strategic management test 1
larger output
Economies of scale are cost advantages that accrue for firms with
PESTEL framework
The ________ allows the scanning, monitoring, and evaluating of changes and trends in a firm's macro environment.
tangible resources
Amazon.com's network of distribution centers allow it to drastically reduce its delivery times compared to other online retailers. These distribution centers are examples of Amazon's(4)
the gap between the value the firm's product generates and the cost to produce it is large.
A firm's strategic position is likely to be strong when
marketing and sales
According to the value chain analysis, which of the following is a primary activity?
capital requirements are low
In an industry, the threat of entry is high when
decline in the firm's market share
In the context of SWOT analysis, which of the following best exemplifies a firm's internal weakness?
a society's culture, norms, and values
Which of the following is the best characterization of sociocultural forces?
In monopolistic competition, many firms compete against each other; in an oligopoly, there are few large firms competing against each other.
Which of the following statements accurately brings out the difference between monopolistic competition and an oligopoly?
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?
It makes it difficult for the competitors to understand why a company has been so successful.
How does causal ambiguity act as an isolating mechanism for organizations?
Substitutes are readily available in the form of trains, buses, and cars, thus reducing the profit potential in 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?
Capabilities
Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as
perfect competition exists.
The competitive advantage that one firm has will be short-lived in an industry in which
the punch presses that produce parts
The management of a company is assessing the value of all the tangible resources the company owns. Which of the following will be included in this assessment?
understand the profit potential of industries.
The primary objective of Porter's five forces model is to
levels of employment
Which of the following is a macroeconomic factor that can affect a firm's strategy?
The overall industry profitability will increase.
Which of the following is likely to happen due to horizontal mergers between competitors such as Delta and Northwest airlines?
Isolating Mechanisms
________ are barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.
path dependence
________ describes a process in which the options one faces in a current situation are limited by decisions made in the past.