Combined Set-1

In a(n) _____ strategy formulation, managers focus on deciding HOW the firm should compete. Global Business External Corporate

business

Introducing a new technology to an existing market to better address consumer needs is known as ____ innovation. Radical Disruptive Architectural Incremental

disruptive

The value innovation framework is: eliminate reduce raise create. reduce reuse recycle repurpose. analyze decide accomplish restart. understand acknowledge attempt achieve.

eliminate reduce raise create

Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's _____ (one word) responsibilities exceed its legal responsibilities.

ethical

Using the "resource-based view" helps firms: discourage the formation of labor unions. understand the industry structure. gain or maintain competitive advantage. train employees effectively.

gain or maintain competitive advantage

When buyers can credibly threaten to backwardly integrate into the industry, the power of buyers is: high. insignificant. low. moderate.

high

The concept, or framework of corporate social _____ (one word) guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

responsibility

The four-step innovation process begins with: Inspiration Imagination An idea Invention

an idea

A disruptive innovation typically requires a(n) _____ approach to capturing the market. Upside-down Bottom-up Top-down Inside-out

bottom-up

The four strategic options that managers have in the decline stage are: exit, harvest, maintain, or _____. Innovate Consolidate Restart Revive

consolidate

Which of the following are primary strategy objectives? (Check all that apply.) controlling costs strengthening relationships maximizing sales creating value

controlling costs creating value

Managers have _____ direct influence over external forces in the firm's general environment than those in the firm's task environment. More Vastly more Less The same

less

Which of the following statements are true about the capabilities of a firm? (check all that apply) They include managerial skills They include intellectual property They concern the deployment of resources They include organizational skills

they include managerial skills, they concern the deployment of resources, they include organizational skills

How are intangible resource stocks acquired? Through developing tangible resources Through decreasing development of tangible resources Through investments over time in intangible resources Through purchasing other firms or merging firms

through investments over time in intangible resources

A firm's strategic position is determined by the relationship of which two variables? Supply and demand Number of products sold and price of the product Number of different products in the firm's portfolio and countries in which they are sold Value creation and cost

value creation and cost

Place the 5 steps of the stakeholder impact analysis in order, with the first step at the top: What are stakeholders' interests? What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? Who are our stakeholders? What opportunities and threats do our stakeholders present? What should we do to effectively address the stakeholder concerns?

1. who are our stakeholders? 2. what are our stakeholders' interests? 3. what opportunities and threats do our stakeholders present? 4. what economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. what should we do to effectively address the stakeholder concerns?

A differentiation strategy can be threatened when: the focus of competition shifts to non-price attributes. a product becomes commoditized, and the focus of the competition shifts to price. the perceived quality of cost leadership diminished. the firm leverages opportunities on competitive efforts.

a product becomes commoditized, and the focus of the competition shifts to price

A tablet manufacturer that includes a free stylus with every purchase is using _____ to enhance users' experiences and increase the perceived value of its tablets. Differentiation Complements Customer service Product features

complements

Benny's Baos is in a declining industry, but Benny thinks he can still survive by buying his competitors. Which strategic option is he planning to use? Maintain Exit Harvest Consolidate

consolidate

What can incumbent firms do to counter disruptive innovations? (check all that apply) Continue to innovate Listen closely to their most important customers Disrupt themselves Protect the low end of the market Focus on the high end of the market

continue to innovate, disrupt themselves, protect the low end of the market

The idea that firms should voluntarily give back to society when they are able to do so is also known as: corporate citizenship. legal citizenship. employee profit sharing. corporate profit sharing.

corporate citizenship

Managers can increase the perceived value of their firms' product or service offerings by focusing on: salient costs. strategic contributions. customer service. supply chains.

customer service

Economies of scale are: increases in minimum efficiencies of scale. decreases in economic value due to competitive parity. increases in cost-leadership business level strategy. decreases in cost per unit as output increases.

