Firms with very different international-strategy configurations can coexist in the same
industry.
Synergy is the condition in which the combined benefits of multiple activities are
greater than the simple sum of those benefits.
MES varies by industry and market segment.
Strategic budgets help to determine resource allocation.
Heterogeneous products and barriers that make entry into an industry difficult are
characteristics of imperfect competition.
Experts argue that the true cost savings of alliances comes to those firms that rely on
formal managerial control.
Reconfiguring resources and capabilities is a static process.
Choices about value-chain arenas, in conjunction with differentiators, solidify internal
sources of competitive advantage.
Diversification strategies always lead to increased shareholder value.
Cooperative ventures can be extremely risky.
A multidivisional structure organizes its activities according to the specific functions
that a company performs.
Successful dynamic strategies reward firms for avoiding risky decisions.
Disruptive technologies are those that change the face of the business environment by
altering who the leaders are.
The process of implementing strategy should provide information that can be used to
modify a firm’s strategy.
Tangible resources offer the best opportunity for competitive advantage.
The levers that are necessary for implementing a firm’s strategy include all but having
________.
A)appropriate systems and processes
B)sufficient managerial resources
C)five- and ten-year business forecasts
D)incentives that are congruent with objectives
Ambiguity arises from three main sources: novelty, insolubility, and ________.
A)complexity
B)simplicity
C)routine
D)relativity
Multipoint competition refers to the situation where a firm competes against another
firm in ________.
A)multiple markets or businesses
B)implementation of price discounts
C)a single domestic market
D)developing new technologies
A company should conduct all but which of the following analyses before moving
vertically into an adjacent segment of its industry value chain?
A)internal
B)industry
C)resource
D)competitor
The purpose of the ________ strategy is to minimize the risks entailed by being either a
first mover or an imitator.
A)containment
B)absorption
C)shaping
D)annulment
At the ________ level, competitive advantage reflects management’s success in creating
more value from the firm’s business units than those units could create as stand-alone
enterprises.
A)industry
B)corporate
C)business
D)subsidiary
The purpose of a(n) ________ acquisition is to reduce the number of competitors in a
mature industry in which capacity exceeds decreasing demand.
A)vertical
B)overcapacity
C)geographic roll-up
D)market-expansion
Which of the following is the best description of a mission statement?
A)a statement of what the firm will be in the future
B)a statement of the firm’s values and purposes
C)a statement of the firm’s measurable outcomes
D)a statement of the firm’s specific targets
Which of the following is not part of the VRINE model?
A)value
B)resource
C)exploitability
D)inimitability
Which of the following statements is not true concerning corporate governance?
A) Corporate governance is present only in public organizations.
B) Corporate governance provides rules for making decisions on corporate affairs.
C) Corporate governance provides a structure for monitoring performance.
D) Corporate governance seeks to benefit multiple stakeholders and not just
shareholders.
All of the following are examples of a leader’s decisional roles except ________.
A)entrepreneur
B)disturbance handler
C)negotiator
D)leader
According to Porter, the first step in predicting the behaviors of competitors is
________.
A)to determine if the companies are publicly held
B)to understand the companies’ current strategies
C)to understand the companies’ objectives
D)to determine the companies’ industry assumptions
In a product/market extension, the objectives include ________.
A)efficiency of larger operations
B)synergy of similar but expanded product lines or geographic markets
C)eliminating capacity, gaining market share, and increasing efficiency
D)anticipation of new industry emerging and culling resources from firms in multiple
industries whose boundaries are eroding
Any form of bias that prevents talented employees from being promoted will put a firm
at a distinct competitive disadvantage, particularly in terms of its ability to ________.
A)attract and retain necessary supply channels
B)attract and retain financial capital
C)attract and retain customers
D)attract and retain talented people
The opportunity to take action that will either maximize the upside of limit the
downside of a capital investment is referred to as ________.
A)net present value
B)a real option
C)a learning option
D)a value option
The output level that delivers the lowest possible costs is the ________.
A)minimum efficient scale
B)average production level
C)marginal cost scale
D)median cost level
A firm typically increases geographic scope by moving into new geographic arenas
without altering its ________.
A)cost projections
B)price structure
C)business model
D)revenue projections
Most researchers agree that the starting point for new ventures is _________.
A) technology
B) opportunity
C) financing
D) the IPO
Corporate new venturing does not take the form of ________.
A) establishing a new business
B) creating a new ventures division
C) forming a conglomerate
D) establishing special development teams
_____ is/are not a vehicle described in the business strategy diamond.
A.Joint ventures
B.Reputation
C.Acquisitions
D.Franchising
Entry by acquisition may foster ________.
A)a less competitive environment
B)a more competitive environment
C)diminished resources
D)decreased profits
A research associate is requested by his boss to write a report identifying potential new
arenas in which the business might launch overseas operations. Which of the following
categories is the associate least likely to include as a potential arena in his report?
A.customers
B.channels
C.product categories
D.technologies
All of the following are possible forms of exporting except ________.
A)shipping a product overseas
B)licensing
C)turnkey projects
D)joint ventures
All of the following can impede management’s designs to create synergies except
________.
A)bureaucratic costs
B)transaction costs
C)complexity
D)politics
Using the five-forces model, explain why Coke and Pepsi both entered the bottling
industry.
What are some of the possible obstacles encountered by large organizations in
attempting to establish a new venture?
What is the purpose of strategic positioning?
Name the three purposes of vertical acquisition.
What are the three basic issues related to the potential success of mergers and
acquisitions?