OAM 331 - Textbook Questions

Which factors are most important elements of industry effects? Multiple select question. A) strategic management actions B) number of companies C) entrance and exit barriers D) types of products and services

B, C, and D

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry? Multiple select question. A) Timing of the entry B) Establishing a niche C) Reconfiguring value chains (using new technology to bypass traditional entry barriers) D) Leverage existing assets

B, C, and D

Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy? Multiple select question. A) spontaneous planning B) strategic planning C) scenario emergence D) strategy as planned emergence E) scenario planning

B, D, and E

What term describes the stretch goal that helps business leaders define core competencies? A) corporate responsibility B) mission statement C) competitive advantage D) strategic intent

D) strategic intent

Order of Level-5 Leadership Pyramid

1) Executive 2) Effective Leader 3) Competent Manager 4) Contributing Team Member 5) Highly Capable Individual

Critics of the more formalized strategic planning approaches proposed a framework that accounts for which of the following realities? Multiple select question. A) Strategy can emerge from the bottom up. B) Strategy should not utilize the AFI framework. C) Strategy can be planned. D) Strategy should be constant and unchanging.

A and C

Competitive advantage is gained in the value chain through which of the following types of activities? Multiple select question. A) establishing B) support C) goal D) primary

A and D

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past. Multiple choice question. A) Path dependence B) Social complexity C) Resource allocation D) VRIO framework

A) Path dependence

Strategic positioning allows managers to Blank______. Multiple choice question. A) provide customers value while controlling costs B) provide superior customer value regardless of costs C) balance foreign and domestic sales D) eliminate competition in a given industry

A) Provide customers value while controlling costs

Stakeholder strategy argues that focusing exclusively on the needs of Blank______ places the firm at risk of failure. Multiple choice question. A) shareholders B) managers C) competitors D) employees

A) Shareholders

Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. These ideas are Burger Bomb's Blank______. Multiple choice question. A) strategy B) competitive parity C) core values statement D) vision

A) Strategy

In a nutshell, strategy is the art and science of Blank______. Multiple choice question. A) success and failure B) treating people fairly C) maintaining a work-life balance D) amassing wealth

A) Success and failure

What is strategy? A) The set of actions a firm takes to achieve a competitive advantage B) a decision based on internal situational analysis C) a sustainable and dominant market share D) a decision based on external situational analysis

A) The set of actions a firm takes to achieve a competitive advantage

Walmart producing private-label brands, such as Equate health and beauty items and Parent's choice baby products, is an example of Blank______. Multiple choice question. A) backward integration B) forward integration C) skip-hop integration D) horizontal integration

A) backward integration

Industry Blank______ is the process by which formerly unrelated industries begin to satisfy the same customer need. Multiple choice question. A) convergence B) parity C) emergence D) complementariness

A) convergence

If the problem with a business strategy results in causal ambiguity, managers will Blank______. Multiple choice question. A) have a difficult time developing a theory to deal with the problem B) need training to communicate more clearly C) be able to apply an isolating mechanism for competitive advantage D) know to treat the problem as a transient issue

A) have a difficult time developing a theory to deal with the problem

Sustainable competitive advantage exists when a firm Blank______. A) maintains superior performance relative to its industry over a long period of time B) formulates and implements strategy C) is self-regulated and self-motivated D) starts up and competes for existing market share in the industry

A) maintains superior performance relative to its industry over a long period of time

In the airline industry, the Blank______ involved in offering international routes restricts movement between hub-and-spoke and point-to-point airlines. Multiple choice question. A) mobility barrier B) exit barrier C) supplier power D) strategic commitment

A) mobility barrier

Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in? Multiple choice question. A) top-down strategic planning B) bottom-up strategic planning C) scenario planning D) strategy as planned emergence

A) top-down strategic planning

In the strategic management process, which basic principle must be defined first? A) vision B) values C) mission D) strategy

A) vision

Which of the following are advantages, independent of size, that incumbent firms possess? Multiple select question. A) cumulative experience effects B) preferential access to distribution channels C) brand loyalty D) proprietary technology E) inertia related to their structure F) fast reaction times to environmental changes due to their small size

A, B, C, and D

What are the three aspects of mapping strategic groups? Multiple select question. A) identifying the most important strategic dimensions B) graphing the firms in the strategic group and indicating each firm's market share C) choosing two key dimensions for the horizontal and vertical axes D) calculating the shareholder value of the two firms selected

A, B, and C

Which of the following are factors that increase the power of buyers? Multiple select question. A) Buyers threaten backward integration. B) Products are standardized. C) Many consumers buy small amounts of goods. D) Switching costs are low.

