Policies- Chpt 1 Quiz
False
The CEO of Twin Spires, Inc., is emotionally and intellectually committed to using the resources of the firm to serve the needs of the natural gardening community by providing rare and native plants to individuals and nurseries around the United States. This commitment has carried the CEO through long periods of below average returns on investment. The perspective of the CEO of Twin Spires is consistent with the assumptions of the industrial organizational (I/O) model.
False
The I/O (industrial organization) model assumes that the uniqueness of a firm's resources and capabilities are its main source of above-average returns.
True
The five forces model includes among five forces: suppliers, buyers, competitive rivalry among firms currently in the industry, product substitutes, and potential entrants to the industry.
True
The two primary drivers of hypercompetition are the emergence of the global economy and technology.
False
The degree to which the firm is dependent on a stakeholder group gives that stakeholder less influence.
True
A strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
True
Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
True
According to resource based view, the uniqueness of its resources and capabilities is the basis of a firm's strategy and its ability to earn above-average returns.
False
An effective vision statement should specify the market to be served.
True
Apple's R&D function is likely one of its core competencies. This example can be supported by resource based view.
False
Business-level strategy is concerned with determining the businesses in which the company intends to compete as well as how to manage its different businesses.
False
Differnetiation strategy can be described as producing standardized goods or services at costs below those of competitors.
True
Hypercompetition can be characterized by market instability and aggressive challengers.
True
India is the world's largest democracy.
True
Not all of a firm's resources and capabilities have the potential to be the foundation for a competitive advantage. This potential is realized when resources and capabilities are valuable, rare, costly to imitate, and nonsubstitutable.
False
Resources are considered rare when they have no structural equivalent.
True
Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy.
True
Strategic leaders are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission
True
Strategic management process is a rational approach firms use to achieve strategic competitiveness and earn above-average returns.
False
tomCustomers, suppliers, unions, and local governments are examples of capital market stakeholders.
