Midterm

When pursuing a cost-leadership strategy, a business must remember that:

Buyers will be reluctant to pay for the product unless it is customized.

Which of the following summarizes the difference between a firm's vision and mission?

a vision states what a firms wants to accomplish, a mission states how a firm plans to accomplish this vision

Which of the following is primarily a value driver?

complements

The goal of a good strategy is focused primarily on

creating superior value while containing costs

LinkedIn, a professional social media website, allows users to create their profiles for free, but charges a premium price for additional services. This is what kind of business model?

freemium

The question that business-level strategy answers is ___ the firm will compete.

how

According to the Resource Based View, a firm's competitive advantage often stems from its

intangible resources

core competencies are derived from the combination of

key strategic resources and a firm's capabilities

Southwest Airlines and Alaska Airlines both compete as point-to-point airlines, but they draw upon different resource bundles. This example best illustrates which of the following assumptions regarding the resource-based view?

resource heterogeneity

Which of the following external forces is part of a firm's task environment?

the composition of the strategic group to which the firm belongs the interest rates prevalent in the economy in which the firm operates

The AFI framework affects a firm at nearly every level. Which is the top level of strategy within a firm?

the corporate level

Firm that compete within the same strategic group generally experience

the same competitive rivalry that firms outside their strategic group

Jalen Corp, a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability. Which of the following industries would Jalen Corp find it most difficult to exit?

the steel industry in which the company has obligations like severance pay toward employees

Which of the following best describes a strategic tradeoff?

the tension between value creation and the pressure to keep costs in check

When a firm is unable to successfully employ a blue ocean strategy, it will create a competitive advantage by

winning market share with a highly differentiated product

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

levels of employment