Outsourcing is what a firm does when it contracts with outside suppliers to perform
parts of a company’s value chain of activities.
Resources may be both tangible and intangible at the same time.
Mergers and acquisitions in converging industries will put firms at a disadvantage when
industry boundaries erode.
Executive compensation may be structured to overcome all possible conflicts of
interest.
To create new market space, companies must remain focused on their existing rivals
and actively try to match what they are offering customers.
Customization and convenient access are both drivers of the low-cost strategic position.
Effective second movers are sometimes referred to as fast followers.
Structural fit typically relates to the ability of partners to make resources available.
The purpose of a geographic roll-up is achieving economies of scope and scale.
Acquisitions that result in diversification are used in the staging of corporate strategies.
Firms outsource functions as a means for sharing their capabilities with external
suppliers.
Tangible resources include knowledge, culture, and patents.
Global expansion can actually detract from corporate profitability.
Increased size ensures economies of scale.
When a firm ties an executive’s bonus payouts to long-term performance of the firm
rather than to annual performance of the firm, it is instituting long-term ________
plans.
A) incentive
B) financial
C) performance
D) competency
Industries may be related in all of the following ways except ________.
A)they rely on similar types of human capital
B)they share customers with similar needs
C)they vary in terms of resources and capabilities
D)they engage in similar value-chain activities
Stock can be increased through ________.
A)imitation of assets
B)sustained investment
C)historical events
D)processed capabilities
Dissimilarity in dominant logic, or strategies, between business units in a firm increases
the likelihood that managers will take more time to make decisions, and they will be
________ ones.
A)detrimental
B)beneficial
C)neutral
D)complex
________ is deciding what to do and ________ is the process of executing what you
planned to do.
A) Strategy formulation; strategy implementation
B) Strategy implementation; strategy formulation
C) Strategic thinking; strategy implementation
D) Strategy formulation; strategic execution
Asset turnover measures a firm’s ________.
A)ability to use assets so that they don’t become outdated
B)rate at which personnel leave the firm
C)ability to command higher prices
D)efficiency at generating revenues from assets.
________ is achieved when the joint cash flows of two or more collectively owned
business units exceed the sum of cash flows that they would generate independently.
A)Parenting advantage
B)Synergy
C)Diversification
D)Economies of scope
Which of the following is an objective/action associated with the return-to-normal stage
of turnaround?
A) see profitable growth
B) positive cash flow
C) restructure business to increase ROI
D) select new top-management team
In reality, most newcomers adopt some combination of ________ and ________
disruption strategies.
A)mid-term; high-end
B)new-market; high-end
C)new-market; low-end
D)new-market; mid-term
Firms that have been able to integrate low-cost and differentiation positions can be
found ________.
A)in most industries
B)in only a very few industries
C)only on the East Coast
D)only on the West Coast
The theory of “natural” leaders suggest that leaders can be classified according to
________.
A)personality differences
B)education
C)work experience
D)demographics
Coke and Pepsi have spent billions of dollars to build brand equity and customer loyalty
as a result of their products being so similar. These firms do not motivate buyer loyalty
with ________.
A)aggressive pricing
B)creative television commercials
C)appeals to a desire for youth
D)negative ad campaigns
All of the following are dimensions causing dynamic contexts except ________.
A)competitive interactions
B)industry evolution
C)technological disruptions
D)staging elements
The cost of differentiation has ________.
A)a direct effect on customers’ willingness to pay
B)no direct effect on customers’ willingness to pay
C)a direct impact on overfulfilling the needs of buyers
D)no direct impact on overfulfilling the needs of buyers
All of the following are part of a board of directors’ monitoring function except
________.
A) audit review
B) executive succession
C) counseling CEO
D) executive compensation
Which of the following is not one of the factors shaping the changing competitive
landscape?
A) development of new products and services
B) emergence of foreign competitors
C) entry of new companies in an industry
D) merger of two existing companies in an industry
_____ is a major factor in making mergers and acquisitions work.
A)Cost
B)Integration
C)Regulation
D)Internal structure
What are the two essential functions of organizational structure?
Discuss the pros and cons of board interlock.
Define foreign-direct investment? Give at least one example.
Give three examples of leader demographic differences.
Compare the conventional and new-market-creation strategic mind-sets across
dimensions of competition.
What is an integrated position?
How does the relative stability of context affect the objectives that partners set for an
alliance?
Explain the six potential risks associated with alliances.
What is managerialism?