MGMT 352 HW Review

Which of the following summarizes the differences between the corporate strategy and business strategy?

Corporate strategy deals with where to compete; business strategy deals with how to compete.

How do low interest rates affect a business?

Firms can easily borrow money to finance future growth.

Several senior managers recently left Fred's Autos Inc. and went to work at Better Autos Inc., a rival company. What does this imply?

Fred's faced resource leakage

The distribution department at Wheat, Barley and Whey Corp. has decided to adopt the FIFO (first in, first out) method of inventory to dispatch its bags of wheat. Which of the following strategies does this scenario best illustrate?

Functional strategy

The average cost of production for a bottle of vitamin water in the industry is $5 while its average price is $8. Facuet H20 Inc. manufactures the same product for $3 per bottle and sells it for $8 per bottle. Which of the following statements is most likely true of Facuet H20 Inc. in this scenario?

It has a competitive advantage in the industry

Which of the following best qualifies as a firm's internal stakeholder?

a manager taking care of the firm's operations in a foreign market

Which of the filling tasks in the AFI strategy framework involves evaluating the internal and external environments in which a firm operates?

analysis

Nuke It is a major manufacturer of microwave ovens. Which of the following statements will best inspire the organization with a shared vision for Nuke It? a. At Nuke It, employees know that they will make a competitive wage. b. At Nuke It, employees at all levels are motivated to make the best microwave ovens on the market. c. At Nuke It, employees want to create a cheaper microwave oven than our closest competitor does. d. At Nuke It, employees can trust our managers to steer the company.

b. At Nuke It, employees at all levels are motivated to make the best microwave ovens on the market.

In the five forces model developed by Michael Porter, ________ is not defined narrowly as a firm's closest competitors but rather more broadly to include other factors in an industry like buyers, suppliers, potential new entry of other firms, and the threat of substitutes.

competition

________________ allow(s) a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost.

core competencies

SJobs's Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to the dynamic capabilities perspective, SJobs's Computer Repair has lost its competitive advantage due to

core rigidity

According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were

easy to imitate

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because

entering the aircraft manufacturing industry requires huge capital investments

A successful strategy details a set of goal-directed actions that managers make to gain and sustain a competitive advantage; in order to create this strategy, managers must focus on three pillars. Which of the following below is not on of these pillars? a. formulation b. execution c. implementation d. analysis

execution

organizational values help people make choices that are ethical and company goal-oriented. These values answer which strategic management question?

how do we accomplish our goals in the organization?

Your company, a small software development firm, has attracted many of the top young programmers in your area. As a result, the apps you produce have been praised for their innovative features and intuitive user experience. According to the bathtub metaphor in the dynamic capabilities perspective, what is the best way for you to protect against resource leakage?

improve the benefits package to retain key employees and reduce turnover

Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, a firm will be successful today only if its

internal strengths change with its external environment in a dynamic fashion

Beats Electronics has been able to outperform Audio-Technica, Bose, JBL, Skullcandy, Sennheiser, and Sony in the high-end, premium headphone market. Which of the following statements accurately explains one of the main reasons for the success of Beats?

it created a perception that owning its products was cool

do vision statements help firms gain and sustain competitive advantage?

it depends, because the effectiveness of vision statements differ by type

Shippity and ShipING Inc. are two competing firms in the same industry. Shippity's tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion. ShipING Inc.'s tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion. What can be concluded from this information?

it is likely that ShipING inc. is better enabled than Shippity to gain and sustain a competitive advantage

according to the value chain analysis which of the following is a primary activity?

marketing and sales

Farm to Table Inc. is a supermarket chain. Due to strong competition from other stores in the industry, Farm to Table has aggressively used branding, pricing, and superior customer service to uniquely position itself in the market. As a result, the supermarket chain has been able to differentiate itself from its competitors and sell its products at higher prices. Which of the following industry competitive structures does this scenario best illustrate?

monopolistic competition

Dora's Supplies manufactures medical devices. The firm's profitability depends on several variables that are subject to occasional change, including the cost of parts and labor, changes in medical practices, and the price of oil used in both manufacturing and shipping. To account for the potential impact of changes to any of these variables, Dora's Supplies managers should implement a(n) ________ approach

scenario planning

as the legal owners, _______ have the most legitimate claim on a company's profits.

shareholders

Top-down strategic planning as an approach to the strategic management process will be most effective when the

size of the firm is large?

