If a firm is pursuing a growth strategy, the coevolution perspective would suggest that it
divest slow-growth businesses and products.
The entrepreneurial model emphasizes a need to choose between opportunity or
resources and capabilities.
The five competitive strategies for use in a dynamic environment are purely defensive
strategies.
Customer purchase decisions in horizontally related industries are often made
consecutively.
A capability is said to be rare if it enables a firm to fend off threats in its environment.
Managers can squander value through diversification.
Strategies for dealing with stable markets must pay special attention to the arenas and
staging elements of the strategy diamond.
The strategy of common ownership can dissipate potential shareholder value.
The external environment provides business opportunities to the firm.
The chief monitoring device available to shareholders is the federal government.
Limited scope economies are available to firms that expand globally.
A by-product of dictatorial leadership that is a problem related to dictatorial managers
becoming adverse to change or to implementing it is known as lack of managerial
________.
A) depth
B) breadth
C) complexity
D) insight
The CAGE framework is a tool that considers ________ dimensions to assess the
distance created by global expansion.
A)culture, association, geography, and expansion
B)culture, administration, geography, and expansion
C)culture, administration, geography, and economics
D)culture, association, geography, and economics
When deciding to enter a new business, companies have alternative vehicles to choose
from, including all of the following except ________.
A)external development
B)internal development
C)alliances
D)acquisitions
Firms sometimes develop alliances with key suppliers that can take the form of all
except which of the following?
A)outsourcing
B)sole-sourcing arrangements
C)just-in-time arrangements
D)supplier is formed by two rivals
________ exists when the combined benefits of a firm’s activities in two or more arenas
are more than the simple sum of those benefits alone.
A)Synergy
B)Competitive advantage
C)Diversification
D)Corporate strategy
Three of the listed criteria appear to be common among successful outsourcing
arrangements. Which is not common?
A)quality assurance is outsourced
B)commitment of time and effort
C)partners are treated as partners
D)middle management is involved
A company executive makes a presentation to the company’s shareholders regarding the
major components of the company’s business strategy. Which of the following is the
executive least likely to mention when explaining the component of economic logic?
A.Superior service
B.Internal development
C.Economies of scale
D.Proprietary product features
For the most successful firms, international expansion is used as a vehicle for
________.
A)improving existing products in existing markets
B)reducing infrastructure costs
C)reducing competitive risks
D)improving home market advantage
The form of an alliance depends on all of the following factors except ________.
A)the number of participants
B)the objectives of participants
C)the type of participants
D)the legal structure
Which of the following is not one of the agency control mechanisms commonly seen in
all governance guidelines?
A) ownership concentration
B) boards of directors
C) strategic mechanisms
D) market for corporate control
Managers analyze strategic groups in order to ________.
A)get a more detailed look at the competitive environment
B)identify growth opportunities
C)identify future competition
D)all of the above
Which of the following resources is not generally implemented over extended periods
of time?
A)brand equity
B)real estate
C)reputation
D)innovative capabilities
A new-market disruption that significantly changes the industry value curve by
disrupting the expectations of customers by vastly improving product performance is
referred to as ________.
A)mid-term disruption
B)high-end disruption
C)low-end disruption
D)hybrid
Bottled water has an active market consisting of nearly half of all Americans. It is on
track to surpass all but which of the following beverages?
A)sodas
B)beer
C)milk
D)coffee
Alliances formed during the 1970s emphasized ________.
A)product and service performance
B)the building and reinforcing of market position
C)complex benefits, such as organizational learning
D)informal relationships
Southwest Airlines is an airline industry leader. It has protected its competitive
advantage by ________.
A) paying its workers higher than average wages
B) patenting specific aeronautical technologies
C) configuring its value-chain activities in an inimitable way
D) eliminating activities to the value chain that are unique
Governments can make policies that can help or hinder globalization. Examples of
decisions that have resulted in a hindrance to globalization include all but which of the
following?
A)Spanish railways were purposefully made incompatible with France’s railways.
B)The European Union mobilized around one cell-phone standard and the U.S. another
standard.
C)Trade restrictions between China and the U.S. that were not lifted until the 1970s.
D)Non-stop flights were implemented between the world’s capital cities.
During the ________ stage of the industry life cycle, products become more familiar
and product information is more widely available.
A)embryonic
B)growth
C)maturity
D)decline
Some firms are labeled as ________ because their operations often span the globe early
in their existence.
A)multinational
B)prospectors
C)born global
D)transnational
To excel at a(n) ________ strategy, a firm must assume the role of first mover.
A)neutralization
B)absorption
C)shaping
D)annulment
An industry-structure model that highlights alliance possibilities is referred to as a(n)
________.
A)value-chain model
B)value-net model
C)value-based model
D)value-alliance model
Potential sources of cost advantages include all of the following except ________.
A)economies of scope
B)production technology
C)product design
D)brand image
In a ________, the company is organized as a group of associates who own shares or
units in the company.
A) functional structure
B) professional partnership
C) network
D) franchise
All of the following are examples of economic problems except ________.
A) declining demand
B) currency devaluation
C) interest rate increases
D) information transportation
The mechanism with which a strategic leader can help to execute a firm’s strategy is
referred to as a(n) ________.
A) organizational structure
B) implementation lever
C) organizational lever
D) implementation system
What is the difference between new-venture creation and corporate renewal?
According to the CAGE framework, what are the industries and products affected by
cultural, administrative, geographic, and economic distance?
What is consolidation and what motivates it?
What are long-term incentive plans? Give examples.
What is the difference between first and second movers?
Discuss some of the pros and cons of having the CEO and chair positions split.
Why is it important for managers to understand the relationship between experience and
costs in a firm’s use of technology?
Discuss the drawbacks of acquisitions over internal development.
What are the two situations under which alliances will never be productive?