BA 453 Questions
net present value rule
Consider the time value of money from the benefits and the costs first and the timing of the cash flows second. when making an investment decision take the alternative with the ___. you can then borrow or lend to shift cash flows through time and find the preferred pattern of cash flow. Will the benefit exceed the cost over the extended time frame.
Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model planes available. By doing this, they completed part of their A. implementation strategy. B. corporate strategy. C. functional strategy. D. business strategy.
D
Due to political instability in the country of United Mapa, the strategic leaders at the headquarters of FT Supplies Inc. have decided to divest the company's business from the foreign market in United Mapa. This decision would be applicable to all the business units of FT Supplies Inc. operating in United Mapa. Thus, this is a A. business strategy. B. divisional strategy. C. functional strategy. D. corporate strategy.
D
In which of the following situations is a company that exists in the telecommunications industry most likely to face the highest threat of entry? A. if the company is able to put up a credible threat of retaliation B. if the capital requirements in the industry are high C. if the customer switching costs in the industry are high D. if the industry has recently become deregulated
D
Industry structures are not stable over time. The U.S. banking industry has seen major consolidation in recent years. We would expect the result of this dynamic change to be what? A. Generally lower industry profits. B. It will have no effect on profitability. C. Further erosion in business. D. Generally higher industry profits.
D
John Connelly went to the grocery store to buy some butter. As he was looking at the butter offerings, he noticed that Pam cooking spray was advertised as $1.00 less for the same amount of product. John purchased the spray. The spray is considered to be a what? A. A complement B. A mobility product C. A replacement D. A substitute
D
Non-price competition such as today's rivalry between Coca-Cola and Pepsi refers to: A. When one firm cuts prices to gain market share, the competition will do the same. B. When a firm is driving costs down in order to gain competitive advantages through lower prices. C. When a firm has no pricing power that leads to a competitive disadvantage. D. When a firm is offering unique products and services as opposed to competing on price.
D
Planned emergence in strategy-making is when: A. An organization plans to emerge into a new market using current initiatives. B. An organization has a succession plan when the current CEO is preparing to retire. C. An organization communicates its strategy to the lower levels during a planned event. D. An organization allows bottom-up initiatives to emerge and be considered by the top.
D
Strategic planning differs from scenario planning in that: A. Strategic planning is long-term planning; scenario planning is not. B. Strategic planning is bottom-up from the employees, and scenario planning is top-down from the CEO. C. Strategic planning is performed by many layers in the organization, while scenario planning is limited to top executives. D. Strategic planning assumes that future success can be predicted; scenario planning allows for more unforeseen events.
D
The competitive threat of potential entry is NOT strong when _____________. A.there will be expected competitive retaliation B.there are sizable economies of scale C.there are strong brand preferences and customers are loyal D.All of these
D
The factors that are important to focus on when mapping strategic groups include: A. Identifying the top competitive factors in your market, such as expenditures on research and development, pricing, distribution channels, and customers. B. Choosing two key dimensions from these factors for the horizontal and vertical axes, plotting your rivals along these axes, and looking for differences among the competition. C. Analyzing the firms that are closest to your organization on the map, because they will give your firm the strongest rivalry. D. All of these.
D
To implement specific business strategies, general managers of strategic business units rely on a day-to-day basis on A. external stakeholders. B. corporate executives. C. strategic leaders. D. functional managers.
D
When a firm is able to successfully employ an integration strategy, it will create a competitive advantage by: A. Combining high quality and product features to provide service that customers truly value. B. Using a first-mover advantage to be the lowest price in the market. C. Winning market share with a highly differentiated product. D. Beating rivals on product attributes while offering a better price.
D
Which of the following is an implication of low interest rates? A. Cost of capital for firms will be high. B. Firms will invest less in future growth. C. Economic growth rate will fall. D. Consumer demand will increase.
