MGMT 406 Strategic Mangement
The vision of the company and the mission statement can be used interchangeably. Select one: True False
False
To increase shareholder value, managers must try to venture into new markets whether the results are profitable or not. Select one: True False
False
Creating a signature scent, choosing an original name, and configuring the shape and look of the bottle are all decisions made in the production phase of the value chain for a perfume company. Select one: True False
false
Customer focus is a function of only the lower levels of an organization. Select one: True False
false
Process knowledge includes control systems and incentive systems while organizational architecture includes human skills and the style of decisions are made. Select one: True False
false
The Big Mac, the McFlurry and the McDonald's logo are all examples of the organizational architecture of the McDonald's company. Select one: True False
false
The brand loyalty enjoyed by the differentiated company does not protect it from substitute goods and services. Select one: True False
false
A low-cost company is often best positioned to survive price rivalry in its industry. Select one: True False
true
All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure. Select one: True False
true
Interest rates have an impact on the sale of automobiles, appliances, and capital equipment. This represents a macroeconomic force. Select one: True False
True
Mintzberg maintains that emergent strategies are often successful and may be more appropriate than intended strategies. Select one: True False
True
Rapid growth in demand enables companies to expand their revenues and profits without taking market share away from competitors. Select one: True False
True
A product's appeal to customers' desires cannot be considered a source of differentiation. Select one: True False
False
A resource is inimitable if competitors can copy it easily. Select one: True False
False
Determining the technological and legal factors surrounding a company's possible international expansion into India is an example of an internal analysis. Select one: True False
False
Emergent strategies arise from within the organization as a direct result of prior planning. Select one: True False
False
One of the factors that distinguish organizations in the nonprofit sector from profit-making businesses is the lack of a need for strategic management. Select one: True False
False
Return on invested capital (ROIC) is a measure of how efficiently and effectively managers use the capital at their disposal to produce profitability. Select one: True False
True
A generic business-level strategy is a strategy that gives a company a specific form of competitive position and advantage vis-à-vis its rivals, resulting in above-average profitability. Select one: True False
True
A strategy can be defined as a set of related actions that managers take to increase their company's performance. Select one: True False
True
If a company focuses on its customers and creates incentives for employee productivity, the company will likely be successful in delivering shareholder value. Select one: True False
True
In Porter's Five Forces model, as each of the five forces grows stronger, it limits the ability of established companies to raise prices and earn greater profits. Select one: True False
True
Technological change can represent both an opportunity and a threat. Select one: True False
True
Well-constructed goals provide a means by which the performance of managers can be evaluated. Select one: True False
True
Donna can make a chair for $100; she charges customers $150 to buy the chair, and customers perceive that the chair is worth $225. In this case, the consumer surplus is: Select one: a. $75. b. $150. c. $125. d. $50. e. $225.
a. $75.
How does a company achieve superior responsiveness to customers? Select one: a. All of these are ways for a company to achieve superior responsiveness to customers. b. By improving the production process to become increasingly efficient c. By providing customers value for their money d. By establishing a relationship with customers where needs are identified and investigated e. By developing new product features based on customer wants
a. All of these are ways for a company to achieve superior responsiveness to customers.
Using the value-chain model, which of the following primary activities is performed last, as inputs are transformed into outputs? Select one: a. Customer service b. Production c. Logistics d. Marketing and sales e. Research and development
a. Customer service
Ralph is a well-liked manager at Aries Inc. He eloquently communicates the goals of the organization and has been successful in making the organization's vision part of its culture. Which of the following characteristics of good strategic leaders can be observed in Ralph? Select one: a. Eloquence b. Inconsistency c. Empathy d. Devil's advocacy e. Authoritarian leadership
a. Eloquence
Which of the following statements about complementors is true? Select one: a. They have the power to impact the sales of the industry to which they supply complement products. b. They tend to increase the sales of the industry they are supplying complements to by producing fewer low-quality complement products. c. They have little importance in high-technology industries. d. Their impact on industries was first recognized by Porter's Five Forces model. e. They cannot gain enough power to extract profits from the industry to which they supply complement products.
a. They have the power to impact the sales of the industry to which they supply complement products.
