management test 2 c5

When the bargaining power of suppliers and buyers is high, companies in the industry will ____.

find it more difficult to be profitable

Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use?

focus

A ____ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.

grand

As direct competitors, UPS and FedEx would have ____.

high degree of commonality

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?

no, because size is not a criteria for sustainable competitive advantage

When making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using ____ resources.

nonsubstitutable

From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors.

resource similarity

The ____ strategy is analogous to pruning flowers.

retrenchment/recovery

A ____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, 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

Companies often choose a ____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

stability

Starbucks, the operator of Starbucks coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of ____.

unrelated diversification

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

existing complementary products

When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of ____.

external growth

According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified?

bargaining powers of suppliers

An organization is experiencing ____ when it is reluctant to change strategies or competitive practices that have been successful in the past.

competative inertia

Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a ____.

core firm

When The Home Depot opened stores in Canada, it ran a series of ads featuring an animated hammer that showed that the U.S.-based home improvement store had the lowest prices. According to Michael Porter, which of the following positioning strategies did The Home Depot adopt to deal with existing Canadian stores that sold similar products?

cost leadership