An advantage of internal development is that firms do not have to combine activities
across the value chains of many companies and merge company cultures.
Products and services that are difficult to imitate help firms sustain their profitability.
Emotional intelligence (EI) is one of the components of a high intelligence quotient
(IQ).
The value-chain concept assumes that both primary and support activities are capable of
producing value for customers.
A major sociocultural trend in the United States is the increased educational attainment
by women.
Sharing activities across business units can provide two primary benefits: cost savings
and revenue enhancements.
A compliance-based approach to ethics management combines a concern for law with
an emphasis on managerial responsibility for ethical behavior.
A successful differentiation strategy increases rivalry since buyers become more
price-sensitive.
Empathy, one of the components of emotional intelligence (EI), refers to personal
proficiency in managing relationships and building networks.
A cost leadership strategy is not susceptible to the risk of reduced flexibility.
Research shows that which of the following is not a strategy used by firms engaged in
successful turnarounds?
A. asset and cost surgery
B. global expansion
C. selective product and market pruning
D. piecemeal productivity improvements
A resource is valuable and rare but neither difficult to imitate nor without substitutes.
This should enable the firm to attain ____________.
A. no competitive advantage
B. a temporary competitive advantage
C. competitive parity
D. a sustainable competitive advantage
One aspect of using a cost leadership strategy is that experience effects may lead to
lower costs. Experience effects are achieved by ____________.
A. repeating a process until a task becomes easier
B. hiring more experienced personnel
C. spreading out a given expense or investment over a greater volume
D. competing in an industry for a long time
Gathering competitive intelligence ___________.
A. is good business practice
B. is illegal
C. is considered unethical
D. minimizes the need to obtain information in the public domain
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by
producing much of its own polypropylene fiber, a key input into its manufacturing
process. This is an example of ______________.
A. leveraging core competencies
B. sharing activities
C. pooled negotiating power
D. vertical integration
Functional structures are usually found in organizations where _____________.
A. there is high volume production
B. there are unrelated product lines or service offerings
C. there is very little vertical integration
D. there exists a strong need to decentralize decision making
Which of the following methods of implementing a differentiation strategy has been
greatly enhanced because of Internet technologies?
A. celebrity endorsements
B. prestige packaging
C. mass customization
D. exceptional service
The bargaining power of the buyer is greater than that of the supplier when
__________.
A. volume of purchase is low
B. threat of backward integration by buyers is low
C. cost savings from the supplier’s product are minimal
D. the buyer’s profit margin is low
Which of the following is NOT one of the ways the Internet is lowering transaction
costs?
A. eliminating supply chain intermediaries
B. minimizing office expenses
C. evaluating employee performance
D. reducing business travel
The makeup of goods and services in the Gross Domestic Products of developed
countries has changed over the last decade. More than 50 percent of the value of GDP
of developed countries is based on _____.
A. clothing and apparel
B. capital accumulation
C. knowledge
D. financial management
An organization is responsible to many different entities. In order to meet the demands
of these groups, organizations must participate in stakeholder management. Stakeholder
management means that:
A. interests of the stockholders are not the only interests that matter
B. stakeholders are second in importance to the stockholders
C. stakeholders and managers inevitably work at cross-purposes
D. all stakeholders receive financial rewards
The use of information technology (e.g., e-mail) has increased in recent years in many
organizations. This has helped to ____________.
A. make more effective use of time in every situation
B. communicate information efficiently
C. restrict social network growth
D. create smaller social networks
Which of the following is not a motivation for a company to pursue international
expansion?
A. It wishes to increase the size of the potential markets for its products and services.
B. It wishes to take advantage of arbitrage opportunities in order to increase profit.
C. It wishes to optimize value-chain activities to enhance performance, reduce costs,
and reduce risk.
D. It wishes to increase foreign market penetration by developing products for the home
market.
Which of the following statements about ethics is not true?
A. Ethics may be defined as a system of right and wrong.
B. Ethics assists individuals in deciding when an act is moral or immoral.
C. Ethics is not concerned with whether or not an act is socially desirable.
D. Business ethics is the application of ethical standards to commercial enterprises.
Which one of the following is not a limitation of a global strategy?
A. limited ability to adapt to local markets
B. the ability to locate activities in optimal locations
C. the concentration of activities may increase dependence on a single facility
D. single locations may lead to higher tariffs and transportation costs
When faced with barriers to change, leaders can create a good climate for advancing the
aims of the organization and making progress towards its goals by building
______________ and _____________.
A. a learning organization; an ethical organization
B. a following organization; an ethical organization
C. a learning organization; an efficient organization
D. an efficient organization; a learning organization
CEO duality refers to a situation in which the _____________.
A. CEO formulates and implements strategies
B. CEO serves as both the CEO and the chair of the board of directors
C. CEO is responsible for acting as CEO and serving on the compensation committee
D. CEO is responsible for acting as CEO and Chief Operating Officer (COO)