MGMT

Blue Ocean strategies always involve increasing the price of the product or service. True False

False

The primary reason Ringling Brothers Circus went out of business was because of Cirque Du Soleil's success. True False

False

Companies can make profits without having a Vision or Mission statement. A well thought out Mission/Vision statement can help a company achieve above average returns. True False

True

Google and Apple are serious threats to Ford. True False

True

Which of the following is not a good example of a disruptive technology? Garmin GPS Device Uber Kindle E-Book Nikon Digital Camera Apple I-pod

Uber

Which of the following is NOT part of evaluating a firm's business model? Understanding how a firm creates value Understanding for whom a firm creates value Understanding how a firm expects to make money or a profit Understanding if a firm has a competitive advantage Understanding how a firm expects raise money for acquistions.

Understanding how a firm expects raise money for acquistions.

Which of the following is NOT an abuse of power by the supervisor demean disrespect after hours socializing take advantage interfering with job performance exploit

after hours socializing

How sub-units gain/lose power centrality substitutability uncertainty all of the above resource scarcity

all of the above

Types of Power in an organization can be coercive referent informational all the above persuasive expert reward legitimate

all the above

Backward integration occurs when a company is concentrated in a single industry. owns its own source of distribution of outputs. is divesting unrelated businesses. produces its own inputs

produces its own inputs

Which of the following is NOT true? Finding a Blue Ocean Strategy is relatively low risk Blue Ocean is a good strategic approach for companies at the brink of extinction and hoping to survive It make take 3-5 years to develop, plan and implement a successful Blue Ocean Strategy Blue Ocean works well for companies looking to enter a new market with alot of competition

Finding a Blue Ocean Strategy is relatively low risk

Media content has moved from paper, tape, and film to a digital world based on Internet technology. From the perspective of the five forces model, which force is most relevant here? substitutes suppliers entry barriers buyers

substitutes

Which acquisition would be considered the LEAST related? A candy manufacturer purchases a chemical laboratory specializing in food flavorings. An upscale "white-tablecloth" restaurant chain acquires a travel agency. A hospital acquires a long-term care nursing home. A chain of garden centers acquires a landscape architecture firm.

!An upscale "white-tablecloth" restaurant chain acquires a travel agency.

Business Level Strategy

1. Broad Scope 2. Narrow scope 3. Cost leadership 4. Differentiation 5. Integrated Cost leadership/differentiation

Blue Ocean Strategy

1. Create uncontested market space 2. Make the competition irrelevant 3. Create and capture new demand 4. Break the value cost tradeoff 5. Simultaneous pursuit of low cost and differentiation

Acquisition Cultural Differences

1. Decision making 2. Leadership style 3. Measure of success 4. Ability to change 5. How people work together

Theories of Motivation

1. ERG (Existence, relatedness, growth, more than 1 kind of need can motivate someone at a time, satisfaction progression and frustration progression) 2. 2 Factor (Motivation & Hygiene, each on a scale from satisfaction to dissatisfaction) 3. Equity Theory- if an individual identifies a situation as unequal they will adjust their work to make it equal 4. Expectancy Theory (people motivated by how much they want something and likelihood of getting it, high levels of performance may lead to satisfaction if rewards are adequate) 5. Hierarchy of Needs- humans want (self actualization, esteem, belongingness, security, physiological) 6. Acquired Needs Framework- needs of achievement, affiliation, power

Incentives of International Strategy

1. Extend a product's life cycle 2. Gain easier access to raw materials 3. Integrate operations on a global scale 4. Better use rapidly developing technologies 5. Access to consumers in emerging markets

International Strategies

1. Global Strategy- centralized/standardized 2. Transnational strategy- global efficiency with local responsiveness 3. Multidomestic strategy- strategic business units within each country

Business Model

1. How does the firm create value 2. For whom does it create value 3. What does it cost to create value 4. Does the firm have a source of competitive advantage 5. What is the model for making $

