MGMT 449 Final

* How do ethical principles apply to businesses? a. They chiefly deal with the actions and behaviors required to operate companies in a socially responsible manner. b. They chiefly deal with the rules each company's top management and board of directors make about "what is right" and "what is wrong." c. They are not materially different from ethical principles in general. d. They are generally less stringent than the ethical principles for society at large.

c. They are not materially different from ethical principles in general.

* A strategic objective that is not considered a part of the business case for why companies should act in a socially responsible manner can be stated as, a. "Every business has a moral duty to be a good corporate citizen." b. "Acting in a socially responsible manner reduces the risk of reputation-damaging incidents." c. "Acting in a socially responsible manner is in the overall best interest of shareholders." d. "To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage."

a. "Every business has a moral duty to be a good corporate citizen."

Managers of all types of business organizations must develop a clear answer for which of the following questions? a. What is the set of actions that we need to take to outperform competitors and achieve superior profitability? b. What approaches do we need to take in order to gain a competitive advantage in the marketplace? c. Where are we now? d. Where do we go from here?

a. What is the set of actions that we need to take to outperform competitors and achieve superior profitability?

Which of the following is not a question asked to deduce a marketing-related key success factor? a. What are the industry product R&D capabilities and expertise in product design? b. On what basis do buyers choose between the competing brands of sellers? c. What product attributes and service characteristics are crucial? d. What resources must a company have to be competitive?

a. What are the industry product R&D capabilities and expertise in product design?

* What does a good strategy execution require? a. a team effort with all managers having strategy executing responsibility in their areas of authority, and making all employees active participants in the strategy execution process b. incremental changes to current operating practices be implemented to ensure existing resource capabilities are not impacted too severely c. little consensus building, despite the magnitude of the proposed changes, because employees know the benefits gained from the planning process d. the strategy-critical value chain activities to be simplified so that all company personnel can be cognizant of the benefits of the execution parameters

a. a team effort with all managers having strategy executing responsibility in their areas of authority, and making all employees active participants in the strategy execution process

The best strategic alliances a. are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit. b. are those whose purpose is to create an industry key success factor. are those that help a company move quickly from one strategic group to another. c. involve joining forces in R&D to develop new technologies cheaper than a d. company could develop the technology on its own.

a. are highly selective, focusing on particular value chain activities and on obtaining a particular competitive benefit.

* A strongly implanted culture provides a huge assist in executing strategy because company managers can use the traditions, beliefs, values, common bonds, or behavioral norms a. as levers to mobilize commitment to executing the chosen strategy. b. as reinforcement for convincing staff that the strategy is sound and molded in tradition. c. to ensure the staff will embrace the new strategy like they have in the past. d. to manipulate jobholders into thinking traditions are important.

a. as levers to mobilize commitment to executing the chosen strategy.

Giving customers more value for the money by satisfying their expectations on key quality features, performance, and/or service attributes while beating their price expectations is a __________ strategy. a. best-cost provider b. focused low-cost c. focused differentiation d. broad differentiation

a. best-cost provider

The most difficult part of benchmarking is a. the decision of whether to do it at all. b. how to obtain access to information regarding rivals' practices and costs. c. when to initiate the process. d. what information to utilize in the analysis process.

b. how to obtain access to information regarding rivals' practices and costs.

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves a. building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. b. building the picture of competition in two steps: (1) determine which rival has the biggest and (2) s by various industry members allow most industry members to c. evaluating whether competition is or weakened by the industry's driving forces d. assess whether the collective impact of all five forces is weak enough to allow industry members to go on the offers

a. building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry.

An offensive to yield good results can be short if a. buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign). b. competition creates an appealing new product. c. the technology needs debugging. d. new production capacity needs to be installed.

a. buyers respond immediately (to a dramatic cost-based price cut or imaginative ad campaign).

The strategy-making hierarchy in a diversified company like Alibaba Group, an e-commerce giant based in China, consists of a. corporate strategy, business strategies, functional strategies, and operating strategies. b. business strategies, functional strategies, and operating strategies. c. its diversification strategy, its line of business strategies, and its operating strategies. d. corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into).

a. corporate strategy, business strategies, functional strategies, and operating strategies.

A competitively valuable resource or capability is a company's a. enabling foundation of its business model. b. equally valuable substitute resource providing a competitive advantage. c. assessment of the availability of superior substitutes. d. unsurpassed worker productivity and product quality.

a. enabling foundation of its business model.

