BCOR 2304 Final

Which statement describes the long tail?

A large amount of revenue derived from a small number of units among almost unlimited choices

Industry Analysis

A method to (1) identify an industry's profit potential and (2) derive implications for a firm's strategic position within an industry.

An industry analysis provides which of the following?

A rigorous way of identifying the industry's profit potential Insight into a firm's strategic position within an industry The level of profitability that can be expected for the average firm in the industry

Strategy

A set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.

Stakeholder strategy

An integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.

What must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

Internal Stakeholders

employees, stockholders, board members

Michael Porter developed the five forces model to help firms do which of the following?

gain and sustain a competitive advantage determine the profit potential of different industries

Product innovation becomes the most important competitive weapon

growth stage

If the problem with a business strategy results in causal ambiguity, managers will ______.

have a difficult time developing a theory to deal with the problem

What should a firm do in order to be organized to capture value?

have a good organizational structure have a rare and valuable resource have good coordinating systems

Customer-oriented vision statements provide

managers with more strategic flexibility than product-oriented missions.

What is lean manufacturing?

manufacturing whose goal is to eliminate waste in all aspects of the process

Top-down strategy is derived from ______.

military strategy

An organization's ______ is what an organization actually does, including the products and services it plans to provide and the markets in which it will compete.

mission

Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage?

stakeholder impact analysis

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. Multiple choice question.

stakeholder strategy

What is the field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation?

strategic management

Which of the following is the least formal approach to setting the strategy process?

strategy as planned emergence

The customer segment known as ______ enjoy testing product prototypes and providing voluntary feedback that companies use to perfect their products.

technology enthusiasts

One of the largest customer segments of the market that includes customers who research the product, wait until new-product kinks have been resolved, and purchase from well-established companies is _____._

the late majority

A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as ______.

the long tail

The resource-based model views resources as _____.

the main driver of firm performance

What is Process innovation?

Finding better or more efficient ways of producing existing products or delivering existing services

Business-level strategy addresses which overarching question?

How should we compete?

When a new firm enters an industry, which of the following often occur?

Industry profit potential declines. Incumbent firms lower prices. Incumbent firms spend more to satisfy customers.

What is the relationship between innovation and competitive advantage?

Innovation is a powerful weapon for gaining and maintaining competitive advantage.

What statements about innovation are true?

It can provide firms with a competitive advantage. It can make existing products or businesses obsolete.

Which of the following statements about a business pipeline is true?

It creates value not only for the businesses but also for consumers.

Step four of stakeholder impact analysis

What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholder? (CSR)

Step three of stakeholder impact analysis

What opportunities and threats do our stakeholders present?

Step five of stakeholder impact analysis

What should we do to effectively address the stakeholder concerns?

Step one of stakeholder impact analysis

Who are our stakeholders?

product innovation

a change in the appearance or the performance of a product or a service or the creation of a new one

social complexity

a situation in which different social and business systems interact with one another

casual ambiguity

a situation in which the cause and effect of a phenomenon are not readily apparent

It is mandatory that a patent application must include

a thorough history and description of an invention and claims for its usefulness

When a stakeholder has power over a company that stakeholder is ______.

able to influence the company to do something it would otherwise not do

The most rigorous means of investigating the profit potential within a specific industry is to conduct ______.

an industry analysis

Isolating mechanisms are considered to be ______.

barriers to imitation

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______.

be organized to capture value

Why do many firms fail to successfully implement a blue ocean strategy?

because they end up being "stuck in the middle," unable to increase value and lower costs at the same time

A company's goal-directed plans regarding how to compete for advantage is known as the firm's ______.

business-level strategy

Value drivers known as ______ add value to a product or service when they are consumed in tandem with the focal product.

complements

Which of the following is a statement of guiding principles that typically provides very specific ethical considerations?

core values statement

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society?

corporate social responsibility

External Stakeholders

customers, suppliers, alliance partners, creditors, unions, communities, governments, media

A struggling retailer seeking to implement a blue ocean strategy is likely to experience difficulty with ______.

cutting costs and increasing value at the same time

Product- oriented vision statements

define a business is terms of a good or service provided

Customer-oriented vision statements

defines a business in terms of providing solutions to customer needs

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______.

dynamic

Which customer segment enter the market in the growth stage of the industry life cycle?

early adopters

The customers coming into the market in the shakeout stage are called ______.

early majority

Global warming would be an example of a ______ factor in a firm's external environment.

ecological

Which of the following is an example of a recent innovation in process technology?

lean manufacturing

Deregulation of industries leads to intensified competition and higher value at lower prices for consumers. This is an example of ______ factors influencing business.

legal

Which of the following statements about a business pipeline is true?