In what situation can a company have both differentiation and a low-cost position? Select one: a. With innovation, a company can push out the efficiency frontier in its industry and can deliver more differentiation at a lower cost than its rivals. b. The company improves its customer service on point-of sale and after-sale customer interactions. c. The company chooses to focus on the commodity market. d. The company focuses on improving the reliability of its product. e. It is impossible to achieve both differentiation and a low-cost position.
a. With innovation, a company can push out the efficiency frontier in its industry and can deliver more differentiation at a lower cost than its rivals.
Economies of scale can arise from: Select one: a. an advantage gained by spreading fixed production costs over a large production volume. b. increased spending on marketing and advertising activities. c. cost reductions gained through decreased production. d. high prices on bulk purchases of raw material inputs and component parts. e. poor production operations.
a. an advantage gained by spreading fixed production costs over a large production volume.
The Mountain Ski Lodge spent $100,000 marketing and advertising its new ski trails and on-site spa. The money used for marketing and advertising can be referred to as: Select one: a. fixed costs. b. ratio costs. c. variable costs. d. diseconomies of scale. e. economies of scale.
a. fixed costs.
A consolidated industry structure: Select one: a. is dominated by a small number of companies or, in extreme cases, by just one company, and such companies often are positioned to determine industry prices. b. provides no scope for an oligopoly to exist. c. is characterized by low-entry barriers and commodity-type products. d. constitutes a threat rather than an opportunity. e. consists of several small companies or medium-size companies, none of which is positioned to determine industry price.
a. is dominated by a small number of companies or, in extreme cases, by just one company, and such companies often are positioned to determine industry prices.
The experience-curve concept: Select one: a. is very important in industries that mass-produce a standardized output. b. suggests that achieving low costs allows a firm to charge a premium price. c. suggests that unit manufacturing costs increase by a certain amount each time output is increased. d. helps a company realize both learning effects and diseconomies of scale. e. is least likely to bottom out as long as the company does not stop production.
a. is very important in industries that mass-produce a standardized output.
Learning effects are cost savings that result from: Select one: a. knowledge acquired by doing. b. sound product planning tactics. c. outsourcing. d. diseconomies of scale. e. automation.
a. knowledge acquired by doing.
Ted is an accountant at ABC Company. He calculates the difference between total revenues and total costs before tax. Ted calculates the: Select one: a. net profit. b. return on sales. c. cost of goods sold. d. capital turnover. e. invested capital.
a. net profit.
A differentiated product is a product that: Select one: a. provides greater reliability than a rival product. b. is offered free of cost on purchase of a company's standard product. c. always costs more than a rival product. d. has a greater resale value than a rival product. e. always costs less than a rival product.
a. provides greater reliability than a rival product.
An industry's buyers have high bargaining power when: Select one: a. switching costs are low. b. the supply industry depends upon buyers for a very small percentage of its total orders. c. they purchase in small quantities. d. it is economically impossible for them to purchase an input from several companies at once. e. the industry is a monopoly.
a. switching costs are low.
Which of the following is a tactical step for getting down the experience curve ahead of competitors? Select one: a. Making the assembly of the product as complex as possible because this results in greater learning effects b. Adopting an aggressive marketing strategy to build up demand and accumulated volume as quickly as possible c. Pursuing a distinctive competence in focused marketing d. Constructing a manufacturing plant of less-than-minimum efficient scale e. Using premium pricing to create an image of uniqueness in consumers' minds
b. Adopting an aggressive marketing strategy to build up demand and accumulated volume as quickly as possible
Yankee Candle Company offers customers candles that burn for 50-60 hours, much longer than most department store candle brands. Therefore, customers are willing to pay a higher price for these candles. Which of the following strategies is Yankee Candle Company following? Select one: a. Rapid growth strategy b. Differentiation strategy c. Market segmentation strategy d. Cost leadership strategy e. Stuck-in-the-middle strategy
b. Differentiation strategy
Dave's Construction Company conducted a SWOT analysis which resulted in a need to implement business strategies that increase customer awareness and widen their customer base through better customer service to gain a competitive advantage in their industry. Which of the following business strategies would this describe? Select one: a. Corporate-level strategies b. Functional-level strategies c. Business-level strategies d. Global strategies e. None of the strategies are correct.
