MAN Test 1

A competitive advantage's sustainability is a function of all of the following factors EXCEPT: a. the amount of tangible and intangible resources that a firm has. b. the rate of core competence obsolescence because of environmental changes. c. the availability of substitutes for the core competence. d. the imitability of the core competence.

a

An appropriate guideline for competitor intelligence practices includes which of the following? a. Respect the principles of common morality. b. Reveal all information that has been verified by a second source. c. If it is legal, it is ethical. d. Include any information you have heard.

a

An external environmental analysis includes all of the following EXCEPT: a. implementing. b. forecasting. c. assessing. d. scanning.

a

Both parents and teachers at East Middle School want to ensure that local history is part of the curriculum, a concern that would most likely be addressed in the arena of the _____ segment of the general environment. a. political/legal b. sociocultural c. demographic d. economic

a

Brandford, Inc., was started by three childhood friends. Everyone they have hired has fit with the personalities of the three owners. In its 20 years of operation, no one has quit or been fired, and friends or relatives of employees are often hired when the company needs to grow. The friendship and camaraderie among employees at all levels of Brandford has given it capabilities that would be costly to imitate because of: a. social complexity. b. ambiguous causes. c. historical conditions. d. tangible resources.

a

Capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm's: a. human capital. b. intranet. c. grapevine. d. management information systems.

a

A product's performance characteristics and its attributes for which customers are willing to pay are used to measure: a. strategic competitiveness. b. value. c. quality. d. a competitive advantage.

b

A(n) _____ is a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness. a. threat b. opportunity c. forecast d. trend

b

Access to distribution is _____ a barrier for products that can be sold on the Internet. a. more of b. less of c. never d. always

b

All of the following are examples of cost advantages of established competitors that cannot be duplicated by new entrants EXCEPT: a. proprietary product technology. b. ethical practices. c. desirable locations. d. government subsidies.

b

An analysis of which of the following environments focuses on the factors and conditions influencing an industry's profitability potential? a. General b. Industry c. Physical d. Competitor

b

Brownstone Company has a particular capability that is valuable but is not rare nor costly to imitate and is possibly substitutable. What would be the likely competitive consequences of this capability? a. Competitive disadvantage b. Competitive parity c. Temporary competitive advantage d. Sustainable competitive advantage

b

Changes in the age structure of the world's populations have significant implications for all of the following EXCEPT: a. availability of qualified labor. b. retirement policies. c. business opportunities. d. identifying expatriates.

b

Customers buying General Motors (GM) automobiles are given trial packages for OnStar road assistance with the purchase of a new vehicle. As such, OnStar would be called a: a. competitor. b. complementor. c. focal firm. d. rival firm.

b

If a firm does not have core competencies in an area required to achieve a competitive advantage, it must: a. change its product line. b. acquire the resources needed to build those competencies. c. analyze the internal organization to identify strengths. d. analyze the internal organization to identify weaknesses.

b

Knowledge, trust, and skills are all _____ resources. a. tangible, human b. intangible, human c. tangible, reputational d. intangible, reputational

b

Labor training laws are an element of which of the following segments of the general environment? a. Economic b. Political/legal c. Global d. Sociocultural

b

Compared with the general environment, the industry environment has _____ effect on the competitive actions and responses a firm takes to succeed. a. a similar b. a less direct c. a more direct d. no

c

Deregulation philosophies address concerns in which segment of the general environment? a. Technological b. Sustainable physical environment c. Political/legal d. Economic

c

Diamond Mill Company wants to determine which of its value-creating competencies should be maintained, upgraded, or developed and which should be outsourced. Diamond Mill should use which of the following tools to complete this analysis? a. External analysis b. Capabilities analysis c. Value chain analysis d. Support function analysis

c

EdgeWise, Inc., a U.S. company, has decided to explore the possibility of offshoring in order to meet certain financial benchmarks. Which of the following activities would fall within that category? a. Selling finished products in Asia b. Purchasing a competitor that operates in Europe c. Contracting with a company in India to provide data-entry services d. Opening a plant in South America

c

Effective customer service is a capability within which of the following functional areas? a. Distribution b. Human resources c. Marketing d. Management

c

Ellen's Kitchen, a small, upscale grocer, has been struggling to serve its customers. Ellen's employees worked together to reorganize the layout of both the storefront and the inventory room. Now the store is easy for customers to navigate, and workers at Ellen's can easily find the correct items when they need to refill the shelves. These employees shared their expertise in which value chain activity? a. Supply-chain management b. Marketing c. Operations d. Customer value

c

Firestorm Company recently developed a prototype of a new product it plans to add to its product line. Firestone is addressing which segment of its general environment? a. Political/legal b. Sociocultural c. Technological d. Economic

c

In a competitor analysis, the firm seeks to understand all of the following EXCEPT: a. what drives the competitor. b. what the competitor is doing and can do. c. what the competitor's competitive advantage is. d. what the competitor's capabilities are.

c

In the grocery and convenience store industry, rewards cards and fuel points are examples of capabilities that are _____ but no longer _____. a. rare; valuable b. valuable; rare c. costly to imitate; rare d. nonsubstitutable; valuable

c

In order to analyze its external environment and internal organization, a firm should: a. set performance benchmarks. b. formulate a business-level strategy. c. perform a SWOT analysis. d. perform an A-S-P analysis.

c.

Jonathan works for a multinational corporation (MNC) in a country that has the second-largest economy in the world. Jonathan works in: a. the United States. b. Japan. c. China. d. India.

c.

Joplin Tires' corporate website states "Joplin Tires strives to be the top-selling tire manufacturer in the United States." This statement is Joplin Tires': a. mission. b. statement of organizational culture. c. vision. d. code of ethics.

c.

Motorvate is a start-up rental car company. Its owners have decided to use the resource-based model to pursue strategic competitiveness and earn above-average returns. Motorvate's first step in using the model would be to: a. determine the firm's capabilities. b. locate an attractive industry. c. identify the firm's resources. d. study the external environment, especially the industry environment.

c.

_____ is composed of information, intelligence, and expertise. a. Knowledge b. Technology c. Experience d. Skill

a.

An external environmental analysis includes all of the following EXCEPT: a. implementing. b. forecasting. c. assessing. d. scanning.

A

Both parents and teachers at East Middle School want to ensure that local history is part of the curriculum, a concern that would most likely be addressed in the arena of the _____ segment of the general environment. a. political/legal b. sociocultural c. demographic d. economic

A

Delta Air Lines offering frequent flyer miles is primarily an example of an offer intended to: a. increase customer switching costs. b. combat cost disadvantage. c. overcome government subsidies. d. combat product differentiation.

A

The greater a firm's capacity to favorably influence its industry environment, the greater the likelihood it will: a. earn above-average returns. b. use the most innovative technologies. c. expand its business internationally. d. be able to predict inflation rates.