D
economic value created
Difference between value (V) and cost (C), or (V - C).
industry life cycle
Embryonic, Growth, Shakeout, Mature, Decline
types of stakeholders
Financial - shareholders, banks Product - customers, suppliers, unions Organizational - employees, managers, communities
founder imprinting
Founders defined and shaped the culture
ecological
Global warming sustainability pollution
mechanistic organization
High degree of specialization and formalization Tall hierarchies Rely on centralized decision making
strategic control and reward systems
Internal-governance mechanisms - culture, sanction s input controls- rules and standard operating procedures, budgets, behavioral guidelines output controls- result oriented ( carrot-and-stick)
Dynamics
Neglects change and innovation -industry life cycle -disruptive innocations -timing: entry into an industry
equity alliances
One partner takes partial ownership in the other TACIT knowledge: know how exchange personnel corporate venture capital- established firms invest in new startups -tends to produce stronger ties and greater trust
performance measures
Profitability accouting vs. financial measures benchmarking
sourcing options
ST contracts: competitive bidding process less than one-year term lower prices -> cost advantages Strategic Alliances voluntary arrangement: involved sharing of knowledge, resources, capabilities to lead to competitive advantage long term contracts commit to reduce cost, improve quality-share gains mutual investments: credible commitment to develop long term relationship market discipline-periodically renegotiate, parallel source
strategic networks
Social structure with multiple organizations network nodes: the organization network ties: links between the organization
Threat of forward integration
The power of a supplier is enhanced if there is a credible possibility that the supplier might enter the buyer's industry.
Threat of backward integration
The power of buyers is enhanced if there is a credible threat that the buyer might enter the supplier's industry.
valuation principle
The value of a commodity or an asset to the firm or its investors is determined by its competitive market price. The benefits and costs of a decision should be evaluated using those market prices. When the value of the benefits exceeds the value of the costs, the decision will increase the market value of the firm.
VRIO Framework
Value- attractive features Value > Cost Rarity- only a ffew firms possess. temporary competitive advantage Imitability- unable to develop or buy at a reasonable price. Organized to capture- exploit competitive potential ( structure, corrdinating systems)
product innovation
a change in the appearance or the performance of a product or a service or the creation of a new one
process innovation
a change in the way a product or service is conceived, manufactured, or disseminated
Prisoner's Dilemma
a game in which pursuing dominant strategies results in noncooperation that leaves everyone worse off
cost leadership
a strategy that aims to provide a product or service at as low a price as possible to a broad audience
capabilities
ability to deploy, leverage, integrate or manage resources - typically in a process
input factors
access to lower-cost materials or labor
strategy implementation
allocate necessary resources desin the organization to bring intended strategies to reality
strategic position
based on differentiation & cost
resourse heterogeneity
bundles of resources and capabilities differ across firms
experience curves
combine economy of scale & learning curves. technology & process allows movement to steeper
uncertainty
complexity+ degree of change (magnitude + liklihood)
advatange of cost leadership
convince competitors not to engage in price wars (game theory, oligopolies provides a barrier to entry
disadvantages of horizontal integration
coordination and cooperation between units can be challenging competition becomes intra-firm rather than inter-firm
integration strategy
cost leadership and differentiation quality- value innovation economies of scope (starbucks tea) innovation (ikea) structure, culture, & routines ambidextrous org.-
disadvantages of vertical integration
costly-FC internal supplier incentives? hard to reverse may end up with large commitment to one technology captive buyers so quality may suffer increasing scrutiny from the FTC and others
legal
court system legislation hiring laws, ADA, SOX
incremental innovations
creation of products, services, or technologies that modify existing ones
disruptive innovations
creation of products, services, or technologies that replace existing ones.
big box retailers advantage
cube-square rule each dimension increases by 50% (2 goes to 3) each volume increases 237.5% (8 goes to 27)
organizational culture
culture can be source of competitive advantage if its valuable, rare, inimitable, and nonsubstituable -causal ambiguity and social complexity
Which of the following is not an example of a software company's external stakeholder? a. creditors b. customers c. alliance customers d. project managers
d
activities
distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services
specialization
division of tasks
advatages of horizontal integration
economies of scale reduce duplication bundle products, cross selling, serve customers better reduce industry rivalry- less capacity, better coordination replicate a successful business model
Oligopoly
few (large) firms, some pricing power, differentiated product, high entry barriers
core competencies
firm strength, which contributes to customer value, is different, and is extendable
formalization
formality of procedures
political
govt pressures subsidies & incentives various across countries, staties, regions
functional structure
groups of employees with distinct functional areas the areas of expertise correspond to distinct stages in the company value chain activities
economic
growth rates interest rates employement levels currency exchange
make or buy