Resource Based Model for Above Average Returns

1. Identify resources, capability, and core competence (competitive advantage) 2. Attractive industry 3. Strategy + Implement 4. Superior returns

Reasons for Acquisitions

1. Increased market power 2. Overcoming Entry Barriers 3. Cost of new Product Development 4. Increased speed to market 5. Lower risk than developing new products 6. Increased diversification 7. Reshaping firms competitive scope 8. Learning and developing new capabilities

Benefits of International Strategy

1. Increased market size 2. economies of scale 3. Location advantages

Methods of International Entry

1. License 2. Export 3. Strategic alliance 4. Acquisition 5. New wholly owned subsidiary

Levels of Diversification

1. Low- Single business, dominant business 2. Medium to high- related constrained, related linked 3. Very High- unrelated

Types of Disruptive Innovation

1. Low-end 2. New market

How subunits obtain/lose power

1. Resource scarcity 2. Centrality 3. Substituteability 4. Uncertainty

Industry Organizational Model for Above Average Returns

1. Study External Environment 2. Locate industry with above average returns 3. Identify strategy 4. Develop skills 5. Implement 6. Superior returns

Problems with Acquisitions

1. Too large 2. Managers too focused on acquisitions 3. Too much diversification 4. Inability to achieve synergy 5. Debt 6. Inadequate target evaluation 7. Integration difficulties

4 criteria for sustainable advantage

1. Valuable capabilities 2. Rare capabilities 3. Costly to imitate capabilities 4. Nonsubstitutable capabilities

Five Forces

1. threat of entry 2. power of suppliers 3. power of buyers 4. threat of substitutes 5. rivalry among existing competitors

Dr. Morris Massey is well known for his work on Value Programming. How many transition "Periods" does a person experience by age 21? 2 1 5 3

3

Google acquired Motorola in 2011 for $12.5 Billion. This was what type of transaction? Acquisition Merger Takeover Partnership

Acquisition

Which of the following is the best example of Low-end Disruption? Blockchain Technology Electric Vehicles AirBnB Yellow Tail Wine Frontier Airlines

AirBnB

A Company's Vision can: Impact Culture Create a purpose that is not defined by sales and profits alone Help attract and retain talent All 3 of these

All 3 of these

MoviePass is the firm that created a monthly movie pass for $19.95 that consumers could use to see as many movies at the theater as they wanted each month. What was the problem with its business model? The cost of the offering was more than what MoviePass could generate in revenue. There was no competitive advantage to the offering and movie theaters like AMC and Showcase could create that offer themselves. MoviePass lost money as the more movies that each customer watched each month, created even greater losses for MoviePass. All 3 of these were problems for MoviePass.

All 3 of these were problems for MoviePass.

Southwest has a strong business model because: It offers great value to customers through low cost flights. It has figured out how to manage its costs while offering great prices to consumers. It has developed competitive advantage versus other airlines. All 3 of these.

All 3 of these.

A problem that can occur with an acquisition is: All of the above Integration difficulties Inadequate target evaluation Inability to achieve synergy Too large

All of the above

Components of a Performance Focused Culture ? Clear Expectations Training as needed Clear feedback on Performance All of the above Consequences for Performance Detailed Appraisal

All of the above

David McClelland acquired framework states Need for achievement Need for power Need for affiliation Needs are acquired, or learned, from cultural, societal, and family influences All of the above

All of the above

Situational Leadership by Ken Blanchard: Gives managers a way to determine what leadership style is needed based on the Development Level of the subordinate Helps the Supervisor to use the right balance of supportive behavior and directive behavior All of the above Allow the subordinate to understand where they are on the Development Level

All of the above

Which of the following are components of Resource Architecture? Processes All of the these Culture People Structure

All of the these

Which of the following are links in the value chain that defines an aligned enterprise? Resource architecture Management Systems Organizational capability Business Strategy Enterprise purpose All of the these

All of the these

Which of the following industries is most likely to change because of disruptive technology over the next five years? All of them in the next 5 years Medical diagnosis None of them in the the next 5 years The trucking industry Foodservice industry