decreases in cost per unit as output increases

In an oligopoly, which of the following conditions exist? (check all that apply) Differentiated products A few large firms High barriers to entry Abundant commodity products

differentiated products, a few large firms, high barriers to entry

Javier, the owner of Javier's Tacos, has noticed that residents of his town are flocking to a new taco truck in increasing numbers. After doing some research, Javier learns that consumers enjoy the new taco truck because almost all ingredients are locally sourced. Javier decided to add locally sourced ingredients to his menu. This is an example of: resource immobility. direct imitation. a value chain. substitution.

direct imitation

The primary objective of firms during the introductory stage of the industry life cycle is to: redefine existing distribution channels and standards. establish themselves as a market participant and position themselves for future growth. produce large quantities for mass distribution. develop complementary products to increase market visibility.

establish themselves as a market participant and position themselves for future growth

Match the explanation with the element of the pyramid of corporate social responsibility: Do what is right, just, and fair

ethical responsibilities

Customers, suppliers, creditors, unions, and governments are known as ______. Multiple choice question. internal stakeholders external stakeholders crowdsurfers rivals

external stakeholders

The weaker the five forces in Porter's model, the _____ the industry's profit potential. Less differentiated Lower Less certain Greater

greater

At which state of the industry life cycle does the size of the market expand rapidly? Decline Shakeout Maturity Growth Introduction

growth

Which of the following statements about the industry life cycle are true? (check all that apply) Innovations are always introduced during the introduction stage Industries can be rejuvenated, even during the decline stage External factors, such as fads or demographic changes, have no effect Not all industries go through the entire life cycle

industries can be rejuvenated, even during the decline stage, not all industries go through the entire life cycle

_____ resources take a long time for a firm to build. Heterogeneous Intangible Tangible Homogeneous

intangible

In the second step of the stakeholder impact analysis, managers need to identify and understand stakeholders' ______. Multiple choice question. interests and claims political and cultural affiliations entire investment portfolio likelihood of bringing legal action against the firm

interests and claims

Which of the following statements about platform business is true? It creates value not only for the businesses but also for consumers It is a new business phenomenon that did not exist before the advance of technology and smart phones Its overarching purpose is to create wealth for its employees It is organized along a linear value chain

it creates value not only for the businesses but also for consumers

A black swan event has which of the following characteristics? It has little impact on society. It is an everyday occurrence. It is something that is planned. It is viewed as a negative event.

it is viewed as a negative event

What should a successful vision do for an organization? (check all that apply) It should make employees feel that their work is important It should inspire employees It should ensure that employees understand their job duties It should describe the products and services it plans to provide

it should make employees feel that their work is important, it should inspire employees

A producer of consumer headphones that successfully differentiates its products with a patent noise-cancelling technology and celebrity endorsements will enjoy which of the following benefits? (check all that apply) Reduced per unit costs Less intense competition from imitators The ability to charge a premium price An increased exposure to the threat of price wars

less intense competition from imitators, the ability to charge a premium price

Which of the following are components of a cost-leadership strategy? (check all that apply) Lowest costs in the industry Acceptable value Unique product features Highest prices in the industry

lowest costs in the industry, acceptable value

The resource-based view includes all of the following in the term "resources" except: Capabilities Assets Luck Competencies

luck

Which of the following are examples of ways that a large retailing firm can increase the perceived value of its offerings by focusing on customer service? (check all that apply) Maintaining a domestic call center that is open 24 hours a day By utilizing set scripts for customer service representatives to use with customers Offering an improved version of product at the same price Offering a "no questions asked" return policy

maintaining a domestic call center that is open 24 hours a day, offering a "no questions asked" return policy

Larger output allows firms to invest in more specialized systems such as: (check all that apply) Big box retail stores Manufacturing robots Enterprise resource planning software A general accountant

manufacturing robots, enterprise resource planning software

In order to succeed at the introductory stage of the industry life cycle, it is important to have competency in: Human resources Sustainability Marketing International relations

marketing

Which of the following is NOT one of the steps in the traditional top-down strategic planning process? Formulation Analysis Implementation Measurement

measurement

The positive effect that one user of a product or service has on the value of that product or service for other users is known as the: network effect. multiplicity effect. mass effect. user effect.

network effect

The third step of stakeholder impact analysis requires managers to identify the _____ (one word) and _____ (one word) presented by internal and external stakeholders.

