Strategic Management missed quiz questions

The balanced-scorecard framework is a tool for strategy ______, not _______ Sustainability; Economic value creation Analysis; Sustainability Formulation; Implementation Implementation; Formulation All the other answers are correct

Implementation; Formulation

The owners of McHardy's Chicken & Fixins decide to open a chicken farm on the north shore to supply chicken to the restaurant. This is an example of:

Backwards Vertical Integration and broadening corporate scope

Under the _____ framework, the question "Dow do we create value?" is relevant when trying to improve innovation and organizational learning

Balanced-Scorecard

Economic value creation is best expressed as

Consumer Surplus Plus Firm Profit

To help a firm achieve a competitive advantage, each distinct activity performed in the value chain needs to Contribute to the firm's strategic position as either low-cost leader or differentiator Reduce the immobility and the heterogeneity of the firm's resources Create a static fit between the company's internal resources and the external environment Reduce the causal ambiguity and the social complexity of the firm's source of success

Contribute to the firm's strategic position as either low-cost leader or differentiator

A firm is said to gain a competitive advantage when it can...

Provide products similar to its competitors, but at lower prices

Silver Screen Cinemas Inc. and Digi Now Inc. are two companies that own and run movie theatres in malls and other commercial areas. While Silver Screen Cinemas Inc. pursues a cost-leadership strategy, Digi Now Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?

Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little

As the strategic manager of CutRite Scissors, you are tasked with producing a strategy for introducing a new line of premium scissors. You competitor produces a line of similar scissors at a cost of $1 and sells them for $12. Because your company has inferior production capabilities, your scissors will cost $3 each to produce. However, your handle is proven to be more comfortable than your competitors'. Assuming you are guaranteed to sell the same number of units as your competitor, which of the following strategies is most likely to achieve a competitive advantage?

Market CutRite scissors as a higher-quality alternative and sell them for $15

In nearly every case, which of the Five Forces is the most important in determining the relative power structure in an industry?

No single force is dominant in most every case

Firms that are classified as operating in an oligopoly tend to have some pricing power if they are able to differentiate their product or service offerings from those of their competitors, so the recommended mode of competition is Service-based competition Non-price-based competition Price-based competition All of the answers are correct Hypercompetition

Non-price-based competition

Which of the following statements is true about strategic groups? It is not possible to have two different strategic groups within the same industry Companies within the same strategic group are complementors to each other Profitability varies between different strategic groups Rivalry within the same strategic group tends to be lower than rivalry between different strategic groups

Profitability varies between different strategic groups

Fixed Menu Pricing and Dynamic Pricing are two different Pricing Mechanisms that need to be defined in what stage of the business model canvas? Revenue Streams Channels Key Activities Customer Segments Cost Structures

Revenue Streams

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally...

Stake out a unique position within the industry

Keeping in mind the five forces in the airline industry, which of the following best explains the difficulty airlines have in generating a profit?

Substitutes are readily available in the form of trains, buses, and cars, thus reducing the profit potential in the industry

Which of the following is not captured when examining a competitive industry structure? All of the answers are correct The number and size of an industries competitors The firm's degree of pricing power The type of product or service (commodity or differentiated product) The ability to engage in forward vertical integration

The ability to engage in forward vertical integration

Tom is attempting to measure how his customers view his firm. To do this, he uses the balanced-scorecard framework because he knows that The customer perspective is directly linked to firm revenues and profits Customer surveys will help him determine future industry attractiveness This will guarantee his company a sustainable competitive advantage The framework will help him increase his stock price

The customer perspective is directly linked to firm revenues and profits

Swedish furniture giant IKEA reported sales of $44 billion in 2019. The company turned a profit by recycling waste into some of its best-selling products. Before, this waste had cost the company more than $1 million per year. And the company is well on its way to "zero waste to landfill" worldwide. According to Joanna Yarrow, IKEA's head of sustainability for the United Kingdom, "We don't do this because we're tree huggers, we do this because it's very cost-effective." This passage best represents which of the following frameworks below? The triple-bottom-line framework The PESTEL framework The balance scorecard framework The economic value framework

The triple-bottom-line framework

There are several major limitations of employing the balance scorecard framework; which of the following below is not one of those limitations? The type of marketing and HR functions used to employ the framework Asking the four key questions Choosing the right metrics to use The skills and abilities of the manager using the framework

The type of marketing and HR functions used to employ the framework

Which of the following statements about product-oriented visions are true?