A, B, and D

Which of the following are important strategic dimensions in mapping strategic groups? Multiple select question. A) cost structure B) expenditures on advertising and HR C) expenditures on research and development D) product and service offerings

A, C, and D

Which of the following are questions that managers are likely to ask when beginning the strategic management process? A) How can we achieve our goals? B) What is our profit? C) What do we ultimately hope to achieve? D) Is our vision product- or customer-oriented? E) What are our values?

A, C, and E

Michael Porter developed the five forces model to help firms do which of the following? Multiple select question. A) analyze PESTEL forces B) gain and sustain a competitive advantage C) understand the strengths and weaknesses of a firm's resources D) determine the profit potential of different industries

B and D

What should a successful vision do for an organization? A) It should ensure that employees understand their job duties B) It should make employees feel their work is important C) It should describe the products and services it plans to provide D) It should inspire employees

B and D

According to the book Good to Great by Jim Collins, which of the following is companies that were able to gain a competitive edge all have what in common? A) a customer-oriented vision B) "great" leaders C) quality goods and services D) a product-oriented vision

B) "great" leaders

______ suggests that sometimes even random events may have a large impacts on an outcome. Multiple choice question. A) Upper-echelons theory B) Path dependence C) The VRIO framework D) Agency theory

B) Path dependence

Why are businesses with product-oriented vision statements often less effective than businesses with customer-oriented vision statements? A) Customer-oriented companies attract better employees. B) Product-oriented companies have less flexibility to meet consumer needs. C) Product-oriented companies are required to pay more federal taxes. D) Product-oriented companies tend to produce old-fashioned goods that customers no longer need.

B) Product-oriented companies have less flexibility to meet consumer needs.

Which of the following best describes an illusion of control? Multiple choice question. A) a focus on flexible approaches to problem solving B) a belief that a strategic plan will address any scenario C) a policy of consulting all stakeholders for major decisions D) a long-term commitment to customer satisfaction

B) a belief that a strategic plan will address any scenario

A customized strategy that considers the unique resources of the company while considering the external environment creates Blank______. Multiple choice question. A) diseconomies of scale B) a strategic fit between them C) a value chain D) diseconomies of scope

B) a strategic fit between them

Which strategy addresses the question of how to compete? A) investor B) business C) corporate D) functional

B) business

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company, however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding Cowgirl Boots' recent success? Multiple choice question. A) path dependence B) causal ambiguity C) time compression diseconomies D) social complexity

B) causal ambiguity

What are competitors engaged in when they work together to achieve a strategic objective? Multiple choice question. A) an oligopoly B) co-opetition C) perfect competition D) convergence

B) co-opetition

Which of the following is a statement of guiding principles that typically provides very specific ethical considerations? A) sustainable competitive summary B) core values statement C) behavioral analysis D) product-oriented vision statement

B) core values statement

Industry-specific factors known as Blank______ separate one strategic group from another. Multiple choice question. A) planned emergencies B) mobility barriers C) competitive rivalries D) oligopolies

B) mobility barriers

What type of vision statement tends to limit a manager's flexibility and ability to adapt? A) strategic B) product-oriented C) problem-solving D) customer-oriented

B) product-oriented

A(n) Blank______ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures. Multiple choice question. A) mission statement B) strategic initiative C) competitive advantage D) vision statement E) AFI framework

B) strategic initiative

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to Blank______. A) its past financial performance B) the performance of other firms in its industry C) a firm in the technology industry D) only non-US-based firms

B) the performance of other firms in its industry

Corporate strategy concerns questions related to Blank______. A) how to compete B) where to compete C) why to compete D) whom to compete with

B) where to compete

What do the best firms in an industry seek to identify and manage on an ongoing basis as sources to respond to their external environment? Multiple select question. A) internal weaknesses B) capabilities C) resources D) core competencies

B, C, and D

Burger Bomb has been outperforming other burger restaurants in recent years. This indicates that Burger Bomb has which of the following? Multiple choice question. A) Strategic leadership B) A superior product C) A competitive advantage D) A statistical advantage

C) A competitive advantage

Which statement about strategies is true? Multiple choice question. A) "We will be the best!" is an example of a strategy. B) Statements of desire typically address economic fundamentals. C) A statement of desire on its own often leads to goal conflict. D) Vision and mission statements cannot lay the foundation for good strategies.

C) A statement of desire on its own often leads to goal conflict.