if C(in house) < C(market)= vertically integrate (make in house) *need to consider production + transaction cost
A Sixth Force: Complements
if customers value your product more when they have the complementos product than when they have yours alone -positively correlated with profits in the industry -co-operation: cooperative interaction across firms ex: airlines: credit cards, rental cars, travel agents hotdogs: buns, condiments, bev commercial real estate: entertainment, transportation, restaurants
economies of scale
increased output decreased cost per unit spread fixed costs
support activities
indirectly add value activities of the value chain that either add value by themselves or add value through important relationships with both primary activities and other support activities. general administration, human resource management, technology development, procurement
technological
innovation diffusion r&d
cost leadership
input factors, economies of scale, learning curves, experience curves
advantages of differentiation
insulate from rivalry consumers are less price sensitive can increase market share; create markets loyalty barriers develop advantageous if valuable reasource is intangible
learning curves
learning by doing, varies by industry
joint ventures
least common form of alliance long-term commitment tacit and explicit knowledge moving toward full partnership integration "try before buy" used to enter foreign markets
growth
life cycle stage: big increase in demand, prices decline
embryonic
life cycle stage: educate customers, develop channels, finalize designs, few companies
decline
life cycle stage: growth is negative, rivalry driven by exit barriers
shakeout
life cycle stage: rivalry increases, price wars
mature
life cycle stage: saturated markers, consolidation (overcapacity-> oliogopolies)
organic organizations
low degree of specialization and formalization a flat organizational structured decentralized decision making use virtual team due to information technology
monopolistic competition
many firms, some pricing power, differentiated product, medium entry barriers
perfect competition
many small firms, firms are price takers, commodity product, low entry barriers
disadvantage of differentiation
may be hard to sustain price premium-switching threat of products becoming commodities customer tastes can change
non-equity alliance
most common form: Long term contracts Partnership based on contracts between firms. The most frequent forms are supply agreements, distribution agreements, and licensing agreements firms share explicit knowledge Vertical strategic alliances -firms tend to share explicit knowledge that are codified licensing agreements: Partners exchange codified knowledge regularly
sociocultural
norms, culture, values demonographics lifestyle changes
unrelated diversification
not similar lines of business- conglomerates no obvious commonalities *acquire financial motivated and managed exploit general organization, man. skills, in resource allocation and coordination corporate parenting ability
Monopoly
one firm, considerable pricing power, unique product, very high entry barriers
intangible resources
organizational assets that are difficult to identify and account for and are typically embedded in unique routines and practices, including human resources, innovation resources, and reputation resources
tangible resources
organizational assets that are relatively easy to identify, including physical assets, financial resources, organizational resources, and technological resources
motivators for alliances
pool resources=scale economies hedge risks, diversify expand into new markets shape industry competition gain complementary assets technological exchange= learning
multidivisional structure
related diversification -co-opetition amoung SBUs -transfer core competences across SBUs -centralized decision making unrelated diversification -competing for resources -decentralized decision making
hierarchy
reporting lines
disadvantage of cost leadership
requires large asset base and capital investment can create myopia to industry changes typically only one player can do may lose touch with customer needs
first mover advantage
requires: proprietary technology, resources that are acquired preemptively, ability to lock in customers to prevent switching, network effects to attract partners and customers.
resource immobility
resources tend to be "sticky" and don't move easily from firm to firm
Advantage of vertical integration
secure critical supplies capture profits up/down stream control costs, access,uncertainty flow improve quality barrier to entry facilitating scheduling and planning incentives and direction aligned when part of one firm- invest in specialized assets
situational analysis
strategic goals, internal and external environment of the firm
Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments? a. strategy analysis b. strategy implementation c. strategy formulation d. strategy control
strategy analysis
game theory limitations
strict assumptions- rational behavior, perfect information limits with complexity ability to quanitfy payoff structures
First Mover Disadvantages
threat of free riders, (early entrants) risk uncertainty
dimension sof coporate strategy
vertical integration horizontal integration and diversification global strategy
strategy formulation
what industries and markets should we compete in? how should we compete in those industries and markets
centralization
where decisions are made
economic value capture
(V-P) (P-C)
simple structure
- Small firms with low complexity - Founders make all important strategic decisions - Low degree of formalization and specialization - A basic organizational structure ex: small advertising, consulting, accounting, law firms
strategic groups
-More competition exists within , rather than between, groups. A company's closest competitors are those in its strategic group • Each strategic group may face a different set of opportunities and threats and show different profitability patterns.