The wording of a company's vision statement should commonly be a. vague or incomplete—short on specifics. b. flexible—adjustable according to changing circumstances. c. bland or uninspiring—short on inspiration. d. generic—could apply to almost any company (or at least several others in the same industry).

b. flexible—adjustable according to changing circumstances.

Strategic offensives should, as a general rule, be based on a. exploiting a company's strongest competitive assets—its most valuable resources and capabilities. b. instigating and executing the chosen strategy efficiently and effectively. c. scoping and scaling an organization's internal and external situation. d. molding an organization's character and identity.

a. exploiting a company's strongest competitive assets—its most valuable resources and capabilities.

*If management is to match a company's organization structure to its strategy in an effective way, then it is essential a. for strategy-critical value-chain activities to be the main building blocks on the organization chart. b. that value chain activities be deliberately organized so as to produce maximum strategic fit. c. for the company to be organized around cross-functional teams rather than around functional specialties and functional departments. d. to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved.

a. for strategy-critical value-chain activities to be the main building blocks on the organization chart.

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include a. having a high level of control and speed as an entry strategy to overcome trade barriers. b. allowing a company to achieve scalable economies. c. eliminating the costs and risks associated with establishing a foreign business location. d. achieving variable product quality and competitive product performance.

a. having a high level of control and speed as an entry strategy to overcome trade barriers.

The benefit of a vivid, engaging, and convincing strategic vision is not its ability to a. help company personnel understand the logic of the company's business model. b. reduce the risk of rudderless decision making by managers at all levels of the organization. c. help an organization prepare for the future. d. unite company personnel behind managerial efforts to get the company moving in the intended direction.

a. help company personnel understand the logic of the company's business model.

Organizational capabilities are virtually always a. knowledge based, residing in people and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge. b. more complex than resources and are exercised only through key personnel. c. require constant evaluation to ensure cooperative support from management. d. reflective of the industry's driving forces.

a. knowledge based, residing in people and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge.

* A simple organizational structure is also known as a __________ structure. a. line-and-staff b. functional c. matrix d. multidivisional

a. line-and-staff

Companies aspiring for global market leadership have to prioritize competing in the markets a. of emerging countries. b. of advanced industrialized nations. c. where they do not possess a strong competitive disadvantage compared with the domestic market leaders. d. where business risks are lowest.

a. of emerging countries.

The objective of differentiation is to a. offer customers something rivals can't, at least in terms of the level of satisfaction. b. develop strategies that are different from those of rivals. c. establish objectives that are measurable and meaningful when it comes to sales growth. d. offer customers a sustainable competitive advantage.

a. offer customers something rivals can't, at least in terms of the level of satisfaction.

The faster a company's business environment is changing, the more critical it becomes for its managers to a. pay attention to early warnings of future change and be willing to experiment to establish a market position in the future. b. determine whether the company has a balanced scorecard for judging its performance. c. establish controls to monitor the impact of external changes appropriately and ensure the internal environment is maintained. d. replicate and implement only those strategies that have worked for rivals.

a. pay attention to early warnings of future change and be willing to experiment to establish a market position in the future.

The difference between political risks and economic risks is that a. political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies. b. political risks stem from stability in foreign business, while economic risks stem from an excess of property right protections. c. political risks stem from hostility to foreign currencies, while economic risks stem from the instability of the monetary system. d. political risks stem from exchange rate fluctuations, while economic risks stem from hostility to foreign business.

a. political risks stem from instability or weakness in national governments, while economic risks stem from the stability of a country's monetary system, and its economic and regulatory policies.

* When strategies fail, it is often because of a. poor execution of the strategy. b. shortfalls exposed with the strategic management design process. c. inadequate support for the management team responsible for the planning process. d. secondary operating practices that hinder the required changes.

a. poor execution of the strategy.

The risks of strategic alliances often include all of the following except a. potential for royalty from trustworthy firms. b. conflicting objectives and strategies. c. deep differences of opinion about how to proceed operationally and strategically. d. important differences in corporate values.

a. potential for royalty from trustworthy firms.

A company that fails to manage its strategic alliance probably has a. refrained from making commitments to its partners and ensured they do the same. b. incorporated contractual safeguards. c. created a system to manage alliances in a systematic fashion. d. established strong interpersonal relationships and established trust.

a. refrained from making commitments to its partners and ensured they do the same.

* Once established, company cultures can be perpetuated by a. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. b. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel. c. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision. d. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts.

a. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.

