The more a resource is firm-specific and difficult to imitate, the more likely a company
holding that resource is said to have a distinctive competency.
Strategic control systems are the primary governance mechanisms established within a
company to reduce the scope of the agency problem between levels of management.
Different strategies are often required to support and strengthen a company’s business
model as a market develops over time.
To pursue a cost leadership strategy, strategic managers need to incorporate all the latest
technology into their products.
Strategic leadership is concerned with how to most effectively manage a company’s
strategy-making process to create competitive advantage.
Strong brand loyalty leads to more sales and the ability to charge higher prices.
One of the main differences between a product team and a team in a matrix structure is
that a matrix team is more permanent than a team in a product structure.
Product proliferation occurs in which stage of the product life cycle?
A.Embryonic
B.Growth
C.Shakeout
D.Maintenance
E.Maturity
When a company services the broad market and has a low degree of product
differentiation, it is most likely
A.pursuing a cost-leadership strategy.
B.pursuing a differentiation strategy.
C.pursuing a focus strategy.
D.stuck in the middle.
E.pursuing both cost leadership and differentiation.
All of the following strategies can be employed by companies as they begin to market
their products and establish production facilities overseas except:
A.Localization
B.International
C.Global
D.Transnational
E.Divestiture
To make sure that ethical issues are considered in business decisions,
A.a company should use a bottom-up approach.
B.a company should have a no-layoff policy.
C.top managers should articulate and model ethical behaviors.
D.a company should give seminars to teach people what is legal and not legal.
E.a company should hire and promote employees who do whatever it takes to achieve
organizational objectives.
Diversification is sometimes pursued by a company for the wrong reasons. Which of
the following is a faulty justification for diversification?
A.Risk pooling
B.Rescuing the core business from difficulty
C.Growth for growth’s sake
D.All of the above
E.None of these
The set of strategic alliances that an organization creates with suppliers, manufacturers,
and distributors to produce and market a product is called a(n)
A.network structure.
B.outsourcing network.
C.structure alliance.
D.oligopoly.
E.suppliers’ network.
If economies of scale are an industry’s primary entry barrier, a new entrant’s major risk
is
A.its inability to access labor and materials.
B.the inferior quality of its products.
C.its inability to match the innovation of the established firm.
D.its inability to produce in sufficient volume to match the cost advantages of
established producers.
E.its inability to get buyers to switch to its product.
A company’s mission
A.lays out the desired future state of the company.
B.outlines the manner in which employees and managers should conduct themselves.
C.defines the manner in which strategies will be developed and attained.
D.describes what the company does.
E.answers the question, “What will our business become?”
The takeover constraint refers to the
A.opportunity to acquire competitors if they are smaller than the acquiring company.
B.risk of being acquired by another company.
C.drop in the price of a share of stock due to a rumored takeover of the company.
D.lack of resources required to acquire another company.
E.reluctance of a company’s managers to acquire another company.
America Online blended its operations with those of Time Warner to create AOL Time
Warner. America Online is using which entry mode to enter the broadcast industry?
A.Acquisition
B.Internal new venture
C.Merger
D.Divestiture
E.Joint venture
Competitive intensity in a declining industry is greatest when
A.the industry is declining slowly instead of rapidly.
B.the product is easy to differentiate.
C.exit barriers are high.
D.entry barriers are high.
E.technology is stable.
A company should pursue related diversification instead of unrelated diversification
when the company’s
A.core skills are applicable to a wide variety of industrial and commercial situations.
B.core skills are highly specialized and have few applications outside the core business.
C.top managers are skilled at acquiring and turning around poorly run enterprises.
D.main objective is to maximize growth.
E.free cash flow is high enough that it has funds available for investment.