Identifying and exploiting differentiators demonstrates that a firm is successful at
making tough choices and deciding on tradeoffs.
Primary and support activities are both potential sources of competitive advantage.
People and rewards are the implementation levers that usually get the most attention in
an organization.
A firm that competes by achieving higher prices and margins because of superior
product quality is called a differentiator.
Many successful entrepreneurs suggest that access to too much money too early on in
the process can do more harm than good.
The geographically diversified firm must learn to ensure that the benefits of being
international outweigh the added infrastructure costs.
Strategic budgets focus on issues such as identifying and acquiring new customers.
Competition from foreign countries is typically slower and more predictable.
High research and development costs, interdependent countries, and common marketing
regulations represent pressures that would discourage industry globalization.
Stakeholder analysis will fill in the gaps left by industry analysis.
Primary value-chain activities include human resources, accounting operations, and
procurement.
A firm’s strategy should be consistent with its strengths and its ability to seize
opportunities.
After PayPal was acquired by eBay, it became the de facto payment standard on the
biggest locus of small business in the world.
The use of alliances in a ________ web enables a firm to develop its specific dynamic
capabiities in concert with the best resources and capabilities available.
A)cooperation
B)coevolution
C)vertical
D)horizontal
The way managers situate a firm relative to its rivals is called strategic ________.
A)formation
B)implementation
C)positioning
D)modeling
Vertical alliances improve value to the customer by making it possible for alliance
partners to accomplish all of the following except ________.
A)increase speed to market
B)improve quality
C)introduce newer technologies
D)learn how to thrive in a stable market
An S-1 statement can provide a wealth of information about a company including all
except ________.
A) its history
B) its strategy
C) operating risks
D) financial prospects
Because middle management ranks are typically more diverse in terms of ethnicity,
gender, experience, and geography, this group has the potential to be more ________
than senior management.
A)forward thinking
B)charismatic
C)entrepreneurial
D)reflective
Which of the following is not one of the basic types of merger and acquisition
transactions?
A)integration
B)absorption
C)holding
D)preservation
Implementation levers tend to be ________.
A) sequential
B) interrelated
C) independent
D) cascading
Overcapacity mergers are often explained as attempts to create ________.
A)economies of scale
B)additional resources
C)new markets
D)better working environments
Which of the following statements best describes blockholders?
A) They control 1 percent of a firm’s shares.
B) Their ownership does not have to be disclosed.
C) They are considered powerful.
D) They are always corporate executives.
A special case of resource sharing that can create both cost savings and
revenue-enhancement is ________ capabilities.
A)diversifying
B)divesting
C)consolidating
D)transferring
In performing the strategic leadership role, managers must communicate a strategy in
all of the following directions except ________.
A) upward
B) backward
C) downward
D) outward
All of the following are areas in which organizations can increase the probability of
alliance success except ________.
A)being able to manage knowledge and learning
B)understanding alliance coevolution
C)creating a dedicated alliance function
D)understanding the determinants of trust
According to the VRINE model, resources and capabilities ________.
A)are equal in their potential contributions to competitive advantage
B)can be copied from leading competitors to gain a competitive advantage
C)contribute to competitive advantage to the extent that they satisfy the components of
the model
D)are turned into strengths when a firm gains a competitive advantage
Corporate new ventures are more likely to succeed when they ________.
A) have middle-level manager sponsorship
B) employ market-experienced personnel
C) experiment and prototype in later stages of the cycle
D) are based on radically different products and services
Reacting to change involves responding to all of the following except ________.
A)unexpected customer demands
B)the development of new market segments
C)new government regulations
D)competitors’ actions
Heavy reliance on branding enables McDonald’s to position itself as a reliable,
high-quality provider of low-cost fast food. If McDonald’s achieves a(n) ________
position, it will be able to command higher prices than its competitors.
A)diverse
B)focused
C)integrated
D)independent
The S-curve graph discussed in the chapter is a relationship between all but which of
the following factors?
A)performance
B)R&D investment
C)logistics
D)internationalization
Which statement about the strategic management process is most accurate?
A.Strategic management explains why firms translate their vision into actions.
B.Strategic management should be focused on both strategy formulation and
implementation.
C.Strategic management is determined by forces in the firm’s external environment.
D.Strategic management is a formula used to develop strategies.
Findings that can result in a firm deciding to globalize include all but which of the
following?
A)wages are significantly lower in another location
B)logistics to bring raw materials to the firm’s location are difficult
C)a pool of skilled workers is available elsewhere
D)it is more cost effective to use local labor
Which of the following statements is true concerning U.S. public boards of directors?
A) They are typically made up of a majority of insiders.
B) They are mostly chaired by CEOs.
C) They are appointed by the CEO.
D) All of the above are true.
The steps in stakeholder planning include all but which of the following?
A)Arrange functions that keep stakeholders involved in the firm.
B)Fill in names of key stakeholders.
C)Plan the approach to stakeholder management.
D)Think through what you want from each stakeholder.
Which of the following is not an advantage of the new-venture division structural
approach?
A) It provides a system for investing in a team assigned specifically to new-venture
creation.
B) It can be cost-conscious while still encouraging risk taking and experimentation.
C) It is a form of diversification.
D) It reduces overhead costs associated with new-venture creation.
When a firm develops a capability rather than acquires it, the firm is using the vehicle
of ________.
A)external development
B)internal development
C)alliance
D)acquisition
Explain the functional structure.
Explain the four areas in which vertical alliance can reduce supply chain costs.
Define exporting.
Because a firm’s strategy must be consistent with its shared values, how can strategists
understand what’s really important to members of the organization?
Define organizational structure.
How can owning resources that don’t meet VRINE criteria actually put a firm at a
competitive disadvantage?
How might a firm use their integration of the value chain to gain a competitive
advantage?