b. Functional-level strategies
Mike works as a corporate trainer, teaching new employees how to perform manufacturing tasks. In which value-chain activity does Mike work? Select one: a. Materials management b. Human resources c. Company infrastructure d. Research and development e. Production
b. Human resources
Which of the following support activities in the value chain controls the transmission of physical materials through the value chain, from procurement through production and into distribution? Select one: a. Operations b. Logistics c. Information systems d. Human resources e. Research and development
b. Logistics
Which of the following is NOT a benefit of tight cross-functional integration among research and development (R&D), production, and marketing? Select one: a. Close integration between R&D and marketing is achieved to ensure that product development projects are driven by the needs of customers. b. Product development projects are driven by company innovations. c. The time it takes to develop a product and bring it to market is minimized. d. Development costs are not allowed to spiral out of control. e. New products are designed for ease of manufacture.
b. Product development projects are driven by company innovations.
Rebecca, a manager, was very annoyed after noticing several negligent errors in a critical report. However, while talking to the subordinate who created the report, Rebecca was calm and composed; she did not act impulsively and lose her temper. Which of the following aspects of emotional intelligence is illustrated in this scenario? Select one: a. Social skills b. Self-regulation c. Motivation d. Self-awareness e. Empathy
b. Self-regulation
When a company offers a wide variety of products at lower prices than its rivals, it is most likely pursuing a(n) which of the following strategies? Select one: a. exit b. low-cost c. differentiation d. divestment e. focus
b. low-cost
In a typical scenario planning exercise,: Select one: a. corporate-level managers set targets for functional-level managers. b. managers formulate plans that are based on "what-if" scenarios that are about the future. c. managers entirely depend on employee feedback. d. managers try to come up with alternative plans after a business model has failed. e. managers do a "postmortem" to understand what went wrong with a strategy.
b. managers formulate plans that are based on "what-if" scenarios that are about the future.
When a company recognizes that the needs of one market segment is not the same as another and accordingly customizes its product offerings, it is said to be pursuing a __________ strategy. Select one: a. stuck-in-the-middle b. segmentation c. focus d. standardization e. low-cost
b. segmentation
A differentiation strategy is based on creating a product that customers perceive as being: Select one: a. the same as other available products. b. superior to other available products. c. the most expensive product in the industry. d. cheaper, but inferior to the available products. e. the least costly product in the industry.
b. superior to other available products.
Which of the following is a difference between the bargaining power of buyers and the bargaining power of suppliers? Select one: a. Only suppliers have the ability to make demands based on their power relative to that of the company. b. The potential of a supplier with strong bargaining power is considered a threat, while a buyer with strong bargaining power does not pose a threat to the industry. c. Buyers bargaining power can raise costs by demanding better quality, while suppliers can raise costs by providing lower quality products. d. Buyers have the most bargaining power in a monopoly, while suppliers need multiple product substitutes to have bargaining power. e. A powerful buyer lower costs, while suppliers raise costs to squeeze profits out of an industry.
c. Buyers bargaining power can raise costs by demanding better quality, while suppliers can raise costs by providing lower quality products.
