Bus Policy Test 1

The secondary (support) activities that value chains include?

-Firm infrastructure -Human Resource Mang. -Technology development -Procurement

The primary activity that value chains include?

-Inbound logistics -Marketing & Sales -Outbound logistics -Operations

The four components required for creating best value supply chains?

-Supply Chain management -Alignment -Agility -Adaptability

Market (industry) structures: Oligopoly

-few sellers -intense rivalry -"game theory"

Market (industry) structures: monopolistic competition

-many buyers and sellers -fragmented market -differentiated products -imperfect information of the market

Market (industry) structures: Pure (perfect) competition

-many buyers and sellers -undifferentiated products -perfect information of the market

Market (industry) structures: monopoly

-one seller

What are the three levels in Kotlers total product model?

1) Core product: What core need does it fill? 2) actual product: What you actually purchase? 3) augmented product: special inducements to get you to buy.

Explain and list 4 dimensions of the balance scorecard

1) Financial- return on assets and stock price related to effectiveness and profits 2)customer measures- number of new or repeated customers and percentage of repeated customers related to customer attraction and satisfaction 3)internal business process- speed at serving a customer and time it takes to create a new product and get it to market related to organizations efficiency 4)learning and growth- average number of new skills learned by each employee every year

5 P's of Strategy

Plan, Ploy, Pattern, Position, Perspective

Sony's launches of PlayStation 2, then PS3, then PS4, is an example of which concentration (intensive) strategy?

Product Development

Dell Computer's initial decision to start selling LCD wide-screen TVs is an example of _______.

Related Diversification

Which of the following is an example of forward vertical integration?

A supplier firm chooses to enter its customers' business

True or False: A firm's property, reputation, and culture are considered to be its tangible resources.

False

A company uses outside suppliers to provide services that it could perform itself. (e.g. a firm might contract a professional cleaning company to come in on a regular basis to clean offices.)

Outsourcing

Which of the following models is used for analyzing the general external environment?

PEST (or PESTEL)

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

PESTEL

A "3 firm concentration ratio of 80%" would mean:

The industry is highly concentrated

Which of the following statements holds true for learning and growth measures as a part of the balanced scorecard?

They focus on innovation and proceeds with an understanding that strategies change over time.

BSG GAME: Which of the following currencies are involved in affecting the operations of your company's athletic footwear business?

U.S. dollars, Singapore dollars, euros, and Brazilian reals

The "triple bottom line" is an approach to assessing performance that emphasizes concern for

people, planet, and profit

The book "The Principles of Scientific Management" _____.

stressed on how organizations could become more efficient through identifying the "one best way" of performing important tasks

If Dell Computer were to acquire Intel, it would best be described as an example of ______.

Backward Vertical Integration

Creating a new, untapped market rather than competing with rivals in an existing market is a (an)

Blue Ocean Strategy

"Given the business (es) we are in, how should we compete?" is the question asked at the ____ level

Competitive (business) strategy

_____ is one of the five forces of Michael Porter's five forces analysis

Competitors in an industry

If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an example of a __.

Conglomerate Diversification

Which generic strategy is usually associated with the discount retailers such as Wal-Mart?

Cost Leadership Strategy

A generic strategy aimed at emphasizing the uniqueness or superiority of products and services is_?

Differentiation Strategy

The sale of one of a firm's SBUs to a competitor, and that SBU continues to operate is a _______.

Divestiture

If a company builds a new manufacturing plant dedicated to producing shoes for a region, and later decides to get out of that region but can't find a buyer for the plant, the manufacturing plant might be viewed as a (an) _____.

Exit Barrier

Which of the following conditions is most likely to cause fierce rivalry between competitors of an industry?

Fixed costs in the industry are high

When a shoe manufacturer opens a company-owned retail store, it is an example of

Forward Vertical Integration

_________ involves an organization granting the right to use its brand name, products, and processes to other organizations in exchange for an upfront payment and a percentage of revenues generated by the other organizations.

Franchising

The name given to Michael Porter's group of strategies used at the competitive (business) strategy level

Generic Strategies

The formation of HP/Compaq and Daimler/Chrysler are examples of which grand strategy?

Horizontal Integration

Which of the following statements holds true for the "capstone" course recommended by The Ford Foundation?

It emphasized student's critical thinking skills in general and the notion that multiple ways of addressing a problem could be equally successful in particular.