Drivers of Corporate Strategy Decisions
-core competencies - Economies of Scale - Economies of Scope - Transaction Cost
alliance management capability
1. Partner selection and alliance formation 2. Alliance design and governance 3. Post-formation alliance management - make relation-specific investments -establish knowledge-sharing routines - build inter-firm trust
limitations of PESTEL framework
1. dynamics: neglects change and innovation 2. excludes firm differences 3. ignores firm influences on forces: consolidation
game theory principles
1. look forward, reason back competitors reaction, decision, trees, consider how choices today affect later outcomes 2. know your rivals 3.Find Dominant stategy higher payoff regardless of what rivals do 4. strategy shapes the payoff structure of the game the players can change the game
An ideal competitive environment from a profit-making standpoint is when: A. Rivalry is moderate, and high entry barriers and good substitutes do not exist. B. Rivalry is high, entry barriers are low, and there are many substitutes. C. Rivalry is high, buyers and sellers have strong bargaining power, and entry barriers are low. D. Rivalry is moderate, entry and exit barriers are low, and there are many substitutes.
A
Competitive rivalry among firms in the same strategic group is generally: A. More intense than competition between strategic groups. B. Less intense than competition between strategic groups. C. Similar in intensity than competition between strategic groups. D. Fairly dependent on what industry the strategic group is in.
A
Exit barriers are obstacles that determine how easily a firm can leave the industry. When exit barriers are high, what happens to industry attractiveness? A.It decreases. B.It increases. C.It becomes a complement. D.It has no impact.
A
Generally, as the level of _________ innovation declines, the level of _________ innovation increases. A. Product; process B. Process; procedural C. Incremental; drastic D. Efficient; inefficient
A
How is a firm's task environment different from its general environment? A. Managers have some influence over external factors in the task environment; they have little direct effect over external forces in the general environment. B. Managers have no direct effect over external factors in the task environment; they have some influence over external forces in the general environment. C. Managers have no direct effect over external factors in the task environment; they have influence over all external forces in the general environment. D. Managers have influence over all external factors in the task environment; they have no direct effect over external forces in the general environment.
A
If Smith Pharmaceuticals has a 15% return on invested capital (RoIC), what do you need to know to determine if it has a competitive advantage? A. It must be compared to the RoIC of the competitors and industry. B. Nothing, 15% is a terrific return for the shareholders. C. It must be evaluated for depreciation of the capital. D. It must be compared to the history of the firm's RoIC over a number of years.
A
In 1996, GM, Toyota, and Honda introduced electric vehicles into the California market. This was in response to a regulation passed by the state in 1990 requiring some percentage of zero-emissions vehicles from auto companies be sold in the state. When the regulation was rescinded in the late 1990s, all three firms pulled their electric vehicles out of the market. GM terminated its electric vehicle program, whereas Toyota and Honda used it to introduce hybrid cars only a few years later. Which of the following is NOT a valid conclusion to draw from this series of events? A. Government regulations are always bad for U.S. businesses. B. Government regulations can influence business strategies. C. GM made a strategic error by closing its electric-vehicle program. D. Toyota and Honda used the regulation as a catalyst for new lines of cars.
A
Strategic __________ is staking out a unique and valuable spot that allows the firm to meet customer demands. A. Positioning B. Advantage C. Goal D. Segmentation
A
The costs associated with searching for economic agents with whom the firm contracts, negotiates, and enforces contracts with are: A. Transaction costs. B. Fixed costs. C. Procedural costs. D. Implicit costs.
A
The final step in industry analysis is to A. draw a strategic-group map. B. identify the underlying drivers of the five forces. C. identify the key players in each of the five forces. D. define the relevant industry.
A
The production department at Coral Cements that is a subsidiary of the large conglomerate Five East Corp. has decided to adopt the FIFO (first in, first out) method of inventory to dispatch its cement bags. Which of the following strategies does this scenario best illustrate? A. functional strategy B. corporate strategy C. master strategy D. business strategy
A
The resource-based view is in sharp contrast to which model of industry competition. A. Perfect competition B. Monopoly C. Oligopoly D. Monopolistic competition
A
When competitors cooperate with one another to achieve strategic objectives, this is called? A. Co-opetition B. A merger C. Functional tasks D. A strategic initiative
A
When it comes to a firm's value chain activities and the essence of strategy, a firm should ask itself: A. Which activities should be done? And more importantly, what should not be done? B. Where can costs be minimized to reflect the greatest profitability? C. What tangible assets can be acquired to increase competitive advantage? D. What are the best practices of the closest competitor and can they be easily adapted by the firm?