* Facebook has hired you to manage its launch team for its new dating app. What would be the highest priority on your list of activities to ensure a successful launch and implementation of this new app? a. staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort b. decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees c. investing heavily in employee training, using an empowered organization design and organization structure in order to maximize labor productivity, and employing effective incentive compensation systems d. centralizing authority in the hands of a chief strategy implementer so as to create the leadership authority for driving implementation forward at a rapid pace

a. staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort

What is the best technique for revealing the different market or competitive position that rival firms occupy in the industry? a. strategic group mapping b. PESTEL analysis c. five forces framework d. the Value Net framework

a. strategic group mapping

* You are considering employment opportunities after graduation. What would you look for in identifying a prospective employer's company's culture? a. the atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices b. the track record in meeting or beating its financial and strategic performance targets c. the intensity and makeup of the company's value chain d. the strategic intent and competitive strategy inherent within the company's efforts for successful strategy execution

a. the atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

First-mover disadvantages (or late-mover advantages) rarely arise when a. the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment. b. the costs of pioneering are much higher than being a follower and only negligible learning/experience curve benefits accrue to the pioneer. c. rapid market evolution gives fast followers an opening to leapfrog the pioneer with next-generation products of their own. d. the pioneer's products are somewhat primitive and do not live up to buyer expectations, allowing clever followers to win disenchanted buyers with better-performing products.

a. the market response is strong and the pioneer gains a monopoly position that enables it to recover its investment.

Why do companies decide to enter a foreign market? a. to capture economies of scale in product development, manufacturing, or marketing b. to raise input costs through greater pooled purchasing power c. to decrease the rate at which they accumulate experience and move up the learning curve d. to concentrate risk within a broader base of countries, especially when sales are down in one area and the company can undermine sales elsewhere

a. to capture economies of scale in product development, manufacturing, or marketing

A global strategy is one in which a company performs all of the following tasks, except it a. uses local brand names to cater to a country's specific needs. b. employs the same basic competitive approach in all countries where it operates. c. sells much of the same products everywhere. d. strives to build global brands.

a. uses local brand names to cater to a country's specific needs.

In which one of the following instances is supplier bargaining power and leverage not weakened? a. when industry members pose a credible threat of backward integration into the business of suppliers b. when the cost of switching from one supplier to another is low c. when the items purchased from suppliers are in short supply d. when the buying firms purchase in large quantities and thus are important customers of the suppliers

a. when industry members pose a credible threat of backward integration into the business of suppliers

In which of the following instances is rivalry among competing sellers not more intense? a. when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members b. when certain competitors are dissatisfied with their market position and make moves to bolster their standing c. when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to transform their newly acquired competitors into stronger market contenders d. when competitors are fairly equal in size and capability

a. when there are vast numbers of small rivals so the impact of any one company's actions is spread thinly across all industry members

* Why is a company's corporate culture important? a. It represents the integration of the strategy and business model that a company has adopted. b. It influences the organization's actions and approaches to conducting business. c. It guides core values and its internal code of ethics. d. It influences the dedication to ethical conduct and accepted work practices.

b. It influences the organization's actions and approaches to conducting business.

* The process of recruiting and retaining capable employees is a. more important during periods of rapid growth than during periods of crisis and attempted turnarounds. b. always an essential ingredient of successful strategy execution. c. an essential element of developing a distinctive competence. d. closely tied to developing strong information capital capabilities.

b. always an essential ingredient of successful strategy execution.

* High-performance corporate cultures are not a. results-oriented, permeated with a spirit of achievement, and able to meet or exceed performance targets. b. characterized by high ethical standards, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace. c. prone to provide rewards and recognition of loyalty and dedication on the part of employees, such that they are both energized and preoccupied with putting forth their very best efforts to do things right and be unusually productive. d. expecting that all company personnel, from senior executives to front-line employees, display high-performance behaviors and a passion for making the company successful.

b. characterized by high ethical standards, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace.

A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for a. product superiority. b. continuous cost reductions without sacrificing acceptable quality and essential features. c. appealing features and better quality at lower costs than rivals. d. whatever differentiating features buyers are willing to pay for.

b. continuous cost reductions without sacrificing acceptable quality and essential features.

* Strategy execution a. requires revamping the value chain in order to maximize operating efficiency. b. depends on management's ability to direct organizational change. c. involves selecting a capable management team. d. consists of choosing among broad or narrow low-cost and differentiation strategies to compete against rivals.

b. depends on management's ability to direct organizational change.

