Mergers may be designed to improve market access for both companies in geographic
markets where individually they are weak.
The VRINE model cannot be used to assess every resource or capability for potential
competitive advantage.
Learning and economies of scope are both drivers of the differentiation strategic
position.
Executives who are responsible for executive strategy are often highly conservative in
their projections of execution success.
Common core competencies are the unique resources and knowledge that a company’s
management must consider when developing strategy.
According to the VRINE model, a firm with generic and imitable resources and
capabilities will gain a competitive advantage.
Entering new businesses or new international markets can represent key elements of a
firm’s corporate strategy.
The Public Company Accounting Oversight Board sets standards and rules for audit
reports.
The appropriate allocation of resources should involve making choices based on the
resource allocation of competitors.
Discontinuities that affect product technology rarely favor differentiation strategies.
The four most important aspects of a firm’s international strategy never contribute to its
differentiators.
An alliance is one vehicle for realizing a strategy.
It is more difficult for a new company to imitate the industry leader than for an older,
established one.
The most direct way to align incentives is the use of the annual bonus plan.
Marginal cost is the mean cost of total production during a given period.
Firms can achieve a competitive advantage by configuring value-chain activities in
ways that add more value to their products and services.
Relatedness is assessed by how similar the underlying industries are.
Examples of differentiated resources include managerial judgment, trade secrets, and
brand equity.
General Electric was among the 12 original companies to be included in the newly
created Dow Jones Industrial Average.
Dividing total assets by total equity gives you a(n) ________.
A)equity manager
B)ratio of equity to assets
C)equity divider
D)equity multiplier
All of the following are reasons for the increasing prevalence of global start-ups except
________.
A)globalizing consumer preferences
B)large global firms
C)the pervasiveness of the Internet
D)stable contexts
_____ is achieved by having sufficient power and votes to choose the CEO and
members of the board of a company and control all major decisions.
A) Management control
B) Ownership
C) Employee control
D) Corporate control
If a firm can lower production costs by sharing a resource among one or more of its
products, it benefits from ________.
A)economies of scope
B)learning curve effects
C)minimum efficient scales
D)economies of scale
In order to gain a sustainable competitive advantage, firms must both control and
________ resources and capabilities, according to the VRINE model.
A)exploit
B)value
C)imitate
D)develop
Carbonated beverages such as Coke and Pepsi are brought to market after four
functions have been performed. These functions include all but which of the following?
A)distributing products for resale
B)producing concentrate
C)marketing a portfolio of brands
D)performing financial analysis
The process of maximizing the upside or limiting the downside of an investment
opportunity by uncovering and quantifying the options and discussion points embedded
within it is referred to as ________.
A)value curve analysis
B)new-market analysis
C)chaotic analysis
D)real-options analysis
According to the Level 5 Hierarchy, what skills must leaders demonstrate first?
A)Leaders must demonstrate teamwork abilities.
B)Leaders must prove their competency.
C)Leaders must show their ability to manage people.
D)Leaders must be able to delegate major responsibilities.
As a negotiator, the CEO is usually concerned with all of the following activities except
________.
A)making decisions to acquire or merge with another firm
B)selling a major division
C)renegotiating a labor contract
D)hiring vendors
The entrepreneurial process integrates and coordinates all of the following except
________.
A) opportunity
B) key resources and capabilities
C) the entrepreneurial team
D) products and markets
A process of remapping businesses in accordance with changing market conditions and
reconfiguring them into new internal business structures is referred to as ________.
A) strategic mapping
B) patching
C) strategic restoration
D) dynamic mapping
When a company is acquired by another, but still operates independently, it operates as
a(n) ________.
A)strategic business unit
B)separate company
C)independent entity
D)subsidiary independent company
All of the following are benefits resulting from sharing knowledge across business units
except ________.
A)it enables firms to transfer best practices
B)it can uncover revenue-enhancement opportunities
C)it can result in an efficient use of proprietary capability
D)it can result in a reduction in infrastructure costs
The process by which a firm approaches its cross-border activities and those of
competitors, and plans to approach them in the future, is called ________.
A)staging
B)international strategy
C)competitive strategy
D)cross-border configuration
By which formula can the concept of economies of scope be represented?
A)Average Costs (X,Y) < Average Costs (X) + Average Costs (Y)
B)Total Revenues (X,Y) < Total Revenues (X) + Total Revenues (Y)
C)Average Costs (X,Y) > Average Costs (X) + Average Costs (Y)
D)Total Revenues (X,Y) > Total Revenues (X) + Total Revenues (Y)
All of the following are possible implementation levers except ________.
A) organizational structure
B) resource-allocation decisions
C) systems and processes
D) people and rewards
Change leaders are consistently able to do all of the following except ________.
A)develop new technologies
B)decrease the pace of product cycles
C)raise industry standards
D)develop new markets
________ strategic positions require manufacturing resources and capabilities that are
likely to contribute to a cost advantage.
A)Low-cost
B)Differentiation
C)Mixed
D)Focus
All of the following are routine monitoring mechanisms for boards except ________.
A) meeting regularly
B) setting objectives
C) hiring competent external auditors
D) reviewing operating results
New-venture creation calls for the entrepreneur to exploit an opportunity by executing
all except which activity?
A) Develop a mission statement.
B) Draw up a business plan.
C) Obtain external financing.
D) Launch the new product.
All of the following are possible stages in the industry life cycle except ________.
A)introduction
B)erosion
C)growth
D)maturity
All of the following are part of a mission statement except ________.
A)values
B)beliefs
C)standards of behavior
D)long-term action horizons
What are the three typical categories of motives behind most mergers and acquisitions?
Discuss the issue of people and rewards solutions in global firms.
What is importing? What are some of the factors that managers must be aware of prior
to choosing this mode of entry?
What is the purpose of the mission statement?
What are the two critical factors to consider when selecting differentiators?
List the areas covered by codes of governance.
What should vision and mission statements encompass?
Briefly explain the multidivisional structure.
What are some of the possible disadvantages to having outside directors?