Americans are currently living longer now than in the past because of advances in medicine. As a result, the sale of products that meet the needs of older individuals, such as devices that assist in walking and movement, have increased. In the context of an industry's macroenvironment, age is considered which type of force? Select one: a. Technological b. Political c. Demographic d. Social e. Legal
c. Demographic
Nick, a professional magician, is often invited to perform magic tricks at birthday parties and other social gatherings from across the country. However, he offers his services only to clients who stay in the same city as him. He is also known to charge less than other magicians in the city. Nick is pursuing which generic business-level strategy? Select one: a. Broad differentiation strategy b. Broad low-cost strategy c. Focus low-cost strategy d. Medium market segmentation strategy e. Focus differentiation strategy
c. Focus low-cost strategy
Identify the correct process for strategy-making. Select one: a. Designing, delivering, and supporting products; Improving the efficiency and effectiveness of operations; Formulation; Designing a company's organizational structure, control systems, and culture b. Designing, delivering, and supporting products; Improving the efficiency and effectiveness of operations; Designing a company's organizational structure, control systems, and culture; Formulation c. Formulation; Designing, delivering, and supporting products; Improving the efficiency and effectiveness of operations; Designing a company's organizational structure, control systems, and culture. d. Designing, delivering, and supporting products; Improving the efficiency and effectiveness of operations; Designing a company's organizational structure, control systems, and culture e. Designing, delivering, and supporting products; Formulation; Improving the efficiency and effectiveness of operations; Designing a company's organizational structure, control systems, and culture
c. Formulation; Designing, delivering, and supporting products; Improving the efficiency and effectiveness of operations; Designing a company's organizational structure, control systems, and culture.
Which of the following is a reason for the higher barrier to imitation for a company's that possesses rare and valuable process knowledge? Select one: a. Individuals hired by rival firms are able to provide a complete picture of a company's process knowledge due to their overall knowledge base. b. Rival organization's employees who possess the power and influence to implement change are often driven to appropriate another firm's process knowledge. c. Process knowledge is often hidden from view within the firm and socially complex. d. In most companies, employees have a complete understanding and direct access to the process knowledge of the firm. e. By making small changes to the way a firm operates, implementation of a rival firm's process knowledge is relatively easy to achieve.
c. Process knowledge is often hidden from view within the firm and socially complex.
What makes up the competitive structure of an industry? Select one: a. The number of consumers b. The number of manufacturing plants c. The number and size distribution of companies d. The quality of products produced e. Market segments
c. The number and size distribution of companies
Company A has a product that hasn't hit the market yet but has already constructed efficient manufacturing facilities and has lowered costs through learning effects. It has a marketing team in place that has initiated an aggressive advertising campaign with sales promotions that have stimulated demand for the product and accumulate sales volume. Which of the following is true of Company A? Select one: a. This strategy would hinder Company A's move down the experience curve and allow rival companies to have a cost advantage. b. This strategy would not allow Company A to reach superior efficiency. c. This strategy would help Company A move down the experience curve quickly. d. This strategy would enable Company A to ride up the experience curve and gain a competitive advantage over its rivals. e. This strategy would allow Company A to decrease product volume and market share.
c. This strategy would help Company A move down the experience curve quickly.
Employee productivity is: Select one: a. not subject to measurement. b. not sustainable in the long run. c. a key determinant of a company's efficiency, cost structure, and profitability. d. a function that does not affect a company's profitability. e. a function of management delegation.
c. a key determinant of a company's efficiency, cost structure, and profitability.
When shopping for clothing such as shirts and jeans, Tyrone only buys products from Eastern Clothing Company even if there are several other companies that offer similar products at lower prices. Tyrone's preference for Eastern Clothing Company demonstrates: Select one: a. bargaining power. b. lack of demand. c. brand loyalty. d. lack of economies of scale e. risk of entry.
c. brand loyalty.
As an industry enters the shakeout stage: Select one: a. rivalry among companies declines. b. demand grows at a high rate. c. excess productive capacity emerges. d. new entrants come into the market. e. prices of products increase.
c. excess productive capacity emerges.
Overconfidence about their ability to succeed can lead top managers in a company to be prone to: Select one: a. escalating commitment. b. representativeness. c. illusion of control biases. d. prior hypothesis biases. e. reasoning by analogy.
c. illusion of control biases.
Based on the VRIO framework, a resource can be considered a source of competitive advantage if it: Select one: a. is kept as a trade secret rather than as a patent. b. increases the cost of producing the product and, therefore, the price charged to customers. c. is rare, valuable, difficult to imitate, and organized or managed by the company. d. is shared by most companies in an industry. e. is the foundation of a company's strategic plan.
c. is rare, valuable, difficult to imitate, and organized or managed by the company.