opportunities, threats

Which of the following are examples of business activities? (check all that apply) Order taking Invoicing customers Resource immobility Delivery of products

order taking, invoicing customers, delivery of products

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.) Multiple select question. financial standing power urgency legitimacy

power urgency legitimacy

A differentiation strategy is typically associated with _____ pricing. Premium Disadvantaged Excessive Virtual

premium

Which of the following are examples of economic factors in the firm's general environment? (check all that apply) Price stability Growth rates Interest rates Government regulations Technological advancements

price stability, growth rates, interest rates

_____ vision statements do NOT describe how to provide solutions to customer needs. Manufacturing-oriented Product-oriented Customer-orietned Sales-oriented

product-oriented

Which of the following legal developments allow businesses to function as institutions? (check all that apply) Property rights Voting rights Contract enforcement Freedom of speech

property rights, contract enforcement

The beneficial effect of a differentiation strategy on the power of suppliers in an industry is: erosion of margins. increasing costs above acceptable thresholds. protection against an increase in input prices. protection against substitute products by lowering prices.

protection against an increase in input prices

The benefits of a cost-leadership strategy regarding the threat of entry in an industry includes: protection against entry due to economies of scale. protection against entry due to intangible resources such as a reputation for innovation. protection against increases in input prices, which can be passed on to customers. erosion of margins.

protection against entry due to economies of scale

The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate _____ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) _____ strategy. Emergent, intended Emergent, realized Intended, realized Realized, emergent

realized, emergent

The _____ view provides a model that sees certain types of resources as key to superior firm performance. Competency-based Activity-based Resource-based Capability-based

resource-based

While the _____ clarifies a firm's core competencies, the _____ helps leaders understand how competitive advantage arises from the firm's unique activities. Resource-based view, upper-echelons theory Resource-based view, value chain perspective Value chain perspective, resource-based view Upper-echelons theory, value chain perspective

resource-based view, value chain perspective

In the ______ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. Multiple choice question. second fifth first third fourth

second

The cultures, norms, and values of the society in which a firm competes are considered _____ factors. (one word)

sociocultural

Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage? Multiple choice question. corporate citizen strategy group happiness strategy ethical choice analysis stakeholder impact analysis

stakeholder impact analysis

The groups or individuals who can impact or be impacted by a firm's actions are known as ______. Multiple choice question. competitors expatriates stakeholders shareholders

stakeholders

Which of the following are the relationships that a firm has with stakeholders? (check all that apply) Stakeholders can affect the firm's actions. The stakeholders generally have no interest in the firm. The actions of the firm can affect stakeholders. The firm controls the actions of stakeholders.

stakeholders can affect the firm's actions, the actions of the firm can affect stakeholders

In the learning curve, the _____ the learning curve, the more learning takes place. Wider Linear Steeper Flatter

steeper

What does the concept of resource immobility imply? (check all that apply) That it is difficulty to reproduce the set of resources that a firm lacks in comparison to another firm That each firm has the same resources That different firms value different things That resource differences between firms can last a long time

that it is difficulty to reproduce the set of resources that a firm lacks in comparison to another firm, that resource differences between firms can last a long time

What is the relationship between fixed costs and economies of scale? Larger outputs result in a maximum efficient scale The amount of fixed costs allocated to each unit of output decreases as output decreases Larger output illustrates the benefits of a differentiation strategy Larger output results in lower labor costs

the amount of fixed costs allocated to each unit of output decreases as output decreases

The one key advantage of the effective use of technology for business platforms is that: the barriers of time and space are reduced. the increased number of gatekeepers ensure validity of information. costs are drastically reduced for consumers. businesses and consumers no longer care about creating value.

the barriers of time and space are reduced

True or false: A strategic leader's job is to focus like a laser on shareholders. True false

False

A core values statement provides information to employees regarding the company's: vision and mission. strategic planning. marketing strategy. ethics and morals.