A

The likelihood that firms will enter an industry is a function of which two factors? a. Barriers to entry and the retaliation expected from current industry participants b. Barriers to entry and the threat of substitute products c. The retaliation expected from current industry participants and neglected market segments d. Barriers to entry and switching costs

A

The retail selling of medical marijuana would most likely be addressed in the arena of the _____ segment of the general environment. a. political/legal b. sociocultural c. global d. sustainable physical environment

A

When examining the Assumptions component for a competitor analysis, which of the following is a question that is addressed? a. Do we assume the future will be volatile? b. How are we currently competing? c. How do we rate compared to our competitors? d. What are our strengths and weaknesses?

A

Which part of the external environmental analysis identifies early signals of environmental changes and trends? a. Scanning b. Monitoring c. Forecasting d. Assessing

A

_____ are derived from incremental efficiency improvements through experience as a firm grows larger. a. Economies of scale b. Customized products c. Customer switching costs d. Market niches

A

A(n) _____ is a group of firms producing products that are close substitutes. a. distribution channel b. new entrant c. industry d. capital requirement

C

ABC Company and XYZ Company have decided to form a strategic alliance. Their reason for doing so is most likely to: a. overcome cost disadvantages. b. accomplish product differentiation. c. gain economies of scale. d. subvert antitrust laws.

C

A(n) _____ is a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness. a. threat b. opportunity c. forecast d. trend

B

All of the following are examples of cost advantages of established competitors that cannot be duplicated by new entrants EXCEPT: a. proprietary product technology. b. ethical practices. c. desirable locations. d. government subsidies.

B

An analysis of which of the following environments focuses on the factors and conditions influencing an industry's profitability potential? a. General b. Industry c. Physical d. Competitor

B

Customers buying General Motors (GM) automobiles are given trial packages for OnStar road assistance with the purchase of a new vehicle. As such, OnStar would be called a: a. competitor. b. complementor. c. focal firm. d. rival firm.

B

Labor training laws are an element of which of the following segments of the general environment? a. Economic b. Political/legal c. Global d. Sociocultural

B

When developing a Response from a competitor analysis, which of the following is NOT a question that is addressed? a. What will our competitors do in the future? b. What is the worst-case scenario if we take a status quo approach? c. Where do we hold an advantage over our competitors? d. How will this change our relationship with our competitors?

B

Within the United States, governmental decisions and policies regarding antitrust issues, such as disallowing proposed mergers that would create a firm that is too dominant in an industry, is the responsibility of the: a. Office of the President of the United States. b. Antitrust Division of the Justice Department or the Federal Trade Commission. c. Committee on Antitrust Actions of the Congress of the United States. d. Antitrust Division of the Department of Homeland Security.

B

Yellow River Company is looking to broaden the diversity of its workforce. Yellow River will examine the _____ segment of its general environment when addressing this issue. a. global b. sociocultural c. technological d. economic

B

_____ often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets. a. Exporting b. Globalfocusing c. Importing d. Guanxi

B

All of the following are common dimensions on which rivalry is based EXCEPT: a. innovation. b. service after the sale. c. location. d. price.

C

Based strictly on economic growth, which country would provide the highest growth opportunity for a company looking to expand internationally? a. China b. France c. India d. Mexico

C

By 2050, which of the following is expected to be the most populous nation in the world? a. The United States b. Pakistan c. India d. China

C

Firestorm Company recently developed a prototype of a new product it plans to add to its product line. Firestone is addressing which segment of its general environment? a. Political/legal b. Sociocultural c. Technological d. Economic

C

In a competitor analysis, the firm seeks to understand all of the following EXCEPT: a. what drives the competitor. b. what the competitor is doing and can do. c. what the competitor's competitive advantage is. d. what the competitor's capabilities are.

C

Ranger Corporation is preparing to do an analysis of its general environment. Ranger will focus on which of the following? a. Competitors' actions, responses, and intentions b. Its industry's profitability potential c. Environmental trends and their implications d. The power of buyers and suppliers in its industry

C

To combat the perception of uniqueness, new entrants frequently offer products at _____ prices, which may result in _____ profits. a. higher; higher b. lower; higher c. lower; lower d. higher; lower

C

When buyers view products as _____, rivalry intensifies. a. fully differentiated b. barriers to entry c. commodities d. excess capacity

C

Which of the following countries is most ethnically diverse? a. Japan b. Germany c. Uganda d. South Korea

C

Which of the following describes the source of the problems that caused the demise of Toys 'R' Us? a. Limited resources b. Poor product selection c. Ignoring competitors d. Limited access to distribution channels

C

Which of the following practices would NOT be considered unethical? a. Blackmail b. Trespassing c. Attending trade fairs to obtain competitors' brochures d. Eavesdropping

C

_____ are companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service. a. Complementors b. Strategic groups c. Rivalry groups d. Alliances

C

_____ are the one-time costs customers incur when they buy from a different supplier. a. Loyalty programs b. Capital requirements c. Switching costs d. Fixed costs

C

Changes in the age structure of the world's populations have significant implications for all of the following EXCEPT: a. availability of qualified labor. b. retirement policies. c. business opportunities. d. identifying expatriates.

D

Strategic groups can be useful for analyzing an industry's competitive structure. Such analyses can be helpful in diagnosing all of the following EXCEPT: a. competition. b. positioning. c. the profitability of firms competing within an industry. d. personnel qualifications.

D

The _____ is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms. a. economic environment b. competitor analysis c. general environment d. industry environment

D

The response of McDonald's restaurants to specific concerns for human health by using only chicken raised without antibiotics is an example of what segment of the general environment? a. Global b. Demographic c. Political/legal d. Sociocultural

D

When a company like Walmart announces that its goal is to produce zero waste and to use 100 percent renewable energy to power its operations, it is referring to positive practices in its _____ segment. a. global b. demographic c. sociocultural d. sustainable physical environment

D

When an industry's competitive forces are stronger, the potential for firms to generate profits by implementing their strategies is: a. impossible. b. not affected. c. higher. d. lower.

D

Which of the following is NOT one of the five factors included in the industry environment that directly influences a firm's competitive actions and responses? a. The threat of new entrants b. The power of suppliers c. The power of buyers d. The threat of new technologies

D

Which of the following is characteristic of an unattractive industry? a. High entry barriers b. Buyers with weak bargaining positions c. Weak competitive threats from product substitutes d. Intense rivalry among competitors

D

Which of the following segments of the general environment includes the informal economy (defined as the part of an economy that is neither taxed nor monitored by any form of government)? a. Sociocultural b. Technological c. Economic d. Global

D

A capability that has no strategic equivalent meets which criterion of sustainable competitive advantage? a. Valuable b. Rare c. Costly to imitate d. Nonsubstitutable

d

Chic Fashion is an online women's clothing store. To join Chic Fashion's e-mail list, customers must fill out a short form that includes their address, birthday, and preferred fashion style. This is an example of: a. scanning. b. monitoring. c. forecasting. d. assessing.

