A buyer group’s power is directly impacted by its prestige and the size of its orders.
Stakeholder analysis is an important input into both strategy formulation and
implementation.
The terms leadership and strategic leadership may be used interchangeably.
Value-chain management forces firms to handle all value-chain activities internally.
Incentives may exacerbate conflicts of interest.
Because segments in closely related industries often use similar assets and resources, a
firm can frequently achieve cost savings by sharing them among businesses in different
segments.
Concentration ratios teach us that industry dynamics are predominantly similar across
various sectors of the same industry.
Strategy implementation is generally less important than strategy formulation for
business success.
Sometimes an alliance may fail simply because one partner benefits and the other does
not.
Goals and objectives are statements of organizational identity and purpose that can
guide executives in making corporate decisions.
Through acquisition, the buyer firm eliminates a competitor that would otherwise
remain in the market.
Revenue-enhancement opportunities result from producing two or more products jointly
instead of producing them separately.
Vertical acquisitions help fill out the company’s product offerings.
Frequent-flier programs create switching costs for the buyer.
At many companies, managers track strategic progress with a tool called a balanced
scorecard.
Incentive alignment may be used to solve the principal problem.
Consumers affect industry profits indirectly when they exercise power as the last link of
an industry value chain.
If a firm is involved in every stage of the value chain, it is highly integrated.
The combination of two or more firms through a pooling of interest is referred to as
a(n) ________.
A)acquisition
B)merger
C)procurement
D)appropriation
The ________ of an organization is the framework that management has devised to
divide tasks, deploy resources, and coordinate departments.
A) lever
B) system
C) strategy
D) structure
Products that are ________ complex are easier to duplicate than those that are
________ complex.
A)socially; technologically
B)technologically; socially
C)generally; rarely
D)rarely; generally
The performance of new-venture divisions is generally not up to the levels of those
achieved by private venture capital firms because ________.
A) it does not have proprietary access to a valuable technology
B) it is consolidated with the parent organization
C) it probably doesn’t possess the necessary venture-capitalist managerial skills
D) it receives an abundance of resources from the parent firm
The probability of success of an entrepreneurial venture depends less on a well-crafted
business plan than on all except which of the following?
A) the amount of money available at inception
B) the right entrepreneurial team
C) a good opportunity and the right timing
D) necessary resources and capabilities
Formal mechanisms can signal long-term commitments to alliance partners. These
mechanisms can include all except ________.
A)contracts
B)stock ownership
C)secrecy
D)collateral bonds
Firms increasingly seek competitive advantage through the quality of their ________.
A)technology
B)vendors
C)human capital
D)equipment
There are two factors that can help to facilitate the transfer of knowledge: mutual trust
and familiarity between partners and ________.
A)formalized managerial control
B)complementary resources and capabilities
C)consistent information-sharing routines
D)incremental learning goals and objectives
In a ________ acquisition, one company buys another that offers essentially the same
products as the buyer but that has a presence in a geographic market in which the buyer
has no presence.
A)horizontal
B)vertical
C)product-extension
D)market-extension
Which of the following is not a characteristic of alliances?
A)Alliances allow participants to share rewards and reduce risk.
B)Alliances enable each organization to focus on what it does best.
C)Alliances are a specific version of strategies.
D)Alliances foster economies of scale.
The concept of strategic positioning is useful in dealing with issues derived from the
________.
A)strategy map
B)strategy diamond
C)strategic logic
D)strategic formula
If/when implementing strategic change, managers have the following combination of
change elements: skills, incentives, resources, structure, and execution plan, which of
the following forms of strategic change will most likely occur?
A) confusion
B) stress
C) gradual change
D) chaos
The task of managing an overall enterprise and influencing key organizational
outcomes is referred to as ________.
A)top management
B)stakeholder analysis
C)management by objectives
D)strategic leadership
_____ are individuals within an organization who are successful at linking otherwise
unconnected parts of the organization.
A) “Shakers”
B) “Movers”
C) “Handlers”
D) “Brokers”
Effective strategy implementation is most critical in ________.
A) highly competitive industries
B) conglomerates
C) moderately competitive industries
D) small businesses
________ is a form of cooperative arrangement based on a long-term commitment and
no linkages beyond the transaction.
A)Collaboration
B)Alliance
C)Joint venture
D)Outsourcing
Which of the following is not one of the three types of specialized contractual
agreements that can be used as a foreign-market entry vehicle?
A)underwriting
B)turnkey projects
C)R&D contracts
D)comarketing
Competitive advantage is facilitated by possessing resources and capabilities that fulfill
the VRINE criteria.
Pacific Cycle has achieved huge success by combining an aggressive acquisition of
power brands with all except which of the following?
A)multinational marketing campaigns
B)low-cost outsourcing
C)efficient supply-chain management
D)multichannel retail distribution
The features of successful alliances include all of the following except ________.
A)keeping personnel separate
B) having a clear strategic purpose
C)having a good partner fit
D)creating incentives for cooperation
Middle managers can help their firms either avoid inertia or slow change. This is
accomplished by performing their role of ________.
A)tightrope walker
B)communicator
C)psychoanalyst
D)entrepreneur
What are the three main perspectives on competitive advantage and how do they differ?
What is causal ambiguity?
Discuss the effect of governance mechanisms on the survival and market capitalization
of Internet-based companies launched in the U.S.
Briefly explain the three strategies that can be used to provide a basis for identifying
market opportunities.
What are the five elements of the strategy diamond? In a short essay, identify the five
elements of strategy and provide an example of each.