To complement and supplement the choice of one of the five generic competitive strategies, Amazon, Apple, Facebook, and Google pursue offensive actions such as a. playing softball against rivals. b. employing the element of surprise as opposed to doing what rivals expect and are prepared for. c. pursuing a market share leadership strategy. d. blocking the avenues open to challengers.

b. employing the element of surprise as opposed to doing what rivals expect and are prepared for.

A broad differentiation strategy generally produces the best results in situations where a. buyer brand loyalty is low. b. few rival firms are following a similar differentiation approach. c. new and improved products are introduced only infrequently. d. perceived value of a product is not of great importance.

b. few rival firms are following a similar differentiation approach.

* Once values and ethical standards have been formally adopted, a company must a. require every employee to memorize the company's formal statement of core values and code of ethics. b. make it unequivocally clear that the company's core values and ethical standards are strictly enforced cultural norms. c. rely only on word-of-mouth indoctrination and company tradition to instill values and ethical conduct. d. grant compensation increases and promotions only to those managers who are willing to act as evangelists for the company's core values and ethical standards.

b. make it unequivocally clear that the company's core values and ethical standards are strictly enforced cultural norms.

Sanofi, a pharmaceutical company selling prescription drugs in France for the past 10 years, has had moderate sales in a crowded market while its rivals manufacture and market drugs having similar efficacy and safety precautions, but with superior market share. This particular pharmaceutical company's greatest challenge is to increase prescriptions of their drugs by French doctors. What would be the most effective strategy for Sanofi to improve sales performance in its existing market? a. relocating all the existing drug manufacturing facilities to developing countries to reduce operational costs b. modifying marketing communication to increase brand familiarity within key physician segments c. employing hiring plans that aim at acquiring drug designers from rival companies d. exiting the market and entering a new unexplored geographical location

b. modifying marketing communication to increase brand familiarity within key physician segments

Strategic objectives a. are more essential in achieving a company's strategic vision than are financial objectives. b. relate to strengthening a company's overall market standing and competitive position. c. are more difficult to achieve and harder to measure than financial objectives. d. are generally less important than financial objectives.

b. relate to strengthening a company's overall market standing and competitive position.

* Juanita has opened a jewelry shop in your community and sources precious gems and metals only from Canada rather than Africa. Her rationale for this CSR and environmentally sustainable business practice includes all of the following except a. increasing buyer patronage. b. shortening the supply chain. c. lowering costs and enhancing employee recruiting and workforce retention. d. creating opportunities for revenue enhancement and best long-term profits for shareholders.

b. shortening the supply chain.

A company's strategy is not concerned with management's choices about how to a. attract and please customers. b. stake out the same market position as successful rival companies. c. grow the business. d. compete successfully.

b. stake out the same market position as successful rival companies.

A company's resources and capabilities represent a. the firm's net working capital and related determinants for measuring operating performance and capabilities. b. the firm's competitive assets that determine its competitiveness and ability b. to succeed in the marketplace. c. whether the firm has the industry's most efficient value chain. d. management's sources and uses of funding for new strategic initiatives.

b. the firm's competitive assets that determine its competitiveness and ability b. to succeed in the marketplace.

A winning strategy must pass which three tests? a. the dominant market test, the sustainable advantage test, and the profit test b. the fit test, the competitive advantage test, and the performance test c. the sustainable performance test, the fit test, and the profit test d. the performance test, the dominant market test, and the fit test

b. the fit test, the competitive advantage test, and the performance test

A company's realized strategy evolves from one version to the next due to a. changing management direction because of understanding several appealing strategy alternative b. the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms. c. ongoing turnover in the managerial and executive ranks (new managers often decide to shift to a different strategy). d. pressures from shareholders to boost profit margins and pay higher dividends.

b. the proactive efforts of company managers to improve the current strategy, a need to respond to changing customer requirements and expectations, and a need to react to fresh strategic maneuvers on the part of rival firms.

Imagine you are consulting Sonoma Brands, manufacturer and marketer of KRAVE artisanal beef jerky, about the company?s strategic options for expansion into Pacific Rim markets. What mode of entry would you most likely recommend to Sonoma Brands? a. Rely on the Pacific Rim governments to restrict imports via raising tariffs and local content requirements. b. Establish a profit sanctuary in the Pacific Rim. c. Maintain its U.S. production base and export products to Pacific Rim markets. d. Agree to a significant level of local content in the manufacture of products.

c. Maintain its U.S. production base and export products to Pacific Rim markets.