ethics and morals

Using a _____ strategy, a firm continues to market its products at the same level despite a decline in consumer demand. Growth Maintain Consolidate Harvest

maintain

Whereas the firm's strategic position can be considered either differentiated or cost-focused, the scope of competition is considered: active or inactive. narrow or broad. thin or wide. comparative or contrasting.

narrow or broad

Which of the following situations would justify the use of manufacturing robots by a producer of packaged foods? Several new competitors entering the market A decline in consumer demand An increase in the cost of raw materials An increase in demand from the market

an increase in demand from the market

A(n) ____ occurs when a firm performs below the industry average or is outperformed by its competitors. Underperforming norm Competitive disadvantage Negative advantage Purchasing parity Competitive parity

competitive disadvantage

Successful transitioning from one stage of the industry life cycle to the next is referred to as: Stage-transitioning Stepping off the bridge Minding the gap Crossing the chasm

crossing the chasm

What is the overall purpose of strategic management? Gain competitive advantage Create competitive transparency Calculate parity performance measures Respond to globalization Perform risk analysis

Gain competitive advantage

Which of the following statements is true about Tesla, the manufacturer of all-electric cars? It has a product-oriented vision statement. It has a high market valuation. Its strategy is to create a unique product available only to a few. It has manufactured only two car models.

It has a high market valuation.

Which of the following are outcomes of effective stakeholder management? (Check all that apply.) It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust. It leads to beneficial cooperation from stakeholders. It reduces organizational adaptability.

It helps the firm achieve predictable and stable returns. It lowers the cost of business transactions by building trust. It leads to beneficial cooperation from stakeholders.

A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ______. a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive advantage a guiding policy to address the competitive advantage

a diagnosis of the competitive advantage

Select all that apply Which of the following are elements of a good strategy according to the AFI framework? (Check all that apply.) a diagnosis of the competitive challenge a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge a leadership group with relevant prior industry experience strong stakeholder involvement in the strategy formulation process

a diagnosis of the competitive challenge a set of coherent actions to implement the firm's guiding policy a guiding policy to address the competitive challenge

A(n) ____ can help employees feel that they are doing something worthwhile and are part of something important and meaningful. Environmental force Aspirational vision Competitive mission Benchmark

aspirational vision

According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must: have a lot of cash on hand. temporarily ignore its organizational design. pay special attention to its main competitor. be organized to capture value.

be organized to capture value

Exit barriers are composed of _____ factors. Technological and demographic Political and economic Economic and social Political and legal

economic and social

What can cause an outflow of resources from a firm? (check all that apply) Forgetting knowledge Turnover of employees Retention of employees Continuous investments

forgetting knowledge, turnover of employees

What is the overall purpose of strategic management? Gain competitive advantage Calculate parity performance measures Perform risk analysis Respond to globalization Create competitive transparency

gain competitive advantage

Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie: has a customer-oriented vision. is using a dominant strategic plan. has an illusion of control. is conducting scenario planning.

has an illusion of control

Effective stakeholder management: helps a firm build a strong public reputation. leads to dissatisfaction with customers. causes a loss of trust with business partners. results in greater likelihood of negative outcomes with employees.

helps a firm build a strong public reputation

The tendency of customers to enter the market in large numbers during the growth stage of the industry life cycle is known as the _____ (one word) effect.

herding

An increase in overall price level is also called: economic growth. inflation. recession. deflation.

inflation

As strategic commitments increase, rivalry within an industry: disappears. dissipates. intensifies. declines.

intensifies

Which of the following statements about Tesla is true? It has a product-oriented vision statement. It has manufactured only two car models. Its strategy is to create a unique product available to only a few. It has a high market valuation.

it has a high market valuation

Which of the following are factors in a firm's legal environment? (check all that apply) Innovative technology Laws Regulations Mandates Demographic trends

laws, regulations, mandates

In a focused cost-leadership strategy, a firm provides: differentiated products to a wide market. low-cost products to a niche market. low-cost products to a wide market. differentiated products to a niche market.