a

Companies can learn to compete primarily on the basis of firm-specific differences when they: a. emphasize core competencies when selecting and implementing strategies. b. eliminate the uncertainty that impacts many decisions. c. conduct interorganizational research and analysis before making decisions. d. focus on profit margins when implementing strategies.

a

Companies manufacturing customized products can respond quickly to customers' needs in lieu of: a. developing economies of scale. b. creating high switching costs. c. differentiating a product. d. acquiring an existing company as a means of industry entry.

a

Delta Air Lines offering frequent flyer miles is primarily an example of an offer intended to: a. increase customer switching costs. b. combat cost disadvantage. c. overcome government subsidies. d. combat product differentiation.

a

Developing employees' work schedules and designing production processes are both examples of what type of value chain activity? a. Operations b. Human resources c. Supply-chain management d. Distribution

a

FoodWay Company operates a chain of grocery stores located in six U.S. states. At the bottom of each customer's checkout receipt is a link to an online survey that allows the customer to provide feedback on his or her shopping experience. Lee was hired by FoodWay to tabulate and analyze the data collected through the online surveys completed by customers. What type of value chain activity was Lee hired to do? a. Follow-up service b. Operations c. Marketing d. Distribution

a

In the value chain, finance is a(n): a. support function. b. value chain activity. c. rare capability. d. operations activity.

a

In which of the following situations have decision makers sometimes proven to be more focused and productive when seeking to find resources that have the potential to be formed into core competencies? a. When the firm's total set of resources is constrained b. When the firm has ample human capital c. When the firm has excess financial capital d. When the firm seeks resources prior to developing core competencies

a

Intra-strategic group competition is _____ than is inter-strategic group competition. a. more intense b. less common c. more common d. less intense

a

Netflix is considered one of the best places to work, largely due to its commonsense approach to culture. Rather than monitor staff through vacation policies and annual reviews, Netflix has set clear expectations for its employees. Employees aren't judged by the hours they work; they're evaluated according to their abilities and accomplishments. Based on its culture, which of the following makes Netflix's capabilities costly to imitate? a. Social complexity b. Causal ambiguity c. Global mind-set d. The company's value chain

a

Otis Elevator Co. has been successful in large part because of its ability to develop sophisticated elevator control solutions. This capability lies within which functional area? a. Research and development b. Manufacturing c. Distribution d. Management information systems

a

Rare capabilities are those that: a. are not possessed by many others. b. help a firm neutralize threats. c. help a firm exploit opportunities. d. have no strategic equivalent.

a

Research suggests that executives often fail to analyze which of the following that can lead to a potential competitive disadvantage? a. Competitors' possible reactions to competitive actions taken by an executive's firm b. The amount of low resources among the firms within an industry c. Possible legal entanglements d. Potential value-added alliances

a

The _____ is concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution. a. demographic segment b. economic environment c. political/legal segment d. sociocultural segment

a

The firm's capacity to borrow and its ability to generate funds internally are _____ resources. a. tangible, financial b. intangible, financial c. tangible, innovation d. intangible, innovation

a

The greater a firm's capacity to favorably influence its industry environment, the greater the likelihood it will: a. earn above-average returns. b. use the most innovative technologies. c. expand its business internationally. d. be able to predict inflation rates.

a

The likelihood that firms will enter an industry is a function of which two factors? a. Barriers to entry and the retaliation expected from current industry participants b. Barriers to entry and the threat of substitute products c. The retaliation expected from current industry participants and neglected market segments d. Barriers to entry and switching costs

a

The more _____ a resource is, the more valuable that resource is to creating capabilities. a. unobservable b. observable c. quantifiable d. substitutable

a

The purchase of a value-creating activity or a support function activity from an external supplier is: a. outsourcing. b. leveraging. c. logistics management. d. resource management.

a

The retail selling of medical marijuana would most likely be addressed in the arena of the _____ segment of the general environment. a. political/legal b. sociocultural c. global d. sustainable physical environment

a

What is a global mind-set? a. The ability to analyze, understand, and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context b. The ability to formulate and implement a value-creating strategy c. An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage d. A strategy that creates superior value for customers and that competitors are unable to duplicate

a

When a company assumes that a core competence will be a permanent competitive advantage, that competency runs the risk of becoming a core: a. rigidity. b. incompetence. c. disadvantage. d. resource.

a

When examining the Assumptions component for a competitor analysis, which of the following is a question that is addressed? a. Do we assume the future will be volatile? b. How are we currently competing? c. How do we rate compared to our competitors? d. What are our strengths and weaknesses?

a

Which of the conditions that characterizes difficult managerial decisions concerning resources, capabilities, and core competencies results from the interrelationships among conditions shaping a firm? a. Complexity b. Uncertainty c. Intraorganizational conflict d. Judgment

a

Which of the following are two significant concerns associated with outsourcing? a. The potential loss in a firm's ability to innovate and the loss of jobs within the focal firm b. The potential loss in a firm's ability to innovate and the decreasing probability of developing core competencies c. The loss of jobs within the focal firm and the decreasing probability of developing core competencies d. The decreasing probability of developing core competencies and the likelihood of becoming overextended

a

Which of the following is a tangible resource? a. Production equipment b. Knowledge c. Brand name d. Managerial capabilities

a

Which of the following is more important than accurately assessing trends in the general environment of a firm? a. Accurately interpreting trends b. Accessing all potential forecasting methods c. Commercializing forecasting tools d. Aligning scanning for volatile environments with other firms in stable environments

a

Which part of the external environmental analysis identifies early signals of environmental changes and trends? a. Scanning b. Monitoring c. Forecasting d. Assessing

a

_____ are companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service. a. Complementors b. Strategic groups c. Rivalry groups d. Alliances

a

_____ are derived from incremental efficiency improvements through experience as a firm grows larger. a. Economies of scale b. Customized products c. Customer switching costs d. Market niches

a

_____ are the one-time costs customers incur when they buy from a different supplier. a. Loyalty programs b. Capital requirements c. Switching costs d. Fixed costs

a

A firm's first step in the strategic management process is to: a. perform an analysis of its external environment and internal organization. b. develop its vision and mission. c. contact its stakeholders. d. formulate a business-level and corporate-level strategy.

a.

A firm's resources are typically classified into all of the following categories of capital EXCEPT: a. occupational capital. b. human capital. c. physical capital. d. organizational capital.

a.

An organization can be confident that its strategy has resulted in one or more competitive advantages only after: a. competitors' efforts to duplicate its strategy have failed. b. it has earned above-average returns for at least two years in a row. c. its returns are enough to at least minimally satisfy its stakeholders. d. it becomes too complex to understand and manage.

a.

_____ returns are returns in excess of what an investor expects to earn from other investments with a _____ amount of risk. a. Above-average; similar b. Average; similar c. Average; greater d. Above-average; greater

a.

Ben is a line manager at a food distribution company. He often works more than 50 hours a week, and his work is often filled with ambiguous decision situations. Ben's fellow employees would say that he is a hard worker, is tenacious, is brutally honest, and always pushes them to hit their goals and become the best workers possible. Based on this description, Ben is a(n): a. strategic leader. b. organizational stakeholder. c. strategic entrepreneur. d. global manager.

a.

