BUS 481 Exam 1
CEO Duality
A situation which the CEO also serves as the chair of the board
11.) In order to contribute to sustained competitive advantage, firm resources should be
All of the Above (Valuable and rare, not subject to perfect imitation, without strategically relevant resources)
10.) How has the Internet changed strategic management?
All of the above (promotes information symmetry, be used as a distribution channel, often reduces costs)
10.) When switching costs are high,
Customers are less likely to try a new competitors
Equal Opportunity Employment Act (1972)
Forbids discrimination in all areas of employee employer relations
Strategies are formulated in the strategic management stage that occurs immediately after:
The assessment of internal strengths and weaknesses
3.) The unconscious reference to one's own cultural values as a standard of judgment is known as cultural bias.
True
Industry
A group of competitors that produce similar products or service
Showrooming
A process aided by smartphone apps whereby consumers easily and quickly compare prices before they purchase a product they evaluate in a brick and mortar store
12.) Which of the following is not a characteristic of strategic decisions?
All of the above (They are long term in nature, they involve choices, they do not involve trade-offs.
8.) The intensity of rivalry among firms in an industry is dependent on which of the following?
All of the above (concentration of competitors, high fixed or storage costs, high exit barriers)
9.) Technological forces often
All of the above (decimate an entire industry, spawn new industries, vary substantially among industries)
10.) At the global level, the period from World War II to the late 1980's was marked by
An increase in trade protection
11.) When the value of the U.S. dollar increases, U.S. firms
Compete at a disadvantage in foreign markets
Clean Air Act (1970)
Directs the EPA to create emission standards for potential pollutions
9.) The decline in unit costs of a product or service that occurs as the absolutely volume of production increases is known as
Economies of scale
Critical Success Factors
Elements of the strategy that are essential for success among most or all competitors within a given industry
11.) The systematic collection and analysis of information about relevant macroenvironmental trends is known as
Environmental scanning
1.) A firm always operates in a single, distinct industry.
False
2.) All industries follow the stages of the industry lifecycle model.
False
2.) Government regulations in the United States have declined consistently since the mid-2000s.
False
4.) Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs.
False
4.) The Collective Trade Assessment (CTA) has worked toward greater freedom in trade across nations.
False
5.) A decline in GDP negatively affects all industries.
False
5.) Substitute products are produced by competitors in the same industry
False
6.) A key limitation of Porter's five forces model is its reliance on resource-based theory.
False
6.) When the dollar is weak, American manufacturers often open new production facilities abroad and increase purchases from foreign sources.
False
Each step in the strategic management process is independent so that changes in one step will not substantially affect other steps.
False
Strategic decisions are made solely by and are ultimately the responsibility of the chief executive alone.
False
Clayton Act (1914)
Forbids contracts that tie the sale of one product to another
11.) Which of the following is not a cost advantage independent of scale?
High volume of production
7.) Which of the following is not an example of a social force?
Industrial Change
The notion that successful firms tend to be the ones that adapt to influences in their industries is based on
Industrial Organization Theory
Antimerger Act (1950)
Makes the buying of competitors illegal when it lessens competition
9.) Increased government regulation
Neither A nor B
The strategy originally planned by top management is called the:
None of the Above (Intended Strategy is correct)
12.) What is occurring when those who purchase an industry's goods and services exercise great control over pricing and other terms?
None of the above
Family Medical Leave Act (1993)
Offers workers up to 12 weeks of unpaid leave after childbirth or adoption, or care for a seriously ill child, spouse, or parent
Switching Costs
One- time costs that buyers of an industry's outputs incur as they switch from one company's products or services to another
7.) The acronym referring to the analysis of macroenvironmental forces is
PEST
Webb-Pomerene Export Trace Act (1918)
Permits selected American firms to form monopolies in order to compete with foriegn firms
Equal pay Act (1963)
Prohibits discrimination in wages on the basis of sex when males and females are performing jobs requiring skill under the same working conditions
Sherman Antitrust Act (1890)
Prohibits monopoly or conspiracy in restraint of trade
Americans with Disabilities Act (1992)
Protects the physically and mentally disabled from job discrimination
12.) A decline in a nation's GDP for two or more consecutive quarters is known a
Recession
Occupational Safety and Health Act (1970)
Requires employers to provide a hazard free workplace
The notion of distinctive competence is consistent with
Resource-Based Theory
Fair Labor Standards Act (1938)
Sets minimum wage requirements, regulations for overtime pay, and child labor laws
Consumer Product Safety Act
Sets standards on selected products, requirs warning labels, and orders product recalls
7.) Industry growth is no longer rapid enough to support a large number of competitors in which stage of industry growth?
Shakeout
8.) When consumers use a smartphone to compare prices before they purchase a product they evaluate in a brick-and-mortar store, they are engaging in
Showrooming
Federal Trace Comission Act (1914)
Stops unfair methods of competiton, including deceptive advertising, selling practices, and pricing
1.) In many respects, social forces are the drivers of consumer markets.
True
1.) It is unusual for a single firm to influence a macroenvironmental force.
True
2.) The expansion of a religion in an emerging country is an example of a social force.
True
3.) Some firms favor specific regulations because they erect barriers to newcomers in the industry.
True
3.) The likelihood that new firms will enter an industry is contingent on the extent to which barriers to entry have been erected.
True
4.) Higher capital requirements for entering an industry ultimately raise average profitability within that industry.
True
5.) Reading businesses publications can serve as a means of environmental scanning.
True
6.) Environmental scanning can be difficult for large firms because of the availability of too much information.
True
A strategy seeks to develop and sustain competitive advantage.
True
Strategic management refers to formulating successful strategies for an organization.
True
The intended strategy and the realized strategy can never be the same.
True
Whereas industrial organization theory emphasizes the influence of industry factors of firm performance, resource- based theory emphasizes the role of firm factors.
True
commodotization
a process whereby firms are having a more difficult time distinguishing their products and services from those of their rivals
Substitute Products
alternative offerings products by firms in another industry that satisfy similar customer needs
12.) Which of the following is a key problem with environmental scanning today?
determining which available information is worth of the time and energy required
Exit Barriers
economic, strategic, or emotional obstacles to leaving an industry
Economies of scale
the decline in unit costs of a product or service that occurs as the absolute volume of production increases
8.) In this stage of analysis, macroenvironmental forces should be applied to
the industry
Environmental scanning
the systematic collection and analysis of information about relevant macroenvironmental trends
