BCOR 460 EXAM 1

In which of the following cases was a company at a major competitive disadvantage?

Without a clear strategic position, Sears tried to be too many things for too many types of customers.

which of the following firms most likely has the lowest bargaining power as a buyer?

a cell phone company that requires highly customized software for its phones

_____ tends to be more fierce when exit barriers in the industry are high, resulting in some firms being locked into the industry.

competitive rivalry

Strategic-group mapping establishes that

competitive rivalry is strongest between firms that are within the same strategic group.

All of the following below are examples of external stakeholders except -employees -government. -communities. -customers.

employees

Gadgets n' Stuff Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Gadgets n' Stuff Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Gadgets n' Stuff Inc. is a(n) _________ for the appliance manufacturing company.

external stakeholder

A fragmented industry turns into a consolidated industry when

firms reduce competition within the industry through mergers and acquisitions.

The pattern of faulty and biased decision making that occurs in groups whose members strive for agreement at the expense of good decision making is called

groupthink

The relative bargaining power of suppliers is most likely low when

incumbent firms face low switching costs when changing suppliers.

ABC Hardrives Inc., All Digital Inc., and FastFax Corp. are all companies that manufacture and sell consumer electronics. They procure their component parts from a similar set of suppliers in China and sell the final product to customers with similar needs. Thus, the three companies together are a part of a(n)

industry

_______ are industry-specific factors that separate one strategic group from another.

mobility barriers

According to the upper-echelons theory,

organizational outcomes reflect the values of the top management team.

A firm is likely to have a competitive advantage when it

provides services that consumers will value more than those of its rivals.

A consolidated industry turns into a fragmented industry when

restrictive government policies are introduced in the industry.

________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders.

stakeholder impact analysis

Within the context of strategic management it is important to understand that black swan events in the past have demonstrated that

stakeholders can affect or be affected by a firm's actions.

All of the following are examples of internal stakeholders except. - employees - stockholders - board members - suppliers

suppliers

which of the following groups will not be considered a company's internal stakeholder? - suppliers - board members - shareholders - managers

suppliers

Which of the following actions of an automobile firm will be considered as a strategic commitment?

the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

trade offs that work against each other

Which of the following statements about competitive advantage is not true?

A firm's competitive advantage is always absolute, not relative.

Which of the following real-world examples best supports the statement that strategic commitments to a specific industry may be the result of political rather than economic considerations?

A number of European governments created Airbus through direct subsidies to provide a countervailing power to Boeing.

Which of the following statements is true of the Level-5 leadership pyramid?

Each level of leadership builds upon the previous one in the pyramid.

Which of the following statements does the upper-echelons theory support?

Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.

Which of the following statements best supports the fact that even during a period of low demand in the U.S. automotive industry, excess capacity remained?

GM and Chrysler, despite their bankruptcy, restructured instead of exiting the industry

Which of the following is not true concerning a customer-oriented mission?

It defines the means of how a customer need will be met.

Too Fast Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Too Fast Inc. from this scenario?

It has a competitive advantage over the other firms.

Stan has been recently promoted to the position of a team lead at an insurance company. This promotion was based on his boss's assessment that Stan is capable of conveying the company's vision and mission to groups. As a result, he can guide groups to superior performance. From this scenario, we can say that Stan is currently at __________ of the Level-5 leadership pyramid.

Level 4

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision?

The company will tend to be more flexible when adapting to changing environments.

Which of the following statements accurately brings out the difference between an organization's vision and mission?

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.