The strategically relevant factors outside a company's industry boundaries—economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions—are known as a. the industry and the competitive arena in which the company operates. b. general economic conditions plus the factors driving change in the markets where a company operates. c. a company's macro-environment. d. the competitive market environment that exists between a company and its competitors.

c. a company's macro-environment.

* Unhealthy company cultures typically have such characteristics as a. tight budget controls, overly strict enforcement of long-standing policies and procedures, and high ethical standards. b. a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability. c. a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas. d. overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures.

c. a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas.

* Steps to update a company's capabilities to match changing market conditions and customer expectations take place often include a. staffing the organization. b. recruiting and retaining talented employees. c. acquiring, developing, and strengthening key resources and capabilities. d. organizing value chain activities and business processes.

c. acquiring, developing, and strengthening key resources and capabilities.

Opportunities to differentiate a company's product offering a. are most reliably found in the R&D portion of the value chain. b. are typically located in the sales and marketing portion of the value chain. c. can exist in activities all along an industry's value chain. d. usually are tied to product quality and customer service.

c. can exist in activities all along an industry's value chain.

* Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition a. are generally advocates of the ethical relativism school of thought. b. are misguided in their efforts because bribes and kickbacks are really no different from tipping for service at restaurants as you pay for a service rendered. c. face a particularly vexing problem of losing business to competitors that have no scruplesâ€"an outcome that penalizes ethical companies and company personnel. d. are in a distinct minority compared to companies that view the payment of bribes and kickbacks as a legitimate or permissible practice.

c. face a particularly vexing problem of losing business to competitors that have no scruplesâ€"an outcome that penalizes ethical companies and company personnel.

The culture of a company can be a cost-efficient value chain activity because it can a. allow for safeguarding internalized operating benefits. b. distinguish a company's capacity integration efforts. c. spur worker pride in productivity and continuous improvement. d. foster quality technological enhancements.

c. spur worker pride in productivity and continuous improvement.

The most significant signs of a well-managed company are a. the eagerness with which executives set stretch financial and strategic objectives and develop an ambitious strategic vision. b. aggressive pursuit of new opportunities and a willingness to change the company's business model whenever circumstances warrant. c. good strategy-making combined with good strategy execution. d. a visionary mission statement and a willingness to pursue offensive strategies rather than defensive strategies.

c. good strategy-making combined with good strategy execution.

Which of the following driving forces would have the least impact on the attractiveness of the cosmetics industry? a. changes in the long-term industry growth rate b. major shifts in consumer preferences c. industry incumbents deciding to shift to a different strategic group d. changes in costs and efficiency

c. industry incumbents deciding to shift to a different strategic group

A company's strategy stands a better chance of succeeding when a. it is developed through a collaborative process involving all managers and staff from all levels of the organization. b. managers employ conservative strategic moves based on past experience and form an underlying basis of control. c. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals. d. managers copy the strategic moves of successful companies in its industry.

c. it is predicated on competitive moves aimed at appealing to buyers in ways that set the company apart from rivals.

* A company's culture is not indicative of a. its company psyche and organizational DNA. b. its self-replicating operating system that defines how things are done. c. its core competencies and capabilities along the value chain. d. company traditions and stories that exemplify behavioral norms.

c. its core competencies and capabilities along the value chain.

A company's strategic plan a. maps out the company's history. b. links the company's financial targets to control mechanisms. c. outlines the competitive moves and approaches to be used in achieving the desired business results. d. focuses on offering a more appealing product than rivals.

c. outlines the competitive moves and approaches to be used in achieving the desired business results.

The company with the highest rating on a given measure has an implied competitive edge on that specific measure, with the size of its edge a. providing the company with an overall net competitive score that is reduced by the weighted measure. b. signaling a weak position and competitive disadvantage. c. reflecting the difference between its weighted rating and rivals' weighted ratings. d. reflecting an area of potential improvement in order to achieve a sustainable competitive advantage.

c. reflecting the difference between its weighted rating and rivals' weighted ratings.

Achieving a sure-cost advantage over rivals entails a. concentrating on the primary activities portion of the value chain and outsourcing all support activities. b. being a first-mover in pursuing backward and forward integration and controlling as much of the industry value chain as possible. c. selling a mostly standard product and increasing the scale of operation. d. minimizing R&D expenses and paying below-average wages and salaries to conserve on labor costs.

c. selling a mostly standard product and increasing the scale of operation.