When a firm in an oligopoly cuts prices, Blank______. Multiple choice question. A) there is no impact B) market share is lost C) a price war is likely to result D) all competitors raise their prices

C) a price war is likely to result

Advantages based on brand loyalty, proprietary technology, preferential access to raw materials, and favorable geographic locations are examples of Blank______. Multiple choice question. A) disadvantages dependent on size B) advantages for new entrants C) advantages independent of size D) advantages dependent on size

C) advantages independent of size

When Samsung and Google cooperate as complementors to compete against Apple's strong position in the mobile device industry while at the same time becoming increasingly competitive with each other, this is referred to as Blank______. Multiple choice question. A) collaborition B) collaboration C) co-opetition D) rivallaboration

C) co-opetition

All of the following are sources of strategic initiatives except Blank______. Multiple choice question. A) autonomous actions B) the resource allocation process C) consumer demand D) serendipity

C) consumer demand

Industry Blank______ is the process by which formerly unrelated industries begin to satisfy the same customer need. Multiple choice question. A) emergence B) complementariness C) convergence D) parity

C) convergence

What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action? Multiple choice question. A) groupthink B) escalating commitment C) devil's advocacy D) reason by analogy

C) devil's advocacy

According to the Level-5 pyramid, which level of leadership has the fewest members? A) competent managers B) effective leaders C) executives D) contributing team members

C) executives

The stakeholders of a firm are Blank______. Multiple choice question. A) only those firms that contribute to the production and distribution of a company's products B) only those who directly profit from a firm's success C) individuals or groups that can affect and are affected by the actions of the firm D) individuals or groups who own at least one share of a firm's stock

C) individuals or groups that can affect and are affected by the actions of the firm

The resource-based view classifies all resources as Blank______. Multiple choice question. A) capital or labor B) low cost or high cost C) tangible or intangible D) domestic or foreign

C) tangible or intangible

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish? A) inspiration B) values C) vision D) mission

C) vision

Primary strategy objectives:

Creating value and controlling cost

Top-down strategy is derived from Blank______. Multiple choice question. A) representational political systems B) scenario planning C) planned emergence strategy D) military strategy

D) Military strategy

What is the best definition of a cost leadership strategy? Multiple choice question. A) Offering similar goods and services at a higher price. B) Offering better goods and services at a similar price. C) Offering better goods and services at a higher price. D) Offering similar goods and services at a lower price.

D) Offering similar goods and services at a lower price

What is the overall purpose of a firm's strategy? Multiple choice question. A) Generate significant interest from foreign investors. B) Sell all existing inventory of a given product. C) Determine demand for new product ideas. D) Perform better than other companies in the same industry.

D) Perform better than other companies in the same industry.

What is the premise of Henry Mintzberg's position regarding strategic planning? Multiple choice question. A) Strategic planning does not impact overall strategy. B) Top-down strategic planning is the most effective. C) Strategic planning is too flexible. D) Strategy can be planned or emerge from the bottom-up.

D) Strategy can be planned or emerge from the bottom-up.

In the strategy process, questions concerning HOW to compete, such as through differentiation, are referred to as Blank______ strategy. A) functional B) corporate C) implementation D) business

D) business

In the strategy process, questions concerning WHERE to compete, such as the industry or market, is referred to as Blank______ strategy. A) implementation B) functional C) business D) corporate

D) corporate

The Level-5 leadership pyramid is a conceptual framework that shows Blank______. A) why companies fail B) why companies generate profits C) why employees quit D) how leaders develop

D) how leaders develop

A competitive advantage Blank______. Multiple choice question. A) takes into consideration globalization and rival factors B) places a firm at a disadvantage in regards to its ROI C) is based on the return of invested capital over a 15-year period D) is assessed relative to other competitors in the industry

D) is assessed relative to other competitors in the industry

Strategic _______ refers to an overall goal that gives the whole organization a sense of purpose

Intent

A _______ outlines what an organization does, while a vision outlines what the organization wants to do.

Mission

The internal activities of a firm that for transforming inputs into outputs consist of ___________activities, which add value directly, and ______________activities, which add value indirectly.

Primary, Support

Identify the framework that allows managers to synthesize insights obtained from internal and external analysis.

SWOT

First step in the strategic management process is to define an organization's vision, mission, and values:

Vision: What is our purpose? What do we want to accomplish, ultimately? Mission: How do we accomplish our goals? Values: What commitments do we make, and how do we act legally and ethically as we pursue our vision and mission?

RBV (Resource Based View)

a method to study how a firm's internal resources and capabilities are a source of competitive advantage