Strategic coherence is best demonstrated by firms that move in and out of new
businesses.
The external perspective indicates that differences in competitive advantage are more
often a function of industry attractiveness than a function of the firm’s position in the
industry.
Some international activities are designed to augment a firm’s business strategy, such as
sourcing key factors of production to cheaper labor markets.
Turnaround management is also known as corporate reconstruction.
External changes such as natural disasters and wars occur suddenly and unpredictably.
Differentiation strategists work to create a common brand image.
Acquiring firms is more likely to realize synergies when managerialism and hubris are
kept in check.
The alliance-net model helps managers find potential partners.
Resource accumulation is static while possession of stocks of resources is dynamic.
The dynamic perspective looks at how a firm arrived at its current market position to
predict future competitive advantage.
The likelihood of a firm achieving its objectives is maximized when its vision strategy
and industry conditions are aligned.
Acquisitions are typically all-or-nothing propositions.
In a firm with a broad scope, division-level managers share resources and cooperate to
implement their strategies.
The network structure is a hybrid between the functional and multidivisional structures.
When once-distinct industries come together, they form conglomerates. All but which
of the following companies are not conglomerates?
A)Fox
B)Starbucks
C)Disney
D)FedEx/Kinko’s
All of the following are possible types of technological disruptions except ________.
A)process innovations
B)service innovations
C)application innovations
D)business model innovations
Products and services that pose a threat to incumbents are known as ________.
A)substitutes
B)complementors
C)co-opetors
D)new entrants
The advantage of a real option investment is that a firm can ________ when the
competitive environment shifts.
A)be the industry leader
B)preserve flexibility to be well positioned
C)be stronger financially
D)be positioned to neutralize threats from smaller firms
Stock can be reduced by all but which of the following?
A)sustained investment
B)divestiture of business units
C)loss of key personnel
D)shifts in the competitive environment
All of the following are examples of a leader’s informational roles except ________.
A)monitor
B)spokesperson
C)entrepreneur
D)disseminator
Just-in-time and sole-sourcing agreements may be strategic for suppliers in all areas
except ________.
A)concentration of the sales customer base
B)investment in distribution infrastructure
C)expansion of the sales customer base
D)sales volume
A firm that is most interested in markets with high consumer buying power uses
________ as the first sorting cue in applying CAGE analysis.
A)education level
B)population density
C)per capita income
D)median income
Many successful innovations and new ventures are sponsored by ________.
A) existing companies
B) private investors
C) government entities
D) all of the above
The competitive actions a firm takes in another firm’s key markets is referred to as a
________.
A)competitive advantage
B)competitive assault
C)strong advantage
D)stronghold assault
The success of a new venture division within a firm can be measured using a(n)
________.
A) external rate of return metric
B) internal rate of return metric
C) corporate tax return
D) evaluation by employees
Which of the following is an example of an equity entry mode?
A)contractual agreements
B)acquisition
C)indirect exports
D)comarketing
Premium prices for otherwise similar products are paid when a firm is able to uniquely
satisfy a customer’s needs along the dimensions of all but which of the following?
A)quality
B)image
C)similarity
D)speed
A firm can redefine its arena by doing all but which of the following?
A)imagining the total possible market rather than the served market
B)changing the temporal or geographic availability
C)diversify its products
D)spearheading industry convergence
Many firms find it difficult to implement the ________ structure because it calls for
high levels of resource sharing across divisions.
A) multidivisional
B) matrix
C) functional
D) network
The two most common types of incentive compensation programs that reward
executives and align the interests of top-management teams with those of shareholders
are stock options and ________.
A) commissions
B) employee discounts
C) annual bonus plans
D) paid vacations
According to the CAGE framework, all of the following are attributes creating cultural
distance except different ________.
A)languages
B)religions
C)social norms
D)climates
All of the following may cause a turbulent environment except ________.
A)short product life cycles
B)long product design cycles
C)new technologies
D)incumbent repositioning
With ________ options, serving markets on two continents by building two plants
instead of one gives a firm the option of switching production from one plant to the
other as conditions dictate.
A)waiting-to-invest
B)growth
C)flexibility
D)learning
In the stabilization stage, firms are focused on ________.
A) broadening the business base
B) making current operations efficient
C) pursuing new market opportunities
D) all of the above
Firms often decide against entering new businesses because they are not likely to
generate sufficient return on capital to justify the ________.
A)upheaval
B)premium cost
C)resource allocation
D)human resources changes
The symmetrical coalignment of the five elements of a firm’s strategy diamond
contributes to ________.
A)a firm’s complexity
B)future balance
C)strategic purpose
D)strategic coherence
Intel’s advantage is due, in part, to all but which of the following?
A)its use of engineering expertise to create valuable technologies
B)operational efficiencies that make its products proprietary standards
C)its eye-catching packaging
D)marketing skills that speed products to market
A company that uses nonequity alliances as a strategy vehicle is ________.
A)Exxon-Mobil
B)Starbucks
C)Wal-Mart
D)Target
What is a strategic business unit?
What is a stronghold assault?
What are the four ways that competitive action may be initiated in phase 1?
What is a learning curve?
Compare and contrast insiders versus outsiders on a board of directors.
What are questions that managers should ask before going through with an acquisition?
Explain the factors that affect supplier power.
Explain the four basic questions used to discover new-market space outlined in the Four
Actions Framework.
Explain the three dimensions that cause dynamic contexts.