It is the traditional system of horizontal business organization.

Which of the following statements about scenario planning is true?

It starts with a top-down approach.

Which of the following statements about the maturity stage of the industry life cycle is true?

Only a few large firms remain

_______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.

Path dependence

Which of the following are characteristics of the strategic plan that makes up an intended strategy?

Rational, structured, and top-down

Which of the following statements about legal factors as an external force is true?

Regulatory changes tend to affect entire industries at once.

What are the approaches that can be utilized when strategizing for competitive advantage? Multiple select question.

Scenario planning Strategy as planned emergence Strategic planning

Jonathan, an entrepreneur of a startup software company, seeks to patent new software developed. How can he minimize patent risks?

Seek a patent attorney who has expertise in the product line.

Strategic Management

The integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

What is true about the external forces called technological factors?

They capture the application of knowledge to create new process and products.

Which of the following are advantages of platform businesses compared to pipeline businesses?

They scale efficiently by eliminating gatekeepers. They unlock new sources of value creation and supply. They benefit from community feedback.

Why did the U.S. Patent and Trademark Office (USPTO) establish the Office of International Patent Cooperation?

To reduce the ambiguity of International Patenting (IP) rights while decreasing costs

True or false: VRIO resources can lay the foundation of a competitive advantage, no competitive advantage can be sustained indefinitely.

True

The ______ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage. It identifies which types of resources are key to firm performance.

VRIO framework

What is the typical result of cognitive limitations?

We choose the option that is "good enough" and satisfies immediate needs.

Step two of stakeholder impact analysis

What are our stakeholders' interests

scenario planning

identifies alternative future scenarios and makes plans to deal with each

Positive adjustments in product features, customer service, and complements may enable managers to ______.

improve the firm's strategic position

Which of the following are examples of sociocultural factors? Multiple select question.

increased number of health-conscious consumers growth of the Hispanic population

An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of ______ factors

input

A(n) ______ strategy is the outcome of a rational and structured, top-down strategic plan.

intended

Top-down strategic planning

is a sequential, linear process that works reasonably well when the environment does not change much.

A feature of a trademark is that it ______.

is able to last indefinitely as long as it continues to perform its indicated function

intellectual property protection and social complexity are examples of ________ mechanisms, which help a firm sustain a competitive advantage

isolation

Increases in the value of a product or service that result from a corresponding increase in the number of users are known as ______

network effects

In the context of trade secrets, documents that are prepared by an employer and signed by an employee in order for the company to protect valuable assets ranging from product information to clients, marketing ideas, and unique strategies are known as ______.

noncompete agreements

An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants and that depends on the infrastructure that the platform manages is a(n) ______.

platform business

Which factors result from the processes and actions of government bodies that influence the decisions and behavior of firms?

political

Two important features that managers can adjust in an effort to improve the firm's strategic position are ______.

product features and customer service.

The initial application to the U.S. Patent and Trademark Office providing evidence of first to market is known as a(n)

provisional patent application

Products in the affordable "business-casual" clothing market have largely become commoditized, and most retailers have begun to compete mainly on price rather than product features. In this environment, it is impossible for one retailer to gain market share without another losing it. This is an example of a ______ ocean.

red

The core competencies of a business are generated by the interaction of ______.

resources and capabilities

A strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses is known as ______ planning.

scenario

Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy?

scenario planning, strategic planning, and strategy as planned emergence

Economies of ______ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually.

scope

In which stage of the industry life cycle does competition become more intense, forcing weaker firms out of the industry?

shakeout

The market has many competitors, each competing for a piece of the pie

shakeout stage

The interaction of the many individual systems in the operation of a company often leads to causal ambiguity because of _________.

social complexity

A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of _____.

time compression diseconomies

When selecting a lawyer, an entrepreneur should ensure that the lawyer Blank______. Multiple choice question.

understands all possible circumstances and results related to any legal action

A resource is considered ______ if it helps a firm to deal with an external threat.

valuable

A firm that manages to avoid competition entirely by offering a product or service that creates an uncontested market space is engaging in ______.

value innovation

Implementing a blue ocean strategy requires making the competition irrelevant and creating a new market space, otherwise known as ______.

value innovation

In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's ______.

vision