Management CH 6

Which of the following is a core capability of a company that determines how efficiently inputs can be turned into outputs?

Problem-solving processes

In the context of portfolio strategy, _____ is the purchase of a company by another company.

Acquisition

Spade and Marcher Corp. manufactures and sells toy guns. These toy guns are a perfect imitation of real weapons. Inspired by Spade and Marcher's success, Keith & Sons, an arms manufacturer in Korowlla, starts to manufacture toy guns too. Which of the following adaptive strategies is used by Keith & Sons?

Analyzers

__________is a measure of the intensity of competitive behavior among companies in an industry.

Character of the rivalry

Strategic reference points are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.

False

Run by two retirees and open only a few days a week, the store has a steady stream of customers but is unlikely to open another location anytime soon.

Grand strategy: stability

Diversification is most frequently associated with a strategy of

Growth

Which of the following statements is true of a portfolio strategy?

It guides the strategic decisions of corporations that compete in a variety of businesses.

Which of the following best defines strategic dissonance?

It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.

Which of the following best defines a SWOT analysis?

It is an assessment of both the internal and external environment of an organization.

Which of the following best defines cost leadership?

It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.

Which of the following best defines a distinctive competence?

It is what a company can make, do, or perform better than its competitors.

Which of the following can help managers to improve the speed and accuracy with which they determine the need for strategic change?

Looking for signs of strategic dissonance

Shell Oil and British Petroleum have a high level of_________because they have similar products and customers.

Market commonality

Coffee shop acquiring another coffee shop

Related Diversification

People, building, machinery, and capital are all_______that an organization uses to create a competitive advantage.

Resources

What strategy would make the most sense for the Giants in the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

Jill's Western Apparel, a small retailer of jeans, cowboy boots, and hats, had a ___________ that kept the business just big enough for the owner to earn her living and maintain her customer base.

Stability Strategy

Use your knowledge of the strategic process to select the missing term C in the following diagram.

Strategic reference points

________are used by managers to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. Continue

Strategic reference points

_________is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Sustainable competitive advantage

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

In the context of adaptive strategies, which of the following is true of defenders?

They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.

Which of the following statements is true of analyzers?

They are a blend of the defender and prospector strategies.

Which of the following best defines cash cows?

They are the companies that have a large share of a slow-growing market.

In the context of adaptive strategies, which of the following best describes prospectors?

They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

The ______ is much greater for telephone service than it is for an exceptionally good vintage of a rare French wine.

Threat of substitutes

Organizations can achieve a competitive advantage by using their resources to _____.

provide greater value for customers than competitors can

According to Michael Porter, the fact that people could easily watch TV or a movie instead of watching a YouTube video is an example of _________, which in this case is_______

the threat of substitutes, high

Which of the following is the last step of a strategy-making process?

Choosing strategic alternatives

When referring to a SWOT analysis, the letter O stands for_________, and it refers to factors that are________to the organization.

Opportunities, external

Which of the following is the first step of a strategy-making process?

Assessing the need for strategic change

Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of

Competitive inertia

Example- Walgreen Co., a large U.S. drugstore chain, expanded its operations in Europe by purchasing 45% of the international Alliance Boots conglomerate. Grand Strategy-

Growth

________________ is a strategy that focuses on increasing profits, revenues, market share, or the number of places in which a company does business.

Growth Strategy

Which of the following statements is true of direct competition?

It is determined by two factors: market commonality and resource similarity..

A company's __________are defined by the internal processes of the organization, including how the company makes decisions and solves problems.

Core capabilities

Companies that use the_______adaptive strategy to sell a few products to a select group of customers, achieving slow, steady growth.

Defenders