All of them in the next 5 years

Employer of Choice would include which of the following: Engagement Culture Pay Schedule Benefits All of these

All of these

Which of the following is an important competitve success factor for top performing companies? Focusing on customer needs All of these are important Having an entrepreneurial mindset Offering innovative products and services Making effective use of valuable competencies

All of these are important

Which of the following is not part of strategy? All of these are important to strategy Making managment decisions of what to do Identifying and developing long-term competitive advantage Making decisions on what not to do Generating above-average returns and profits

All of these are important to strategy

Mission and Vision can have "unintended consequences" if: Management allows current market conditions to bypass Mission/Vision and focus on maximizing profits Employees do not see management "Walk the Walk" Mission and Vision are updated/amended annually All these answers

All these answers

Millennials: Are all of these Are flexible Can appear self-absorbed Have high expectations for management Are driven Are quick learners

Are all of these

According to a 2016 Gallup Survey, "Engaged" employees will NOT Generate 21% more in profits Generate 20% more in sales Be 50% less likely to leave Be 50% more creative than their peers

Be 50% more creative than their peers

Disruptive Innovation Leaders are good at all of the following EXCEPT: Looking beyond the rules of the marketplace Surrounding themselves with diverse people Managing uncertainty Being decisive Being humble when necessary

Being humble when necessary

Which of the following is NOT important when considering whistle blowing? Sharing the situation with someone you trust to get their opinion Gathering evidence to support your accusation Exploring whether there are other explanations for what you perceived to be wrong Being personally motivated by the action

Being personally motivated by the action

Blood banks are highly dependent on donors. In the terminology of industry analysis, which statement of donors is accurate? Blood donors are buyers and are powerful because of the volume of blood needed. Blood donors are buyers and are not powerful because switching costs to change to alternative inputs are low. Blood donors are suppliers and are powerful because of their concentration relative to the blood bank. Blood donors are suppliers and are powerful because of the critical nature of what they provide to the blood bank.

Blood donors are suppliers and are powerful because of the critical nature of what they provide to the blood bank.

Business level strategy vs. Corporate Strategy

Business- individual product markets Corporate- companywide; what businesses should the firm be in and how should the corporate office manage these businesses

Which of the following is not a reason to make an acquisition? Cost of new product development CEO can earn more money Learning and developing new capabilities Increased diversification Overcoming entry barriers

CEO can earn more money

Which of the following is NOT a strategic decision by Ford? Developing a joint venture with Google to produce autonomous vehicles. Deciding to discontinue all passenger cars except the Mustang and Ford Crossover Changing steel suppliers to get a less expensive price for steel Building a plant in China to develop electric vehicles

Changing steel suppliers to get a less expensive price for steel

Which of the following steps toward making an ethical decision includes utilizing checks such as the Platinum Rule test and the Mom test? Define the ethical issues Consider your integrity Identify the affected parties, consequences, and obligations Check your instincts Think creatively about actions

Check your instincts

An external analyis of the macro environment does NOT include: Legal factors Technological Factors Competitive factors Demographic factors Political factors

Competitive factors

Competitive Strategy vs. Blue Ocean

Competitive strategy- reduce cost or increase buyer value Blue Ocean- reduce cost AND increase buyer value

Which one of the following is NOT a stakeholder in Enterprise purpose? Competitor Investors Employees Customers

Competitor

According to Kotter, which one of the following is NOT a leadership attribute: Produce extremely useful change Establish Direction Controlling & Problem Solving Motivating & Inspiring Aligning People

Controlling & Problem Solving

Which of the following steps to making an ethical decision follows the fact-gathering step? Identify the affected parties, consequences, and obligations Check your instincts Consider your integrity Think creatively about actions Define the ethical issues

Define the ethical issues

Which of the following can be used to determine how much to pay for a company? Bank Loans EBITDA Cash Reserves Goodwill