They tend to force managers to take a myopic view of the landscape

How are cumulative learning and experience effects of a company most likely to affect Michael Porter's five forces? Threat of substitute products and services will be high Bargaining power of suppliers will be high Threat of new entrants will be low Availability of complements will be low

Threat of new entrants will be low

Evaluating the data collected from environmental analysis, the corporate executives of BigPharma Inc. realized that is was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate?

Top-down strategic planning

During the process of formulating an effective business model, a firm's managers should first Evaluate the firm's strategy already in effect and take corrective actions if necessary Transform their strategy of how to compete into a blueprint of actions and initiatives Implement their strategy at corporate, strategic business unit, and functional levels Implement their blueprint of actions and initiatives through structures, processes, culture, and procedures

Transform their strategy of how to compete into a blueprint of actions and initiatives

The owner of McHardy's Chicken and Fixins has read that in a recent survey, 60 percent of consumers prefer to patronize restaurants that recycle, and 51 percent even said that they would pay extra - a median of ten percent or more - to eat at restaurants that recycle. 85 percent of patrons stated they were willing to sort quick service recycling items into the proper bins if made available. Adopting recycling practices into the McHardy's restaurant and business practices would be an example of incorporating what approach:

Triple-Bottom-Line

Which of the following statements accurately brings out the difference between an organization's vision and mission?

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished

Which of the following questions is related to the value proposition in a business model canvas?: What is the problem we are trying to help our customer to solve? What kinds of relationships do we develop with different customer segments? How much is our good or product worth in the market? How much is a customer willing to pay for the service or product we offer?

What is the problem we are trying to help our customer to solve?

All of the following are decisions that managers make when formulating corporate strategy (specifically corporate scope) EXCEPT: Where geographically the company should compete (i.e., global strategy decisions) The stages of the industry value chain in which to participate (i.e., vertical integration decisions) Whether the company should compete through differentiation or cost leadership The range of products and services to be offered (i.e., horizontal integration or diversification decisions)

Whether the company should compete through differentiation or cost leadership

Pete's Bakery enjoys a competitive advantage as a cost leader because high demand for its products has allowed it to operate at the minimum efficient scale. Which of these following scenarios would be more concerning to the managers of Pete's Bakery?: a wheat shortage raises input costs across the industry a major winter storm shuts down Pete's production for several days all of the answers are correct Pete's leading competitor develops a new low-sodium product

a major winter storm shuts down Pete's production for several days

Jennifer manages a chain of bars and restaurants in a tri-county area that has recently experienced an economic boom because of fracking and high oil prices. What is most likely to happen when there is too much money in the tri-county economy?

an increase in prices

In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's position and strategic plan regarding the production of DRAM (dynamic random-access memory) chips. When the functional managers at Intel came up with the simple rule of producing whichever product delivered the higher margin, the front-line managers shifted Intel's production capacity away from the lower-margin DRAM business to the higher-margin semiconductor business. This ____ emerged as a consequence of the firm's resource allocation process. Strategic Alliance Bottom-Up Strategy Intended Strategy Unrealized Strategy

bottom-up strategy

Mainline Ltd. Is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (-5 percent) for the last few years. In this scenario, Mainline Ltd. Has a _____

competitive advantage

Because they are a crucial component of a firm's success, customers are considered internal stakeholders

false

Competitive advantage goes to the firm that maximizes the difference between the cost of producing a good and the retail price that consumers pay

false

In June 2017, Whole Foods, a publicly traded company, was acquired by Amazon, another publicly traded company for $13.7B, it became privately owned.

