MBA 6202 - Chapter 1 HW

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through a-strategy a-implementation. b-formulation. c-analysis. d-control.

c

The greater the difference between value creation and cost, the a-greater a firm's competitive parity. b-less likely that a firm's strategic position will be competitive. c-greater a firm's economic contribution. d-less likely a firm will gain competitive advantage.

c

Which of the following groups is most likely to be considered a firm's internal stakeholder? a-creditors b-customers c-board members d-alliance partners

c

Which of the following is a philanthropic responsibility of a firm? a-competitive disadvantage b-competitive parity c-strategic positioning d-corporate citizenship

d

The annual net profit after taxes for RSL Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit? a-local communities b-shareholders c-managers d-government

b

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? a-consistent power position b-sustainable competitive advantage c-strategic positioning d-long-term capital gain

b

Which of the following groups will not be considered a company's internal stakeholder? a-managers b-suppliers c-board members d-shareholders

b

A firm is likely to have a competitive advantage when it a-provides services that consumers will value more than those of its rivals. b-minimizes the difference between value creation and the costs involved. c-performs at a level similar to the other firms in the industry. d-provides goods similar to those of its competitors, but at a higher price.

a

Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario? a-It has a competitive advantage over the other firms. b-It has a direct investment in the other firms. c-It has competitive parity with the other firms. d-It has an exchange relationship with the other firms.

a

Which of the following forces are most closely related to firm effects within a pharmaceutical industry? a-the strategic actions taken by managers of a firm in the industry b-the number and the size of the firms in the industry c-the types of products and the services offered within the industry d-the entry and exit barriers existing within the industry

a

Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? a-Quick Eats will be able to create higher value for its customers. b-Quick Eats will face low profit potential. c-Quick Eats will be better placed to gain a competitive advantage in the industry. d-Quick Eats will not face any direct competition in the industry.

b

Which of the following has contributed to Twitter's loss of a competitive advantage? a-Twitter delivers ads in real time, as opposed to competitors such as Facebook. b-Twitter does not allow advertisers to target their online ads precisely enough. c-Core users of Twitter are unable to stay connected permanently. d-Individuals pay nothing to use Twitter, which gives Twitter free user-generated content.

b

Which of the following statements is true of strategy? a-Operational effectiveness and competitive benchmarking are strategy. b-Actions that allow a firm to address a competitive challenge are strategy. c-Statements of desire, on their own, are strategy. d-Tactical tools that are a part of a firm's functional and global initiatives are strategy.

b

Which of the following statements related to a firm's stakeholders is not true? a-Effective stakeholder management is an example of the actions managers can take in order to enhance a firm's competitive advantage. b-While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits. c-A firm's stakeholders include organizations and groups along with individuals who can affect or be affected by the firm's actions. d-If internal or external stakeholders withhold participation in the firm's exchange relationships, it can have severe negative performance implications.

b

How has Threadless staked out a unique strategic position? a-by providing higher quality T-shirts than other companies b-by providing faster service than other T-shirt companies c-by providing customers a voice in product design d-by providing more discounts than other T-shirt companies

c

The black swan events in the past have demonstrated that a-companies can successfully integrate cost-leadership and differentiation strategies. b-capitalism as an economic system is highly reliable. c-stakeholders can affect or be affected by a firm's actions. d-globalization has reduced the need for standardized corporate ethics.

c

The metaphor of a black swan best applies to a-small businesses that become successful enough to raise capital through initial public offering. b-low profitable strategic business units within a large enterprise that are best divested or liquidated. c-events that are considered highly unexpected and highly impactful when they do occur. d-highly profitable business units in low growth markets that are to be sustained solely for revenue generation.

c

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in a-a competitive advantage through superior performance. b-an increase in the firm's economic contribution. c-trade-offs that work against each other. d-competitive parity with firms that have adopted either of the strategies.

c

Which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? a-literacy b-solvency c-legitimacy d-supremacy

c

Which of the following statements about competitive advantage is not true? a-A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price. b-A firm's past performance does not guarantee its future performance. c-A firm's competitive advantage is always absolute, not relative. d-A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time.

c

Which of the following would be most likely to directly put an organization like BP at a major competitive disadvantage? a-the claims it faces by many small business owners in the tourism and seafood industries b-the fact that the small business owners along the Gulf coast have become powerful BP stakeholders c-the Environmental Protection Agency (EPA) banning BP from any new contracts with the U.S. government d-the fact that BP caused an environmental disaster despite being recognized as having high business integrity

c

Why are black swan events often bad for business? a-They contribute to competitive parity, which hinders economic growth. b-They foster a false sense of prosperity, which results in economic depression. c-They erode the implicit trust between the corporate world and society. d-They allow companies to gain a competitive advantage unfairly.

c

Which of the following statements will effectively guide a strategist? a-It is necessary to isolate the key stakeholders and their needs when formulating a strategy. b-Strategy is all about competitive benchmarking and operational effectiveness. c-Industry and firm effects that determine firm performance are independent of each other. d-The principles of strategic management can be applied universally to all organizations.

d

Which of the following statements with regard to determining firm performance is true? a-Industry effects are more important than firm effects in determining a firm's performance. b-Industry effects attribute firm performance to the actions managers take within a chosen industry. c-Firm and industry effects are independent of each other. d-External analysis will help understand the industry effects that determine a firm's performance.

d

Widgets Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Widgets Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Widgets Inc. is a(n) _____ for the appliance manufacturing company. a-representative sample b-focus group c-internal stakeholder d-external stakeholder

d