ELCBUS 470
Value consists of
A product's performance characteristics and by its attributes for which customers are willing to pay.
What is not one of Michael Porter's five competitive forces?
Bargaining power of unions
A business model is not directly connected to how a firm makes money.
False
A vision statement answers the question, "What is our business?," whereas a mission statement answers, "What do we want to become?"
False
A vision statement is, in essence, a company's game plan
False
Although a useful step in the strategic management process, value chain analysis can rarely help a firm monitor whether its prices and costs are competitive.
False
Bargaining power of consumers is usually the most powerful of Porter's five competitive forces.
False
Capabilities can be developed quickly in response to changes in the new competitive landscape.
False
Firms that compete within a strategic group rarely use similar competitive strategies
False
In the global economy, traditional factors such as labor costs, access to financial resources and raw materials, and protected or regulated markets are no longer sources of competitive advantage.
False
Increasing absorptive capacity, or the ability of a company to identify, value, assimilate, and use new knowledge is an essential function of Product development Teams.
False
Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage for an extended period of time.
False
Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.
False
Political, governmental, and legal factors are considered key threats for most small and large organizations.
False
The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.
False
The controlling function of management is synonymous to strategy formulation.
False
The essential core of strategy is doing the same thing as your rivals but being more effective at it.
False
The goal of strategic management is to develop a competitive advantage that is permanently sustainable.
False
The mission statement should be short—preferably one sentence.
False
The underlying industry structure has little effect on individual firms' competitive conduct.
False
There are three generic business level strategies.
False
To pursue a cost leadership strategy, strategic managers need to incorporate all the latest technology into their products.
False
Top-down strategic planning works best in more uncertain situations because the firm hand of senior leadership is best at seeing the future.
False
Under the value chain concept, only primary activities add incremental value
False
Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates.
False
While Information Systems (IS) have greatly improved externally focused decision making, they have had little impact on lowering costs.
False
Without strict governance mechanisms, the majority of executives will act in their own self-interest rather than acting as positive stewards of firm resources.
False
The primary role of Human resources in achieving superior innovation is
Hire talented scientists and engineers.
What step in the strategic development process involves mobilizing employees and managers to put strategies into action?
Implementing strategy
The primary role of Material Management in achieving superior innovation is
No primary responsibility
According to Porter, what is usually the most powerful of the five competitive forces?
Rivalry among competing firms
The process that describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage is called what?
Strategic Management
The primary role of Infrastructure in achieving superior customer responsiveness is
Through leadership by example, build a wide commitment responsiveness to customers
An opportunity analysis is an appraisal of the costs, benefits and risks associated with marketing decisions.
True
In both monopolistically competitive industries and oligopolistic industries, the ability to differentiate a product provides a firm with pricing power
True
In the implementation stage of scenario planning, managers will activate the dominant strategic plan.
True
Internal R&D and contract R&D are the two basic forms of R&D in organizations.
True
One of Matsushita's strengths is the ability to continue to improve employee productivity.
True
Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.
True
To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends.
True
Value is created when the firm exploits its core competencies or competitive advantages to meet or exceed the demanding standards of global competition.
True
Customer defection rates are
a reflection of customer loyalty., an indication of a company's ability to satisfy is customers.,important to consider because of their potential impact on advertising and marketing costs.an important consideration because of their effect on sales volumes. all of the above
Marina's new paint formulation builds on other product innovations to create paint with fewer toxic fumes. Marina's new paint is
an incremental innovation.
To provide a sustainable competitive advantage, a capability must satisfy all of the following criteria EXCEPT
be hard for competing firms to duplicate.
A firm's strengths that cannot be easily matched or imitated by competitors are called
distinctive competencies
The focused differentiation strategy differs from the differentiation strategy in that
focused differentiators target a narrower customer market.
A company's infrastructure includes the company's
organization structure, culture, and style of leadership.
Flexible manufacturing technologies allow companies to
produce small batches of customized products at a relatively low cost.
Competitive advantage typically leads to
superior profitability
The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called
value chain analysis