MGMT 478 Exam 1

Which of the following is not a potential pitfall of a differentiation strategy

All rivals share a common input or raw material.

Corporate-level strategies are concerned with

Selecting the industries where the firm competes.

the goal of ____ analysis is to develop a strategy that will be acceptable to a large number of influential actors.

Stakeholder

The strategic management process is

The set of top management and board of director commitments, decisions, and actions required to achieve corporate objectives and competitive advantage

the goal of an organizations _____ is to challenge employees and give shape to its intended future.

Vision

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a

core competence

is the level of return after all costs of an organization's activities have been subtracted from revenue.

economic profits

tracks the evolution of environmental trends, sequences of events, or streams of activities.

environmental monitoring

A disadvantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets

false

Benefits derived from horizontal and hierarchical relationships are mutually exclusive.

false

Combination strategies, such as integrating overall low cost and differentiation, makes it easier for rivals to duplicate or imitate because it is harder for the primary firm to provide value

false

In most industries, new entrants will not be a threat because the Internet lowers entry barriers

false

In some industries, low switching costs can act as an important barrier to entry

false

In value-chain analysis, value is measured by the market value of the total stock outstanding of the company.

false

Once established, competitive advantages last forever whether the firm is in a high technology environment or not.

false

Strategy analysis is the study of only the big picture external environments of the firm.

false

The Porter five-forces model is designed to help us understand how social attitudes and cultural values impact U.S. businesses.

false

The five-forces model suggests that with intense competition an overall low-cost position will not enable a firm to achieve above-average returns

false

The market life cycle should be used for short-run forecasting because it provides a conceptual framework for understanding what changes typically occur over the life of an industry

false

Through joint ventures, firms can directly acquire the assets and competencies of other firms

false

When firms diversify into unrelated businesses, the primary potential benefits are horizontal relationships, i.e., businesses sharing tangible and intangible resources

false

To be considered strategic resources that contribute competitive advantage, they must have several characteristics. Which of the following is not one of these?

inexpensive to imitate

are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams

intangible resources

The threat of new entrants is high when there are

low economies of scale

Firm X wants to enter a new product market (Industry Y). The presence of barriers to entry in Industry Y will generally make acquisitions _____ as an entry strategy.

more likely

is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling.

outbound logistics

When a firm combines __________ and ___________, it builds core competencies

resources, capabilities

Which of the following is not an input process to develop forecasts?

stakeholder management

The three key types of resources that are central to the resource-based view of the firm are

tangible resources, intangible resources, and organizational capabilities

Firms that were successful in the past can fail today because

the companies strategy is outdated

A firm successfully implementing a differentiation strategy would expect

to charge premium prices

A pitfall of integrated overall cost leadership and differentiation is underestimating the expenses associated with coordinating value-creating activities in the extended value chain

true

Environmental scanning and competitor intelligence provide important inputs for forecasting activities

true

If the overall cost leadership strategy is to provide sustainable competitive advantage, all activities in the value-chain need to be evaluated including the relationships among the value-chain activities

true

Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

true

The five-forces model helps to determine both the nature of competition in an industry and the profit potential for the industry

true

The potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies

true

The value-chain concept assumes that both primary and support activities can produce value for customers

true

The vision of an organization is at the top level of its hierarchy of organizational goals. The vision statement should be massively inspiring, overarching, and long term

true

Value-chain analysis assumes that the basic economic purpose of a firm is to create value, and it is a useful framework for analyzing the strengths and weaknesses of the firm

true