An observer may conclude that the organizational culture of Zappos, an online retailer for shoes and clothing, might be the basis for its competitive advantage. However, reverse social engineering to crack Zappos' code of success might be much more difficult for a company trying to exactly imitate its strategy. Thus, the source of Zappos competitive advantage is

socially complex

difference between stakeholders and stockholders

stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm

EverMart Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under EverMart can be referred to as

strategic business units

During market testing, Rembrandt Cosmetics realized that the cosmetics industry was dominated by multiple, well-established brands. These brands mostly sold their products in exclusive outlets and departmental stores. Rembrandt Cosmetics management realized that a new entrant would require a different business model to be successful. Thus, Rembrandt Cosmetics started selling its products through direct marketing. In this scenario, Rembrandt Cosmetics accomplished substitution primarily through

strategic equivalence

BuyNow Inc. is an e-commerce retail firm that sells a variety of merchandise online. Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses) at the same price. Also, the company's costs are substantially lower than its competitors because of minimal investments in operation and administration. In this scenario, BuyNow Inc. has most likely been able to provide superior value and cost control through

strategic positioning

Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?

strategy analysis

Which of the following tasks in the AFI strategy framework involves putting the formulated strategy into practice through organizational structure, culture, and controls?

strategy implementation

in which of the following situations is the power of suppliers high in an industry

suppliers' industry is more concentrated than the industry it sells to

The "diagonal assembly system" was a production system pioneered by the automobile company Gogo. Recently, Gogo was able to sue a competitor and won the suit, thereby receiving $100 million in damages. Which of the following would most likely enable Gogo to win such a lawsuit?

the competitor infringed on Gogo's patent of the "diagonal assembly system"

Due to economic regression in Jabu, the profitability of the large corporation Honey Comb Inc. was poor. An analysis of the company's business showed that the company could become profitable if it divested a few strategic business units under its banner. From which of the following businesses would Honey Comb Inc. find it most easy to exit?

the e-commerce retail business, where investments on assets are low

Which among the following is responsible for making business strategies in a large conglomerate?

the general managers of the individual business units

TicToc Corp. is a manufacturer of smart watches that track the wearer's heart rate and sleep patterns. Which of the following is most likely an implication of new firms entering this industry?

the incumbent firms will spend more to satisfy their existing customers

Business managers are often concerned that just one of their company's activities will make or break their competitive advantage. However, you know that

their company's success depends on an array of many key activities, not just on activity

Which of the following is a customer-oriented vision?

to manufacture innovative products through continuous learning

Siham is a chef who owns three moderately successful restaurants with innovative menus. Based on what you have read, which of these approaches could help her improve her profits?

use her existing knowledge, equipment, and staff to launch a catering business

Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Customer-oriented visions tend to be more flexible when adapting to changing environments

The ________ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

PESTEL framework

When conducting a _______________, it's best to examine both PESTEL and Porter's five forces analyses because these tools focus on the external environment.

SWOT analysis

A firm that achieves superior performance relative to other firms in the same industry or the industry average has a

competitive advantage

The best example of a firm's external stakeholder is a

government agency that regulates the prices of products manufactured by the firm

The government of Pentsu has mandated that the standard minimum wage in the country be increased to $8,000 per year. Which of the following factors in a firm's general environment does this mandate best indicate?

legal factors

Which of the following is typically an economic responsibility of a firm?

paying adequate returns to the firm's stockholders not he capital invested by them

Which of the following three important stakeholder attributed should managers pay special close attention to in order to better understand stakeholder impact analysis?

power, legitimacy, and urgency

A traditional top-down strategic planning typically begins with

strategic leaders adjusting a company's vision and mission based on environmental analysis

A firm's strategic position is likely to be strong when

the gap between the value the firm's product generates and the cost to produce it is large

Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?

the overall industry profitability will increase

In strategic management, strategists engage in three pillars. Which of the following is not one of these pillars?

the unification of major goals and objectives

Which of the following vision statements is most likely to produce a sustainable competitive advantage for a boat dealership?

to help our customers find the perfect boat for their individual needs

Which of the following features about a buyer indicates that the buyer has high bargaining power?

when the buyer operates in an industry where products are undifferentiated

When do employees fail to adopt the organizational values of a firm?

when the top managers in the firm are merely paying lip service to the firm's stated values