EBITDA

Which of the following is important to conducting an effective PESTEL analysis: Assessing whether each factor could have a major impact Brainstorming as many external factors that might affect the industry Being precise and concise in your wording for each factor Each of these is important Prioritizing the top 5-8 factors that are most important

Each of these is important

Strategically Aligned Enterprise Components

Enterprise purpose Business Strategy Organizational Capability Resource Architecture Management Systems

Mission and Vision are the same thing. Many companies use them interchangeably and there is essentially no difference between the two. True False

False

Millennials/Generation Y were born between 1983-2000. Which of the following is NOT a preferred leadership approach? Have the boss make decisions whenever possible Respect authority and rules Having fun Value a relationship with the immediate boss

Have the boss make decisions whenever possible

A company's mission can: Help all employees focus on tasks that will be supportive of the company's goals and objectives. Be customized to each employee's wants and needs Be substituted for the company's vision if management believes it is warranted based on market conditions. None of these 3 answers

Help all employees focus on tasks that will be supportive of the company's goals and objectives.

Jim Collins believes it is important "Getting the Right People on the Bus". You can do this by : Doing a background check Manage all new hires tightly for the first 12 months Calling references Hire people who already share core values

Hire people who already share core values

The following are attributes of the "Comfort Zone" EXCEPT: Honor Self-Confidence Self-Esteem Courage

Honor

Which of the following industries is LEAST likely to be affected by the development of autonomous (self-driving) vehicles? Hotel Alcohol Housing Automotive Regional airlines

Housing

Which of the following is NOT a question that great managers ask themselves when making a tough ethical decisions? How can I gain from this decision? Am I behaving fairly? Is my decision in line with my values? Will others be negatively impacted?

How can I gain from this decision?

Porter and Lawler argue that Satisfaction leads to performance Culture can lead to high performance If rewards are adequate, high levels of performance may lead to satisfaction Dissatisfied employees can be high performers

If rewards are adequate, high levels of performance may lead to satisfaction

Which of the following is NOT true? It is uncommon to find false information on someone's resume Often people look to what others do, to justify what is ethical An invidual is not responsible for defining what is ethical at work Laws are vague and don't often help defining what is ethical

It is uncommon to find false information on someone's resume

Blue Ocean Strategy is most closely aligned with which of the following 5 business strategies from Michael Porter? Focused Differentiation Integrated Cost Leadership/Differentiation Broad Low Cost Broad Differentiation Focused Low Cost

Integrated Cost Leadership/Differentiation

Which of the following is NOT an ethical decision-making myth? Ethics can be managed with codes of conduct. It is hard to be ethical. Unethical behavior is simply a problem of "bad apples." Managing Ethics is not my problem. People are less ethical than they used to be.

It is hard to be ethical.

Which of the following is NOT good advice about making ethical decisions? It is important to come to quick decisions to resolve these important matters It is important that employees understand the risk of potential punishment for unethical behavior. All ethical complaints should be taken seriously. Decisions should be explained and transparency is generally a good thing. Each ethical situation should be individually analyzed as it is rare that "one size fits all".

It is important to come to quick decisions to resolve these important matters

Why is Blue Ocean strategy important? Porter's Five Forces Analysis has become obsolete It provides an alternative to traditional Competitive Strategy models and creates new ways to think about a business Our business economy is relatively stable and the rate of innovation is slowing International competition and globalization is shrinking Blue Ocean strategies are much easier to develop than traditional business strategy approaches

It provides an alternative to traditional Competitive Strategy models and creates new ways to think about a business

Which one of the following is NOT one of the needs of the Clayton Alderfer theory? Relatedness Growth Existence Money

Money

Employee performance requires the right combination of: Ability, Enthusiam, Environment Motivation, Ability, Environment Ability, Motivation, Enthusiam Motivation, Enthusiam, Environment

Motivation, Ability, Environment

Which of the following is not an entitlement compensation philosophy? Pay scales increased annually Across the board raises Pay based on length of service No raises for poor performing employees

No raises for poor performing employees

Which one of the following is NOT an integral part of John Maxwell's 5 Levels of Leadership? People follow you because you get results People follow you because of who you are and what you have done People follow you because of charisma and communication skills People follow you because they want to People follow you because they have to People development. You quit thinking about yourself.