The basic proposition of the blue ocean strategy is that many successful companies have built their competitive advantage by: Select one: a. adopting lean production and flexible manufacturing technologies. b. charging premium prices for their goods or services. c. redefining their product offering through value innovation and creating a new market space. d. developing brand loyalty to protect them from intense price rivalry within their industry. e. initiating a price war to grow volume and drive their weaker rivals out of the industry.
c. redefining their product offering through value innovation and creating a new market space.
The term value innovation is used to describe: Select one: a. what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments. b. what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer. c. what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible. d. a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. e. the way a company decides to group customers based on important differences in their needs to gain a competitive advantage.
c. what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.
More people seem to fear a snake bite than a dog bite, and yet statistically one is more likely to be bitten by a dog than by a snake. This is because people tend to estimate the probability of an outcome based on how easy the outcome is to imagine. This represents which of the following cognitive biases? Select one: a. Representativeness b. Illusion of control c. Hypothesis bias d. Availability error e. Escalating commitment
d. Availability error
Karen, a manager at Libra Inc., had noticed that her subordinates were experiencing a lot of stress. After conducting a meeting with her subordinates, Karen realized that they were extremely overworked and intimidated by close deadlines. Determined to reduce their stress, she introduced a new process that eliminated time-consuming activities and gave them more flexibility for work timelines. This action taken by Karen demonstrates which of the following aspects of emotional intelligence? Select one: a. Self-regulation b. Availability error c. Self-awareness d. Empathy e. Motivation
d. Empathy
Which of the following is a benefit of innovation in an industry? Select one: a. It secures the profitability of strategic groups within an industry. b. It increases the barriers to entry to reduce rivalry and competition. c. It emphasizes the importance of industry structure. d. It allows smaller companies the ability to compete with large, established companies by reducing entry barriers and lowering fixed costs of production. e. It breaks the life cycle pattern and causes growth so rapid it causes stages to be skipped altogether.
d. It allows smaller companies the ability to compete with large, established companies by reducing entry barriers and lowering fixed costs of production.
Focus strategy can be defined as the strategy: Select one: a. of closing one or more business units in order to minimize the losses. b. a company uses when it decides to allocate the company resources equally among all the marketing segments. c. of merging with an established company to gain monopoly over the market. d. a company uses when it decides to serve a limited number of segments, or just one segment of the market. e. a company uses when it decides to ignore the different needs of different market segments to produce one standardized product for all the customers.
d. a company uses when it decides to serve a limited number of segments, or just one segment of the market.
Mike, the chief executive officer (CEO) of a retail chain, wanted to keep costs low. To set an example for others, he drove his own car and furnished his office with plain, metal desks. In this case, Mike was displaying: Select one: a. ego. b. astute use of power. c. autocratic leadership. d. commitment. e. devil's advocacy.
d. commitment.
Kodak possesses the leading imaging technology. This technology has allowed the company to differentiate its products from those offered by rivals. Imaging technology is Kodak's: Select one: a. profit. b. value chain. c. support activity. d. distinctive competence. e. organizational architecture.
d. distinctive competence.
Mobility barriers: Select one: a. allow industries to change their strategy and compete in an alternate strategic group. b. inhibit companies from shifting between suppliers for raw materials. c. exclude the barriers to entry into a group and the barriers to exit from a company's existing strategic group. d. inhibit the movement of companies between strategic groups in an industry. e. are factors that operate outside of an industry.
d. inhibit the movement of companies between strategic groups in an industry.
When conducting an internal analysis, a manager must do all of the following EXCEPT: Select one: a. analyze the sources of their company's competitive advantage to identify what drives the profitability of their enterprise. b. understand the role of rare, valuable, and hard-to-imitate resources in the establishment of competitive advantage. c. analyze the sources of their company's competitive advantage to identify where opportunities for improvement might be. d. look at the way in which forces in the macroenvironment affect industry structure and influence opportunities and threats. e. appreciate how rare, valuable, and hard-to-imitate resources lead to superior efficiency, innovation, quality, and customer responsiveness.
d. look at the way in which forces in the macroenvironment affect industry structure and influence opportunities and threats.