Compared to a vision, a firm's mission deals more directly with: a. customers. b. shareholders. c. competitors. d. suppliers of capital.

a.

Core competencies are often visible in the form of organizational: a. functions. b. value. c. norms. d. culture.

a.

For the diversified firm, _____ strategy is concerned with determining the businesses in which the company intends to compete as well as how to manage its different businesses. a. corporate-level b. cooperative c. business-level d. functional-level

a.

Hypercompetition is a condition of rapidly escalating competition based on all of the following EXCEPT: a. competition to produce a competitive advantage based on economies of scale. b. price-quality positioning. c. competition to protect or invade established product or geographic markets. d. competition to create new know-how and establish first-mover advantage.

a.

In some industries, firms can reduce competitive rivalry and erect barriers to entry by: a. forming joint ventures. b. franchising. c. not applying for patents. d. licensing.

a.

In the competitive landscape of the twenty-first century, only companies capable of _____ typically have the capability to earn above-average returns. a. meeting, if not exceeding, global standards b. introducing disruptive technologies c. developing all of their resources and capabilities into a competitive advantage d. achieving economies of scale as a competitive advantage

a.

JoAnn Tucker recently took over as Chief Executive Officer (CEO) of Burger-Rama, Inc. Burger-Rama has seen declining profits over the past five years and has struggled to remain competitive in the fast-food industry. In order to achieve strategic competitiveness, JoAnn must: a. conduct training programs and hire educated and experienced employees. b. invest in sophisticated technology in relevant knowledge areas. c. shift the company's focus to marketing and develop an extensive advertising campaign. d. fire the current board of directors and start afresh.

a.

Kristine Woods and her husband, Liam, own a café, Simply Healthy, in their hometown. Simply Healthy offers only natural and healthy options on its menu and uses only locally grown food. It charges slightly higher prices than the other restaurants in town, but health-conscious customers are willing to pay a premium. Simply Healthy operates using a ______ strategy. a. differentiation b. focus c. consolidation d. cost leadership

a.

Performance is reflected in a firm's ability to: a. achieve strategic competitiveness. b. engage in perpetual innovation. c. achieve strategic flexibility. d. earn average returns.

a.

Pete is a manager at Green Mountain Sporting Goods. Pete would be considered part of Green Mountain's _____ stakeholders. a. organizational b. capital market c. product market d. service market

a.

To find the industry that is the most attractive for a firm, it may use the _____ model of competition. a. five forces b. resource-based c. superior returns d. strategic performance

a.

Walmart, Southwest Airlines, and Amazon are examples of organizations that earn above-average returns by using a _____ strategy. a. cost leadership b. focus c. consolidation d. differentiation

a.

Which of the following is an assumption of the industrial organization (I/O) model? a. Organizational decision makers are assumed to be rational and committed to acting in the firm's best interests. b. Resources and capabilities are not highly mobile across firms. c. Most firms competing within an industry or within a segment of that industry are assumed to pursue different strategies in light of the resources they control. d. Differences in firms' performances across time are due primarily to their unique resources and capabilities.

a.

Which of the following is an assumption of the resource-based model? a. Resources and capabilities are not highly mobile across firms. b. A firm's performance across time is due primarily to the industry's structural characteristics rather than to the firm's unique resources and capabilities. c. Organizational decision makers are assumed to be rational and committed to acting in the firm's best interests, as shown by their profit-maximizing behaviors. d. Most firms competing within an industry or within a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources.

a.

Which of the following statements about information technology (IT) is true? a. IT has become an important source of competitive advantage in virtually all industries. b. The pace of change in IT and its diffusion is expected to slow down over the next 10 to 20 years. c. The high costs of IT have given firms in developed economies a great advantage over firms in emerging economies. d. IT advances has made it more difficult for small firms to compete with large firms.

a.

Which of the following technological inventions took the longest to penetrate 25 percent of the homes in the United States? a. Telephone b. Television c. Personal computers d. Radio

a.

Which of the following would be considered to be part of Seaside Bar & Grill's capital market stakeholders? a. Shareholders b. Customers c. Employees d. Suppliers

a.

_____ describes competition that is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape. a. Hypercompetition b. Globalization c. Disruptive competition d. Hypocompetition

a.

_____ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve. a. Vision b. A mission c. Organizational culture d. A code of ethics

a.

_____ is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. a. Strategic flexibility b. Strategic competitiveness c. Organizational culture d. Knowledge intensity

a.

A firm combines individual tangible and intangible resources to create: a. assets. b. capabilities. c. competencies. d. advantages.

b

Lemonlime Company operates in an attractive industry. Its industry has all of the following characteristics EXCEPT: a. high entry barriers. b. suppliers and buyers with strong bargaining power. c. few competitive threats from product substitutes. d. relatively moderate rivalry.

b

Limits to the formation of strategic groups include all of the following EXCEPT: a. high mobility barriers. b. lesser threats to each firm's profitability. c. high rivalry. d. low resources among the firms within an industry.

b

Membership in a particular strategic group defines the essential characteristics of the firm's strategy. All of the following are essential characteristics EXCEPT: a. technological leadership. b. homogeneity. c. product quality. d. customer service.

b

Outsourcing is concerned with how components, finished goods, or services will be: a. distributed. b. obtained. c. produced. d. managed.

b

RTC, Inc., has been competing with L-Cort, Inc., the leader in its industry, for years. RTC has gathered and analyzed large amounts of competitive intelligence about L-Cort and has observed as much of the firm's internal functioning and technology as it can gain access to. In spite of this, L-Cort has maintained its competitive advantage and RTC does not know why. The source of L-Cort's success is: a. historical. b. causally ambiguous. c. rationally obscure. d. intangible.

b

RTX Power Tools has seen sales decline on its gas-powered tools. The market seems to be shifting to tools using rechargeable batteries, but it is not clear if that market segment has staying power. The RTX managers are making decisions under conditions of: a. certainty. b. uncertainty. c. intraorganizational conflict. d. interorganizational conflict.

b

Supplies To Schools (STS) is a nonprofit that provides free school supplies to schools in the metro area. STS was struggling to get the word out about its existence and couldn't build a customer base. Several volunteers worked together to design an eye-catching logo and crisp, clear brochures that were sent to all area schools. They also built a user-friendly website. These volunteers shared their expertise in which value chain activity? a. Distribution b. Marketing c. Operations d. Follow-up service

b

The best thing to do when faced with a failure is to: a. add more resources. b. take corrective actions. c. assign blame. d. cover it up.

b

The main competitive advantage of a particular major U.S. technology firm is sourcing and procurement of raw materials. This company is facing increasing competition on price and is strongly considering outsourcing as a means of reducing costs. The LAST function this firm should consider outsourcing is: a. operations. b. supply-chain management. c. research and development. d. distribution.

b

When a core competency becomes a core rigidity, it can: a. promote innovation. b. generate inertia. c. strengthen a competitive advantage. d. create value.