The major difference between a low-cost provider strategy and a focused low-cost strategy is the a. amount of outsourcing involved. b. length of the managerial experience curve. c. size of the buyer group to which a company is appealing. d. number of upscale attributes incorporated into the product offering.

c. size of the buyer group to which a company is appealing.

* The results of strategies that cannot pass the test of moral scrutiny often are NOT manifested in a. sharp drops in stock prices and lower dividends. b. devastating public relations hits. c. sizable fines. d. increased customer loyalty.

d. increased customer loyalty.

An industry's key success factors can always be deduced by asking what factors a. are a function of market share, entry barriers, and economies of scale, degree of vertical integration, and industry profitability that are advantageous. b. vary according to whether an industry has high or low long-term attractiveness. c. such as product attributes and service characteristics are crucial, what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage. d. can be determined from studying the winning strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have losing strategies.

c. such as product attributes and service characteristics are crucial, what resources and competitive capabilities are needed, and what shortcomings are evident to put a company at a competitive disadvantage.

* Ethical relativism implies that a. concepts of ethically right and ethically wrong are relative across countries and cultures but are universal within countries or cultures. b. individuals and businesses have a basic right to "moral free space," and it is inappropriate to specify ethically permissible and ethically impermissible actions and behaviors. c. there are important occasions when local cultural norms and morality and the circumstances of the situation determine whether certain behaviors are right or wrong, for there are no absolutes when it comes to business ethics. d. concepts of right and wrong as applied to business situations are always a function of each company's own set of values, beliefs, and ethical convictions (as stated in the company's code of ethical conduct).

c. there are important occasions when local cultural norms and morality and the circumstances of the situation determine whether certain behaviors are right or wrong, for there are no absolutes when it comes to business ethics.

Two analytical tools useful in determining whether a company's prices and costs are competitive are a. SWOT analysis and key success factor analysis. b. SWOT analysis and benchmarking. c. value chain analysis and benchmarking. d. competitive position assessment and competitive strength assessment.

c. value chain analysis and benchmarking.

When comparing and contrasting the differences between a localized multidomestic strategy and a global strategy you would not say that a. a global strategy entails extensive strategy coordination across countries and a multidomestic strategy b. a global strategy often entails use of the best suppliers from anywhere in the world, whereas a multidomestic strategy may entail fairly extensive use of local suppliers c. a global strategy tends to involve use of similar distribution and marketing approaches worldwide, whereas a multidomestic strategy often entails adap d. a global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly standardized product worldwide, whereas a multidomestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries.

d. a global strategy involves striving to be the global low-cost provider by economically producing and marketing a mostly standardized product worldwide, whereas a multidomestic strategy entails pursuing broad differentiation and striving to strongly differentiate its products in one country from the products it sells in other countries.

* When a company's culture is out of sync with what is needed for strategic success and good strategy execution a. the strategy has to be changed as rapidly as possible to regain harmony with cultural norms. b. company personnel need to cling to familiar practices, be wary of change, and blame top management for any shortfalls in performance. c. management needs to go on the offensive to reinterpret the culture and explain to company personnel why there really is good overall cultural fit with the strategy. d. any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first-rate strategy execution.

d. any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first-rate strategy execution.

If you were conducting a SWOT analysis for a textbook publisher, which of the following steps would you omit from your SWOT analysis? a. identifying the textbook publisher's market opportunities b. matching the textbook publisher's strategy to its resource strengths and market opportunities, correcting problematic weaknesses, and defending against worrisome threats c. identifying the textbook publisher's resource weaknesses d. benchmarking the textbook publisher's resource strengths and competitive capabilities against industry key success factors

d. benchmarking the textbook publisher's resource strengths and competitive capabilities against industry key success factors

Buyers are in position to exert strong bargaining power in dealing with sellers when a. their costs to switch to competing brands or to substitute products are relatively high. b. a particular seller's product delivers quality or performance that is very important to the buyer and is not matched by other brands. c. they buy the product infrequently or in small quantities and are not particularly well informed about sellers' products, prices, and costs. d. buyers are price sensitive because the product represents a significant portion of their purchasing budget.

d. buyers are price sensitive because the product represents a significant portion of their purchasing budget.