A
Which of the following factors most effectively contributed to the success of Threadless in comparison to other companies with T-shirt designs, including American Eagle, Old Navy, and Urban Outfitters? a. reliance on crowdsourcing b. point-to-point business model c. hub and spoke system d. shorter distances
A
Which of the following would be considered a weak stakeholder strategy? A. putting shareholder interests above the interests of other stakeholders B. addressing the concerns of all stakeholders, including employees C. always using fair and ethical practices to satisfy stakeholders D. ensuring that the primary stakeholders achieve their objectives
A
primary activities
Add value directly in transforming inputs and outputs contribute to the physical creation of the prodcut or service, its sale and transfer to the buyer, and its service after the sale. EX: inbound logistics, operations, outbound logistics, marketing and sales, service
AFI Framework
Analysis, Formulation, Implementation
Which of the following is NOT an example of a firm benefiting from economies of scope? A. Kleenex Corporation using paper products for both its facial tissue and paper towel businesses B. Anheuser-Busch spreading its fixed costs over millions of gallons of beer produced each year C. Amazon leveraging its core competencies in IT systems into a wide range of online services, from retailing to cloud computing D. Honda using flexible manufacturing systems for quick and low-cost switching from one product to another
Anheuser-Busch spreading its fixed costs over millions of gallons of beer produced each year
3. When an employee of a firm follows his or her own interests such as pursuing managerial perks when performing activities on behalf of the owner of the firm, a(n) _______________ problem occurs. A.Delegationexcess B.Principal-agent C.Authority-excess D.Agent efficiency
B
A core tenet of stakeholder strategy is that A. firm should isolate its internal stakeholders from its external stakeholders. B. single-minded focus on shareholders alone exposes a firm to undue risks that can threaten the very survival of the enterprise. C. multifaceted exchange relationship with internal and external stakeholders can lead to a firm's competitive disadvantage. D. firm should work toward competitive parity rather than gaining and sustaining a competitive advantage.
B
A mission describes ____________. A.what a business will do in the future B.what a business actually does and why it does it C.what the norms are of the business D.what the business has done historically
B
According to AFI strategy framework, in which of the following tasks of strategic management is a firm's vision, mission, and values identified? A. strategy control B. strategy analysis C. strategy formulation D. strategy implementation
B
Achieving differentiation parity along with lower costs is important to a low-cost leader because: A. The firm is then able to target a less price-sensitive customer market. B. Creating the same value as the competition, combined with lower costs, gives the firm a competitive advantage. C. The firm is then able to incorporate differentiating features that cause buyers to prefer its products. D. All of these.
B
Buyers are highly price sensitive when A. their purchase represents a small fraction of their procurement budget. B. they earn low profits or are strapped for cash. C. the quality of their products and services are highly affected by the quality of the inputs. D. the industry's products are highly characterized with non-price competition.
B
Free Winds, Inc. is a company that manufactures a variety of generators that run on wind power. The company wants to ensure that wind technology replaces all forms of exhaustible energy sources in the near future. Which of the following statements will make an accurate vision for Free Winds? A. We make products that run on wind energy. B. All nations around the globe should have access to a sustainable energy source. C. The company aims to make working fun and pleasurable for its employees. D. We provide energy-efficient sources and services by investing in research and innovation.
B
Generally, perfectly competitive industries such as paper and steel (commodities) are deemed to be ________ in profits to more differentiated industries like pharmaceuticals and cosmetics. A. superior B. inferior C. similar D. indeterminate
B
Six Sigma, lean manufacturing, and genetic engineering are examples of ___________ that deliver new ways to produce or deliver existing products or services. A. Procedural changes B. Process innovations C. Entrenched standards D. Trial innovations
B
The five-forces-plus-complements model is useful in understanding industry profit potential, but it is only a snapshot in time. Managers must also consider ___________. A. the cost structure B. the industry dynamics C. the competitive landscape D. the strategic group
B
The primary objective of Porter's five forces model is to A. replace a firm's competitive advantage with competitive parity. B. understand the profit potential of different industries. C. reduce the gap between the value of a firm's product and its cost of production. D. break down a firm's value chain activities into primary and support.
B
The telecom industry in the country of New Taria is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the telecom industry, the A. threat of substitutes is most likely high. B. threat of new entrants is most likely low. C. bargaining power of buyers is most likely high. D. entry barriers are most likely nonexistent.
B
When firms that provide key raw materials to an industry can frequently negotiate for higher prices, the: A. Bargaining power of buyers is high. B. Bargaining power of suppliers is high. C. Barriers to entry are low. D. Bargaining power of suppliers is low.
