Test 6
infrastructure
A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business. A) knowledge B) physical C) human D) infrastructure E) capital
Nissan Motor (Japan)
Brazilian Carlos Ghosn is chief executive of: Nissan Motor (Japan). Pearson PLC (Great Britain). Ford Motor Company (USA). Pharmacia Corporation (USA). Atlas Copco AB (Sweden).
Competitive innovation
Building layers of advantage is one of the elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
Hamel and Prahalad
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
changing the rules
Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under: A) collaborating. B) loose bricks. C) changing the rules. D) layers of advantage. E) differentiation.
loose bricks
Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of: A) collaborating. B) loose bricks. C) changing the rules. D) layers of advantage. E) differentiation.
lean production
Concepts such as "assembler value chains" and "downstream value chains" are associated with: lean production. the matrix structure. polycentric organizational designs. the global marketing audit. traditional assembly designs.
hiring qualified personnel
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) cutting costs to keep production at home. C) investing in automation. D) hiring qualified personnel. E) investing in Robots, not workers.
rivalry among competitors
Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers
decision making
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except: dexterity. team attitude. problem solving. decision making. team work.
product differentiation
Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
buyer power
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
Coca-Cola (United States)
Joseph Tripodi is Chief Marketing and Commercial Officer of: Gap (United States). Levi's (United States). L'Oreal (France). Coca-Cola (United States). SAP AG (Germany).
simply another geographic market
Under the geographical and product division structures, for the company with French origins, France is: the headquarter country market. simply another geographic market. a special unit of the European market. a divisional market in Europe. a product market in European Union.
impede information sharing
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: the need to have seamless communication. not to depend on a small group of people. impede information sharing. facilitate decision making. utilizing everybody's wisdom.
regional management center
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): matrix structure. international division structure. geographic structure. worldwide product division structure. regional management center.
regional management center
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): matrix structure. international division structure. geographic structure. worldwide product division structure. regional management center.
lac of employee teamwork
Which of the following is not the way U.S. auto mass producers operate? greater labor content less mechanization less flexible mechanization divide employees in discrete specialties lack of employee teamwork
adept at exchanging ideas, processes and symptoms
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: adept at exchanging ideas, processes, and symptoms. absolutely free of the "not-invented here" syndrome. constantly working together to identify best global opportunities. working together to solve the biggest global problems. able to adapt to systems across borders.
factor conditions
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
provide customer contacts
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except: lower costs and quick updates. facilitate problem solving. unite engineering and manufacturing processes. provide customer contacts. enhance product consistency.
bargaining power of suppliers
In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
layers of advantage
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
flexibility, efficiency, and responsiveness.
In today's dynamic global competitive environment, organizations need to develop new forms of: ethnocentrism and myopia. flexibility, efficiency, and responsiveness. export department structure. self-reference criterion. geographic structure.
decline in per-unit product costs
New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
the cost can be prohibitive
One of the potential drawbacks of a regional management center is that: pan-regional coordination efforts can suffer. the cost can be prohibitive. the company may lose its "insider" advantage. regional management may take a one-sided approach when implementing corporate objectives. there is a lack of coordinated decision making.
competiencies
Organizations, in order to be globally successful, must be viewed as portfolio of: activities. businesses. competencies. products. policies.
declining
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. increasing declining improving horizontal vertical
barriers to entry
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
annual business meeting
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
microsoft
The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
resolve conflicts and achieve integration.
The key to successful matrix management is ensuring that managers are able to: adopt a matrix design. adhere to matrix structure. maintain technical systems. resolve conflicts and achieve integration. preserve existing organizational culture.
change the rules of engagement
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
media
Primary stakeholders include all of the following except: top management. employees. media. suppliers. customers.
connecting
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about: hierarchy. title. status. connecting. bragging.
related and supporting industries
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
the industry's profit potential in terms of long-run return on invested capital.
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
it is easy for competitors to imitate
According to Prahalad and Hamel, a core competence has all of the following characteristics except: potential access to a wide variety of markets. a significant contribution to perceived customer benefits. it is easy for competitors to imitate. benefits to customers. it is difficult for competitors to imitate.
Shareholders consider Starbucks' stock to be risky investment.
All of the following statements regarding Starbucks are true except: Starbucks offers health benefits to company employees. Starbucks partners can take part in Starbucks' stock option plan. Starbucks has the opportunity to be a different global company. Starbucks is a profitable company. Shareholders consider Starbucks' stock to be risky investment.
loose bricks
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
status
An important leadership task involves articulating all of the following points except: beliefs. values. status. policies. activities.
international division structure
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): matrix structure. international division structure. geographic structure. worldwide product division structure. regional management center.
large numbers and relatively few in number
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
walmart's buyer power and cost leadership
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers
focused differentiation
Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
Differentation
Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
product knowledge and know-how
Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis: geographic knowledge. product knowledge and know-how. functional competence in finance, production and marketing. knowledge of customer or industry and its needs. All of these are competencies.
China
Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in: India. Mexico. Japan. South Korea. China.
Sony (Japan)
Howard Stringer, a native of the United Kingdom, is Chairman of: Nissan Motor (Japan). Pearson PLC (Great Britain). Ford Motor Company (USA). Sony (Japan). Atlas Copco AB (Sweden).
focused differentiation
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
develop their own core ideologies.
In a socially responsible firm, employees perform all of the following except: conduct business in an ethical manner. pursue goals and policies that are in society's best interest. use moral principles as guidelines. distinguish between right and wrong. develop their own core ideologies.
a cadre of globally oriented managers.