Dale's methods of fitting horseshoes save time and money for his employer at the local ranch. However, when Dale suggests that everyone use his method, his boss, Cedric, says, "No. That's not the way we've always done it around here." Cedric's resistance to change illustrates: Select one: a. barriers to imitation. b. causal ambiguity. c. barriers to mobility. d. organizational inertia. e. lack of distinctive competencies.
d. organizational inertia.
Good strategic leaders: Select one: a. control all facets of decision making. b. are usually inconsistent in their approach. c. make decisions without consulting others. d. possess a willingness to delegate and empower subordinates. e. ensure uniformity of purpose through the authoritarian exercise of power.
d. possess a willingness to delegate and empower subordinates.
Evidence suggests that the best way to maximize the long-run return to shareholders is to focus on: Select one: a. research and development goals. b. compensating managers well. c. maximizing employee overtime. d. satisfying customer needs and making sure that employees are fairly treated. e. increasing prices.
d. satisfying customer needs and making sure that employees are fairly treated.
Suppliers in an industry are most powerful when: Select one: a. switching costs are low. b. their profitability is significantly affected by the purchases of companies in a particular industry. c. they refrain from entering their customers' industry because of lack of resources. d. there are few substitutes for the products that they sell. e. companies in the industry threaten to enter the suppliers' industry.
d. there are few substitutes for the products that they sell.
Economies of scale are: Select one: a. unit cost reductions due to inferior quality of products. b. realized when the selling price is equal to the cost price of the products. c. realized when output is reduced to a minimum. d. unit cost reductions associated with a large-scale output. e. unit cost increases associated with learning effects.
d. unit cost reductions associated with a large-scale output.
Which of the following does the philosophy underlying total quality management (TQM) include? Select one: a. Greater quantity increases a company's profitability. b. Opinions of employees are irrelevant in manufacturing products. c. Work standards should only be defined as numbers or quotas. d. Greater quantity results in cost decreases. e. Better quality leads to higher market share.
e. Better quality leads to higher market share.
Which of the following best describes product innovation? Select one: a. Transforming a quantity of inputs into a given output b. Measuring the quantity of outputs produced per employee c. Identifying and satisfying a customer's needs d. Developing a new process that focuses on quantity rather than quality e. Creating products that have superior attributes than existing products
e. Creating products that have superior attributes than existing products
Which of the following is NOT one of the macroeconomic forces? Select one: a. Interest rates b. Currency exchange rates c. Inflation rates d. Growth rate of the economy e. Cultural changes
e. Cultural changes
Which of the following is NOT a result of reducing lot sizes for manufactured products? Select one: a. The source of defects can be recognized quickly. b. There will not be as many defective products produced in the lot size. c. It decreases waste. d. The problems causing any defects can be addressed and rectified. e. Defects are difficult to identify.
e. Defects are difficult to identify.
Which of the following statements about differentiation and cost structure is true? Select one: a. Differentiation and cost structure decisions do not affect one another. b. Differentiation decisions do not affect a company's profitability. c. Companies that focus on the higher-value end of the market tend to have a lower cost structure. d. Cost structure decisions do not affect a company's profitability. e. Differentiation and cost structure decisions affect one another.
e. Differentiation and cost structure decisions affect one another.
Jordan's Ice Creams is strategically located near a university. After realizing that most of its customers, who are mostly students, prefer a wide range of flavors, it started offering different combinations of premium flavors, cones, and toppings to create hundreds of extravagant, customized products. Which generic business-level strategy is Jordan pursuing? Select one: a. Focus low-cost strategy b. Product substitution strategy c. Broad differentiation strategy d. Broad low-cost strategy e. Focus differentiation strategy
e. Focus differentiation strategy
First-time demand expands rapidly due to new customers entering the market in which of the following stages of the industry life cycle? Select one: a. Decline b. Embryonic c. Maturity d. Shakeout e. Growth
e. Growth
Which of the following is one of the basic building blocks of competitive advantage? Select one: a. Quantity b. Logistics c. Distribution d. Variety e. Innovation
e. Innovation
Which of the following is NOT true of capital productivity? Select one: a. It is an important measure of efficiency. b. Changing the way a firm handles inventory to reduce capital expenditures can increase capital productivity. c. Higher capital productivity is achieved by eliminating unproductive assets or activities from a firm's capital. d. It is the output produced by a dollar of capital invested in the business. e. It is measured by looking at a product's price
e. It is measured by looking at a product's price
If a product is to be properly commercialized, there must be integration between which of the following functions? Select one: a. Marketing; materials management b. Marketing; after-sales support c. Research and development (R&D); materials management d. Finance; marketing e. Research and development (R&D); marketing
e. Research and development (R&D); marketing
A company pursuing a focus strategy: Select one: a. produce different offerings for different segments. b. has a greater impact on cost and revenue. c. attempts to serve all market segments. d. typically has more resources at its disposal than a differentiator does. e. concentrates on building market share in one market segment.
