ROIC is a measure of how efficiently and effectively managers use the capital at their
disposal to produce profitability.
Phil is an employee at Global Tech, Inc. He is considered an external stakeholder.
The importance of reliability in building competitive advantage has increased
dramatically over the past decade.
A localization strategy is most appropriate when there are substantial differences across
nations with regard to consumer tastes and preferences and when cost pressures are not
too intense.
One strategy for success in high-tech industries is to keep prices low and thus increase
sales volume.
Ryanair, based in Dublin, Ireland, used the cost-leadership business model pioneered by
Southwest Airlines in the United States to become a leading player in the European air
travel market.
Effective organizational design can allow a company to obtain a competitive advantage
but it has no impact on profitability.
When the value of the dollar is low compared with the value of other currencies,
products made in the United States are relatively inexpensive and products made
overseas are relatively expensive.
The works of Shakespeare and Beethoven and the English language are all examples of
standards within the public domain.
Companies that are locked out of a market are those in which consumers are unwilling
to bear the switching costs required for them to abandon the established standard and
adopt the new one.
The failure rate of innovative products is
A.high.
B.low.
C.consistent with failure rates in other areas of a company’s operations.
D.moderate.
E.too difficult to assess.
Cost reduction pressures can be particularly intense in industries producing
A.commodity-type products.
B.highly differential products.
C.goods that do not compete on the basis of price.
D.goods servicing narrowly defined markets.
E.highly advertised goods.
Vice President Chung is responsible for executing decisions about human resources.
Ms. Chung is
A.a corporate-level general manager.
B.both a corporate- and business-level general manager.
C.a business-level general manager.
D.a functional manager.
E.a corporate-level, business-level, and functional manager.
Flat organizational structures are characterized by
A.few levels of management and a relatively narrow span of control.
B.few levels of management and a relatively wide span of control.
C.many levels of management and a relatively narrow span of control.
D.many levels of management and a relatively wide span of control.
E.none of these choices.
Control systems
A.enable a company to evaluate its performance.
B.help managers determine which generic strategy to pursue.
C.are used only at the business level.
D.allow firms to control the external environment.
E.are most effective for firms pursuing cost leadership.
A camera manufacturer that has separate divisions for making personal cameras, movie
cameras, and film acquired a small film developer and a car battery supplier. Which of
the following structures is most appropriate for this firm?
A.Functional
B.Matrix
C.Geographic
D.Multidivisional
E.Product team
The most widely used vehicles that companies can use to enter new industries or
countries are
A.mergers and acquisitions.
B.joint ventures and strategic alliances.
C.mergers and joint ventures.
D.acquisitions and strategic alliances.
E.product development and market penetration.
Swedish strength in fabricated steel products has drawn on strengths in Sweden’s
specialty steel industry. This is an example of which of the following attributes that
impact national competitive advantage?
A.Local demand conditions
B.Competitiveness of related and supporting industries
C.Intensity of rivalry
D.Factor endowments
E.Differences in distribution channels
Technical standards in high-technology industries are
A.specifications developed by each producing company for its own products.
B.specifications that all producers adhere to when making a product or product
component.
C.product specifications imposed by the federal government.
D.expressions of product features desired by consumers.
E.general guidelines proposed by industry leaders.
Resources
A.are the tangible assets available to a company.
B.can be tangible or intangible.
C.are harder for a company to copy than capabilities are.
D.are the products of a company’s control systems.
E.refer to an organization’s skills.
Cell phone technology is replacing traditional wired phone technology. This is an
example of a(n)
A.first-mover advantage.
B.technological paradigm shift.
C.format war.
D.complementary product.
E.embryonic industry.
Lilly’s Beauty Company sells haircare products such as shampoo, conditioner, and
hairspray. These products are targeted at the average or typical customer and prices are
typically low in comparison to other haircare products. Which of the following
approaches to market segmentation is Lilly’s Beauty Company using?
A.No market segmentation
B.Low market segmentation
C.Medium market segmentation
D.High market segmentation
E.Focused market segmentation
Which of the following entry modes allow(s) a company to engage in global strategic
coordination?
A.Exporting
B.Licensing
C.Joint ventures
D.Wholly owned subsidiaries
E.Joint ventures and wholly owned subsidiaries
Product bundling refers to
A.preparation of products for shipment.
B.a complete package of related products.
C.a method of stocking products efficiently.
D.an inventory procedure for ensuring effective counting of products.
E.a package of unrelated products.
The use of self-managing teams
A.is limited to only very large organizations.
B.requires members to coordinate their own activities and make decisions.
C.typically increases the need for supervisors.
D.all of these.
E.none of these.
A producer of commodity steel should pursue which of the following generic
competitive strategies?
A.Growth
B.Differentiation
C.Focus
D.Cost leadership
E.Profit
Which of the following is not a governance mechanism used to align the interests of
managers and stockholders?
A.Stockholder meetings
B.The board of directors
C.Stock-based compensation schemes
D.The mission statement
E.Takeover constraints
Learning effects are a result of
A.automation.
B.learning by doing.
C.sound product planning tactics.
D.diseconomies of scale.
E.product standardization.
One of the most widely used measures of financial performance is
A.return on invested capital (ROIC).
B.net profit margin.
C.share value.
D.net sales.
E.productivity.