People follow you because of charisma and communication skills

Which of the following is NOT one of the adjacent segments that Yellow Tail added to their target market as they expanded their Blue Ocean efforts People who like Australian cuisine People who drink cocktail drinks People who drink red wine People who drink water People who drink beer

People who like Australian cuisine

Compensation Philosophies

Performance Entitlement

All of the following are effective ways that large companies use to manage disruptive innovation EXCEPT: Setting up separate business units in their company and encouraging disruptive innovation Watching where venture capital firms are investing their funds Putting more money into advertising and promoting their products Working with startup companies who have competing technology Acquiring competing technologies

Putting more money into advertising and promoting their products

Which of the following is not part of Blue Ocean strategy? Raise the level of important product/service features that customers care about Eliminate unnecessary costs Create new value by adding features/services that customers care about Reduce product quality

Reduce product quality

All of the following were key to Cirque Du Soleil's Blue Ocean Strategy EXCEPT: Increasing the use of acrobatics Eliminating the use of animals Creating themed events Reduce the appeal to children Raising the price of tickets to be more comparable to that of a play or musical performance

Reduce the appeal to children

Applicant Sourcing can come from multiple channels. Which of the following channels has the shortest average time to hire? Walk-ins Referrals Employment Agencies Internet

Referrals

If Southwest Airlines employees lost their high enthusiasm and commitment to the company, there would be no impact on Southwest's profitability because Southwest's customers value the low fares rather than being "entertained" by the employees. replacement employees could be hired from rival airlines that are laying off employees easily merged into the Southwest culture Southwest would have lost one of its competitive advantages and its performance would be threatened. the airline could continue without problems because its cost leadership strategy is dependent on its efficient internal procedures.

Southwest would have lost one of its competitive advantages and its performance would be threatened.

Strategy vs. Operational Effectiveness

Strategy- unique value proposition, operational effectiveness- best practices/execution

In the Apple case about creating a backdoor to the iPhone it is clear that That the government should have the right to access anyone's personal information when our national security is at risk. That a future national terrorism act was thwarted by unlocking the phone in question Tim Cook made the right decision to protect privacy That this a Right vs. Right struggle where there is not easily found ethical solution. It is possible to keep "bad guys" from getting access to our data

That this a Right vs. Right struggle where there is not easily found ethical solution.

Which of the following, identified in an analysis of the external environment, is an opportunity for an entrepreneur who wishes to open a business providing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people? The average education level of the population in his community is low. The level of unemployment in his community is high. The average age of the population in his community is high. A chiropractor and two independent physical therapists are located in his community. The community is a diverse collection of cultures from around the world.

The average age of the population in his community is high.

Theory Y by Douglas McGregor states: For the average person, work is unnatural and desired as rest or play The average person has significant untapped capacity for creativity and ingenuity The average person would prefer not to work than work The average employee holds no internal ambition or need for greatness

The average person has significant untapped capacity for creativity and ingenuity

The main reason Telsa has NOT perfected its business model is because: Consumers do not care about electrical vehicles. It has lost out to successful automotive companies from China. The cost of running the company is very high causing uncertainty about the company and its ability to be profitable long-term. Elon Musk has been smoking pot. Tesla has yet to develop a self-driving automobile.

The cost of running the company is very high causing uncertainty about the company and its ability to be profitable long-term.

A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for this project. Which of the following statements is most likely to be true? The cost of the marble will be expensive because of the bargaining power of the supplier. The cost of the marble will be moderate because of the bargaining power of the buyer. The cost of the marble will be expensive because of the high strategic stakes involved. The cost of the marble will be moderate because of economies of scale.

The cost of the marble will be expensive because of the bargaining power of the supplier.