b

When developing a Response from a competitor analysis, which of the following is NOT a question that is addressed? a. What will our competitors do in the future? b. What is the worst-case scenario if we take a status quo approach? c. Where do we hold an advantage over our competitors? d. How will this change our relationship with our competitors?

b

Where can Susan Dove, founder of Fishy-Fish Cat Treats, find a list of ethical practices that her firm can adopt regarding the gathering of competitor intelligence? a. State laws b. An industry association c. Internal committee of employees d. Federal regulations

b

Which of the following is NOT a factor that can increase competitive rivalry? a. Numerous competitors b. Rapid industry growth c. Lack of differentiation d. High storage costs

b

Which of the following is NOT a high exit barrier? a. Government and social restrictions b. Size of the industry c. Fixed costs of exit, such as labor agreements d. Emotional barriers

b

Which of the following is NOT a source used by a firm to analyze its general environment? a. Trade shows b. Industry profitability c. Newspapers d. Public polls

b

Which of the following statements regarding intangible resources is true? a. They can be observed. b. They are relatively difficult for competitors to analyze and imitate. c. They can be quantified. d. They can be acquired quickly.

b

Which of the following statements regarding powerful customers is NOT true? a. They purchase a large portion of an industry's total output. b. Switching to another product would be expensive. c. The industry's products are undifferentiated or standardized, and the buyers pose a credible threat if they were to integrate backward into the sellers' industry. d. The sales of the product being purchased account for a significant portion of the seller's annual revenues.

b

Which support function in the value chain involves investing in organizational functions in ways that will support the firm's efforts to produce and distribute its products in the short and long term? a. Marketing b. Finance c. Human resources d. Operations

b

Yellow River Company is looking to broaden the diversity of its workforce. Yellow River will examine the _____ segment of its general environment when addressing this issue. a. global b. sociocultural c. technological d. economic

b

_____ are used to complete the organizational tasks required to produce, distribute, and service the goods or services the firm provides to customers. a. Assets b. Capabilities c. Competencies d. Advantages

b

_____ is the set of data and information the firm gathers to better understand and anticipate competitors' objectives, strategies, assumptions, and capabilities. a. Rules of engagement b. Competitor intelligence c. A SWOT analysis d. Complementor analysis

b

_____ often is used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets. a. Exporting b. Globalfocusing c. Importing d. Guanxi

b

Bonita and Jay, two managers at MTS, disagree regarding the best way to manage the firm's resources. Which condition is impacting the managerial decision? a. Uncertainty b. Complexity c. Intraorganizational conflict d. Interorganizational conflict

c

A strategy: a. is a picture of what a firm wants to be and, in broad terms, what it wants to ultimately achieve. b. is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. c. refers to the complex set of ideologies, symbols, and core values that are shared throughout a firm and that influence how a firm conducts business. d. specifies the businesses in which a firm intends to compete and the customers it intends to serve.

b.

According to Jeffrey Immelt, the Chief Executive Officer (CEO) of U.S.-based General Electric (GE), most of GE's future economic growth will come: a. from the introduction of disruptive technologies. b. from emerging economies. c. domestically. d. from developed economies.

b.

All of the following are VISTA countries EXCEPT: a. Vietnam. b. India. c. Argentina. d. Turkey.

b.

All of the following are considered to be a firm's product market stakeholders EXCEPT: a. host communities. b. managers. c. suppliers. d. unions.

b.

Firms lacking the appropriate internal knowledge resources are _____ likely to _____. a. more; enter international markets b. less; invest money in R&D c. more; subscribe to the industrial organization (I/O) model d. less; achieve less-than-average results

b.

Ranger Landscaping's website states the following: "Ranger Landscaping is a service-oriented business that provides lawn care and landscape design, installation, and maintenance. We are committed to a professional approach to our business and to providing our customers with individualized attention and 100 percent satisfaction." This statement represents Ranger Landscaping's: a. tagline. b. mission. c. code of ethics. d. vision.

b.

Snowtrail Ski Resort has earned only average returns for the past year. As a result: a. it does not have the capacity to minimally satisfy all stakeholders. b. its objective should become one of at least minimally satisfying each stakeholder. c. it should focus on satisfying its product market stakeholders and organizational stakeholders rather than its capital market stakeholders. d. it should focus on satisfying its capital market stakeholders and organizational stakeholders rather than its product market stakeholders.

b.

The five forces model suggests that firms can earn above-average returns by using either a _____ strategy or a _____ strategy. a. cost leadership; focus b. cost leadership; differentiation c. differentiation; focus d. focus; consolidation

b.

The industrial organization (I/O) model assumes that: a. firms acquire different resources and develop unique capabilities based on how they combine and use the resources. b. the external environment imposes pressures and constraints that determine the strategies that would result in above-average returns. c. differences in resources and capabilities are the basis of competitive advantage. d. resource differences that develop between firms are long-term.

b.

The operational term used for a dream that challenges and energizes a company is: a. goal. b. vision. c. strategy. d. mission.

b.

Tom Bellinger is the Chief Executive Officer (CEO) of Bellinger Bakery. He has decided to revise the firm's vision. In order to get the most effective vision statement for the organization, experience shows that Tom should: a. write it entirely by himself. b. work with other stakeholders in the organization when writing it. c. delegate the task to a lower-level manager. d. hire a marketing firm to write it.

b.

Tom's General Store is locally owned and operates in only one location. Tom's would have: a. multiple business-level strategies. b. one business-level strategy and no corporate-level strategy. c. multiple corporate-level strategies. d. one business-level strategy and one corporate-level strategy.

b.

Tony Rush is the Chief Executive Officer (CEO) of Smithson Enterprises, a U.S.-based multinational corporation (MNC). Due to his company's success domestically, Tony has decided to enter the global market by opening operations in China and Brazil. Which of the following statements about Smithson's decision to enter the global market is true? a. Smithson will face decreased competition from emerging-market MNCs. b. Smithson's performance may suffer initially in both China and Brazil due to the amount of time required to learn how to compete effectively against established firms. c. Because of its established success in the United States, Smithson will not need to make effective use of the strategic management process in its international operations. d. Smithson should use over diversification as a strategy to compete internationally.

b.

Toy Joy Company is a start-up toy company. Its owners have decided to use the industrial organization (I/O) model to pursue strategic competitiveness and earn above-average returns. Toy Joy's first step in using the model would be to: a. locate an industry with high potential for above-average returns. b. study the external environment, especially the industry environment. c. determine the firm's capabilities. d. identify the firm's resources.

b.

Which of the following is an example of a disruptive technology? a. Waterproof bandages b. Tablet computers c. Quick-dry nail polish d. Pepsi Fire, a new cinnamon-flavored drink offered by PepsiCo

b.

Which of the following statements about a firm's resources and capabilities is true? a. All of a firm's resources and capabilities have the potential to be the foundation for a competitive advantage. b. It is difficult to achieve and sustain a competitive advantage based on resources alone. c. When a resource is rare and valuable, it becomes a core competency. d. As a source of competitive advantage, a capability must be exceedingly complex to understand and manage.

b.

