Auburn Management lawrence ch.5

Which of the following factors tends to increase the intensity of rivalry within an industry?

Lack of Differentiation

According to the value chain concept, which of the following activities is a primary activity?

Marketing

The five forces included in Porter's five forces model are

1)barriers to entry and the threat of potential new entrants 2)buyer power 3)supplier power 4)threat from substitutes 5)rivalry among industry competitors.

A _____ strategy considers an organization to be a portfolio of businesses, resources, capabilities, or activities.

Corporate

_____ is a generic strategy developed by Porter and it refers to the strategy where a firm's competitive advantage is based on the bet that it can develop, manufacture, and distribute products more efficiently than competitors.

Cost Leadership

Which of the following is a generic strategy developed by Porter that refers to the strategy where competitive advantage is based on superior products or service?

Differentiation

T/F Differentiation makes customers more sensitive to change in price.

False

T/F Intended strategy is the actual strategy that is implemented.

False, Realized Strategy

Intended strategy refers to the decisions that emerge from the complex processes in which individual managers interpret the intended strategy and adapt to changing external circumstances.

False; Emergent Strategy

T/F Strategic management tells managers how they should go about putting the desired strategy into action.

False; Strategy implementation

Which of the following statements is true regarding cost leadership strategy?

Firms pursuing the cost leadership strategy must be particularly efficient in engineering tasks, production operations, and physical distribution

PESTEL stands for _____.

Political Economic Sociocultural Technological Environmental Legal environments

Which of the following statements is true of strategy development?

The strategic planning systems of most companies involve a combination of design and emergence.

Which of the following is true of arenas, differentiators, and economic logic?

They show an individual where he wants to go.

T/F Core competencies are resources and capabilities that serve as a source of a firm's competitive advantage over rivals.

True

According to the VRIO framework, a resource or capability is said to be valuable if it:

allows the firm to exploit opportunities or negate threats in the environment.

Jupiter Inc., an automobile manufacturer, is planning to launch a new range of sports cars. Different teams from the firm conducted surveys to find out the preferences of consumers in various countries. The company used this information to analyze in which market the new product was

arenas

Synergy exists when the interaction of two or more activities:

creates a combined greater than the sum of their individual effects.

Henry Mintzberg and his colleagues at McGill University identified four different aspects of strategy. Which of these aspects refers to a strategy that is conceived by the top management team?

intended strategy

According to Porter's five forces analysis, profits are likely to be low in an industry if:

it is easy to switch to alternatives.

With reference to the four different aspects of strategy, as identified by Henry Mintzberg and his colleagues at McGill University, _____ strategy is the actual strategy that is implemented and it is only partly related to intended strategy.

realized

In the case of _____ diversification, a firm operates multiple businesses within the same industry.

related

_____ diversification occurs when a firm engages in businesses in different industries that lack similarities between each other.

unrelated

VRIO framework provides the foundation for internal analysis. VRIO is an acronym for _____.

valuable, rare, inimitable, and organization