The competitive advantage held by one firm over its competitors tends to change more
slowly in stable markets.
A strategy that depends on rapid change requires that a firm’s resources and capabilities
support stability and continuity.
Focused differentiation targets unique products to relatively small segments.
High levels of diversification can be very effective strategies in countries with
developing capital markets.
The advantage of the structural approach is that it provides a system for investing in a
team that’s assigned specifically to new-venture creation.
To minimize the risk that one partner might take advantage of the other, many alliances
call for formal protection mechanisms or contracts.
A matrix structure also includes external linkages with suppliers and customers.
Because decisions and resources are controlled locally, the multinational firm responds
well to local needs.
The competitive advantage of a firm over its competitors tends to change more slowly
in unpredictable markets.
Sharing knowledge across business units can uncover revenue-enhancement
opportunities.
Managers of public pension funds seem to prefer to invest in firms that attempt to
acquire innovations through acquisitions.
Joint ventures do not have to be equal partnerships.
The diversification strategy of conglomerates can work very effectively in ________.
A)multiple regions within one country
B)a single region within one country
C)mature capital markets
D)developing capital markets
The system by which organizations are directed and controlled by their owners is called
________ governance.
A) corporate
B) business
C) organizational
D) company
The facet of CAGE that can be the most practically perplexing for managers is
________ distance.
A)geographic
B)cultural
C)administrative
D)economic
Commercializing a new venture requires capital for startup needs that usually comes
from one of the following sources except ________.
A) credit card companies
B) venture profits
C) venture capitalists
D) banking institutions
Which of the following is the best description of a vision statement?
A)a declaration of what the firm stands for
B)a statement of the firm’s values and purposes
C)a statement of what the firm will be in the future
D)a statement of the firm’s measurable outcomes
Jet Blue is an airline company that serves a small subset of commercial travelers who
are price sensitive. This company is pursuing a ________ strategic approach.
A)focused differentiation
B)low-cost leadership
C)focused cost leadership
D)differentiation
In the financial services industry, rescaling has been accomplished mostly through
________.
A)mergers and acquisitions
B)convergence
C)focusing on one or two products
D)reorganizations
Perspectives on competitive advantage include all but which of the following?
A)static
B)dynamic
C)internal
D)external
Which of the following is not a primary activity on the value chain?
A)inbound logistics
B)marketing
C)procurement
D)service
The ________ approach to strategic management argues that the development of unique
capabilities is the major determinant of competitive advantage.
A.resource-based
B.industry forces
C.strategic management diamond
D.stakeholder
If two business units generate more revenue because they are collectively owned by a
single corporate parent, the strategy of common ownership is ________.
A)synergistic
B)rare
C)opportunistic
D)enhancing
Multipoint competitive tactics often initially benefit customers at the expense of
competitors until a new ________ is reached.
A)paradigm
B)market equilibrium
C)non-compete agreement
D)truce
Which of the following is not an example of a vehicle as described in the strategy
diamond?
A.internal development
B.customer service
C.joint ventures
D.licensing
After a new business concept has been tentatively validated during the corporate new
venturing process, attention shifts to all except ________.
A) planning a merger
B) assembling resources and capabilities
C) meeting production and sales goals
D) solidifying the organizational structure
A company decides to expand its business operations overseas. It plans to enter Asia
first, followed by Europe and then Africa. This type of planning is an example of which
of the following aspects of business strategy?
A.economic logic
B.arenas
C.vehicles
D.staging
Studies of psychological determinants of strategic leadership focus on four personality
characteristics: locus of control, need for achievement, tolerance for risk or ambiguity,
and ________.
A)verbal communication
B)nonverbal communication
C)social behavior
D)charisma and emotional intelligence
Orchestrating a web of shifting linkages among maturing businesses is called
________.
A)complementing
B)co-opetition
C)coevolution
D)codependency
Alliances are often used by firms competing internationally for all of the following
reasons except ________.
A)market familiarity
B)government regulations
C)increased control
D)operational complexity
The process of finding creative ways to support a startup business financially until it
turns profitable is referred to as ________.
A) creative financing
B) bootstrapping
C) start-up leveraging
D) bootlegging
The ________-incumbent relationship is the flip side of the incumbent-supplier
relationship.
A)rival
B)supplier
C)customer
D)complementor
According to the external perspective, which of the following has the greatest impact on
a firm’s competitive advantage?
A.proper utilization of the firm’s human resources
B.selecting the most attractive industry in which to compete
C.identifying the firm’s key competitive advantage
D.developing the firm’s unique resources and capabilities
Complementors ________ in an industry.
A)decrease the total profits
B)increase competition
C)increase the total profits
D)decrease competition
A strategic position that enables a firm to produce a good while maintaining total costs
that are lower than its competitors is called ________.
A)differentiation
B)efficiency
C)low-cost leadership
D)focus
_______ resources can be exploited across a wide range of activities.
A)Specific
B)General
C)Unique
D)Uncommon
A ________ is a business that has a strong competitive position in a slow-growth
industry.
A)cash cow
B)dog
C)star
D)question mark
What are some possible negative effects of hubris on acquisitions?
Name the three dimensions that cause dynamic contexts.
What are basic criteria that must be satisfied by firms pursuing a successful
differentiation strategy?
When are customers willing to pay more for a product?
Why are barriers to exit high in the airline industry?
What are some of the possible positive managerial outcomes to the development and
use of a balanced scorecard?
When a firm reconfigures the value chain, it exercises some tradeoffs. Discuss these
tradeoffs.
How can management judge the effectiveness of an alliance?
Explain vertical scope.