MNGT 4800 EXAM 1

Which of the following statements describes financial measures as a part of the balanced scorecard?

They relate to organizational effectiveness and profits.

Which of the following statements describes internal business process measures as a part of the balanced scorecard?

They relate to organizational efficiency.

When a buyer decides to enter its supplier's business, the strategy is referred to as _____.

backward vertical integration

The likelihood of new entrants joining an industry is low if switching costs are high because:

this discourages customers from buying a new entrant's offerings.

The formulation of Coca-Cola is an example of a(n) _____.

trade secret

According to the resource-based theory, resources that provide a firm a sustained competitive advantage are rare:

valuable, nonsubstitutable, and difficult to imitate.

Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company.

vision

Viable substitutes are available in all industries.

False

All of the following individuals were mentioned as examples of entrepreneurs in Chapter 2 except _______.

Thomas Jefferson

It would be simply too costly for an airline to pursue a backward integration strategy and enter the airplane manufacturing business. Which of the following theories for explaining a firm's competitiveness is most likely to give executives such insights?

Transaction cost economics

The purpose of Porter's five forces analysis is to identify the factors that affect the profit potential of an industry.

False

The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:

new entrants struggle to get their offerings to customers.

The likelihood of new entrants joining an industry is low if existing competitors enjoy economies of scale because:

new entrants struggle to match incumbents' prices.

A _____ strategy refers to the part of the intended strategy that are abandoned.

non-realized

Strategy as _____ refers to how executives interpret the competitive landscape around them.

perspective

A strategic _____ is a carefully crafted set of steps that a firm intends to follow in order to be successful.

plan

A strategic _____ is a specific move designed to outwit or trick competitors.

ploy

Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.

political

An example of strategic ______ is the corporate ownership and management of General Motors brands Chevrolet (entry-level), Buick (mid-level) and Cadillac (upscale) that represent three different price points and markets within the vehicle industry.

positioning

Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities.

scale

A viable business model requires that a firm:

sell goods or services for more than it costs the firm to create and distribute those goods.

The Hebrews leaving Egypt, the Greek soldiers inside of the Trojan Horse, and King Arthur's famous round table are all examples of ________.

strategy in ancient times

Which of the following statements describes the term "innovativeness" as a dimension of entrepreneurial orientation?

It refers to the tendency to pursue creativity and experimentation.

Which of the following statements holds true for the book Strategy and Structure: Chapters in the History of the Industrial Enterprise?

It stressed how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.

SWOT analysis involves comparing two internal and two external factors. What are the two external factors?

Opportunities and Threats

_______ refer(s) to how well a company is doing reaching its vision, mission, and goals.

Organizational performance

Which of the following is an example of a copyright?

Original artistic creations, like books

A supermarket purchases its vegetables from local farmers. It also ensures that it purchases the vegetables from farmers located closest to the supermarket so that the distance covered in transport is minimal. This reduces pollution. The supermarket also earns good profits. The fact that the supermarket purchases its vegetables from local farmers and demonstrates social responsibility reflects the _____ aspect of the triple bottom line framework.

People

All difficult to imitate strategic resources are protected by various legal means including trademarks, patents, and copyrights.

False

Bitter rivalry between an industry's competitors can lead to increase in prices of their products or services, thereby harming consumers.

False

Which of the following statements describes the term "risk-taking" as a dimension of entrepreneurial orientation?

It refers to the tendency to engage in bold rather than cautious actions.

Which of the following is an example of a patent?

Richard James's Slinky

_____ is a classic management tool that incorporates the idea of scanning elements such as strengths, weaknesses, opportunities, and threats which are both external and internal to the firm.

SWOT analysis

A value chain charts the path by which products and services are created and eventually sold to customers.

True

An organization cannot hope to create an enduring competitive advantage around common resources.

True

As buyers, large companies like Walmart have the power to insist on price concessions because their sales volumes are so high.

True

Developing a viable business model requires that a firm sell goods or services for more than it costs the firm to create and distribute those goods.