* The characteristics of a strong-culture company include all of the following except a. deeply rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace. b. strong managerial commitment to display company values and principles in their own actions and behavior. c. dedicated efforts on the part of management to communicating values and business principles to organization members and explaining how they relate to the company's business environment. d. co-worker peer pressure to challenge cultural norms.

d. co-worker peer pressure to challenge cultural norms.

Strategic alliances are more likely to be long lasting when they involve a. partners that respectively have considerable resource weaknesses in the marketplace. b. partners that are not only experienced with strategic alliances, but who also routinely enter into collaborative agreements with firms in peripheral industries. c. partners based in countries with distinctly different cultures and consumer buying habits and preferences. d. collaboration with suppliers or distribution allies, or when both parties conclude that continued collaboration is in their mutual interests.

d. collaboration with suppliers or distribution allies, or when both parties conclude that continued collaboration is in their mutual interests.

* Ethical principles as they apply to the conduct of personnel and business decisions a. deal chiefly with standards a company has about what is right and wrong insofar as the conduct of its business is concerned and about what behaviors are expected of company personnel. b. involve the rules a company's top management and board of directors make about "what is right" and "what is wrong." c. are generally less stringent than the ethical principles for society at large because it is well understood that businesses should not be expected to operate any differently than what the law requires of them. d. deal primarily with the company's duty to comply with legal requirements and conform to ethical norms of society, in general.

d. deal primarily with the company's duty to comply with legal requirements and conform to ethical norms of society, in general.

A resource of a firm is considered to be a. a market opportunity. b. an environmental threat. c. the capacity of a firm to competently perform some internal activity. d. deployed to develop and enable a firm's capabilities.

d. deployed to develop and enable a firm's capabilities.

Market size and growth rates in different countries can be influenced positively or negatively by a. the ability of management to tailor a strategy to take into consideration differences among country markets. b. which countries have the weakest foreign rivals. c. competitive rivalry that is only moderate in some countries. d. differing population sizes, cultures, income levels, infrastructure, and distribution networks among countries.

d. differing population sizes, cultures, income levels, infrastructure, and distribution networks among countries.

* Putting together a capable top management team with the right mix of experiences, skills, and abilities a. should take top priority in building competitively valuable core competencies. b. is particularly important when the firm is pursuing unrelated diversification or making a number of new acquisitions in related businesses. c. is important in building an organization capable of proficient strategy execution, but is nearly always less crucial than doing a superior job of training and retraining employees. d. entails filling key managerial slots with smart people who are clear thinkers, good at figuring out what needs to be done, and who are skilled in "making it happen" and delivering good results.

d. entails filling key managerial slots with smart people who are clear thinkers, good at figuring out what needs to be done, and who are skilled in "making it happen" and delivering good results.

The world economy is globalizing at an accelerated pace because a. countries previously open to foreign companies have closed their markets. b. countries that previously had market or mixed economies now embrace planned economies. c. information technology is exacerbating the importance of geographic distance. d. growth-minded companies are racing to build stronger competitive positions in the markets of more countries.

d. growth-minded companies are racing to build stronger competitive positions in the markets of more countries.

Industry conditions change because of a. such powerful driving forces as swings in buyer demand, changing interest rates, ups and downs in the economy, and higher/lower entry barriers. b. newly emerging industry threats and industry opportunities that alter the composition of the industry's strategic groups. c. newly emerging industry key success factors. d. important forces enticing or pressuring certain industry participants (competitors, customers, suppliers) to alter their actions in important ways.

d. important forces enticing or pressuring certain industry participants (competitors, customers, suppliers) to alter their actions in important ways.

A blue-ocean strategy a. is an offensive strike employed by a market leader that is directed at pilfering customers away from unsuspecting rivals to boost profitability. b. involves an unexpected (out-of-the-blue) preemptive strike to secure an advantageous position in a fast-growing market segment. c. works best when a company is the industry's low-cost leader. d. involves abandoning efforts to beat out competitors in existing markets and instead inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.

d. involves abandoning efforts to beat out competitors in existing markets and instead inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.

The managerial task of developing a strategic vision for a company a. concerns deciding what approach the company should take to implement and execute its business model. b. entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here?" c. entails coming up with a concrete plan for how the company intends to make money. d. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

d. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

* The strength of the beliefs underlying ethical universalism is that a. ethical universalism recognizes significant variation in basic moral standards according to local cultural beliefs, local religious beliefs, and social mores. b. ethical standards are objectively determined by religious and moral experts. c. what is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical is (or should be) grounded in religious doctrine and applied strictly to all business situations. d. it draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical business behavior and what constitutes unethical business behavior no matter what country or culture a company is operating in.

d. it draws upon the collective views of multiple societies and cultures to put some clear boundaries on what constitutes ethical business behavior and what constitutes unethical business behavior no matter what country or culture a company is operating in.