low-cost products to a niche market

In order to influence changes in their political environment, firms pursue: non market strategies. constitutional amendments. market strategies. revolutionary change

non market strategies

Primary activities include which of the following? (check all that apply) Research and development Operations Supply chain management Human Resources

operations, supply chain management

The overall purpose of a firm's strategy is to ______. perform better than other companies in the same industry sell all existing inventory of a given product generate significant interest from foreign investors determine demand for new product ideas

perform better than other companies in the same industry

The business structure that is linear and has producers at one end and consumers at the other is known as a(n): digital disruption. innovative ecosystem. pipeline. platform.

pipeline

Competitive advantage is gained in the value chain through which of the following types of activities? (check all that apply) Primary Establishing Support Goal

primary, support

Exit barriers, strategic commitments, and competitive industry structure are important factors in determining the intensity of _____. (one word)

rivalry

Why should a firm define a clear competitive challenge? Multiple choice question. so that external stakeholders have the same information as internal stakeholders so that the firm can achieve competitive parity so that managers can substitute tactical tools for a traditional strategy so that employees can assess their progress toward addressing it

so that employees can assess their progress toward addressing it

A firm trying to compete with the leading firm in a competitive industry can try to negate the leading firm's competitive advantage through: (check all that apply) engaging in perfect competition. substitution. value-added resources. direct imitation.

substitution, direct imitation

A competitive advantage that lasts for a long period of time is said to be ______. accurate theoretical geographic topical sustainable

sustainable

Which of the following statements regarding tasks in the AFI strategy framework is true? The tasks are very interdependent. Only two of the tasks need to be followed for success. The tasks are interchangeable. The tasks happen in sequence as separate steps.

the tasks are very interdependent

A well-devised strategy helps a firm understand _____. (check all that apply) What to do What not to do Past successes or failures Market trends in unrelated industries

what to do, what not to do

Governments sometimes set up a natural monopoly when a venture: would otherwise not be profitable. is not wanted by the public. could otherwise draw in a large number of rival firms. is in the exclusive interest of private wealth creation

would otherwise not be profitable

Which of the following are aims of stakeholder strategy? (Select all that apply.) Multiple select question. To manage various stakeholders effectively To persuade internal stakeholders to cede control to external stakeholders To gain and sustain competitive advantage To reduce the number of stakeholders of a firm

To manage various stakeholders effectively To gain and sustain competitive advantage

Which of the following are primary strategy objectives? (Check all that apply.) strengthening relationships creating value controlling costs maximizing sales

creating value controlling costs

Which of the following are important core competencies for competitive advantage in the growth stage? (check all that apply) Manufacturing capabilities Process engineering R&D Service Marketing capabilities

manufacturing capabilities, R&D, marketing capabilities

DeShawn likes to do a lot of research before he buys a new product. He reads reviews online and asks trusted friends for their opinion. DeShawn is likely a member of which type of customer? Technology enthusiasts The late majority Laggards The early majority

the early majority

The perceived value that a company creates for consumers less the company's costs to create the value equals: a differentiation strategy. the economic value created. industry attractiveness. a strategic trade off.

the economic value created

Baby Buggy sells high-end baby strollers. In an attempt to maintain its competitive advantage, the firm began adding additional features to its strollers. Customers liked these features and sales increased, but the company's profit margins shrank. Which of the following is the likely reason for this? The firm focused on supply rather than demand. The firm neglected it's competition. The firm neglected to control costs. The firm didn't differentiate its products enough from competing products.

the firm neglected to control costs

In order to determine if Home Depot has a competitive advantage, we must compare Home Depot's performance to ______. only non-US-based firms the performance of other firms in its industry its past financial performance a firm in the technology industry

the performance of other firms in its industry

A successful business strategy creates _____ for both producers and consumers. Equity Value Profits Wealth

value

In Porter's model, competition in an industry is a function of five forces: threat of entry, power of suppliers, power of _____ (one word), threat of _____ (one word), and rivalry among existing firms.

buyers, substitutes

A firm that offers a liberal return policy and free shipping on goods ordered online hopes to increase its perceived value by focusing on: Advertising Complements Production costs Customer service

customer service

When companies seek ways to recharge car batteries in a sustainable way, it is an example of _____ factors creating business opportunities. Ecological Economic Legal Political

ecological

Obstacles that determine how easily a firm can enter an industry, are called: supply barriers. entry barriers. threats of substitutes. threats to entry. rivalry barriers.