Which of the following statements about an organization's stakeholders is true? a. Not all organizations have stakeholders. b. Stakeholders have enforceable claims on the firm's performance. c. All stakeholders have the same level of influence in an organization. d. Stakeholder relationships are important but cannot be a source of competitive advantage.

b.

By 2050, which of the following is expected to be the most populous nation in the world? a. The United States b. Pakistan c. India d. China

c

By pursuing an opportunity to create a marketplace through which businesses could introduce their goods and services to customers who would be able to experience them at a discounted price, Groupon made use of a _____ capability. a. rare b. costly-to-imitate c. valuable d. nonsubstitutable

c

Which of the following statements about globalization is true? a. It has led to lower performance standards in many competitive dimensions. b. It is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders. c. It decreases the range of opportunities for companies competing in the current competitive landscape. d. It is a product of a small number of large firms competing against one another in an increasing number of global economies.

b.

Which of the following statements about technology and innovation is true? a. Evidence suggests that large established firms have trouble developing radically new technologies that transform old industries or create new ones. b. In order to enhance the value of an innovation, firms must build the new technology into their products. c. Typically, it takes years for firms to gather information about their competitors' research and development (R&D). d. The rate of technological diffusion has increased the competitive benefits of patents.

b.

Which of the following statements about the current competitive landscape is true? a. Because financial capital is no longer scarce due to the deep recession, markets are increasingly stable. b. The traditional managerial mind-set is unlikely to lead a firm to strategic competitiveness. c. The conditions of the competitive landscape have resulted in a calmer business world. d. Conventional sources of competitive advantage such as economies of scale and huge advertising budgets are more effective than they once were in terms of helping firms earn above-average returns.

b.

_____ are inputs into a firm's production process. a. Core competencies b. Resources c. Strategies d. Capabilities

b.

hich of the following statements about a firm's vision and mission is true? a. A firm's vision is more concrete than its mission. b. A firm's vision tends to be enduring while its mission can change with new environmental conditions. c. The vision and mission should be developed solely by top-level managers. d. The mission is the foundation for a firm's vision.

b.

A company can earn above-average returns only when the value it creates is: a. equal to the costs incurred to create that value. b. less than the costs incurred to create that value. c. greater than the costs incurred to create that value. d. both rare and substitutable.

c

A firm should analyze the internal organization to identify its strengths and weaknesses as reflected by all of the following EXCEPT: a. its resources. b. its capabilities. c. competitors' capabilities. d. its core competencies.

c

A firm that does not have the resources or capabilities required to achieve competitive superiority in each value chain activity and support function might benefit from: a. doubling its staff. b. going out of business. c. outsourcing. d. seeking a buyer.

c

A firm's competitive actions and responses are influenced by the conditions in which three parts of its external environment? a. Economic, industry, and competitor b. Demographic, industry, and competitor c. General, industry, and competitor d. General, economic, and industry

c

A particular capability leads to a temporary competitive advantage and average to above-average returns. What does this indicate about that capability? a. It is not valuable, not rare, not costly to imitate, nor nonsubstitutable. b. While it is valuable, it is not rare, not costly to imitate, nor nonsubstitutable. c. While it is valuable and rare, it is not costly to imitate and is possibly substitutable. d. It is valuable, rare, costly to imitate, and possibly substitutable.

c

A supplier group is powerful when: a. it is less concentrated than the industry to which it sells. b. industry firms are a significant customer for the supplier group. c. suppliers' goods are critical to buyers' marketplace success. d. satisfactory substitute products are available to industry firms.

c

A(n) _____ is a group of firms producing products that are close substitutes. a. distribution channel b. new entrant c. industry d. capital requirement

c

ABC Company and XYZ Comp

c

According to your text, forecasting demand for new technological products is difficult because: a. the market for technology is extremely volatile. b. the market for technology is extremely competitive. c. technology trends are continually shortening product life cycles. d. technology trends fluctuate considerably.

c

All of the following are common dimensions on which rivalry is based EXCEPT: a. innovation. b. service after the sale. c. location. d. price.

c

An individual who takes an intelligent risk when making a decision when no obviously correct model or rule is available or when relevant data are unreliable or incomplete is exercising: a. foresight. b. strategic thinking. c. judgment. d. reliability.

c

Apple has combined financial resources and research laboratories with scientists, engineers, and organizational routines to excel in research and development (R&D) to provide innovation. In this scenario, R&D is a(n): a. tangible resource. b. intangible resource. c. capability. d. core competence.

c

Based strictly on economic growth, which country would provide the highest growth opportunity for a company looking to expand internationally? a. China b. France c. India d. Mexico

c

Pat and Lee have been asked to complete a value chain analysis. Which component of an internal analysis are they performing? a. Identifying tangible resources b. Exploring capabilities c. Discovering core competencies d. Analyzing strategic competitiveness

c

People buy products from Soco Outfitters because it is a brand name they know and trust. Soco's costly-to-imitate capabilities arise from: a. an ambiguous cause. b. social complexity. c. a historical source. d. interpersonal relationships.

c

Predicting how much time will elapse before increases in interest rates affect consumers' home purchasing patterns is an example of: a. scanning. b. monitoring. c. forecasting. d. assessing.

c

Ranger Corporation is preparing to do an analysis of its general environment. Ranger will focus on which of the following? a. Competitors' actions, responses, and intentions b. Its industry's profitability potential c. Environmental trends and their implications d. The power of buyers and suppliers in its industry

c

Reactions to natural disasters and energy consumption are aspects of the _____ segment of the general environment that firms should monitor. a. global b. technological c. sustainable physical environment d. economic

c

The _____ segment includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. a. political/legal b. sociocultural c. technological d. sustainable physical environment

c

The response of McDonald's restaurants to specific concerns for human health by using only chicken raised without antibiotics is an example of what segment of the general environment? a. Global b. Demographic c. Political/legal d. Sociocultural

c

The source of capabilities is: a. competition. b. core competencies. c. resources. d. advantages.

c

To combat the perception of uniqueness, new entrants frequently offer products at _____ prices, which may result in _____ profits. a. higher; higher b. lower; higher c. lower; lower d. higher; lower

c

Wallingford Company is trying to determine optimal ways to collect and distribute knowledge throughout the firm. This is an activity for which support function in the value chain? a. Human resources b. Finance c. Management information systems d. Distribution

c

When buyers view products as _____, rivalry intensifies. a. fully differentiated b. barriers to entry c. commodities d. excess capacity

c

When firms have strong positive relationships with suppliers and customers, they are said to have: a. value. b. a rare capability. c. social capital. d. a sustainable competitive advantage.

