An effective executive team relies partly on the division of labor.
Clearly articulated vision and mission statements may be used as substitutes for
strategy.
Good economic times often contribute to organizational problems.
Greenfield investments do not require any equity investment.
An organization’s exploitative capabilities incorporate all of the dimensions of its
value-adding processes.
A balanced scorecard may also be called a strategy scorecard.
The ambiguity of vision statements enables organizations the flexibility to change
strategy or implementation tactics when it looks as if business as usual isn’t going to
realize the expressed vision.
The mission statement is the declaration of what a firm is and its fundamental values
and purposes.
A lack of effective monitoring may result in one or more partners exiting the alliance.
Formulation is the process of aligning the five elements of the strategy diamond.
Once the business plan has been drawn up, many entrepreneurs then launch the new
product and secure start-up financing.
In successful horizontal alliance, partners must protect proprietary skills.
The difference between what firms know and what they do is referred to as the learning
gap.
In markets that are dominated by only a few firms, the degree of industry stability has
no effect on competitive advantage.
The smaller the difference between the disconnected markets, the greater the profit
potential arising from arbitrage.
Resources are the inputs that firms use to create goods or services.
The costs of different global value-chain activities are very similar.
New-market creation emphasizes capabilities that ________.
A)meet the competition head on
B)consolidate the competition
C)eliminate the competition
D)eclipse the competition
Research suggests that firms average about ________ acquisition(s) per year.
A)4
B)3
C)2
D)1
All of the following are examples of nonequity alliances except ________.
A)consortia
B)licensing
C)cobranding
D)franchising
Successful strategies are usually formulated by focusing on a single functional business
area.
By organizing value-chain activities in unique and inimitable ways, firms are creating
________.
A)distinctive capabilities
B)intangible resources
C)tradeoff protection
D)core competencies
In analyzing the data for the S&P 500 and S&P Midcap firms over an eight-year period,
it was discovered that at the median level of diversification, performance is ________
than at low or high levels of diversification.
A)slightly lower
B)much lower
C)slightly higher
D)much higher
Dell Inc. uses a core distribution and sales engine known as the Dell ________ model
to maintain its position as the world’s second largest PC maker.
A)Innovative
B)Global
C)Competitive
D)Direct
Revenue-enhancement synergies generally arise from ________ and ________
opportunities.
A)bundling; joint selling
B)bundling; separate selling
C)separating; joint selling
D)separating; separate selling
The idea that every public company is theoretically for sale is called ________.
A) the market for corporate control
B) mergerability
C) takeover susceptibility
D) perennial saleability
The ________ perspective focuses on the organization’s priorities for fostering change,
innovation, and growth.
A) financial
B) internal-business-process
C) learning-and-growth
D) external-relations
Which of the following is not one of the essential components of the Sarbanes-Oxley
Act?
A) accounting oversight
B) auditor independence
C) shareholders’ responsibilities
D) analysts’ conflict of interests
Nike outsources manufacturing so that it can focus on product development, logistics,
brand management and ________.
A)customer retention and expansion
B)innovative merchandising
C)research and development with new technologies
D)business analysis
The strategy where a firm sells off a business decision is referred to as ________.
A)reverse acquisition
B)divestiture
C)dispossession
D)inverted alliance
The key to the value-chain approach to competitive advantage is ________.
A) sharing value-chain activities with competitors
B) developing and configuring value-chain activities
C) having value-chain activities performed by the CEO
D) focusing on value-chain links so they have the same strength
Net profit margin is defined as net profits divided by total ________.
A)inventory value
B)costs
C)sales
D)depreciation
Stouffers combines its reputation for high-quality ingredients, innovative menus, and
technological advances with all but which of the following to enjoy success as a broad
differentiator?
A)high-quality packaging
B)lowest cost per meal
C)use of food brokers to get broad distribution
D)advertising that creates the perception of quality
The business prospectus does all of the following except ________.
A) describe the perceived business opportunity
B) outline the firm’s strategy
C) detail the firm’s current products
D) provide details concerning the costs of the IPO
Name the four positions included in Porter’s concept of generic strategies.
Discuss the development of a mind-set for global dynamic competitiveness.
What are some of the warning signals of organizational decline?
What can firms do to avoid or withstand a technological discontinuity?
Define the concepts of reacting to and anticipating change.
Discuss the entrepreneurial, capability-building, and renewal processes of senior
managers.
Which leadership skills are present in level 1 of the Level 5 Hierarchy?
List the four stages of the acquisition process.
What are some of the possible contributing factors to unsuccessful strategic change?
Explain the four stages of the industry life cycle.