As a firm increases in size, shareholder wealth automatically increases as well.
In a truly global industry, the core product is diversified.
The degree to which horizontal expansion is desirable depends on the degree to which
the new industry is related to a firm’s home industry.
A large corporation might consider global expansion simply because its competitors are
globalizing.
It is not critical to know what industry- and firm-specific factors affect a firm to
understand its competitive position.
Overfulfillment could result in significantly lower profit margins.
Within an organization, the disseminator and spokesperson can be the same person.
The industry life cycle influences the strategies of firms that compete in them.
The more simple the firm, the more the structure will need to concentrate on
coordination.
Industry analysis examines only the competitors in the industry.
Economies of scope is one of the two key factors in determining whether a corporate
strategy is adding value through diversification. The other key factor is ________
opportunities.
A)vertical
B)horizontal
C)geographic globalization
D)revenue-enhancement
All of the following are categories of real options except ________.
A)new-market options
B)growth options
C)flexibility options
D)exit options
Which of the following is an organizational practice implication of alliance networks?
A)As alliances become more focused, the firm’s strategy will shift to networks of
alliances as a vehicle.
B)Multiple alliances come to resemble simple network relationships.
C)As networks take on the characteristics of organizations, competition among
networks should arise within and across industries.
D)The organization becomes an array of wholly owned businesses.
________ is an agreement where a buyer chooses only one or a few suppliers for its
raw materials.
A)Just-in-time supply
B)Sole-sourcing
C)Singular-supply
D)Lone-sourcing
When examining the relationship between diversification and performance, it appears
that diversification benefits shareholders up to a point, but tends to dissipate value at
________.
A)high levels of consolidation
B)high levels of diversification
C)low levels of consolidation
D)low levels of diversification
Which type of firm would most likely use corporate-level strategies?
A.firms that compete in only a single business or market segment
B.firms that possess superior capabilities
C.firms that compete in many diversified or unrelated businesses and industries
D.firms that choose to compete in an attractive industry
In the decline 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 concentration
D)participants emphasize problem solving
Application of the CAGE framework requires managers to identify attractive locations
based on all of the following except ________.
A)raw materials costs
B)number of competitors
C)access to consumers
D)access to markets
More recent alliances emphasize ________.
A)product and service performance
B)the building and reinforcing of market position
C)complex benefits, such as organizational learning
D)informal relationships
A strategy where a firm acquires other firms in the same industry segment, but in
different geographic arenas, is referred to as a(n) ________.
A)product-extension acquisition
B)vertical acquisition
C)geographic roll-up
D)complementary acquisition
What question must managers ask concerning the relationship between arenas and
international strategy?
A)Which geographic areas will we enter?
B)How does our international strategy lower our costs?
C)When will we go international?
D)Which international market-entry strategies will we use?
Fast-follower advantages increase under all of the following conditions except
________.
A)the first mover lacks a key complement such as channel access
B)rapid technological advances
C)the first mover’s product or service strikes a positive chord but is flawed
D)the first mover’s profit is high
Systems and processes make it possible to manage all of the following except
________.
A) budgeting
B) quality control
C) resources allocation
D) human capital
The four actions framework includes all of the following actions except ________.
A)reduce
B)eliminate
C)raise
D)reject
Which of the following is not one of the factors that can affect the attractiveness of
acquisitions as strategy vehicles?
A)technological change
B)demographic change
C)trade liberalization
D)geographical change
The potential scale economies from global expansion include spreading fixed costs and
________.
A)increasing R&D costs
B)decreasing scale advantages
C)increasing purchasing power
D)specialized resources and capabilities
Questions that should be asked before a firm outsources functions include all but which
of the following?
A)Can workers in another specialized firm do the work more efficiently?
B)Is it cost effective to outsource a function?
C)Are the potential problems with outsourcing worth the risk for the financial benefits
gained?
D)Who within the firm will manage the quality of outsourced functions?
Cross-border alliances differ from domestic alliances in that all of the following except
________ do not often play a significant role.
A)regional cultures
B)governments
C)public policies
D)national cultures
The strategy by which one firm acquires another through stock exchange is called a(n)
________.
A)acquisition
B)merger
C)purchase
D)procurement
Firms perform differently within similar industry environments because of the
interdependent relationship among resources, capabilities, and ________.
A)managerial decision making
B)technology
C)strengths
D)dynamic tradeoffs
Examples of government pressures favoring industry globalization are favorable trade
policies and ________,
A)technological standards
B)global competitors
C)arbitrage opportunities
D)favorable logistics
What question must managers must ask concerning the relationship between
differentiators and international strategy?
A)Which channels will we use?
B)How does our international strategy lower our costs?
C)How does being international make our products more attractive to our customers?
D)Which international market-entry strategies will we use?
A senior manager shakes up a firm and challenges historic ways of operating. He or she
is using the ________ process.
A)renewal
B)capability-building
C)entrepreneurial
D)reflective
All of the following are possible incentive alignment mechanisms except ________.
A) stock ownership policies
B) short-term incentive plans
C) annual bonus plans
D) stock options
Major implementation levers are usually categorized as one of the following except
________.
A) buyers and suppliers
B) structure
C) systems and processes
D) people and rewards
Explain the competitive implication of rarity.
What are the five components of the VRINE model?
How can firms achieve strategic coherence?
Define first mover.
What is the competitive implication of inimitability?
List several examples of sociocultural factors.