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It is also able to charge prices that aref higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows?

It has an ability to obtain premium prices from customers.

Which of the following statements holds true for the book "Strategy and Structure: Chapters in the History of the Industrial Enterprise"?

It stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance.

A sign in a store window reads, "going out of business—everything must go" is probably an example of which grand strategy?

Liquidation

Exporting products made in the US to new foreign markets is a basic example of which concentration (intensive) strategy?

Market Development

Marketing efforts to increase sales of existing products in existing markets is which concentration (intensive) grand strategy?

Market Penetration

Difficulties encountered by trying to "reposition" a brand in the market (e.g. moving "upscale") are examples of a (an) _______?.

Mobility barrier

The internet boom of the 1990s is an example of:

Shumpterian Shock

_____ is one of the five forces of Michael Porter's five forces analysis.

Substitutes for an industry's offerings

Which of the following is one of the five forces of Michael Porter's five forces analysis

Suppliers to an industry

BSG GAME: Which of the following is the most important factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region?

The company's bid price

Plan (5 P's of Strategy)

a carefully crafted set of steps that a firm intends to follow in order to be successful

BSG GAME: Which is true concerning the S/Q rating?

a company may have as many as 8 different S/Q ratings in a year

Position (5 P's)

a firms place in the industry relative to its competitors

Ploy (5 P's of Strategy)

a specific move designed to outwit or trick competitors

BSG GAME: If you offer free shipping in the internet market, the shipping and handling fees that you will have to "absorb" is how much per pair of shoes?

a. 20% of the shoe's retail cost b. $2.75 c. $12.50 per pair d. $20 per pair e. none of the above CORRECT

List and describe the types of strategies (Intended, Emergent, Unrealized, and Realized.)

a. Intended - is planned and deliberate. It is the set of intentional acts that is contemplated and planned to accomplish a goal. An intended strategy is also sometimes called a deliberate strategy. Analytical and structured. b. Emergent - it occurs by chance or happens within the organization without any long term planning. It occurs from the day to day decisions made to run the company at the tactical and routine level of the company. Comes from unforeseen circumstances. c. Unrealized - the abandoned parts of the intended strategy. The result of a strategy implemented that did not succeed. Unsucessful. d. Realized - the strategy that an organization actually follows. Realized strategies are a product of a firm's intended strategy, the firm's deliberate strategy, and its emergent strategy.

What are the major components of strategic management?

a. It is a process of performing i. Strategic analysis ii. Strategic formulation/decisions iii. Strategic implementation b. All to obtain competitive advantage and yield above average returns.

Perceptual (or position) mapping is used to:

a. identify strategic groups of competitors b. identify "gaps" in the market c. identify industry competitors' position in the market d. all of the above (CORRECT)

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal.

aggressive

Which of the following components required for creating best value supply chains can be achieved through the use of buffers?

agility

Sony's and Apple's ability to innovate to "reinvent" existing ways of doing things is known as ___.

creative destruction

refers to an approach to assessing performance that targets managers' attention on four areas: financial, customer, internal business process, and learning and growth.

balance scorecard

Concentrated industries differ from fragmented industries in that in concentrated industries:

businesses tend to keep their competition rather polite.

New entrants are more likely to join an industry if:

capital requirements to enter the industry are low.

What is a value chain?

charts the path by which products and services are created and eventually sold to customers

When unemployment rises, discretionary income plummets. That hurts businesses selling costly but non-essential goods. This example represents the _____ segment of PESTEL analysis

economic

The general environment, a component of the environment of an organization, is also called the:

macro-environment.

Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy.

emergent

New entrants are more likely to join an industry if:

existing competitors lack economies of scale.

