The five elements of a strategy are critical to any new or established firm that is
engaged in entrepreneurial activity.
A firm that controls a valuable and scare resource always has a competitive advantage.
Successful strategies increasingly require that firms change the rules of the game.
Although economies of scale are possible as resources are shared across markets,
strategy must be executed at the national level.
Complementors are an increasingly critical industry force that has been added to the
five-forces model.
Outsiders are typically more independent but may lack critical knowledge.
According to the I/O approach, the appropriate strategy and key assets are dictated by
firm-specific characteristics.
Research suggests that the best way to understand the effectiveness of CEOs is by
examining their actions.
In the oil industry, resources and capabilities are uniformly developed by all
competitors.
Portfolio planning dictated that “cash cows” should not be maintained, but “dogs”
should be.
Participating in international markets equates with having a competitive advantage to
exploit international opportunities.
A technological discontinuity is an innovation that dramatically advances an industry’s
price-versus-performance frontier.
Decisions about external vehicles are actually more complex in domestic contexts.
Political factors must be considered when performing PESTEL analysis. The factors
include ________.
A)contributions to the candidate in a new market who will be most helpful
B)the stability of the political environment in new markets
C)past incumbents’ views on business expansion in their cities
D)the number of members on the city council in a new market area
The insights that help managers analyze an industry originate in a discipline called
________.
A)microeconomics
B)macroeconomics
C)industrial organization economics
D)domestic and international economics
Relative dynamism of an industry can affect an alliance decision in all of the following
ways except ________.
A)stable environments are much more forgiving of mistakes
B)stable environments allow firms to participate in more alliances
C)stable environments allow firms the luxury of learning from their mistakes
D)dynamic environments allow firms to participate in more alliances
Revenue-enhancement synergy exists when total sales are greater if two products are
sold and distributed ________.
A)by cooperating firms
B)within the same business unit
C)by competing firms
D)within one firm
International strategy can contribute to a firm’s competitive advantage through all of the
following ways except ________.
A)economies of scale
B)location
C)single-point competition
D)learning
Governance and coordination costs increase when ________.
A)exiting global markets
B)information distortion increases
C)domestic expansion occurs
D)liability of foreignness increases
Decision-making problems may arise during which of the following stages?
A)idea generation
B)justification
C)integration
D)all of the above
The two facets of strategy implementation are implementation levers and ________.
A) communication
B) organizational structure
C) strategic leadership
D) strategy formulation
If you multiply a firm’s equity multiplier by its return on assets (ROA), you arrive at the
firm’s return on ________.
A)investment
B)equity
C)capital
D)liabilities
In a strategy map of the balanced scorecard, innovation processes are concerned with
which of the following areas?
A) supply
B) selection
C) safety and health
D) research and development
When ________ is kept in check, acquiring firms are more likely to realize synergies
from a merger or acquisition.
A)attrition
B)performance
C)managerialism
D)materialism
A danger of developing a new business over acquiring an existing one is that the firm
may ________.
A)lose customers
B)lose economies of scale and scope
C)expend existing resources
D)spend too much money on technology
An analysis of industry structure should include all of the following features except
________.
A)resources
B)barriers to entry
C)new entrants
D)existing competitors
Alliances can be vehicles for all of the following strategies except ________.
A)business
B)corporate
C)international
D)internal
_____ is the process of the board acting in its legal responsibility to oversee executives’
behaviors and performance.
A) Advising
B) Advocating
C) Consulting
D) Monitoring
A position in which the exploitation of a resource makes that resource stronger and
more resilient is called ________.
A)resource management
B)resource-based strategy
C)resource-based competitive advantage
D)resource-based execution
The four key elements in establishing and maintaining interorganizational trust are
________.
A)initial conditions, negotiation process, reciprocal experiences, and outside behavior
B)beginning processes, negotiation process, contract development, and joint
experiences
C)initial conditions, contract development, negotiation process and outside behavior
D)contract development, negotiation process, reciprocal experience, and outside
behavior
Strategy is the central, integrated, externally oriented concept of how the firm will
________.
A)achieve its objectives
B)meet investors’ expectations
C)grow in an orderly fashion
D)recruit and hire personnel
Which of the following is an advantage of acquisitions over internal development?
A)Entry by acquisition may foster a more competitive environment.
B)Acquisitions provide access to inadequate assets.
C)Acquisitions are faster than internal development.
D)Acquisitions provide minimum efficient scale for cost purposes.
The ________ configuration has a structure that is based on the centralization of assets,
resources, and responsibilities.
A) multinational
B) international
C) transnational
D) global
The separation of the ownership of capital necessary to fund a business enterprise from
the day-to-day operational management of business affairs is known as ________.
A) stock ownership
B) agency problem
C) corporate governance
D) principal problem
The reinvention of HUI required that the new President/CEO create an alignment
between its revamped strategy and key pieces that included all except which of the
following?
A) marketing
B) organizational structure
C) global logistics
D) employee evaluation and pay systems
What are some of the possible reasons firms may have for entering into an alliance?
Discuss the challenges to sustainable competitive advantage.
List the three questions that effective corporate strategists must consider.
Explain the impact of rewards on strategy and the use of various control mechanisms to
tighten this connection.
According to network theory, what are the two implications for organizational practice?
How does Disney create revenue-enhancement synergies?