Any firm that invests in resources and capabilities that support innovation and not
retaliation may be only prolonging its inevitable demise.
A major goal of strategy implementation is to translate good ideas into action and
translate actions into good ideas.
The dynamic strategy perspective is particularly useful for analyzing markets that
change rapidly and unpredictably.
Managers may be willing to compromise shareholder interests and make acquisitions
that do nothing more than increase the size of the firm.
Functional organization helps managers of larger firms improve efficiency by fostering
professionalism in the performance of specialized tasks.
Contracts are always the best method for controlling partners’ behaviors.
The Cadbury Code of Best Practice was a report issued with suggestions for corporate
governance reform among United Kingdom companies.
Most all failures are caused primarily by economic factors.
The costs associated with internationalization can offset the benefits of operating in
multiple markets.
A firm is motivated to enter an alliance because it expects its resources and capabilities
to yield competitive advantage.
Strategic positioning is a useful starting point in dealing with issues derived from the
industrial economic model.
If a competitor can readily substitute resources and achieve the same benefit using
different combinations of resources, the nonsubstitutability criterion is satisfied.
In response to price competition, incumbents often try to keep factories at near capacity
production despite decreased demand.
Research shows that few firms persist with their competitive advantage over prolonged
periods of time.
Conditions at different phases of an industry life cycle provide similar opportunities and
constraints.
Firms operating above the minimum efficient scale (MES) have a cost advantage.
Cooperative strategies work well without a dedicated alliance function.
In the value-chain model, the firm of interest is linked to all possible exchange partners.
Codes of governance are ideal governance standards that all firms should follow.
Even when ownership is dispersed, some shareholders still are in a position to influence
corporate policies.
A goal of locating a firm or a particular aspect of its operations in a part of the world
where competition is the fiercest is to learn from leading-edge production practices and
________.
A)compete in that location
B)transfer that advanced knowledge back to the firm
C)beat the competition in developing even more advanced technologies
D)figure out how to neutralize the competition there
The company that became the largest manufacturer of electronic instruments in the
world is ________.
A) Intel
B) Texas Instruments
C) Hewlett-Packard
D) Pacific Scientific
Key success factors would satisfy the value criteria of the VRINE model but not the
rareness criteria.
Some experts believe that many strategy-implementation failures result from
management’s inability to ________.
A) get employees on board with new ideas
B) assess potential implementation obstacles
C) successfully copy industry leaders’ methods
D) develop strategic plans
When evaluating the quality of a firm’s strategy, the most critical question that should
be asked is ________.
A)Does the strategy make sense in the business environment?
B)Is the strategy cost effective?
C)Can the strategy be implemented?
D)Can the strategy be duplicated across similar firms?
Shared values are typically ________.
A) few in number
B) based in the surface level of the organization
C) that which state the purpose of the firm’s product
D) that which give identity to the firm’s market
The form of diversification in which the business units operated by a firm are highly
related is called ________.
A)related diversification
B)unrelated diversification
C)vertical diversification
D)horizontal diversification
All of the following are examples of nonequity entry modes except ________.
A)direct exports
B)comarketing
C)joint ventures
D)franchising
An international acquisition can be any of the following types except ________.
A)R&D
B)undercapacity
C)product-market extension
D)roll-up
When a firm competes as a differentiator, it becomes a competitor that hopes to achieve
________.
A)higher margins due to a lower cost basis than rivals
B)higher prices and margins because of superior quality
C)lower prices and margins because of average quality
D)lower margins due to a higher cost basis than rivals
The concept of “toughness” can best be described by which of the following?
A)The leader tends to perceive situations as promising rather than threatening.
B)The leader is willing and able to change an organization’s strategic course even when
it represents a significant change from the traditional way of doing business.
C)The leader works to develop a strong strategic plan and empowers the organization to
realize this vision.
D)The leader develops a coherent plan for executive succession.
Typically in the ________ section of the business plan, managers will show how the
company plans to attract and maintain customers.
A) executive summary
B) products and services
C) market analysis
D) marketing and sales plan
The annulment strategy is less about quashing the competition than about making it
________.
A)irrelevant
B)marginalized
C)complementory
D)a partner
Effective teamwork requires which of the following?
A)The team responds to a complex and changing environment.
B)The team can manage the needs of similar, independent units.
C)The team will work best with similar members.
D)The team requires a stable environment.
Firms that engage in importing must be informed of compliance with all of the
following except ________.
A)competitors’ strategies
B)customs regulations
C)entry of goods
D)classification and value
A company hires a business consultant to help identify key differentiators that may
increase the company’s competitive advantage. In discussing possible differentiators,
the consultant is least likely to mention which of the following?
A.product categories
B.image
C.price
D.speed to market
Which of the following is not an assumption of the internal perspective?
A.Each firm is a unique collection of resources and capabilities.
B.All firms possess the same strategically relevant resources.
C.Resources are not highly mobile across firms.
D.Firms acquire different resources and capabilities over time.
What are the two dimensions that intersect to exploit potential economies of scope and
revenue-enhancement synergies?
Use the five-forces model to analyze the airline industry.
What is willingness to pay and how does it impact strategic positioning?
What is an implementation lever?
What is the Level 5 Hierarchy?
What is an S-1 statement?
What are the critical decisions that must be made during the justification stage of
acquisitions? Explain.
Define low-cost leadership.
What is related diversification?
What is strategic coherence?