A low-cost leader's basis for competitive advantage is a. lowest possible prices for comparable products. b. a low-cost/moderate price approach to gain the biggest market share. c. high buyer switching costs. d. meaningful lower overall costs than rivals on comparable products.

d. meaningful lower overall costs than rivals on comparable products.

The difference between the concept of a company mission statement and the concept of a strategic vision is that a a. mission concerns what to do to achieve short-term objectives, while a strategic vision concerns what to do to achieve long-term performance targets. b. mission statement focuses on the methods needed to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. c. mission statement deals with what to accomplish on behalf of shareholders, while a strategic vision concerns what to accomplish on behalf of customers. d. mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future.

d. mission statement typically concerns a company's purpose and its present business scope, whereas the principal concern of a strategic vision is a company's aspirations for its future.

The five generic competitive strategies include a. high-cost. b. no-cost provider. c. best-margin. d. narrow differentiation.

d. narrow differentiation.

The essence of a broad differentiation strategy is to a. appeal to the high-end part of the market and concentrate on providing a top-of-the-line product to consumers. b. incorporate a greater number of differentiating features into its product/service than rivals. c. outspend rivals on advertising and promotion in order to inform and convince buyers of the value of its differentiating attributes. d. offer unique product attributes in ways that are valuable and appealing and that buyers consider the cost worth it.

d. offer unique product attributes in ways that are valuable and appealing and that buyers consider the cost worth it.

* Corporate social responsibility refers to a. putting the public interest ahead of shareholder interests. b. equitable treatment of all stakeholders. c. a company's obligation to maximize shareholder wealth responsibly. d. operating in an honorable manner and being a good steward of the environment.

d. operating in an honorable manner and being a good steward of the environment.

* The school of ethical universalism holds that a. concepts of right and wrong are not absolute and leave room for deviation from country to country or circumstance to circumstance. b. concepts of right and wrong are universal within countries but not across countries and cultures. c. concepts of right and wrong are governed by the Global Code of Ethical and Social Morality. d. the most fundamental conceptions of right and wrong are universal and apply to members of all societies, all companies, and all businesspeople.

d. the most fundamental conceptions of right and wrong are universal and apply to members of all societies, all companies, and all businesspeople.

Strategic offensives make sense when a company is a. focusing relentlessly on destroying a competitive advantage. b. applying resources where rivals are least able to defend themselves. c. leveraging its weaknesses to strengthen operating vulnerabilities. d. trying to whittle away at a rival's competitive advantage.

d. trying to whittle away at a rival's competitive advantage.

* The traits of the capability-building process involve all of the following except a. evolving changes in customer needs and competitive conditions that often require tweaking and adjusting a company's portfolio of competencies and intellectual capital to keep its capabilities freshly honed and on the cutting edge. b. core competencies or capabilities that are most often bundles of skills and know-how that grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. c. the key to leveraging a core competence into a distinctive competence, which concerns concentrating more effort and talent than rivals on deepening and strengthening d. saving time by creating capabilities from scratch to remain aligned with external conditions and company strategy rather than updating and remodeling existing capabilities.

d. saving time by creating capabilities from scratch to remain aligned with external conditions and company strategy rather than updating and remodeling existing capabilities.

In the course of crafting a strategy, managers typically do not a. abandon certain strategy elements that have grown stale or become obsolete. b. revamp the current strategy in response to the fresh strategic maneuvers of rival firms. c. take proactive actions to improve this or that piece of the strategy. d. share the strategy publicly to obtain additional customer and shareholder support.

d. share the strategy publicly to obtain additional customer and shareholder support.

Which two factors inhibit the ability of rivals to imitate a firm's most valuable resources and capabilities? a. social ambiguity and causal uncertainty b. social simplicity and causal complexity c. collective complexity and causal ambiguity d. social complexity and causal ambiguity

d. social complexity and causal ambiguity

A company's strategic options for remedying cost disadvantages in internally performed value chain activities do not include a. revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities). b. implementing the use of best practices, particularly for high-cost activities. c. investing in productivity-enhancing, cost-saving technological improvements. d. switching to activity-based costing.

d. switching to activity-based costing.