entry barriers

Which of the following elements comprise strategic management? (Check all that apply.) implementation definition formulation realization analysis

implementation formulation analysis

The most common type of innovation is _____ innovation. Radical Disruptive Incremental Technological

incremental

A firm's culture, brand equity, and intellectual property are examples of: intangible resources. ill-defined resources. defined resources. tangible resources.

intangible resources

A(n) _____ strategy is the outcome of a rational and structures, top-down strategic plan. Emergent Serendipitous Intended Realized

intended

A competitive advantage _____. places a firm at a disadvantage in regards to its ROI is assessed relative to other competitors in the industry takes into consideration globalization and rival factors is based on the return of invested capital over a 15-year period

is assessed relative to other competitors in the industry

A competitive advantage: takes into consideration globalization and rival factors. is based on the return of invested capital over a 15-year period. is assessed relative to other competitors in the industry. places a firm at a disadvantage in regards to its ROI.

is assessed relative to other competitors in the industry

Which of the following is NOT an example of a resource for a firm? Buildings Legal liabilities Cash Intellectual property

legal liabilities

Match the explanation with the element of the pyramid of corporate social responsibility: Laws and regulations are society's codified ethics, define minimum acceptable standard

legal responsibilities

A(n) _____ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures. Mission statement Strategic initiative Competitive advantage Vision statement AFI framework

strategic initiative

The _____ is an example of a black swan event. Start of the academic year Annual flu season 2008 global financial crisis Duty to file taxes

2008 global financial crisis

What must a firm do after diagnosing its specific competitive challenge? Implement a set of coherent actions Identify its primary competitors Collect investments from stockholders Create an effective guiding policy

Create an effective guiding policy

Who among the following are considered internal stakeholders? (Check all that apply.) Multiple select question. Unions Employees Competitors Stockholders Board members Governments Customers

Employees Stockholders Board members

Which capability is required to create superior product features? Accounting Marketing R&D Sales

R&D

Core _____ (one word) are generated by the interaction of resources and capabilities.

competencies

Demand declines most rapidly in the _____ stage of the industry life cycle. Decline Maturity Introduction Shakeout

decline

An intended strategy is the outcome of a plan that has which of the following characteristics? (check all that apply) Rational Strategic Top-down Improvised

rational, strategic, top-down

Innovation helps firms achieve a competitive advantage by: eliminating competition. redefining the market in their favor. identifying key business activities. raising prices.

redefining the market in their favor

_____ are the firm's level of investments to maintain or build a resource. Resource complements Resource stocks Resource value Resource flow

resource flows

Capital, land, building, and plants are example of _____ resources. Tangible Component Assumed Intangible

tangible

Which two customer segments make up the largest percentage of the market potential? (pick two) The late majority The early majority Technology enthusiasts Early adopters Laggards

the late majority, the early majority

Strategy is ______. a sustainable and dominant market share a decision based on external situational analysis the set of actions a firm takes to achieve a competitive advantage a decision based on internal situational analysis

the set of actions a firm takes to achieve a competitive advantage

When restrictive government policies do not exist or when industries become deregulated, the _____ of entry is high. (one word)

threat

_____-down strategic planning is a rational process through which executives attempt to program future success. (one word)

top

Managers often have to make decisions between two conflicting strategic options, otherwise known as ______. trade-offs bad choices managerial dilemmas hot-points

trade-offs

The most important value drivers that managers can use to create a competitive advantage are: Complements Availability Product features Customer service Cost savings

complements, product features, customer service

An _____ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage. Resource Core competency Activity Capability

core competency

A statement of guiding principles that typically provides very specific ethical considerations is a(n): core values statement. product-oriented vision statement. behavioral analysis. sustainable competitive summary.

core values statement

Costs of input factors and economies of scale are _____ that managers can use to keep costs in check. Product features Complements Cost drivers Differentiation strategies

cost drivers

Select all that apply Which of the following traits are Tesla specifically aiming to include in its vehicles to achieve competitive advantage? (Check all that apply.) Versatility Sustainability Attractiveness Affordability

Sustainability Attractiveness Affordability

Which of the following is the best indicator that Tesla's startup master plan has worked as intended? Multiple choice question. Tesla generated 500,000 preorders for an unseen model. Many Americans are still unaware that Tesla exists. Tesla provided cars to some of its employees. Tesla's models outsell all other automobiles in the United States.

