Strategic Mgmt. Final: Chapter 1, 2, 3, 4

Which of the following would NOT be considered a resource? -A patent -Finances -A competitor's skills -An employee's skills

-A competitor's skills

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

-Accurately interpreting trends

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

-Antitrust Division of the Justice Department or the Federal Trade Commission.

While the U.S. labor force between 2010 and 2050 is expected to drop, showing slow growth in the Caucasian members, which member segment is expected to double in size during the period? -American Indian -Asian -Hispanic -African-American

-Asian

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

-Barriers to entry

The likelihood that firms will enter an industry is a function of which two factors? -Buyer power increases and low entry barriers -Barriers to entry and the threat of substitute products -Barriers to entry and retaliation expected from current industry participants -Retaliation expected from current industry participants and neglected market segments

-Barriers to entry and retaliation expected from current industry participants

_____ are used to complete the organizational tasks required to produce, distribute, and service goods or serves the firm provides to customers. -Advantages -Capabilities -Competencies -Assets

-Capabilities

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

-Economies of scale

The informal economy is an expanded collection of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state. As such, which segment includes the informal economy? -Economic -Technological -Sociocultural -Global

-Global

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

-Globalfocusing

Which of the following is NOT a factor that can increase competitive rivalry? -High fixed costs, high storage costs of inventory, or perishable products -Rapid industry growth -Numerous and equally balanced competitors -Lack of differentiated products or low cost of product switching by customers

-High fixed costs, high storage costs of inventory, or perishable products

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

-Intense rivalry among competitors

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

-It is difficult to achieve and sustain a competitive advantage based on resources alone.

Which of the following statements is NOT correct regarding projections about the workforce? -It is projected that there will be a higher growth rate of the female labor force relative to that of men through 2050. -The proportion of the civilian non-institutional population in the labor force—peaked at an annual average of 67.1 percent for each year from 1997 to 2000. -The rate of growth in the U.S. labor force has declined over the past two decades. -Between 2010 and 2050, people of Hispanic origin are expected to account for roughly 80 percent of the total growth in the labor force.

-It is projected that there will be a higher growth rate of the female labor force relative to that of men through 2050.

Which of the following is NOT a factor that can increase competitive rivalry? -Numerous and equally balanced competitors -Lack of differentiated products or low cost of product switching by customers -Rapid industry growth -High fixed costs, high storage costs of inventory, or perishable products

-Lack of differentiated products or low cost of product switching by customers

Effective customer service is a capability within which functional area? -Management -Human resources -Marketing -Distribution

-Marketing

Which of the following is NOT a part of the external environmental analysis to increase an understanding of incomplete environmental data? -Forecasting -Observing -Scanning -Assessing

-Observing

According to the text, which state has become one of the most popular destinations for relocation? -Oregon -North Carolina -Florida -California

-Oregon

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

-Organizational decision makers are assumed to be rational and committed to acting in the firm's best interests.

_____ is a capability that is based in the functional area of manufacturing. -Innovative merchandising -Effective use of logistics management techniques -Product and design quality -Effective control of inventories

-Product and design quality

Which of the following is a tangible resource? -Managerial capabilities -Knowledge -Brand name -Production equipment

-Production equipment

According to the video, Chapter 3 approaches firm competencies from the perspective of the ____________ model. -External Analysis -Five Forces -Resource Based -Industrial-Organizational

-Resource Based

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

-Resources

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

-Resources and capabilities are not highly mobile across firms.

Which part of the external environmental analysis identifies early signals of environmental changes and trends? -Forecasting -Monitoring -Scanning -Assessing

-Scanning

Which of the following would be considered to be part of Seaside Bar & Grill's capital market stakeholders? -Shareholders -Suppliers -Customers -Employees

-Shareholders

According to the video, which airline's capability of a 35 minute turn around time has led to a competitive advantage? -Southwest -American -Allegiant -Frontier

-Southwest

Which of the following is NOT a high exit barrier? -Strategic interrelationships wherein one business of a corporation serves another corporate business -Specialized assets that can be used in another business or location -Governmental and social restrictions that prevent a firm from closing -Fixed costs of exit, such as labor agreements with penalties for business closure

-Specialized assets that can be used in another business or location

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

-Stakeholders have enforceable claims on the firm's performance.

Earlier this year, approximately 100 small farms lost their production contracts when Walmart announced that they were going to build their own processing facility (backwardly integrate) which would exclusively produce their Great Value brand. This example most closely represents which of Porter's Five Forces? -Strong bargaining power of buyers -Weak threat of entry -Strong bargaining power of suppliers -Weak intensity of rivalry between competitors

-Strong bargaining power of buyers

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

-Switching costs

Which of the following statements is false regarding powerful customer buyer groups? -The sales of the product being purchased account for a significant portion of the seller's annual revenues. -Switching to another product would be expensive. -They purchase a large portion of an industry's total output. -The industry's products are undifferentiated or standardized, and the buyers pose a credible threat if they were to integrate backward into the sellers' industry.

