International expansion can extend the life cycle of a product that is in its maturity stage
in the company home country.
The strengths and capabilities of a firm are enough to enable it to achieve a competitive
advantage in the marketplace.
Setting a direction is the leadership activity that involves developing a strategic vision
of what the organization could become.
The use of e-mail can be distracting to employees. Some firms limit the time that
employees spend using email.
Aereo enters the broadcasting market with a new offer that streams the local broadcast
signals to customers so that they can watch content on their PCs or tablet computers in
real time or save for another viewing time. This is an example of disruptive innovation.
Managers should focus their attention on interrelationships among value-chain activities
within the firm, NOT on relationships among activities within the firm and other
organizations (such as suppliers and customers).
Contemporary approaches to strategic control rely primarily on _____________.
A. feedback controls
B. single-loop learning
C. double-loop learning
D. comparative learning
According to the text, which of the following might does not make it difficult for
entrepreneurial firms to effectively pursue a strategy of differentiation?
A. Incumbent firms are constantly seeking opportunities to specialize in market niches.
B. Differentiation strategies are often expensive to enact.
C. It may be difficult for a young firm to establish a strong brand identity.
D. Implementing superior new technologies may be challenging for entrepreneurial
firms.
Which of the following is not a factor that affects how a competitor will respond to a
competitive attack?
A. how dependent the competitor is on that industry or particular market segment
B. the degree of market power and reputation of the company that initiated the attack
C. the resources which are available for a firm to respond
D. the stock market reaction to the initial competitive attack
Which of the following terms is used to refer to opportunities that are practical and
physically possible?
A. durable
B. valuable
C. achievable
D. sustainable
WellPoint Health Network states: WellPoint will redefine our industry: through a new
generation of consumer-friendly products that put individuals back in control of their
future. This is an example of a:
A. strategic objective
B. vision statement
C. vague statement of direction
D. line manager’s individual goal
Which of the following is not a dilemma faced by corporations trying to manage the
innovation process?
A. launching incremental rather than preemptive innovations
B. emphasizing marketing over management innovations
C. preferring experience over initiative
D. choosing internal rather than external staffing
Which of the following is not an example of an IP-related litigation?
A. Apple and HTC sue each other based on patent infringement.
B. Apple sues smartphone makers running Android, Google’s mobile operating system.
C. China is sued by U.S. manufacturers of video games.
D. The United States sues to get access to physical plant assets in China.
The three key types of resources that are central to the resource-based view of the firm
are:
A. tangible resources, intangible resources, and organizational structure
B. culture, tangible resources, intangible resources
C. tangible resources, intangible resources, and organizational capabilities
D. tangible resources, intangible resources, and top management
Barriers in which the design of organization structure, information processing, and
reporting relationships, impede the proper flow and evaluation of information are
known as _____________.
A. systemic barriers
B. behavioral barriers
C. political barriers
D. barriers to entry
In 2005, Plum Organics entered the market with organic baby food and snack foods for
children. It now has over 20 products and is listed at number 63 on the Inc 500 list of
fastest growing private companies. It used which new entry strategy in 2005?
A. imitative
B. pioneering
C. adaptive
D. differentiated
In the Porter Diamond of National Advantage framework which of the following factors
does not affect nation competitiveness?
A. The position of the nation in factors of production necessary to compete in a given
industry.
B. The presence or absence in the nation of supplier industries that are internationally
competitive.
C. The conditions in the nation governing the nature of foreign rivalry.
D. The nature of home-market demand of the products or services of the industry.
Which of the following approaches to behavioral strategic control would be the least
appropriate for an organization in which there is a great need for innovation and a high
degree of autonomy?
A. culture
B. rewards
C. rules
D. incentives
Which of the following statements about action plans is true?
A. Action plans, though specific, should permit a degree of autonomy to managers and
not be constrained by budgets.
B. Action plans must be specific so that managers will have a clear understanding of the
resource requirements necessary to implement the plan.
C. Action plans should not be constrained by a time frame in order to allow for
modification.
D. Although managers must be held accountable for implementing action plans, this
accountability often erodes the managers’ motivation to implement the plan on a timely
basis.
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by
producing much of its own polypropylene fiber, a key input to its manufacturing
process. This is an example of _______________.
A. using related diversification to achieve value by pooling negotiating power to
achieve market power
B. using related diversification to achieve value by leveraging core competencies to
achieve economies of scope
C. using related diversification to achieve value by integrating vertically in order to
acquire market power
D. using related diversification to achieve value by integrating vertically in order to
attain economies of scope
What is a major reason for Nokia to lose its competitive edge in the cell phone
business?
A. The team consisted of scientists from around the world.
B. The team consisted of only Finnish scientists.
C. All of the work required diverse skill sets.
D. Each scientist worked alone, separate from colleagues.
Rules and regulations, rather than culture or rewards, would be used for strategic
control at which type of company?
A. software developer
B. stock brokerage firm
C. manufacturer of mass produced products
D. high tech research facility
The text discusses three areas a firm must be concerned with in order to keep their best
and brightest employees from leaving. These include all of the following EXCEPT:
A. hiring/selecting
B. developing
C. sorting/absorbing
D. retaining