In the last few years, all of the following have had a major effect on strategic planning EXCEPT: Increasing importance of knowledge Rapid pace of technological changes Increase in global competition The difficulty in raising finanical capital

The difficulty in raising finanical capital

Which one of the following is NOT how Corporate Culture can affect acquisitions? How people work together The type of industry you are in Decision-Making Leadership Style Definition of Success Ability to change

The type of industry you are in

Marvel could produce a movie for 30% less than other high end Hollywood Studios because of lower overhead. True False

True

Organizational politics is social influence attempts directed at those who can provide rewards that will help promote or protect the self True False

True

The distinction between political and non-political behavior is intent True False

True

Vision vs. Mission

Vision- what you expect to achieve in the future, mission- specifies specific business in which you intend to compete

Which of the following questions is NOT part of Organizational Capability? What do you need to be really good at to successfully achieve your winning strategy? What is the company's views towards corporate politics? What are you capable of organizationally that your rivals are not? How do you become uniquely capable of fulfilling what markets and cutomers are demanding of you, now and in the future?

What is the company's views towards corporate politics?

Which of the following questions does NOT apply to Business Strategy? Who are your customers and what are they demanding of the products and services you offer? How do you need to be different to compete and win? Who are your competitor's and what are they capable of offering that you aren"t? Who are your largest shareholders?

Who are your largest shareholders?

A cost leadership strategy provides goods or services with features that are substandard. mediocre. unique. acceptable.

acceptable

Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year. Companies pursuing Wholesome's business strategy are especially vulnerable to this risk. Wholesome probably operates on very thin margins, and a cost increase will threaten its ability to earn average returns. If Wholesome raises its pet food prices, customers will turn to less expensive brands such as Purina. Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.

Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer.

Yellow Tail wine was successful because it did all of the following EXCEPT: Made a wine that appealed to the masses Priced their wine about budget wines and equal to a six-pack of beer Win prestigious medal awards for their wines Offer a simple selection of product choices

Win prestigious medal awards for their wines

Frederick Taylor's research indicated that Workers are motivated by non-financial means Workers can never be paid enough money to be purely motivated Workers are motivated by work environment Workers are motivated purely by money

Workers are motivated purely by money

According to Maslow's Hierarchy of Needs which of the following does NOT apply? Human beings are "wanting animals" Growth needs are esteem and self-actualization Deficiency needs are physiological, security, and belongingness Needs are arranged in a hierarchy of importance You can exist in multiple stages of the hierarchy at the same time

You can exist in multiple stages of the hierarchy at the same time

When a firm is able to produce nonstandardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementin a differentiation strategy. a cost leadership strategy. an integrated cost leadership/differentiation strategy. a single-product strategy.

a differentiation strategy.

Looking at the business model of a firm is: a responsiblity of the Human Resources department of a firm. something that almost every company does very well. a key part to evaluating a firm's overall strategic efforts. something that is no longer necessary with the evolution of technology. required by government law for all publically traded companies.

a key part to evaluating a firm's overall strategic efforts.

Moving into international markets is a particularly attractive strategy to firms whose domestic markets have developed unfriendly business attitudes toward the industry. demand a differentiation strategy for success. have too much regulation. are limited in opportunities for growth.

are limited in opportunities for growth.

Which of the following is NOT an entry barrier to an industry? economies of scale bargaining power of suppliers customer product loyalty expected competitor retaliation

bargaining power of suppliers

If you believe in Conscious Capitalism, you would agree with all of the following EXCEPT: Conscious businesses have trusting, authentic, innovative and caring cultures capitalism is the root of evil and little good comes from it conscious leaders are driven by service to the company's purpose it is important to look at all of the stakeholders affected by a business. the innate potential of business to make a positive impact on the world.

capitalism is the root of evil and little good comes from it

The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because customers will seek out the lowest-cost product. the differentiation strategy benefits from rivalry because it forces the firm to innovate. customers of nondifferentiated products are sensitive to price increases. customers are loyal to brands that are differentiated in meaningful ways.

customers are loyal to brands that are differentiated in meaningful ways.

