The industry-wide effect of the five forces will determine industry attractiveness.
When complementary assets are tightly held and the first mover has weak protection
from imitation, the value-creating opportunities favor the holders of the complementary
assets.
The VRINE criterion of rarity requires that only one firm has the resource.
In the late 19th century, the booming U.S. economy fostered a period of rapid business
diversification.
Different production technologies result in similar costs.
New-market creation emphasizes actions and capabilities that are determined by
competitors’ moves.
Exporting may involve selling production or service inputs.
Leaders’ information roles include those of monitor, disseminator, and spokesperson.
Differentiating on a feature that buyers don’t care about increases costs without
increasing willingness to pay.
Usually competitive change takes the form of price competition as competitors lower
their prices in order to introduce new products to the market.
Poor governance structure frequently provides warning signs prior to organizational
scandals.
When executives embark on diversification because they desire to build a larger
company, they are said to be engaging in ________.
A)risk reduction
B)empire building
C)dominant logic
D)scope building
The number of separate businesses a firm operates and the degree of ________ of those
businesses increase a firm’s level of diversification.
A)economy of scale
B)relatedness
C)diversity
D)management
Three economic factors have a strong bearing on strategy as it relates to where to locate
disparate business functions and facilities. Which of the following is not a factor?
A)unemployment rates
B)cost of medical benefits
C)availability of critical labor
D)local labor costs
Competitive interaction theory suggests that ________.
A)competitive actions will generate reactions
B)competitors and suppliers must learn to cohesively interact
C)competitive actions will always interact with industry conditions
D)competitors must interact with each other to survive
Strategy-formulation tools enable you to test the quality of a firm’s strategy. These tools
include all but the ________ model.
A)VRINE
B)strategic management
C)strategic-positioning
D)industry-structure
A strategy by which a firm tries to capitalize on both local responsiveness and global
efficiency is referred to as ________ configuration.
A)multinational
B)transnational
C)international
D)global
Firms have market power when they can influence ________.
A)competition
B)prices
C)sourcing
D)mergers
In ________, ownership concentration serves as a control mechanism and affects how
resources are allocated in the firm.
A) Germany
B) Japan
C) France
D) the United States
_____ distance reflects the historical and present political and legal associations
between trading partners.
A)cultural
B)administrative
C)geographic
D)economic
Multidivisional structure makes all of the following possible except the ________.
A) implementation of division-specific incentives
B) implementation of functional-level objectives
C) implementation of performance-accountability standards
D) fostering of speedier reactions to challenges
Which of the following is not true about stable environments?
A)Partners seek access to each other’s proprietary capabilities.
B)Partners seek to consolidate market positions.
C)Partners hope to generate economies of scope and scale.
D)Partners seek access to markets.
At the ________ level, competitive advantage reflects the relative position of a firm
compared to positions of industry rivals.
A)industry
B)corporate
C)business
D)competitive
The relatively stable arrangement of responsibilities, tasks, and people within an
organization is referred to as a(n) ________.
A) organizational structure
B) organizational system
C) implementation lever
D) organizational process
The best information concerning industry technological factors could be gathered by
answering which of the following questions?
A)Are there relevant consumer laws?
B)What is the level of research funding in the industry?
C)What are the foreign-trade regulations?
D)What are the regulations regarding energy consumption?
All of the following are alliance benefits of mutual trust except ________.
A)it increases potential for competitive advantage
B)it’s more likely to yield economies of scope
C)there is a greater willingness to invest in non-customized assets
D)it reduces the costs of monitoring
All of the following are reasons why firms have different production costs except
________.
A)economies of scale
B)learning
C)product design
D)scope of involvement
Contracts that call for one firm to supply, produce, market, or distribute another’s goods
or services over an extended period of time are called ________.
A)equity alliances
B)nonequity alliances
C)multiparty alliances
D)joint ventures
Industries with relatively high ________ are among the most globalized.
A)human resource costs
B)production expenditures
C)R&D expenditures
D)raw material costs
Stakeholder power can take the form of all but which of the following?
A)socioeconomic power
B)voting power
C)economic power
D)political power
National and regional geographic location has an impact on competitive advantage
because of its implications for all of the following except ________.
A)output costs
B)input costs
C)competitors
D)demand conditions
What are the two possible problems caused by acquisition premiums?
Why isn’t the lag of second movers necessarily detrimental?
Discuss the costs associated with internationalization.
How does industry analysis affect strategy formulation?
Use the VRINE model to analyze drug patents.
Briefly explain the board’s role of monitoring.
What are the fundamental characteristics of an industry?
What are some of the variations of international strategy configuration, and examples of
each?
What is the containment strategy?
What are some of the reasons for preparing a business plan?