A strategic group is a subset of firms that have similar strategies and capabilities.
Key success factors can be likened to table stakes in a poker game.
Cooption refers to orchestrating a web of shifting linkages among evolving businesses.
A position in which the exploitation of a resource makes that resource stronger and
more resilient is called resource management.
Coherence is an alignment of the strategy with the industry environment and the vision
of how the firm will be positioned in that environment in the future.
Cost savings are the most common synergy.
The value-net model helps managers find alternatives to conventional win-lose business
scenarios.
Empire building almost always results in greater prestige for top executives.
A superordinate goal is an overarching reference point for a host of hierarchical
subgoals.
Managers may make acquisitions in order to increase earnings by diversifying the firm’s
revenue stream.
Business-level strategies are focused on developing and pursuing goals and objectives
within specific markets or industry segments.
The main advantage of offshoring is lower distribution costs in other countries.
In the U.S., not all accounting firms that audit public companies have to register with
the Public Company Accounting Oversight Board.
Most institutional investors prefer a large majority of insiders on the board.
Discoveries that often inspire people to seek market opportunities include all except
________.
A) scientific
B) technological
C) distribution
D) process
A legal document outlining a firm’s financial position in preparation for an initial public
stock offering is referred to as a(n) ________.
A) S-1 statement
B) business plan
C) audit opinion
D) 10-K report
All of the following are elements of an organization’s structure except ________.
A) authority
B) hierarchy
C) reward systems
D) coordination mechanisms
Before making international strategy choices, executives should find answers to
fundamental strategy diamond questions that include all of the following except
________.
A)Why should we expand into another geographic arena?
B)Which new geographic arenas should we move into?
C)How should we allocate human resources and raw materials?
D)What vehicle should we use and how should entry be staged and paced?
Firms can use value-chain activities to create value by either finding better ways to
perform the same activities or by ________.
A)integrating new activities into the chain
B)finding different ways to perform the same activities
C)aligning with other firms to merge activities
D)changing activities to match what competitors are doing
Prior experience with the negotiation process can influence the ________ that any party
brings to the negotiating table.
A)attitude
B)value
C)financial resources
D)terms
Which of the following statements is not a problem associated with executive
ownership?
A) It increases executives’ exposure to risk.
B) It may lead some executives to become risk seekers.
C) It causes executives to risk their human capital.
D) It causes executives to risk their reputation.
The final price actually paid to target shareholders of an acquired company is called the
________.
A)intrinsic price
B)purchase price
C)market value
D)present value
All of the following are possible costs associated with geographic expansion except the
liabilities ________.
A)of newness
B)of foreignness
C)of governance
D)without fault
The coevolution approach suggests that in making alliances, firms choose to develop all
of the following except ________.
A)vertical linkages
B)horizontal alliances
C)wholly owned enterprises
D)complementary associations
In industry convergence, the objectives include ________.
A)short-cut innovation by buying it from small companies
B)synergy of similar but expanded product lines or geographic markets
C)eliminating capacity, gaining market share, and increasing efficiency
D)anticipation of new industry emerging and culling resources from firms in multiple
industries whose boundaries are eroding
When the firm is located in a very ________ competitive environment, board
involvement is most effective when outside board members are drawn from
strategically dissimilar firms.
A) stable
B) strong
C) unstable
D) complex
When a firm centralizes the most valuable resources, but decentralizes others in order to
achieve level of localization, it is referred to as ________.
A)multinational vision
B)global vision
C)international vision
D)transnational vision
All of the following are stages in the turnaround process except ________.
A) changing management
B) organizational renewal
C) analyzing the situation
D) stabilization
_____ are not an arena described in the business strategy diamond.
A.Delivery channels
B.Product and service categories
C.Mergers and acquisitions
D.Market segments
Discuss some of the common characteristics of disruptions caused by competitors who
use new business models.
Explain the two critical roles of strategic leadership in successful strategy
implementation.
How could managers increase the value of an intangible resource such as a patent?
Explain the threat of substitutes for Blockbuster, the movie-rental business.
List some of the possible equity entry modes.
What are the five possible competitor-response strategies?
Using Ford Motor Company, give examples of possible vertical integration.
What was the impact of the Sherman Antitrust Act of 1890 on corporate diversification
strategies?