Many popular U.S. brands have benefited from increasing levels of consumerism in
other countries.
Staging decisions are typically driven by a single factor, such as resources, urgency,
credibility, or the need for early wins.
Firms that have integrated low-cost and differentiation positions can be found in most
industries.
An effective strategic purpose must be tied to a coherent set of activities, goals, and
objectives anchored in measurable strategic outcomes.
3M has entered most of its businesses through internal innovation, but recently it
increased its pace of acquisitions.
Intangible resources such as brand equity, reputation, and innovative capability result
from policies and strategies that have been implemented over extended periods of time.
Interactions with other organizations outside the alliance have no impact on partner
trust.
Imperfect competition is characterized in part by numerous suppliers and buyers.
Most companies operate in an environment of static competition.
All of the tools of strategic management can be applied to problems arising from both
new-venture creation and corporate renewal.
A basic five-forces analysis can be used to determine the importance of a given
location.
Strategic management has only limited importance to firms during the three phases of a
firm’s life cycle.
Interactions caused by new entrants in an industry are a severe source of dynamism
when the entrants introduce a strategy that varies significantly from those used by
incumbents.
A significant diversification discount is a measure of the losses anticipated from buying
a parent firm and selling off its portfolio piecemeal.
Managerial decision making and external strategic analysis are interdependent.
Expanding a firm’s scope does not necessarily create value for shareholders.
Implementing a stock ownership plan can be accomplished in a relatively short period
of time.
Core capabilities are common to the principal business operations of the firm.
All of the following are corporate governance characteristics except ________.
A) executive stock-based incentives
B) large-block stock ownership
C) board structure
D) market valuations
A process that effective firms employ encourages middle managers to seek out
opportunities and run their part of the business as if they owned it. This is known as the
________ process.
A)renewal
B)capability-building
C)entrepreneurial
D)reflective
Sociocultural factors include all but which of the following?
A)availability of labor
B)consumerism
C)shifting demographics
D)dominant religions
Patents and trademarks are examples of ________ property protection that are territorial
and must be filed in each country where protection is sought.
A)communal
B)virtual
C)real estate
D)intellectual
A firm will use its mission statement to identify certain core concepts that include all
but which of the following?
A)values and beliefs
B)standards of behavior
C)financial standing
D)corporate-level aims
The strategist always makes important and reasoned choices about the firm’s mix of all
except ________.
A)customers/noncustomers
B)products
C)services
D)competitors
A viable substitute for Coke and Pepsi’s industry would be ________.
A)Pepsi
B)7-Up
C)water
D)wine
All of the following are stages in an acquisition except ________.
A)rationalization
B)idea generation
C)justification
D)integration
Most strategic decisions require a tradeoff between ________.
A)vision and mission
B)efficiency and effectiveness
C)strategic purpose and strategic coherence
D)short-term and long-term goals
_____ entail(s) incremental investment over time.
A)Mergers
B)Acquisitions
C)Internal development
D)Divestitures
A(n) ________ structure is designed to capitalize on both functional specialization and
divisional autonomy.
A) functional
B) multi-divisional
C) network
D) matrix
According to the CAGE framework, all of the following are attributes creating
administrative distance except ________.
A)weak communication links
B)absence of colonial ties
C)political hostility
D)government policies
The five-forces model identifies the basic structure of an industry and is used to study
its characteristics. One of the elements in the component, called “threat of new
entrants,” contains ________.
A)industry concentration
B)proprietary products
C)buyer volume
D)differentiation of inputs
The main logic for splitting the posts of CEO and board chair is ________.
A) security
B) monitoring
C) volume of work
D) financial
________ is/are the most common synergy and the easiest to estimate.
A)Financial engineering
B)Sharing capabilities
C)Market access
D)Cost savings
Only ________ can be both a resource and a capability.
A)real estate
B)technology
C)patents
D)managers
Briefly explain some of the external causes of organizational failure.
What is a stock option? Identify the advantages and disadvantages to stock option
incentives.
What is an industry?
Explain the possible costs associated with geographic diversification.
What are some of the possible options for a firm that wants to expand the scope of its
operations?
List five examples of economic change problems.
What role does the value chain play in a firm’s competitive advantage?
Explain the three categories of typical motives behind mergers and acquisitions.
What are the five types of revolutionary strategies that can introduce dynamic change
into an industry?
Why would a company use alliances as a strategy vehicle?