B
When is the rivalry among existing competitors in an industry likely to be more intense? A. when the industry growth rate is high B. when firms make strategic commitments to compete in an industry C. when firms engage in non-price competition as opposed to price-cutting D. when the industry has low exit barriers
B
Which of the following best illustrates a strategic business unit (SBU)? A. The human resource department of a large company that is responsible for hiring employees for all its divisional branches B. The consumer electronics division of a large company that also manufactures automobiles, apparel, and processed food C. The product development team at the headquarters of a fast-food chain D. The market segment which can be categorized between the income levels $10,000 and $25,000
B
A ____________ is a product or service that can help raise demand in an industry by indirectly enhancing performance or decreasing prices. A. core competency B. substitute C. complement D. component
C
A business model is the translation of strategy into action, which details the firm's competitive tactics and initiatives. Another way to say this is ___________. A. It's reliant on co-opetition to be successful B. It's a crowdsourcing process for the firm C. It's how the firm intends to make money D. It's how network effects are taken into account
C
A company uses the planned emergence approach in the development of its strategies. Which of the following is an implication of this? A. The employees will be isolated from the process of setting the company's vision and mission. B. The lower-level employees will be restricted to the tasks involved in strategic implementation. C. The company's organizational structure and systems will be designed to support bottom-up strategic initiatives. D. The top management will create a strategy that is based on hard data alone, rather than an inspiring vision.
C
A traditional top-down strategic planning process typically begins with A. employees at the operational level identifying problems within an organization. B. functional managers formulating functional strategies for their respective departments. C. strategic leaders adjusting a company's vision and mission based on environmental analysis. D. employees who have close contact with customers taking autonomous actions.
C
All of the following are aspects of sociocultural factors influencing industry attractiveness EXCEPT: A. The growth rate of the population B. The age distribution of the population C. Environmental protection laws D. Lifestyle changes
C
All of the following are tangible resources EXCEPT: A. Production equipment. B. Distribution centers. C. A firm's reputation. D. A firm's headquarters building.
C
All of the following are tools typically used to achieve cost-leadership EXCEPT: A. Controlling the cost of inputs. B. Leveraging economies of scale. C. Offering products that have superior value. D. Learning by doing.
C
An industry with three firms and a differentiated product is most likely a(n) ________, while an industry with three thousand firms and a differentiated product is most likely a(n) ________ industry. A. perfect competition; oligopolistic B. monopoly; perfectly competitive C. oligopoly; monopolistic competitive D. oligopoly; perfectly competitive
C
An industry with three firms and a differentiated product is most likely a(n) ________, while an industry with three thousand firms and a differentiated product is most likely a(n) ________ industry. A. perfect competition; oligopolistic B. monopoly; perfectly competitive C. oligopoly; monopolistic competitive D. oligopoly; perfectly competitive
C
Currently, lean manufacturing is a __________ but ____________ resource, which leads to competitive parity. A. Valuable; rare B. Common; tangible C. Valuable; common D. Rare; tangible
C
One of the strategic goals of management is to develop a resource base that is primarily: A. Flexible, responsive, and efficient B. Variable, rare, costly to initiate, and orderly C. Valuable, rare, costly to imitate, and organized to capture value D. Unique and difficult to imitate
C
What is the strategic management process? A. The CEO decides who the product managers will be for a company. B. The CEO defines the main problems facing a company. C. Strategic leaders design a method to formulate and implement strategy. D. Strategic leaders focus on creating a vision that reflects the company's strategy.
C
Which of the following is a major decision that was generated from a change in corporate strategy? A. Changing Google's pricing model on its Google Ads products B. Providing superior customer service at Neiman Marcus retail stores C. Selling IBM's personal computer business to the Chinese firm Lenovo D. Applying for patents on Pfizer's cholesterol-lowering drug Lipitor
C
Which of the following statements should ideally reflect a firm's strategy for competitive advantage? a. Our strategy is to win at any cost b. We will be number one in the industry c. Our aim is to create superior customer value while controlling costs d. We want to be the market leader by replicating our competitor's strategy
C
Which of the following would NOT indicate that buyers are a strong competitive force? A.They can integrate backward. B.They can purchase from several sellers. C.They are reliant on the industry's product. D.They buy in large quantities.
C
_________ and __________ are two of the value drivers that managers can utilize when trying to improve a firm's differentiation strategic position. A. Co-opetition; complements B. Learning-curve effects; co-opetition C. Customer service; complements D. Economies of scale; co-opetition
C
