When companies become too tall and the chain of command too long, strategic
managers tend to lose control over the hierarchy and, subsequently, their strategies.
A price-cutting strategy will keep out an entrant that plans to adopt a new production
technology.
Companies with a strong track record of internal new venturing generally excel at
research and development.
The globalization of production has been decreasing as companies face lower barriers
to international trade and location economies.
The level of industry demand
A.has little effect on competition in the industry.
B.is one of the determinants of the intensity of rivalry in the industry.
C.increases as the number of customers grows.
D.is influenced by bankruptcy regulations.
E.all of these.
United Airlines, Amtrak, and Greyhound are all companies in the transportation
A.industry.
B.sector.
C.game.
D.segment.
E.strategic group.
All of the following factors cause excess industry capacity except
A.widely deployed, cost-reducing technological developments.
B.industry competitive factors.
C.new entrants into the industry.
D.declining customer demand.
E.powerful suppliers.
Donna can make a chair for about $100, she charges customers $150 to buy the chair,
and customers perceive that the chair is worth $225. In this case, the consumer surplus
is
A.$50.
B.$75.
C.$125.
D.$150.
E.$225.
An organization that has an adaptive culture is an organization that is
A.innovative.
B.resistant to major changes.
C.supportive of managers who take the initiative and make changes on their own.
D.A and C.
E.B and C.
The wasteful duplication of functional resources is most likely to arise with a
A.functional structure.
B.product team structure.
C.matrix structure.
D.multidivisional structure.
E.geographic structure.
The American Red Cross, the Ford Foundation, and the American Civil Liberties Union
can all be classified as
A.groups involved in civil rights.
B.nonprofit enterprises.
C.enterprises for profit.
D.cash cows.
E.ROICs.
Which of the following is not a characteristic of a fragmented industry?
A.Low barriers to entry
B.Diseconomies of scale
C.Constant entry of new competitors
D.Very specialized customer needs
E.High barriers to exit
Which of the following is not a way that companies can avoid failure?
A.Benchmarking
B.Continuous learning
C.Developing distinctive competencies
D.Exploiting luck
E.Investing in specialized assets
Sales of complementors’ products tend to
A.increase sales of the industry’s product.
B.decrease sales of the industry’s product.
C.have no effect on sales of the industry’s product.
D.increase sales of substitute products.
E.decrease sales of substitute products.