-Switching to another product would be expensive.

Opportunities and threats for firms across the world, created by the Internet, are most closely linked to which external segment of the general environment? -Sociocultural -Political/legal -Demographic -Technological

-Technological

Which of the following would NOT be included when assessing the demographic segment? -Wireless network connectivity -Age structure -Ethnic mix -Geographic distribution

-Wireless network connectivity

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

-assessing.

Analysis of the five forces within a given industry allows the firm to determine the industry's attractiveness in terms of the potential to earn _____ returns. -below-average -average -average or above-average -above-average

-average or above-average

New entrants can threaten the market share of existing competitors in all of the following ways EXCEPT: -by forcing firms to become more efficient. -by holding customer costs down. -by bringing additional capacity. -by increasing returns for competing firms.

-by increasing returns for competing firms.

When buyers view products as _____ (or products with few differentiated features or capabilities), rivalry intensifies. -excess capacity -barriers to entry -fully differentiated -commodities

-commodities

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

-cost leadership

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

-cost leadership; differentiation

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

-demographic

Companies manufacturing customized products can respond quickly to customers' needs primarily in lieu of: -acquiring an existing company as a means of industry entry. -access to distribution channels. -developing economies of scale. -product differentiation.

-developing economies of scale.

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

-differentiation

_____________ refer to capabilities that are valuable but that do not fulfill the other three components to make it a core competency. Having these capabilities does not guarantee success but not having these capabilities will guarantee failure. -entry tickets -barriers to competition -core rigidities -strategic complexities

-entry tickets

Sometimes, established competitors have cost advantages that new entrants cannot duplicate. All of the following are cost advantages that cannot be duplicated EXCEPT: -government subsidies. -ethical practices. -proprietary product technology. -desirable locations.

-ethical practices.

The competition model is characterized by _____ forces. -six -four -three -five

-five

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

-five forces

Once scanning and monitoring identify events and trends in a general environment, _____ identifies how quickly these trends will affect the marketplace. -demand -forecasting -competition -assessing

-forecasting

Once scanning and monitoring identify events and trends in a general environment, _____ identifies how quickly these trends will affect the marketplace. -forecasting -competition -demand -assessing

-forecasting

Understanding the amount of time that will be required for a new technology to reach the marketplace or how much time will elapse before changes in governmental taxation policies affect consumers' purchasing patterns is an example of: -forecasting. -monitoring. -scanning. -assessing.

-forecasting.

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

-formed into a capability.

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

-forming joint ventures.

Core competencies are often visible in the form of organizational: -functions. -value. -norms. -culture.

-functions.

When Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. merged their operations for fossil-fuel-based power systems into a joint venture, this merger was aimed at: -subverting anti-trust laws. -accomplishing product differentiation. -overcoming cost disadvantages. -gaining economies of scale.

-gaining economies of scale.

The competition between firms within a strategic group is _____ the competition between a member of a strategic group and companies outside that strategic group. -about the same as -less than -Not enough information is given for a determination. -greater than

-greater than

An attractive industry has all of the following EXCEPT: -high entry barriers. -few competitive threats from product substitutes. -suppliers and buyers with strong bargaining power. -relatively moderate rivalry.

-high entry barriers.

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

-identify the firm's resources.

Demographic analyses of changes in the age structure of the world's populations has implications for all of the following EXCEPT: -business opportunities. -healthcare retirement policies. -availability of qualified labor. -identifying expatriates.

-identifying expatriates.

A(n) _____ is a group of firms producing products that are close substitutes. -capital requirement -supplier incentive -distribution channel -industry

-industry

Mark Zuckerberg made waves in the tech industry when he acquired social media platform _____________ for $1 billion dollars in 2012. -instagram -snapchat -wechat -messenger

-instagram

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

-intended to increase customer switching costs.

Strategic groups can be useful for analyzing an industry's competitive structure. Such analyses can be helpful to diagnose all of the following EXCEPT: -positioning. -competition. -internal controls of firms within the group. -profitability of firms competing within an industry.

-internal controls of firms within the group.

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

-it must make trade-off decisions in light of how important the support of each of its stakeholder groups is to the firm.

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

-its objective should become one of at least minimally satisfying each stakeholder.

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

-less of

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

-less of

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

-lesser threats to each firm's profitability.

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

-lower; lower

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

-managers.

Using smartphone access to links on social media sites, such as Facebook or Twitter, in order to collect customer purchasing behavior data is an example of: -forecasting. -monitoring. -scanning. -assessing.

-monitoring.

The _____ established the relationships between parties, the _____ the switching costs. -There is no relationship between switching costs and supplier parties. -less; greater -more; lesser -more; greater

-more; greater

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

-occupational capital.

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

-opportunity

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

-organizational

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

-patents.

Consumer privacy issues would most likely be addressed in the arena of the _____ segment. -global -sociocultural -political/legal -economic

-political/legal

Membership in a particular strategic group defines the essential characteristics of the firm's strategy. All of the following are essential characteristics EXCEPT: -product skew numbers. -technological leadership. -customer service. -product quality.

