A firm’s decision to grow rapidly through acquisitions is consistent with a corporate
strategy aimed at differentiating its product line.
Firms that compete in some aspects of business may actually cooperate in other
business areas.
Business history is full of stories of successful growth and diversification strategies.
The importance of having the right people is accentuated in technologically intensive
industries.
Increasing the number of insiders on the board can increase the board’s effectiveness.
Economies of scope are similar to economies of scale.
As liaisons, top executives maintain relationships with external stakeholders by serving
on boards of directors and participating in civic organizations.
In relatively dynamic contexts, partners are typically seeking access to production
technologies or markets.
The shaping strategy is all about making the competition irrelevant.
Antitrust laws make it easier to contain or neutralize the growth of a new product.
A “cash cow” is a business that has a strong competitive position in a fast-growth
industry.
Sometimes a supplier cannot or will not make an investment that is specific to an
exchange with one buyer.
Exploitable resources can contribute to competitive advantage.
One of the value-chain activities that brings carbonated beverages to market is profit.
Complex and unpredictable aggressive moves lead to improved market positions for
successful attackers.
Often a new market entrant, who wants to compete with incumbents’ costs, introduces a
________.
A)new advertising campaign
B)new production technology
C)new product design
D)new unique style
All of the following are ways in which alliances achieve potential building blocks of
competitive advantage except ________.
A) joint investment
B)knowledge sharing
C)effective management
D)contrary resources
A graphical depiction of how a firm and major groups of its competitors are competing
across its industry’s factors of completion is referred to as the ________.
A)four-actions framework
B)value curve
C)industry learning curve
D)strategy life cycle
According to Porter, if a company is targeting a broad strategic market, it must choose
either ________ or ________.
A)low-cost leadership; differentiation
B)focused low-cost leadership; differentiation
C)focused differentiation; focused low-cost leadership
D)low-cost leadership; economic logic
_____ are processes in which a firm integrates or upgrades resources and capabilities in
order to strategically respond to environmental changes.
A)distinctive competencies
B)tradeoffs
C)core capabilities
D)dynamic capabilities
From the dynamic perspective, a successful firm is least likely to possess which of the
following features?
A.an emphasis on continuous learning
B.the ability to improvise
C.a slow response to change
D.willingness to experiment
Suppliers are powerful when they control such factors as prices, delivery lead times,
and ________.
A)switching costs
B)minimum orders
C)exit barriers
D)label offerings
Relying on a conventional conception of another group based on some common
characteristic is called ________.
A)stereotyping
B)cultural bias
C)ethnocentrism
D)racial bias
Which of the following best describes the leader role of negotiator?
A)The executive designs the firm’s strategy.
B)The executive deals with unforeseen internal and external conflicts.
C)The executive makes decisions concerning nonroutine transactions with other
organizations.
D)The executive effectively allocates resources.
When a firm uses the ________ strategy, it identifies and acquires new entrants or
establishes an alliance with them.
A)containment
B)shaping
C)annulment
D)absorption
Increased horizontal scope is attractive to firms because it offers opportunities by
reducing costs through exploiting possible economies of scope and by ________.
A)increasing the customer base
B)decreasing production costs
C)decreasing competition between similar business units
D)increasing revenues through synergies
Perfect competition is characterized by perfect information, no barriers to entry, and
________.
A)limited sellers
B)limited buyers
C)heterogeneous products
D)no monopolies
A grave danger to a firm’s current relationship with customers appears if ________.
A)new customer service training is implemented
B)competitors can imitate its differentiators
C)its products align too closely with the industry leader’s products
D)there is a perceptible change in quality
The concept of strategic alignment can best be described as ________.
A.the way that firms choose to use their resources
B.the need for the firm’s activities to compliment each other and support the overall
strategy
C.the way that firms choose to develop their capabilities
D.the need to increase competitive advantage by selecting an attractive industry
In the U.S., the roles of CEO and board chair are ________.
A) never performed by the same person
B) always performed by the same person
C) quite similar
D) quite distinct
Which of the following maintains the ultimate responsibility for strategy within an
organization?
A.senior management
B.lower-level managers
C.mid-level executives
D.employee teams
The ambidextrous structure attempts to integrate both incremental innovations and
________.
A) discontinuous innovations
B) continuous innovations
C) dynamic innovations
D) static innovations
All of the following are obstacles faced by large firms pursuing new-venture activities
except ________.
A) large firms try to mitigate important learning mechanisms like false starts in order to
improve efficiency
B) new ventures often meet resistance because they challenge long-standing
assumptions or work practices
C) large organizations are afraid of the increased risk and decreased predictability
D) large organizations often waste too many resources on new ventures
What are some of the possible benefits to sharing knowledge across business units?
Provide an outline of the table of contents of a typical business plan.
What is the neutralization strategy?
What are the possible ways in which alliances can help firms achieve a competitive
advantage? Explain.
What is the market for corporate control?
What are the primary entry barriers in the soft drink industry?