A farmer realizes that he is not getting fair price from the agents who buy produce from him and sell it to the markets. As such, he decides to sell produce directly to the local market. This is an example of

forward vertical integration

Perspective (5 P's of Strategy)

how executives interpret the competitive landscape around them

A take-out restaurant specializing in pizzas completes the order for a single pizza in 15 minutes. The employees of the restaurant are trained to deliver orders within the specified period. This is an example of a(n) _____ measure used to assess organizational performance.

internal business process

. An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The progress of the project can be easily calculated and assessed. The fact that this project can be easily assessed reflects the _____ dimension of a goal.

measurable

A charitable organization provides education to poor children. It aims at providing education to every child who cannot afford to pay for his or her own education. This is an example of the _____ of the organization

mission

The likelihood of new entrants joining an industry is low if access to distribution channels is limited because:

new entrants struggle to get their offerings to customers

The likelihood of new entrants joining an industry is low if existing competitors enjoy economies of scale because

new entrants struggle to match incumbents' prices

uattro is a pizza shop that delivers pizzas without any extra charge. It plans to refund the entire amount of the order in case the pizza is not delivered within a period of thirty minutes from the time when the order is placed. After two years it has stopped the policy of refunding any money in case of a delay of more than thirty minutes. The fact that it stopped the policy of refunds in case of a delay of more than thirty minutes is an example of a _____ strategy.

non-realized

PESTEL analysis differs from the five forces analysis in that PESTEL analysis is used for:

organizing factors within the general environment and identifying how these factors influence industries and the firms within them.

A department store consistently keeps low prices, and this strategy helps the store to attract many customers. This is an example of a strategic:

pattern

A supermarket purchases all its vegetables from the local farmers. It also ensures that it purchases the vegetables from farmers who are located closest to the supermarket so that the distance covered in the transport of the vegetables is the minimal. This would reduce pollution. The supermarket is also earning good profits. The fact that the supermarket purchases all its vegetables from the local farmers and demonstrates its social responsibility reflects the _____ aspect of the triple bottom line framework.

people

Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as:

perspective

Strategy as _____ refers to how executives interpret the competitive landscape around them.

perspective

. A coffee chain was losing its customers to its competitors, and wanted to increase its sales. Therefore it started offering complimentary pastries with every cup of coffee, to outwit its competitors. Soon, the company registered an increase in its sales. This is an example of a strategic:

ploy

Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.

political

Strategy as _____ refers to a firm's place in the industry relative to its competitors.

position

A(n) _____ strategy is the strategy that an organization actually follows.

realized

Strategy formulation, strategy implementation, and ____ are the steps (or phases) in the strategic management process.

strategy evaluation

Pizzas at Home, a pizza shop, plans to deliver pizzas to households. The delivery would be made without any extra charge. It put its plans to good effect. Soon, Pizzas at Home starts charging a nominal fee for the delivery. Many other pizzerias start following the same strategy and thus, Pizzas at Home is now giving pizzas for free if the pizzas are not delivered within 30 minutes of placing the order. The strategy followed by Pizzas at Home is an example of a(n) _____ strategy.

realized

A(n) _____ fee refers to the percentage of franchisees' revenues paid to an organization which has granted the right to use its brand name, products, and processes.

royalty

Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to the clothing line. The part of the revenues paid by the outlets to Marty's is referred to as:

royalty fee

Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities.

scale

Myshirts.com, a company that manufactures shirts, buys large consignments of dressing material from a supplier. The supplier charges them less than what Myshirts.com would have had to pay if it had purchased the material from different sources. As a consequence, the cost of manufacturing each shirt at Myshirts.com is lower than at other manufacturers. This is an example of economies of:

scale

A viable business model requires that a firm:

sell goods or services for more than it costs the firm to create and distribute those goods.

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if:

suppliers' goods or services cannot be substituted effectively.

Pattern (5 P's of Strategy)

the degree of consistency in a firms strategic actions

BSG GAME:Which of the following is true concerning mail-in rebates?

the higher the rebate offer, the higher the redemption ratea. There are 13 rebate options ranging from $3/pair to $15/pair b. Customer response to rebates is a function of the size of the rebate and the amount that your offer is above/below industry average c. the customer acceptance rate of rebate offers range from 15% to 90% d. All of the above are true concerning mail-in rebates

Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if

the suppliers' industry is dominated by a few companies.

Buyers are more likely to be powerful relative to the firms from which they purchase goods and services if:

there are relatively few buyers compared to the number of firms supplying the industry

The likelihood of new entrants joining an industry is low if switching costs are high because:

this discourages customers from buying a new entrant's offerings.

According to the resource-based theory, resources that provide a firm a sustained competitive advantage are rare

valuable, nonsubstitutable, and difficult to imitate.

Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company.

vision

The main question asked at corporate-level strategy is:

what business(es) are we in/should we be in?

key question of strategic mangement?

why do some firms outperform other firms