.
Tangible resources include:
A. human assets and intellectual capital, which can include the talent of the work force
and the creativity and innovativeness of certain personnel.
B. reputational assets, which can include the company’s reputation for quality, service,
and reliability as well as their reputation for fair dealings with suppliers.
C. relationships such as alliances that provide access to technologies, specialized
know-how, or geographic markets.
D. technological assets such as patents, copyrights, and innovation technologies.
E. company culture and incentive system, which includes the norms of behavior and
business principles.
Which of the following is typically the strategic impetus for forward vertical
integration?
A. Being able to control the wholesale/retail portion of the industry value chain
B. Experiencing fewer disruptions in the delivery of the company’s products to end
users
C. Gaining better access to end users and better market visibility
D. Broadening the company’s product line
E. Allowing the firm access to greater economies of scale
Which of the following is an advantage of a decentralized organizational structure?
A. Reducing the layers of management and encouraging lower-level managers and
rank-and-file employees to exercise initiative and act responsibly
B. Making it easy to fix accountability when company performance targets are not met
C. Generating higher productivity on the part of the workforce and a greater ability to
become an industry low-cost leader
D. Enhancing cross-unit coordination and the capture of strategic fits
E. Establishing the emergence of a collegial, collaborative culture where teamwork is a
core value and decisions are made on the basis of consensus
The marketing emphasis of a company pursuing a focused low-cost provider strategy
usually is to:
A. tout the company’s lower prices.
B. tout the lack of frills and extras.
C. out-advertise rivals and make frequent use of discount coupons.
D. communicate the attractive features of a budget-priced product offering that fits
niche members’ expectations.
E. communicate the product’s ability to serve the customer’s every need.
Why is it important to craft a business model?
A. Because it sets forth management’s game plan for maximizing profits for
shareholders
B. Because it details exactly how management’s strategy will result in the achievement
of the company’s strategic intent
C. Because it is a part of an operating model that focuses on delivering excellence and
creating value for external shareholders and internal labor force
D. Because it sets forth the key components of the enterprise’s business approach,
indicates how revenues will be generated, and makes a case for why the strategy can
deliver value to customers in a profitable manner
E. Because it sets forth management’s long-term action plan to match the business
standards set by formidable rivals
Which of the following pairs of variables is LEAST likely to be useful in drawing a
strategic group map?
A. Geographic market scope and degree of vertical integration
B. Brand name reputation and distribution channel emphasis
C. Product quality and product-line breadth
D. Level of profitability and size of market share
E. Price/perceived quality and image range and the extent of buyer appeal
Which of the following are integral parts of the managerial process of crafting and
executing strategy?
A. Developing a strategic vision, setting objectives, and crafting a strategy
B. Developing a proven business model, deciding on the company’s strategic intent, and
crafting a strategy
C. Setting objectives, crafting a strategy, implementing and executing the chosen
strategy, and deciding how much of the company’s resources to employ in the pursuit of
sustainable competitive advantage
D. Coming up with a statement of the company’s mission and purpose, setting
objectives, choosing what business approaches to employ, selecting a business model,
and monitoring developments
E. Deciding on the company’s strategic intent, setting financial objectives, crafting a
strategy, and choosing what business approaches and operating practices to employ
What is the relevance of quantitatively measuring the competitive strength of each
business in a diversified company’s business portfolio and determining which business
units are strongest and weakest?
Why is sustainable competitive advantage so important to a winning business strategy?
A new entrant in a market uses copycat products at its rival at budget prices. What can
you say about this company’s long-term success?
Explain why the strategies of firms that expand internationally are usually grounded in
home-country advantages or core competencies.
Explain the difference between financial objectives and strategic objectives. Give
examples of each.
Identify and briefly discuss four of the recommended practices companies have used to
recruit and retain the best employees to make the rank-and-file employees a genuine
competitive asset.
Identify and briefly describe the four most frequently used strategic approaches to
achieving a sustainable competitive advantage. Provide examples.