Chapter 6 HW

_____ is a measure of the intensity of competitive behavior among companies in an industry.

Character of the rivalry.

Which of the following is the last step of a strategy-making process?

Choosing strategic alternatives.

ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh's Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB's price. This scenario is an example of a(n) _____.

Attack.

Which of the following can help managers to improve the speed and accuracy with which they determine the need for strategic change?

Looking for signs of strategic dissonance.

_____ affects the likelihood of an attack or a response to an attack.

Market commonality.

A competitive advantage becomes a sustainable competitive advantage when:

Other companies cannot duplicate the value a firm is providing to customers.

Organizations can achieve a competitive advantage by using their resources to _____.

Provide greater value for customers than competitors can.

_____ largely affects response capability, that is, how quickly and forcefully a company can respond to an attack.

Resource similarity.

A(n) _____ is a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profit.

Response.

Which of the following is the first step of a strategy-making process?

Assessing the need for strategic change.

In the context of portfolio strategy, _____ is the purchase of a company by another company.

Acquisition.

Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of _____.

Competitive inertia.

Bob's Assembly is a hardware manufacturer. It specializes in builders' hardware for doors, cabinets, windows, and bathrooms. Bob's Assembly products are cheaper and 95% more durable than its competitors' products. This scenario is an example of _____ as Bob's Assembly performs better than its competitors.

Distinctive competence.

The BCG matrix starts by recommending that while the substantial cash flows from cash cows last, they should be reinvested in stars to:

Help them grow even faster and obtain even more market share.

Which of the following statements is true of a portfolio strategy?

It guides the strategic decisions of corporations that compete in a variety of businesses.

Which of the following best defines strategic dissonance?

It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.

Which of the following best defines competitive inertia?

It is a reluctance to change strategies or competitive practices that have been successful in the past.

Which of the following best defines a SWOT analysis?

It is an assessment of both the internal and external environment of an organization.

Which of the following statements is true of direct competition?

It is determined by two factors: market commonality and resource.

Which of the following best defines cost leadership?

It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.

Which of the following best defines a distinctive competence?

It is what a company can make, do, or perform better than its competitors.

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

Sustainable competitive advantage.

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

The resources must be valuable, rare, imperfectly imitable, and nonsubstitutable.

Which of the following best defines cash cows?

They are the companies that have a large share of a slow-growing market.

In the context of adaptive strategies, which of the following best describes prospectors?

They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.