c

Which of the following are a reputational resource? a. Employees' skill sets b. The firm's scientific capabilities c. Customers' perceptions of product quality d. Managers' ideas

c

Which of the following countries is most ethnically diverse? a. Japan b. Germany c. Uganda d. South Korea

c

Which of the following describes the source of the problems that caused the demise of Toys 'R' Us? a. Limited resources b. Poor product selection c. Ignoring competitors d. Limited access to distribution channels

c

Which of the following practices would NOT be considered unethical? a. Blackmail b. Trespassing c. Attending trade fairs to obtain competitors' brochures d. Eavesdropping

c

Which of the following statements regarding projections about the workforce is NOT true? a. The rate of growth in the U.S. labor force has declined over the past two decades. b. The proportion of the civilian non-institutional population in the labor force peaked at an annual average of 67.1 percent in 2000. c. Between 2010 and 2050, the growth in Asian members of the labor force is projected to be much slower compared to other racial groups. d. Between 2010 and 2050, people of Hispanic origin are expected to account for roughly 80 percent of the total growth in the labor force.

c

Which of the following would be a capability in the functional area of research and development? a. Innovative merchandising b. Effective use of logistics management techniques c. Rapid transformation of technology into new products and processes d. Effective promotion of brand-name products

c

_____ are the one-time costs customers incur when they buy from a different supplier. a. Loyalty programs b. Capital requirements c. Switching costs d. Fixed costs

c

According to the industrial organization (I/O) model, an attractive industry is one: a. with fierce competition. b. in which a company can use a focus strategy rather than a cost leadership or differentiation strategy. c. whose structural characteristics suggest above-average returns. d. with opportunities that can be exploited by the firm's resources and capabilities.

c.

At Condiment King, top management believes that producing a high-quality product on a consistent basis is key to the company's success. Top managers act as role models by performing their jobs with great precision. As a result, they expect Condiment King's employees to perform up to the same standards and set goals for their employees to meet. For those employees that do, managers recognize their accomplishments by rewarding bonuses on a weekly basis. Management also recognizes that work should be fun as well. Employees' birthdays are celebrated every month with an end-of-the-month company party. Condiment King also has an on-site fitness center and relaxation stations. Based on this information, it can be said that Condiment King: a. successfully competes in the global economy. b. uses the industrial organization (I/O) model. c. has a strong organizational culture. d. earns above-average returns.

c.

Guinness Enterprises is a multinational corporation (MNC) that was established 75 years ago. One of the goals of Harry Walker, the new Chief Executive Officer (CEO), is to make the firm strategically flexible. Harry should know that: a. it is impossible to develop strategic flexibility in all areas of an organization's operations. b. a firm's focus and past core competencies can help expedite strategic flexibility. c. the task is not easy, largely because of inertia that can build up over time. d. the most effective way to implement strategic flexibility is through intermittent training courses.

c.

Perpetual innovation is a term used to describe: a. technologies that destroy the value of an existing technology and create new markets. b. the technology involving the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data. c. how rapidly and consistently new, information-intensive technologies replace older ones. d. an incremental innovation that enables or sustains an existing product.

c.

Research indicates that overconfidence can lead to: a. knowledge spillovers. b. an increase in mistakes made by top management. c. excessive risk taking. d. long-term profitability.

c.

Rubin Collins opened a coffee and sandwich shop, Rubin's Coffee Shop, in his local hometown five years ago. Rubin's has earned above-average returns for the past three years and has outperformed the local Dunkin' Donuts and Subway in terms of sales. Rubin credits low overhead costs and offering high-quality products at low prices as the reason why his shop is so successful. Because of the success of Rubin's Coffee Shop in his hometown, Rubin plans to expand operations and open three new locations in neighboring cities. Based on these facts, it can be concluded that Rubin's has achieved: a. hypercompetition. b. strategic flexibility. c. strategic competitiveness. d. domestic domination.

c.

Which of the following is an example of an intangible resource? a. Money b. Machinery c. Knowledge d. Land

c.

Which of the following specifies the businesses in which a firm intends to compete and the customers it intends to serve? a. Vision b. Code of ethics c. Mission d. Organizational culture

c.

hich of the following would NOT be considered a resource? a. A patent b. Finances c. A competitor's skills d. An employee's skills

c.

A _____ competitive advantage exists only when competitors are unable to duplicate the benefits of a firm's strategy or when they lack the resources to attempt imitation. a. profitable b. temporary c. rare d. sustainable

d

A firm should outsource only activities where it: a. has the probability of developing core competencies. b. has developed the ability to innovate. c. cannot match up a value chain activity with a support function. d. cannot create value or where it is at a substantial disadvantage compared to competitors.

d

A technology firm from Japan is looking to expand internationally to the United States. To help with its location decision, the firm is carefully studying the patterns of population distributions in the United States to identify opportunities and threats. Which of the following states would provide the company with the best opportunity to earn profits? a. Illinois b. Michigan c. Pennsylvania d. Texas

d

By outsourcing, a firm can: a. increase its ability to innovate, while preventing the loss of jobs within the firm. b. increase its ability to innovate, though there may also be an increased loss of jobs within the firm. c. decrease the probability of developing core competencies while achieving competitive advantage. d. increase the probability of developing core competencies and achieving a competitive advantage.

d

Efficiently handling customers' orders and arranging for customers' payments for delivered goods are both examples of what type of value chain activity? a. Operations b. Finance c. Follow-up service d. Distribution

d

In order to gain insights from which to select strategies, the firm needs to match what it _____ do with what it _____ do. a. can; cannot b. might; must not c. should; will d. can; might

d

Mariah makes successful decisions regarding her firm's resources and their management. Mariah is a(n): a. chief executive officer (CEO). b. chief financial officer (CFO). c. informal leader. d. strategic leader.

d

One criterion to determine if a capability is a core competence and a source of competitive advantage is if it allows the firm to perform: a. an activity in a manner that provides value similar to that provided by competitors. b. a value-creating activity that competitors also perform. c. an activity in a manner that yields a profit. d. a value-creating activity that competitors cannot perform.

d

Outsourcing allows a firm to nurture a smaller number of capabilities, which: a. increases the potential loss in its ability to innovate. b. decreases opportunities for competitive advantage. c. decreases the loss of jobs within the firm. d. prevents the firm from becoming overextended.

d

Selecting and training employees are activities for which support function in the value chain? a. Operations b. Finance c. Management information systems d. Human resources

d

Some core competencies may lead to _____ for the firm. a. uncertainty b. conflict c. resources d. competitive advantage

d

Strategic groups can be useful for analyzing an industry's competitive structure. Such analyses can be helpful in diagnosing all of the following EXCEPT: a. competition. b. positioning. c. the profitability of firms competing within an industry. d. personnel qualifications.

d

The part of the external environmental analysis that determines the timing and importance of environmental changes and trends for firms' strategies and their management is: a. scanning. b. monitoring. c. forecasting. d. assessing.

d

The strategic decisions that managers make about the internal organization: a. are routine. b. are directly related to compensation. c. have no ethical implications. d. directly impact the firm's level of returns.

