Diffused cost leadership is one of Michael Porter’s four positions in the field of strategic
management.
Bootstrapping refers to exploiting a new business opportunity with limited funds.
A franchisee assumes all management responsibility for individual business locations.
A complementary acquisition increase involves a complementary business.
Commodization occurs when sales depend less on unique product features and more on
prices.
Developing a low-cost strategy means that a firm must not pursue opportunities to
enhance product quality.
Both economies of scope and revenue enhancement materialize when a firm expands
into new lines of business.
Social capital is the money invested in business-related social functions.
In established firms, entrepreneurial behavior faces the same growth-management
problems as those faced by startup firms.
Managers play the unique role of being a resource for the firm and having capabilities
they use to manage the firm.
Corporate governance has little impact on a firm’s ability to create a competitive
advantage.
Transferring capabilities is a special case of resource sharing that can create cost
savings and revenue enhancement.
New firms’ business models cannot be imitated quickly by incumbents because of
tradeoffs with value-chain activities that are essential to the incumbents.
Ignoring individual qualities puts executives at risk of making unethical, unfair, and
sometimes illegal decisions.
The degree of environmental stability of industries and markets is a major factor in
determining a firm’s competitive advantage.
Rarity is defined as scarcity relative to demand.
To address the strategic element of economic logic, a firm must understand how it will
expand into international markets.
In testing the quality of a firm’s strategy, it is important to understand the profit
potential of both the firm’s current position and the position toward which the strategy
is taking the firm.
Firms often acquire and merge with firms in adjacent sectors in order to bundle related
products and cross sell to existing customers.
Lean manufacturing process improvement reduces road blocks to quickly adding value
by enhancing all of the following except ________.
A) set-up time reduction
B) standardized work
C) quality at the source
D) labor relations
A first-mover advantage is valuable under all of the conditions except ________.
A)a firm achieves an absolute cost advantage in terms of scale or scope
B)the scale of a firm’s first move makes imitation unlikely
C)first-time customers may move freely among competing products because of new
product preferences
D)a firm’s image and reputation advantages are hard to imitate at a later date
A form of organization that revolves around specific value functions is referred to as a
________.
A) functional structure
B) multidivisional structure
C) network
D) matrix
Toyota’s quality reputation developed over time and therefore, is not easily ________.
A)imitated
B)lost
C)understood
D)exploited
The best description of the leader’s role of spokesperson is which of the following?
A)The executive taps into a network of contacts to collect needed information.
B)The executive passes necessary information to external stakeholders.
C)The executive passes necessary information to internal stakeholders.
D)The executive designs the firm’s strategy.
New markets are often created when managers ________.
A)export ideas from their competitors
B)focus on strategic convergence
C)eliminate some nonessential features that industry incumbents take for granted
D)react defensively to counteract the force of new entrants
The value-chain activities that bring carbonated beverages to market are centered on
four functions that include production, marketing, packaging, and ________.
A)distribution
B)manufacturing
C)selling
D)bottling
In the mature phase of the industry life cycle, ________.
A)the market expands beyond the niche
B)there is a proliferation of products served
C)there is product and market contraction
D)participants emphasize problem solving
Belief in the conviction that one’s own national group or cultural characteristics are
“normal” is called ________.
A)stereotyping
B)cultural bias
C)ethnocentrism
D)racial bias
The greater the value differences between disconnected markets, the greater the profit
potential arising from arbitrage. However, greater distance also tends to be
accompanied by greater ________ and risks.
A)human resources costs
B)R&D costs
C)entry costs
D)exit costs
In a strategy map of the balanced scorecard, operations management processes are
concerned with which of the following areas?
A) supply
B) selection
C) safety and health
D) research and development
The maximum opportunities to exploit potential economies of scope and revenue
enhancement synergies lie at the intersection of the two dimensions of fit among
parent-subsidiary ________ and ________.
A)products; services
B)similarities; dissimilarities
C)managers; employees
D)resources; strategies
When a firm uses acquisition as a strategy in lieu of R&D, it is usually trying to gain
ownership of the other firm’s ________.
A)real estate
B)technology
C)proprietary secrets
D)trade agreements
The present value of a company’s future cash flows from existing assets and businesses
is referred to as ________.
A)intrinsic value
B)current value
C)market value
D)present value
One of the fundamental conditions that leads to a potential agency problem in publicly
held companies is the separation of firm ownership from ________.
A) lower level employees
B) the board of directors
C) regulatory agencies
D) company management
What are the six key aspects of corporate strategy as it affects diversification decisions?
What are the two phases successful global startups must complete?
Explain the risk associated with the misappropriation of resources and capabilities.
Discuss the two forms of technological change.
Explain the three major implementation levers.
Discuss the risks of outsourcing.
Define balanced scorecard.
What are the components of the five-forces model of industry structure?
List the two tasks at which managers must succeed in the strategy to remain continuous
and dynamic.