Differences in long-term performance between firms in the same industry primarily
come from different internal sources of competitive advantage.
New-market disruption strategies involve identifying a business that will let a firm shift
customers from a high-cost-to-serve to a low-cost-to-serve business model.
Land is an example of a resource that could be both tangible and intangible.
Internal interests can sabotage effective resource-allocation decisions.
A valuable resource that is readily available contributes to competitive advantage.
Financial markets tend to not accept cost savings as a rationale and are less likely to
reward savings-motivated mergers and acquisitions with higher stock prices.
The relative power of industry participants and industry suppliers affects the pricing and
profitability of both industry groups.
Ethnocentrism is the conviction that one’s own national, group, or cultural
characteristics are “normal” and ordinary.
The threat of new entrants is greater when there are no switching costs.
Revenue-enhancement synergy exists when the whole is greater than the sum of the
parts.
First movers always attain dominant market positions.
The entrepreneurial process is an important aspect of all phases of a company life cycle.
Succession planning is the process of managing a well-planned and well-executed
transition from one CEO to the next.
Horizontal alliances improve value to customers by making it possible for alliance
partners to respond more quickly to market changes.
Strategic coherence is the symmetrical coalignment of the five elements of the firm’s
strategy, the congruence of functional-area policies with these elements, and the
overarching fit of various businesses under the corporate umbrella.
Industry analysis can give firms an advantage when making decisions. This analysis
helps managers determine the nature of the competition, the possible sources of
imperfect competition, and the ________.
A)hierarchy of the firm’s management system
B)possibility of the firm’s earning above-normal returns
C)industries that would be compatible with the firm
D)number of firms in other industries
Learning is important to the success of a firm’s international strategy for all of the
following reasons except differences in ________.
A)institutional environments
B)motivational environments
C)legal environments
D)cultural environments
A firm’s skills in using its resources to create goods and services are its ________.
A)resources
B)capabilities
C)values
D)logistics
Owners and workers typically sit on the boards of directors in which of the following
countries?
A) France
B) Germany
C) China
D) all of the above
CAGE-related risks are most relevant in all of the following industries except industries
in which ________.
A)cultural identity is an important factor
B)the government views the products as essential to national security
C)language identity is a minimal factor
D)income/input costs are key determinants of product demand/cost
The primary contribution to multiparty alliances is ________.
A)human resources
B)consumer products
C)raw materials
D)information
A tool that helps managers identify the size of value-chain segments and the
attractiveness of each segment is called the ________ pool.
A)revenue
B)expense
C)profit
D)net
A form of organization in which divisions are organized around product or geographic
markets is referred to as a ________.
A) functional structure
B) multidivisional structure
C) network
D) matrix
Large firms can use ________ to pursue shaping strategies.
A)containment
B)funding
C)slotting fees
D)product improvement
Which of the following is not one of the fundamental lessons learned from the balanced
scorecard?
A) use a strategy map to align metrics with strategy
B) make strategy a continuous and dynamic process
C) stay focused on short-term financial or other outcome measures
D) translate strategy into intangible performance measures
Superior executives are distinguished by a talent for ________.
A)coordinating suppliers
B)building relationships
C)strategic thinking
D)supervising employees
Competition is fierce in the soft drink industry. As a result, higher degrees of rivalry
result in lower levels of average industry ________.
A)profits
B)losses
C)cooperation
D)dropouts
Which of the following is not a purpose of vertical acquisitions?
A)to secure a reliable supply
B)to reduce total production costs across the value chain
C)to focus on distinct alliances
D)to leverage resources and capabilities of upstream activities to create more value for
the customer
International expansion can contribute to a firm’s competitive advantage in important
ways. Three of the most important aspects include all but which of the following.
A)cultural
B)economies of scale and scope
C)multipoint competition
D)location and learning
Increasingly, competitive advantage results from the ability to manage change and
harness the resources and capabilities consistent with ________ strategies.
A)dynamic
B)first- or second-mover
C)late-mover
D)revolutionary
The practice of mapping diversified businesses or products based on their relative
strengths and market attractiveness is called ________.
A)strategic mapping
B)related diversification
C)portfolio planning
D)strategic planning
What question must managers ask concerning the relationship between vehicles and
international strategy?
A)Which geographic areas will we enter?
B)How does our international strategy lower our costs?
C)When will we go international?
D)Which international market-entry strategies will we use?
Markets make important adjustments in the valuation of a firm by doing all of the
following except ________.
A)evaluating future growth opportunities
B)assessing discounts for bad management
C)awarding premiums to firms that are likely to become the targets of bidding wars
D)awarding premiums for excessive diversification
According to the text, executives tend to be reactive and defensive in their decisions
when their firms don’t have which of the following?
A)leadership training
B)skilled personnel
C)positive net worth
D)clear strategies
The implementation lever that usually gets the most attention in an organization is
________.
A) buyers and suppliers
B) structure
C) systems and processes
D) people and rewards
A class of mergers between firms of similar size and influence are referred to as
________.
A)equal alliances
B)mergers of equals
C)synergistic mergers
D)mergers of convenience
The initial plan behind a strategy is best described as the ________ strategy.
A.unrealized
B.realized
C.emergent
D.intended
Corporate new ventures are less likely to succeed when they ________.
A) experiment and prototype during early development
B) balance demands for early profitability with realistic time lines
C) combine disciplined oversight and stinginess with entrepreneurial autonomy
D) are based on products that differ significantly from the core business
How do sharing and leveraging capabilities lead to synergy?
What are some possible pitfalls to the five competitor-response strategies?
What are some of the decisions management must make concerning international
strategy configuration?
What is the difference between economies of scale and the learning curve?
How can technology impact the threats and opportunities a firm encounters?