Managment chapter 6

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

Choosing strategic alternatives

Which of the following are resources that are not controlled or possessed by many competing firms and are necessary to sustain a competitive advantage?

Rare resources

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

Looking for signs of strategic dissonance

Which of the following consists of the strategic actions that a company takes after retrenchment to return to a growth strategy?

Recovery

Which of the following is defined as creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures?

Related diversification

Which of the following is not a grand strategy that companies use to decide what businesses they should be in?

Diversification

Which of the following are companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of companies that seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market?

Analyzers

In the context of the Boston Consulting Group (BCG) matrix, which of the following is a similarity between stars and cash cows?

Both have large shares in their respective markets.

Which of the following are companies using an adaptive strategy aimed at protecting strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers?

Defenders

In the context of positioning strategies, which of the following means providing a product or service that is sufficiently distinctive from competitors' offerings so that customers are willing to pay a premium price for it?

Differentiation

Which of the following typically work in market niches that competitors have overlooked?

Focus strategies

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 statements is true of direct competition?

It is determined by market commonality and resource similarity.

Which of the following best defines a distinctive competence?

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

Which of the following is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment?

Situational analysis

Which of the following are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage?

Strategic reference points

Which of the following 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 best defines cash cows in the BCG matrix?

They are 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.

Which of the following is a difference between reactors and analyzers?

Unlike analyzers, reactors tend to react to changes in their external environment after they occur.

In the context of portfolio strategy, the purchase of one company by another company is known as _____

acquisition

Unlike valuable resources, rare resources _____.

are not controlled or possessed by many competing firms.

Unlike a long-lasting competitive advantage, a sustainable competitive advantage is one where _____.

competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it

A strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio is known as _____.

diversification

In the context of Porter's five industry forces, the threat of new entrants can be defined as a _____.

measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

According to the Boston Consulting Group (BCG) matrix, companies that have a small share of a fast-growing market are known as _____.

question marks

In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be _____.

replaced by other resources to produce similar value

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

response

In the context of the Boston Consulting Group (BCG) matrix, unlike stars, question marks have a _____

small share of a fast-growing market

In the context of the Boston Consulting Group (BCG) matrix, unlike cash cows, dogs have a _____.

small share of a slow-growing market