false

In the United States of America, senior executives are required by society and their shareholders to meet their ethical and philanthropic responsibilities

false

a good strategy is a set of actions that enables a firm to achieve its own internal goals without regard to the external environment

false

companies operate in markets and industries, two terms that essentially mean the same thing

false

when a firm operates at the minimum efficient scale, there is still opportunity for it to further reduce its cost per unit through economies of scale

false

when pursuing a blue ocean strategy, a firm in a crowded marketplace attempts to out-compete rivals on both cost and product features with the goal of gaining market share at the expense of other competitors in the same industry

false

Trader Joe's successfully used a blue ocean strategy by offering lower-cost food than Whole Foods for the same market of patrons. By doing this, Trader Joe's was able to gain a market share and make up the loss in margin through increased pricing create higher value creation and thus generate greater sales gain a market share and make up for the loss in margin through increased sales create higher value creation and thus generate greater profit margins

gain a market share and make up the loss in margin through increased sales

which of the following drivers simultaneously increases value while lowering cost innovation economies of scale superior customer service availability or complements

innovation

what must a cost-leadership strategy accomplish to be successful?: it must reduce the firm's cost below that of its competitors while offering superior value it must increase increase the firm's cost above that of its competitors while offering superior value it must reduce the firm's cost below that of its competitors while offering adequate value it must increase the firm's cost above that of its competitors while offering adequate value

it must reduce the firm's cost below that of its competitors while offering adequate value

which of the following is true about preparing a SWOT analysis? it should be specific and avoid grey areas it should analyze the organization only and ignore the performance of competitors it should focus on where the organization is today, not where it could be in the future all of the answers are correct

it should be specific and avoid grey areas

Kennedy is part of a sales team. She effectively coordinates her tasks with others in the team and willingly contributes to their efforts in achieving the team's objectives. Thus, Kennedy is in ___ of the Level-5 leadership pyramid

level 2

According to the value chain analysis, which of the following is a primary activity? Research and development Marketing and sales Human resources management Accounting and finance All of the answers are correct

marketing and sales

What succinctly identifies the primary long-term objective of an organization?

mission

while conducting a SWOT analysis, which of the following could be an opportunity a new competitor in your home market damaged reputation moving into new market segments that offer improved profits having quality processes and procedures

moving into new market segments that offer improved profit

which of the following sources of differential appeal is least effective in helping a firm sustain its advantage? reputation for innovation superior customer experience observable product features reputation for quality

observable product features

the primary goal of a firm pursuing a blue ocean strategy should be to create the highest perceived value in its respective industry offer a differentiated product or service at a low cost build a reputation of being the lowest-cost producer in its chosen industry achieve a less steep learning curve

offer a differentiated product or service at a low cost

The "Natural Nourishment" granola bars manufactured by Global Good Foods have been the top-selling granola bars in the market. Though the market for granola bars is flooded with competitors, Global Good has been able to maintain its market position for a long time. This is mainly attributed to the pleasant texture of its granola, which comes from a proprietary processing technique used by the company. This competency of Global Good Foods will be considered as a(n) _____ resource in the VRIO framework. Rare Imitable Operational Intangible Organizational

rare

Dynamic capabilities are especially relevant for surviving and competing in markets that Remain unpredictable Remain constant Shift quickly Shift slowly

shift quickly

FindFor Inc. is an e-commerce retail firm that sells a variety of merchandise online. Through services like cash on delivery, easy return, and online tracking, the company has created more customer value than its competitors (brick-and-mortar businesses) at the same price. Also, the company's costs are substantially lower than its competitors because of minimal investments in operation and administration. In this scenario, FindFor Inc. has most likely been able to provide superior value and cost control through...

strategic positioning

If you examine various barriers to entry facing firms that might wish to enter the airline industry, this would be most helpful in assessing which of the five forces in that industry? Power of supplier Threat of new entrants Competitive rivalry Threat of substitute products

threat of new entrants

A key feature of an oligopoly is that competing firms behave interdependently with each other

true

Managers must first develop a strategy that is likely to produce a competitive advantage before implementing a balanced-scorecard approach

true

a cost leader is the firm most likely to survive a price war

true

differentiators tends to score highly on most competitive elements on a strategy canvas, while cost leaders tend to hover near the bottom of the strategy canvas

true

strategic planning is an oxymoron, this course is about strategic management

true

the pursuit of both differentiation and low cost at the same time in a way that creates a leap in value for both the firm and consumers is called cost driving value innovation value driving cost innovation

value innovation

a value curve indicates a lack of effectiveness in a firm's strategic profile trends downward trends upward stays level zig zags

zig zags