Strategy: 1-5

Backward Integration

A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of

True

A music distributor that decides to launch a proprietary music streaming service to respond to changes in music consumption trends exhibits dynamic capabilities.

True

A video-streaming service provider such as Netflix is a complement to a manufacturer of streaming video devices such as Roku.

Easy to imitate

According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were

Enthusiastic Company Culture

As manager of a relatively new company, you are tasked with analyzing company resources to identify core competencies capable of supporting a competitive advantage. Which of the following resources is most likely to generate a competitive advantage?

True

Because competitors in oligopolistic industries are so interdependent, it is especially important for managers in those firms to monitor and respond to changes their competitors make.

Resource Immobility

Brain Boost Inc. is a leading educational toy company. Competitors across the globe have failed to imitate Brain Boost's production models, supply chain systems, knowledge systems, and culture. These attributes have remained unique to Brain Boost Inc. for a long time. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?

False

Federal and regional laws prevent incumbent firms from lowering prices or otherwise retaliating when a new entrant joins an industry.

False

High demand for online video streaming options is one of Netflix's core competencies.

False

One of Rolex's tangible resources is its well-known brand name and reputation for quality timepieces.

Corporate Executives

Strategic leadership pertains to the use of power and influence by __________ to direct the activities of other when pursuing an organization's goals.

Imitable

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 compentency of Global Good Foods will be considered as an _______ resources in the VRIO framework.

PESTEL framework

The ______ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.

Perfect competition exists

The competitive advantage that one firm has will be short-lived in an industry in which

True

The core competencies of a firm are determined by the interplay of its tangible resources and intangible capabilities.

Threat of new entrants is most likely low

The internet service provider industry in the country of Megalopolis is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the internet service provider industry.

True

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

Understand the profit potential of industries

The primary objective of Porter's five forces model is to

Emergent Strategy

The production head at the Omnitone Paint Company would frequently stay back after office hours and experiment with new color combinations even though this was part of the new product development team's job. As a result of these experiments, he came up with two new interior paint colors, foggy morning and mint julep. The new colors proved popular among test groups, and quickly became some Omnitone's best-selling products. Which of the following strategies does this scenario best illustrate?

True

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives.

Strategic leaders design a method to formulate and implement strategy.

What is the strategic management process?

Asoka is the CEO of Green Machines Inc.; he has helped his company in gaining and sustaining a competitive advantage through ethical decision making.

Which of the following best describes a Level 5 manager in a Level-5 leadership pyramid?

A competitor to your product where a high switching cost exists.

Which of the following firms would likely pose the least competitive threat?

It provides limited guidance about which metrics to choose.

Which of the following is a disadvantage of the balanced-scorecard approach?

Levels of Employment

Which of the following is a macroeconomic factor that can affect a firm's strategy?

Tangible assets can be bought on the open market by anyone with the necessary cash, whereas intangible assets cannot be easily purchased.

Which of the following statements accurately brings out the difference between tangible and intangible resources?

Apple had a higher return on invested capital that Microsoft.

Which of the following statements correctly compares Apple and Microsoft in 2016?

Accounting data are historical data and thus backward-looking.

Which of the following statements is true of accounting data?

Corporate strategy deals with where to compete; business strategy deals with how to compete.

Which of the following summarizes the difference between corporate strategy and business strategy?

Economic value created

__________ is best described as the difference between a buyer's willingness to pay for a product or service and a firm's total cost to produce it.