True

Innovativeness of an organization can be gauged by considering how many patents has the firm obtained.

True

One important aspect of a business model is providing customers with a good or service more cheaply than they can create it themselves.

True

Resource-based theory offers a complete framework for analyzing organizations.

True

Scoundrels are those CEOs who are closely monitored and scrutinized by the media.

True

The book, "The Principles of Scientific Management," was a response to Taylor's observation that most tasks within organizations were organized in a haphazard way.

True

The common element in all entrepreneurs is that they do something new and can make something out of opportunities that others cannot.

True

The four Ps of marketing are: product, price, place, and promotion.

True

The idea of "stratego," from which the word strategy is derived, refers to the idea of defeating an enemy by effectively using resources.

True

A vision captures the key elements of the organization's past and present.

False

_____ is one of the five secondary activities that value chains include.

technology

Internal business process measures of performance relate to customer attraction, satisfaction, and retention.

False

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

the industry's goods or services are standardized or undifferentiated.

Which of the following is least likely to meet the criteria for strategic resources?

A firm's raw material inventory

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal.

Aggressive

Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do college students represent?

Buyers

During an economic crisis credit markets typically loosen their requirements.

False

Most strategic ploys are illegal.

False

_____ provide exclusive rights to the creators of original artistic works such as books, movies, songs, and screenplays.

Copyrights

Which of the following qualities of an asset makes it a strategic resource for a business?

Difficult to imitate

When unemployment rises, discretionary income plummets. That hurts businesses selling costly but non-essential goods. This example represents the _____ segment of PESTEL analysis.

Economic

Which of the following theories for explaining a firm's competitiveness treats executives as the masters of their domains?

Enactment

Rivalry in _____ industries tends to become bitter and fierce.

Fragmented

_____ refer to CEOs possessing both fame and strong reputations.

Icons

A company manufacturing hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise, and technological knowhow. It assesses the type of competition that it faces in the sports goods market and also looks out for opportunities that would allow it to expand its business. This is an example of a(n):

SWOT analysis.

_____ refer to CEOs displaying high levels of relative fame but low levels of reputation.

Scoundrels

Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do used books industry represent?

Substitutes

Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do textbook publishers represent?

Suppliers

Which two pivotal events that took place in 1980 led to the establishment of strategic management as a field of study?

The creation of the Strategic Management Journal and the publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors.

Which of the following statements describes the "time-bound" aspect of a goal?

The goal is achieved through the creation of deadlines

Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?

The growth rate of demand for the industry's offerings is low

_____ refers to an approach to assessing performance that emphasizes the concerns of people and the planet in addition to profit.

The triple bottom line

Which of the following statements describes learning and growth measures as a part of the balanced scorecard?

They focus on innovation and proceed with an understanding that strategies change over time.

Which of the following statements describes customer measures as a part of the balanced scorecard?

They relate to client attraction, satisfaction, and retention.

Resources that do not have all four qualities can still be very useful, but they ______________________.

are unlikely to provide long-term advantages

Strategic management is described as being part science and part ______.

art

A _____ strategy is the part of the intended strategy that an organization continues to pursue over time.

deliberate

Apple has been able to reshape its environment by introducing products such as the iPhone and the iPad that transcend the traditional boundaries between the cell phone, digital camera, music player, and computer businesses. This is an example of _____ for explaining a firm's competitiveness.

enactment

New entrants are more likely to join an industry if:

existing competitors lack economies of scale.

Breadmakers, Inc. produces and supplies fresh sandwich breads to various sandwich businesses. Breadmakers, Inc. has recently decided to open its own stores for selling sandwiches to consumers. This is an example of ________.

forward vertical integration

A(n) _____ fee refers to the upfront fee paid by an organization which gets the right to use another organization's brand name, products, and processes.

franchise

Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. Each of these outlets is a:

franchisee

A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations.

franchisor

The general environment, a component of the environment of an organization, is also called the:

macroenvironment.