GBA490 Exam 1
A boutique hotel provides upscale rooms and superior customer service at value prices
Best cost provider
A merger involves purchasing another company, whereas an acquisition combines two or more companies into one entity
False
what allows a manufacturer to lower unit costs, boost quality, or master a new technology more quickly?
Learning curve effects
The "scope" of a firm refers to
The range of activities a firm performs internally
Transferring core competencies and resource strengths from one country to another is
a good way to develop broader or deeper competencies and capabilties
A mutlidomestic "think-local, act-local" strategy entails
allowing local managers to produce different product versions
The best strategic alliances
are highly selective, focusing on a particular value chain activity
The biggest and most important differences in competitive strategies come down to
broad vs narrow target market, low cost versus differentiation offerings
Crafting a strategy to compete in one or more foreign markets is difficult because
business climates vary with government policies and economic conditions
a clever and well-executed strategy:
can withstand the competitive challenges of rival firms
a good example of vertical integration is a
clothing manufacturer acquiring a textile producer
To use location to build competitive advantage, a company that operates transnationally or globally must
consider concentrating activities in a few countries or dispersing to many
diversification becomes increasingly urgent when there are
diminishing market opportunities and stagnating sales in the core business
strategic offensives should be based on
exploiting a companys strongest competitive assets
The advantage of using a franchising strategy to pursue opportunities on foreign markets includes
franchisees bear most of the costs and risks of establishing new locations
The advantages of using an acquisition strategy to pursue opportunities in foreign markets include
having a high level of control and speed to overcome trade barriers
Dispersing activities to many locations is competitively advantageous when
high transportation costs, diseconomies of scale, and high trade barriers
To determine whether and when to divest a business, managers should ask
if we were not in this business today, would we enter now?
what is a strategic group
industry members with similar competitive approaches and positions
A blue-ocean strategy
involves inventing a new industry or market segment
Good strategy and good strategy execution
is the clearest indicator of good management
Which of the following is a major drawback of outsourcing?
it can hollow out a firms capabilited
organizational capabilities are nearly always
knowledge-based or embedded in organizational processes
which of the following increases the bargaining power of suppliers for uber?
lyft increasing driver wages
All other things equal, the "best" generic strategy is one that
matches a company's internal situation and is difficult for rivals to match
Companies aspiring for global leadership have to prioritize competing in the markets
of developing countries
One of the biggest strategic challenges to competing internationally includes
offering a standardized product worldwide or a customized product offering
The worst targets for an offensive-minded company to target are
other offensive minded companies with sizable war chests
A companys strategic plan
outlines competitive moves and approaches to achieve desired results
To be successful with low cost leadership strategy, managers must
perform value-chain activities more cost-effectively than rivals
effective strategies nearly always requires
performing value chain activities differently than rivals
implementing a strategic approach nearly always requires
performing value chain activities differently than rivals
a company achieves competitive advantage by
providing buyers superior value or at lower cost compared to rival sellers
to differentiate your product offering from rivals, you should
seek sources of value creation that are time consumer or hard to match
A company's strategy is NOT concerned about
staking the same market position as successful rival companies
what does the scope of a firm refer to
the range of internal activities
for different businesses to be "related"
their value chains must exhibit cross-business commonalities
Strategic offensives make sense when a company is
trying to whittle away at a rival's competitive advantage.
Which of the following is NOT a barrier of entry?
weak network effects
The diamond framework is NOT likely to answer which of the questions
what are the disadvantages of allowing foreign competition?
Being a first mover is NOT advantageous under which circumstance
when markets are slow to accept an innovative product
when is it appropriate to use a multi domestic strategy?
when there are significant cross-country differences in market conditions
One of the biggest strategic challenges to competing internationally includes
whether to offer standardized or customized products in different countries