In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building: their company stature. physical layout and design. a cadre of globally oriented managers. a cadre of loyal customers. access to distribution channels.
employee teamwork
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except: less mechanization. greater labor direct content. divide employees with no overlap. limited quality control. employee teamwork.
all of these
In developing countries, globalization's opponents accuse companies of: undermining local cultures. placing intellectual property rights ahead of human rights. promoting unhealthy diets and unsafe food technologies. pursuing unsustainable consumption. All of these
collaboration
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
to deliver success
In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except: to be cost effective. to be customer driven. to deliver best quality. to deliver quickly. to deliver success.
cost/quality
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events
cost focus
In the shipbuilding industry, Polish and Chinese shipyards offer simple, standard vessel types at low prices that reflect low production costs. This represents generic strategy related to: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
pepsi co (USA)
Indra K. Nooyi is chief executive of: Nissan Motor (Japan). PepsiCo (USA). Ford Motor Company (USA). Pharmacia Corporation (USA). Atlas Copco AB (Sweden).
3M (USA)
Inge G. Thulin is chief executive of: Nissan Motor (Japan). 3M (USA). Ford Motor Company (USA). Pharmacia Corporation (USA). Atlas Copco AB (Sweden).
appreciate the value of the NGOS dependence
Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except: don't wait for a crisis to collaborate. recognize that collaboration involves some compromise. think strategically about relationships with NGOs. appreciate the value of the NGOs dependence. understand that building relationships with NGOs takes time.
chimneys
Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. sprinklers fountains chimneys skyscrapers towers
competitive innovation
Many firms have gained competitive advantage by disadvantaging rivals through: A) cost leadership. B) differentiation. C) competitive innovation. D) focused differentiation. E) consumer differentiation
Differentation
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
Corporate Social Responsibility
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for: labor unions. equal opportunity employment. higher wages. standards for working conditions. corporate social responsibility.
No two organizations arrive at precisely the same organizational pattern.
Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate? Conflicting pressures may arise from the need for product and technology. No two organizations pass through similar stages. No two organizations arrive at precisely the same organizational pattern. Some patterns are common among different organizations. Conflicting pressures may arise from the need for better organization.
cost leadership, product differentiation, cost focus, focused differentiation
Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
the flagship model
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
upward pressure on prices and profitability
Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
loose bricks
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
hypercompetition
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
There are 200 million Chinese children studying English.
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement? There are 200 million Chinese children studying English. There are 24 million American children studying Chinese. There are 200 million Indian children studying Chinese. Chinese managers study English as much as Chinese. There are equal numbers of American and Chinese children studying English.
considerable cost saving
The advantages that a regional management center can offer include all of the following except: pan-regional decision making. coordinated regional planning. considerable cost saving. coordinated control. coordinated decision making.
U/s Manufacturers did not realize drivers preferences
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
the size of the competitors share of the home demand
The characteristics of home demand for a firm's products or services include all of the following except: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
manager
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except: dealers. distributors. customers. suppliers. managers.
cost focus
The issue of sustainability is central to this strategy concept: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
being committed to constant improvement
The key to maintaining competitive advantage, according to Dr. W.E. Deming is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
matrix structure
The organization design in which an employee reports to both a country manager and a functional manager is a(n): matrix structure. international division structure. geographic structure. worldwide product division structure. regional management center.
physical
The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as ‒20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business. A) knowledge B) physical C) human D) infrastructure E) capital
human rights, labor, and the environment.
The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions: factor conditions, demand conditions, industry conditions. human rights, animal rights, and the environment. content domain, human conditions and animal rights. human rights, labor, and the environment. content domains, animal rights, and labor.
buyer power
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
speed and commitment
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: beliefs and values. values and activities. speed and commitment. policies and speed. activities and commitment.
products can be tailored to local market needs.
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except: manufacturing standardization can occur. products can be tailored to local market needs. can result in significant economies. can result in saving development costs. can help in integrating operations.
changing the rules of engagment
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
layers of advantage
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
matrix structure
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? matrix structure international division structure geographic structure worldwide product division structure regional management center
ABB
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? Whirlpool Levi Strauss Pearson PLC ABB Gillette
kenichi ohmae
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? Paul Krugman Kenichi Ohmae Tom Peters Michael Porter Kazuo Inamori
maximize backwards integration
Which of the following assumptions does not belong in a list of characteristics of lean production? labor is more costly than machines set up time can be reduced minimize inventory to cut costs and wastage maximize backwards integration inspection to prevent defective production
outsource from supplier specialists
Which of the following does not belong in a list of mass production in an automobile company such as Ford? changing value chains use of the moving assembly line organized production machinery outsourcing from supplier specialists making each worker productive
A lack of desire by management to scan the globe for opportunities and threats.
Which of the following does not contribute to the establishment of an international division? An organizational unit should be headed by a committed senior manager. Complexity of international operations to make its own decisions. Recognition of the need for internal specialists. A lack of desire by management to scan the globe for opportunities and threats. Assembling a staff that will take the responsibility to coordinate.
fixed setup time
Which of the following does not describe the Toyota Production System (TPS)? jidoka "just-in-time" fixed setup time built-in quality visualizing problems
focused differentation
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
PepsiCo (USA)
Which of the following has an American woman as the chief executive? Nissan Motor (Japan) PepsiCo (USA) Ford Motor Company (USA) Pharmacia Corporation (USA) Atlas Copco AB (Sweden)
focused differntiation
Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
the competitive rivalry among current members
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members
loose bricks
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
There is no single "best" structure.
Which of the following is the best organization structure for global marketing? international division structure matrix geographic structure worldwide product division structure There is no single "best" structure.