d

To be effective, a firm must complete which part of the external environmental analysis in order to understand its reputation among its stakeholders as the foundation for serving their needs? a. Scanning b. Monitoring c. Forecasting d. Assessing

d

Ultimately, the source of above-average returns for a firm is: a. keeping costs low. b. identifying core competencies. c. maintaining competitive advantage. d. creating value for the customers.

d

What of the following statements regarding mistakes in the decision-making process is true? a. A manager who makes a mistake should be relieved of decision-making responsibilities. b. When mistakes are made, managers should make efforts to make it appear as though the decision was correct. c. If managers follow the process correctly, mistakes will not occur. d. Mistakes can lead to opportunities for the firm.

d

When Greenwall Company uses point-of-purchase data collection to effectively and efficiently control its inventory, it does this through which functional area of the firm? a. Distribution b. Manufacturing c. Marketing d. Management information systems

d

When a company like Walmart announces that its goal is to produce zero waste and to use 100 percent renewable energy to power its operations, it is referring to positive practices in its _____ segment. a. global b. demographic c. sociocultural d. sustainable physical environment

d

When an industry's competitive forces are stronger, the potential for firms to generate profits by implementing their strategies is: a. impossible. b. not affected. c. higher. d. lower.

d

When examining the component of Future Objectives for a competitor analysis, which of the following is NOT a question that is addressed? a. How do our goals compare with our competitors' goals? b. Where will emphasis be placed in the future? c. What is the attitude toward risk? d. What is our future break-even point?

d

Which of the following are an intangible resource? a. Manufacturing facilities b. Distribution centers c. Formal reporting structures d. Managerial capabilities

d

Which of the following is NOT an implication of strategic groups? a. Because firms within a group offer similar products to the same customers, the competitive rivalry among them can be intense. b. The strengths of the five forces differ across strategic groups. c. The closer the strategic groups are in terms of their strategies, the greater is the likelihood of rivalry between the groups. d. Strategic groups have less threats to each firm's profitability.

d

Which of the following is NOT one of the five factors included in the industry environment that directly influences a firm's competitive actions and responses? a. The threat of new entrants b. The power of suppliers c. The power of buyers d. The threat of new technologies

d

Which of the following is NOT one of the forces of the competition model that affect the ability of all firms to operate profitably within a given industry? a. The threats posed by new entrants b. The power of suppliers c. Product substitutes d. Barriers to entry

d

Which of the following is NOT one of the primary categories of tangible resources? a. Financial b. Organizational c. Technological d. Innovation

d

Which of the following is a support function, rather than a value chain activity, on the value chain? a. Operations b. Distribution c. Marketing d. Human resources

d

Which of the following is characteristic of an unattractive industry? a. High entry barriers b. Buyers with weak bargaining positions c. Weak competitive threats from product substitutes d. Intense rivalry among competitors

d

Which of the following segments of the general environment includes the informal economy (defined as the part of an economy that is neither taxed nor monitored by any form of government)? a. Sociocultural b. Technological c. Economic d. Global

d

Which of the following statements about a core competence is NOT true? a. A core competence is valuable, rare, costly to imitate, and nonsubstitutable. b. To be a potential source of competitive advantage, a core competence must be inimitable and nonsubstitutable by competitors. c. Every core competence is a capability. d. Every capability is a core competence.

d

Which of the following statements about intangible resources is NOT true? a. Intangible resources are difficult for competitors to imitate. b. Intangible resources must be nurtured to maintain their ability to help firms compete. c. The three primary categories of intangible resources are human, innovation, and reputational. d. Compared to tangible resources, intangible resources are the lesser source of capabilities and, subsequently, core competencies.

d

picture This is a small business that specializes in videos and photography. It creates videos to be shown at events, as well as videos and photos of events that are then packaged in unique and creative ways. Picture This once experienced a high demand for its services and was known for its high quality, creativity, and fast delivery times. Now that more people have easy access to photo and video apps through their personal electronic devices, the demand for the services offered by Picture This has lessened and the business is earning below-average returns. This is an example of: a. the lack of tangible resources undermining capabilities. b. losing competitive advantage through outsourcing. c. the need for businesses to stick to core competencies. d. core competencies that have become core rigidities.

d

A firm's customers: a. are the most obvious stakeholders, at least in U.S. organizations. b. are part of its capital market stakeholders. c. prefer that investors receive a maximum return on their investments. d. are more important than its other product market stakeholders.

d.

According to the industrial organization (I/O) model, all of the following would determine a firm's performance EXCEPT: a. barriers to market entry. b. diversification. c. economies of scale. d. patents.

d.

BioLab Pharmaceuticals has just discovered a new treatment for multiple sclerosis. In order to protect proprietary technology, Biolab should apply for: a. certification. b. a trademark. c. a copyright. d. a patent.

d.

HD Construction, Inc. subscribes to the industrial organization (I/O) model of above-average returns. HD would most likely attribute which of the following factors to its success? a. The skills of its employees b. Capital equipment c. Finances d. The degree of concentration of firms in the construction industry

d.

In order to develop a competitive advantage, JBH Corporation and Starr Enterprises have decided to form a partnership to share their resources and capabilities. JBH and Starr have formed a(n) _____ strategy. a. corporate-level b. business-level c. international d. cooperative

d.

Resources are _____ when they allow a firm to take advantage of opportunities or neutralize threats in its external environment. a. rare b. costly to imitate c. non-substitutable d. valuable

d.

Resources have a greater likelihood of being a source of competitive advantage when they are: a. tangible in nature. b. intangible in nature. c. implemented by top management. d. formed into a capability.

d.

Strategic leaders can best leverage partnerships with external parties and organizations when their organizations: a. stress earning profits over satisfying employees. b. earn average and above-average returns. c. use the industrial organization (I/O) model. d. are both innovative and good at execution.

d.

The basis of competition has shifted from _____ to _____. a. intangible resources; tangible resources b. tangible resources; hard assets c. employee skills; technology innovation d. hard assets; intangible resources

d.

The probability of forming an effective mission increases when employees have a strong sense of: a. identity. b. self-worth. c. focus. d. ethics.

d.

The risks of participating outside a firm's domestic markets in the global economy are labeled a(n): a. "danger of competition." b. "disruption to knowledge." c. "internationalization of domesticity." d. "liability of foreignness."

d.

The strategic management process involves all of the following EXCEPT: a. analysis. b. strategy. c. performance. d. identification.

d.

When a firm earns below-average returns: a. it is unable to maximize the interests of all stakeholders. b. it should reward those stakeholders who have the most power. c. the challenge of effectively managing stakeholder relationships is lessened substantially. d. it must make trade-off decisions in light of how important the support of each of its stakeholder groups is to the firm.

d.

Which of the following businesses would be most likely to measure its returns in terms of the amount of growth? a. Barkley, Johnson & Pitt, LLP, an accounting firm with over 100 employees b. Smith Electronics, an electronics firm with international operations c. Confectionery Connection, a candy maker that just declared its initial public offering (IPO) last year d. BizTech, a small computer-repair business with eight employees that began operations last year

d.