-product skew numbers.

The part of the external environment analysis that is most likely to use software to identify potential changes for web page designers in volatile environments is: -forecasting. -monitoring. -scanning. -assessing.

-scanning.

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

-study the external environment, especially the industry environment.

An attractive industry has all of the following EXCEPT: -suppliers and buyers with strong bargaining power. -high entry barriers. -relatively moderate rivalry. -few competitive threats from product substitutes.

-suppliers and buyers with strong bargaining power.

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

-sustainable physical environment

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

-sustainable physical environment

The _____ segment includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. -technological -sociocultural -political/legal -economic

-technological

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

-the external environment imposes pressures and constraints that determine the strategies that would result in above-average returns.

A(n) _____ is a condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness. -forecast -opportunity -threat -trend

-threat

According to the article, which social media platform has been faced with challenges in identifying and removing 'toxic' content? -twitter -facebook -instagram -snapchat

-twitter

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

-valuable

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

-whose structural characteristics suggest above-average returns.

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

The degree of concentration of firms in the construction industry

Which of the following would be considered an example of a tangible resource? a. A network of distribution centers in strategic locations around the world b. A process for moving raw materials more quickly through the plant c. A pharmaceutical company's team of research and development (R&D) scientists d. A secret recipe for a dish

a. A network of distribution centers in strategic locations around the world

A company is analyzing its value chain to discover its value-creating activities. While formulating its strategy, the firm will: a. consider the operational functions and support functions to determine which activities contribute the greatest value in the product or service being sold to customers. b. expand into multiple markets to serve as many customers as possible with its value-creating activities. c. prioritize only its support activities as a source of competitive advantage. d. create functional departments to manage these activities.

a. consider the operational functions and support functions to determine which activities contribute the greatest value in the product or service being sold to customers.

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

are more important than its other product market stakeholders.

Myspace, the social networking site, was a leader and innovator for modern social networking. However, not long after Myspace's peak, a new social networking site, Facebook, began quickly gaining ground. Myspace quickly became obsolete because of Facebook's superior functionality, design, and features. Which of the following was Myspace lacking that resulted in the company losing its competitive advantage? a. Intangible resources b. Costly-to-imitate capabilities because it became inexpensive to start a social networking site c. A mission statement because the company lacked a clear understanding of where it was operating and who it was serving d. Valuable capabilities because Myspace didn't exploit the opportunity of people's need to connect

b. Costly-to-imitate capabilities because it became inexpensive to start a social networking site

An internal analysis is important because: a. the business environment is always changing, and the analysis provides insights about the future. b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths. c. it compares companies against their competitors so that they can copy competitors' successful strategies. d. company leaders typically do not have a good understanding of how their firms operate internally.

b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths.

A nonprofit organization is focused on providing mental health services to the homeless in its geographic area. It serves people by ensuring they receive the public assistance they are eligible for and then connects them with care providers that have expertise working with transient patients. The company's primary expenses are the salary and benefits for its staff of social workers, and it receives government funding to cover those. However, the organization does not have enough people to fill its open positions and has a waiting list of homeless people in need of case workers. Which of the following represents a weakness for the nonprofit organization? a. Fundraising b. Customer service c. Human resources d. Distribution

c. Human resources

Outsourcing is the: a. decision by a company to purchase a supplier's company, bringing its capabilities into the company. b. decision to manufacture in a foreign country, at a facility owned by the company, because it offers lower wages. c. purchase of a value-creating activity or support function activity from an external supplier. d. decision to pay less for a value-creating activity through a supplier.

c. purchase of a value-creating activity or support function activity from an external supplier.

Which of the following might be a definition for a value-generating activity? a. A new machine that reduces energy costs within a company b. A service the company provides to customers that they pay for c. A customer promotion or sale d. The core competencies that a company holds that make it possible for it to serve customers in a different way from its competitors

d. The core competencies that a company holds that make it possible for it to serve customers in a different way from its competitors

A capability is nonsubstitutable when: a. rival firms do not have the same capability. b. competitors can't clearly understand how a firm uses it as the foundation for competitive advantage. c. it allows firms to exploit opportunities. d. it does not have strategic equivalents.

d. it does not have strategic equivalents.

A capability can be considered costly to imitate when: a. it requires an investment of half of the company's financial assets. b. there are costs associated with purchasing it, as in outsourcing. c. other companies possess the same capability. d. it is developed because of unique historical conditions.

d. it is developed because of unique historical conditions.

A firm should study its internal organization as part of the strategic management process because: a. the firm is required to report its results to the government. b. it is the only method for identifying threats and opportunities to the business. c. without this study, strategic leaders do not have a working understanding of how their business operates. d. it provides the insights the firm requires to match what the firm can do with what the firm might do when formulating strategies.

d. it provides the insights the firm requires to match what the firm can do with what the firm might do when formulating strategies.