A company pursuing the differentiation or focused differentiation strategy would tend to Answer develop flexible systems that allow rapid response to customers' changing needs. build economies of scale and efficient operations. develop and maintain cost-effective MIS operations. have relationships with suppliers to maintain efficient flow of supplies for operations.

develop flexible systems that allow rapid response to customers' changing needs.

A global corporate-level strategy emphasizes sensitivity to local product preferences. decentralizing control and limited monitoring. economies of scale. differentiated products.

economies of scale.

A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of a strategic alliance exporting acquisition a greenfield venture license

exporting

Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low prices. Ikea is using which business-level strategy? focused cost leadership differentiation focused differentiation cost leadership

focused cost leadership differentiation

A transnational corporate-level strategy seeks to achieve customization for the local market. economies of scale and centralized strategic control. global efficiency and local responsiveness. standardization of products across countries.

global efficiency and local responsiveness.

An analysis of the economic segment of the external environment would include all of the following EXCEPT: personal savings rates income distribution inflation rates trade deficits or surpluses interest rates

income distribution

Customer loyalty programs such as airline frequent-flyer miles are an attempt to develop a cost advantage independent of scale. decrease competitors' access to distribution channels. overcome the perishability of the hotel "product." increase customers' switching costs.

increase customers' switching costs.

Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. These are all characteristics of which business level strategy? stuck in the middle cost leadership differentiation integrated cost leadership/differentiation

integrated cost leadership/differentiation

A company using a narrow target market in its business strategy is focusing on a broad array of geographic markets. decreasing the number of activities on its value chain. following a cost leadership business strategy. limiting the group of customer segments served.

limiting the group of customer segments served.

The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the Mars/Wrigley integrated firm. It allowed Mars to gain _______________ because it could sell its products above the market level or reduce its costs below the market level. vertical integration virtual integration multipoint competition market power

market power

Ever-improving levels of efficiency enhance profit margins for a cost-leader. This effects which of the five forces of industry structure most directly? potential entrants supplier power substitutes buyer power

potential entrants

Which of the following is not an effective influence tactic? rational persuasion inspirational appeals consultation pressure

pressure

Which of the following reasons for diversification is most likely to increase the firm's value? increasing managerial compensation conforming to antitrust regulation reducing costs through business restructuring taking advantage of changes in tax laws

reducing costs through business restructuring

Which of the following would NOT be identified in an analysis of the economic portion of the general environment?In a suburban community outside a city in Alabama, a retail store opened that specialized in dancewear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owners fail to take into account when they began selling the lingerie? legal segment political segment technological segment sociocultural segment economic segment

sociocultural segment

Utilitarian theory says the best decision is one that a monarchy or dictator would make the best decision is the one that provides the greatest good for the greatest number the best decision is one that a person of high integrity and honesty would make the best decision is one that most people would make

the best decision is the one that provides the greatest good for the greatest number

A multidomestic corporate-level strategy is one in which the firm decides to compete only in its own domestic market with multiple products. the firm produces a standardized product, but markets it differently in each country in which it competes. the firm customizes the product for each country in which it competes. a corporation chooses not to compete internationally but where there are a number of international competitors in the firm's local marketplace.

the firm customizes the product for each country in which it competes

Suppliers are powerful when they offer a credible threat of forward integration. they are in a highly fragmented industry. satisfactory substitutes are available. they sell a commodity product.

they offer a credible threat of forward integration.

A firm successfully implementing a differentiation strategy would expect to charge premium prices. customers to perceive the product as standard. to have high levels of power over suppliers. customers to be sensitive to price increases.

to charge premium prices.

Corporate-level strategy is concerned with and how to manage these businesses. whether the firm should invest in global or domestic businesses whether to integrate backward or forward. what product markets and businesses the firm should be in whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring

what product markets and businesses the firm should be in

When selecting a business level strategy, the firm must determine all of the following EXCEPT why should these customers' needs be satisfied? what are the customers' needs? who is the customer? how will the customer's needs be satisfied?

why should these customers' needs be satisfied?