e. concentrates on building market share in one market segment.
Jeffrey Pfeffer believes that a manager's power comes from his or her: Select one: a. ability to be emphatic and understanding of the feelings and emotions of subordinates. b. ability to prioritize the well-being of the company over personal well-being. c. personal rapport with the senior management. d. ability to cut overhead costs. e. control over important organizational resources.
e. control over important organizational resources.
Factors leading to the slow growth of demand for products in embryonic industries include all of the following EXCEPT: Select one: a. a lack of complementary products. b. high production costs. c. the poor quality of the first products. d. poorly developed distribution channels. e. customer passion for the products.
e. customer passion for the products.
The extent of rivalry among established companies is lowest when: Select one: a. exit barriers are substantial. b. the industry's product is a commodity. c. the industry is entering a decline stage. d. the fixed costs are high. e. demand is growing rapidly.
e. demand is growing rapidly.
A component of strategy implementation is: Select one: a. defining the goals and objectives of the organizations. b. providing the number and kind of periodic reports that must be submitted by functional-level managers. c. eliminating the feedback loop. d. answering the question, "What is our business?" e. designing the organization's control and reward systems.
e. designing the organization's control and reward systems.
A company's hiring strategy: Select one: a. upgrades an employee's skill level. b. has little effect on employee productivity. c. is not part of the company's overall human resource strategy. d. does not relate to profitability. e. directly affects employee productivity.
e. directly affects employee productivity.
If economies of scale are an industry's primary entry barrier, a new entrant's major concern is: Select one: a. its inability to match the innovation of the established firm. b. the inferior quality of its products. c. its inability to counter brand loyalty that customers have for established companies in the industry. d. its inability to get buyers to switch to its product. e. its inability to produce in sufficient volume to match the cost advantages of established producers.
e. its inability to produce in sufficient volume to match the cost advantages of established producers.
As a barrier to new entry, absolute cost advantages can be based on: Select one: a. the unique ability of established companies to spread fixed costs over a large volume. b. cost reductions that arise from the mass production of standardized output. c. continuous advertising of brand and company names, and product innovation achieved through research and development. d. high product quality, service-oriented innovations, and good after-sales service. e. superior production operations and processes due to accumulated experience, patents, or trade secrets.
e. superior production operations and processes due to accumulated experience, patents, or trade secrets.
In growth industries: Select one: a. buyers are not familiar with the industry's products. b. the intensity of rivalry is very high. c. distribution channels are poorly developed. d. technological expertise is the most important entry barrier. e. the threat from potential competitors is typically highest.
e. the threat from potential competitors is typically highest.
At its most basic, a firm's business-level strategy is about whom a company decides to serve, what customer needs and desires the company is trying to satisfy, and how the company decides to satisfy those needs and desires. Select one: True False
true
If a company's profitability is higher than the average profitability of all companies in its industry, it has a competitive advantage. Select one: True False
true
Poor commercialization occurs when there is definite customer demand for a new product, but the product is not well adapted to customer needs because of factors such as poor design and poor quality. Select one: True False
true
Product attributes that collectively define product excellence include the form, features, performance, durability, reliability, and style of the product. Select one: True False
true
The effect of value innovation on the efficiency frontier is that a product can be offered at a greater value at a lower cost than was thought possible. Select one: True False
true