Global Business Policies Mini Quizzes

Please select all that are true

2 firms competing in the same industry (1 with differentiation 1 with cost leadership) will have different value chain activities, a risk of being a cost leader is that processes the firm uses may become obsolete, a risk for a differentiator is that the product the firm produces is a fad and consumers will no longer pay a premium

In assessing resources and capabilities, valuable and rare and about the magnitude of the advantage, while costly-to-imitate and non-substitutable are about the longevity of the advantage.

True

The purpose of the generic strategies analysis is to determine how the focal firm positions itself relative to rivals in its industry. True False

True

True or False The exact same General Environment issue (e.g., a sociocultural trend toward eating healthier) can be an opportunity for some firms and a threat to other firms.

True

Which of following help determine the competitive scope of the firm's strategy? Who will be served. What needs will be satisfied. How those needs will be satisfied. none of the above.

Who will be served. What needs will be satisfied. How those needs will be satisfied.

An example of issue in the economic segment of the general environment is _____. a recession poor industry profitability poor firm profitability none of the above

a recession

The technology segment of the general environment includes: a) technology issues in the broad macro environment and how they provide opportunities and/or threats to the focal firm. b) technology issues in the industry environment and how they provide opportunities and/or threats to the industry c) technology issues in the firm and how they provide opportunities and/or threats to the focal firm. d) none of the above

a) technology issues in the broad macro environment and how they provide opportunities and/or threats to the focal firm.

Firms with a differentiation strategy _____. are able to generate more profit because they are generally able to price higher than their rivals. are able to generate more profit because they are generally unable to price higher than their rivals. are able to generate more profit because they are generally lower cost producers than their rivals. do not generally have an advantage over their rivals.

are able to generate more profit because they are generally able to price higher than their rivals.

Firms who are low-cost leaders _____. are able to generate more profit because they are generally able to price higher than their rivals. are able to generate more profit because they are generally unable to price higher than their rivals. are able to generate more profit because they are generally lower cost producers than their rivals. do not generally have an advantage over their rivals.

are able to generate more profit because they are generally lower cost producers than their rivals.

Internal-level analysis: A) generally starts with identifying relevant changes in the environment and then analyzing how relevant changes in the environment are opportunities and/or threats to the firm or industry being analyzed b) focuses on analyzing and assessing the attractiveness of the industry in which the focal firm competes. c) focuses on analyzing and assessing the firm's resources and capabilities d)all of the above.

c) focuses on analyzing and assessing the firm's resources and capabilities

The first step in analyzing the firms resources and capabilities is to identify them. Which of the following would be considered appropriate examples of this for Apple? a)the iphone b)the firm's profitability c)the firm's ability to innovate a user-friendly interface d)all of the above

c)the firm's ability to innovate a user-friendly interface

The attractiveness of an industry is from the perspective of _____. consumers buying from the industry competitors competing in the industry potential entrants thinking of entering the industry none of the above

competitors competing in the industry

Apple's generic strategy is

differentiation

Apple's generic strategy is _____. differentiation cost leadership integrated differentiator / cost leader none of the above

differentiation

Industry-level analysis: generally starts with identifying relevant changes in the environment and then analyzing how relevant changes in the environment are opportunities and/or threats to the firm or industry being analyzed focuses on analyzing and assessing the attractiveness of the industry in which the focal firm competes. focuses on analyzing and assessing the firm's resources and capabilities all of the above.

focuses on analyzing and assessing the attractiveness of the industry in which the focal firm competes.

GDPEST analysis: generally starts with identifying relevant changes in the environment and then analyzing how relevant changes in the environment are opportunities and/or threats to the firm or industry being analyzed focuses on analyzing and assessing the attractiveness of the industry in which the focal firm competes. focuses on analyzing and assessing the the firm's resources and capabilities all of the above.

generally starts with identifying relevant changes in the environment and then analyzing how relevant changes in the environment are opportunities and/or threats to the firm or industry being analyzed

We use the VRIS framework to analyze the firm's resources and capabilities. When a resource is assessed to be both valuable and rare, it will _____.

have at least a temporary competitive advantage

The level of analysis for the Industry environment is the _____ level: macro industry firm resource / capability

industry

The level of analysis for the General environment is the _____ level: macro industry firm resource / capability

macro

All else equal, the acquisition of Northwest Airlines by Delta Airlines makes the industry _____. less attractive more attractive neither more nor less attractive

more attractive

Consider Blockbuster Videos. Blockbuster's vast network of stores provided it with a competitive advantage until the development DVD mailers and downloading technologies provided new mechanisms for providing videos. This is an example of changes to which analytic characteristic of Blockbuster's stores.

non-substitutable

The level of analysis for the internal environment analysis is the _____ level:

resource / capability

Which of the following would increase the bargaining power of buyers? (select all that apply) when switching costs are high when buyers have increased access to information about competitor pricing and quality when there are few large buyers none of the above

when buyers have increased access to information about competitor pricing and quality