Tesla generated 500,000 preorders for an unseen model.

In the ______ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. Multiple choice question. fourth Reason: The fourth step is identifying social responsibilities. second fifth third first

Third

Which of the following best describes an illusion of control? A belief that a strategic plan will address any scenario A focus on flexible approaches to problem solving A long-term commitment to customer satisfaction A policy of consulting all stakeholders for major decisions

a belief that a strategic plan will address any scenario

GE's decision to let a GE company team in China create an inexpensive and portable ultrasound machine for developing markets is an example of: a top-down innovation strategy. a roundabout innovation strategy. a failure to innovate. a bottom-up innovation strategy.

a bottom-up innovation strategy

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following? Strategic leadership A statistical advantage A superior product A competitive advantage

a competitive advantage

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following? a competitive advantage strategic leadership a superior product a statistical advantage

a competitive advantage

When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved ______. fiscal debilitation prolonged management combined ideology a competitive advantage

a competitive advantage

A firm's overall efforts to gain and sustain competitive advantage is referred to as which of the following? Multiple choice question. a competitive strategy a marketing strategy an operations strategy a pricing strategy

a competitive strategy

Many drivers find a GPS navigation system useful. Because installing a GPS system in an automobile adds value to the vehicle, the system functions as: co-opetition. a complement. loss leader. mobility barrier.

a complement

A good strategy consists of three elements. The first element is accomplished through analysis of the firm's external and internal environments. We also call this ______. a guiding policy to address the competitive advantage a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive advantage

a diagnosis of the competitive advantage

When a stakeholder has power over a company it is ______. Multiple choice question. helping to implement the firm's strategy able to get the company to take immediate and urgent action perceived to have a legally valid claim able to influence the company to do something it would otherwise not do

able to influence the company to do something it would otherwise not do

In the dynamic capabilities perspective, competitive advantage derives from: static resource advantages. a mix of isolating mechanisms. advantages that flow from market forces. actively modifying of the resource base.

actively modifying the resource base

By using a differentiation strategy, a firm aims to: add unique features that will increase the perceived value of a product. provide a product that is similar to successful products already on the market. minimize its opportunity cost. pursue a broad segment of customers.

add unique features that will increase the perceived value of a product

An innovation that targets a new market with existing technologies is called a(n) _____ innovation. Radical Architectural Disruptive Incremental

architectural

The minimum efficient scale indicates the level of output needed to _____ the cost per unit as much as possible. Keep steady Increase Bring down Inflate

bring down

Which framework helps firms to identify their economic, legal, ethical, and philanthropic obligations to society? Multiple choice question. strategic management framework corporate social responsibility SWOT analysis AFI frame

corporate social responsibility

According to the VRIO framework, a rare resource is _____ is firms that do NOT possess the resource are unable to develop or buy the resource at a comparable cost. Organized to capture value Costly to imitate Not costly to imitate Easy to imitate

costly to imitate

When pursuing a differentiation strategy, a firm can achieve a competitive advantage by: making sure the firm's costs are the lowest. equipping customers with generic and lower priced products. increasing perceived value regardless of cost increases. ensuring that its economic value exceeds that of its competitors.

ensuring that its economic value exceeds that of its competitors

Customers, suppliers, creditors, unions, and governments are known as: external stakeholders. crowdsurfers. rivals. internal stakeholders.

external stakeholders

True or false: The value chain concept is applicable only to high-tech firms in rapidly changing environments.

false

True or false: Top-down strategic planning is most effective when the environment is constantly changing.

false

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs. Multiple choice question. five two three four

five

In the maturity stage of the industry life cycle, industry growth: flattens or even declines. increases dramatically. maintains the same price as during the growth stage. increases slightly.

flattens or even declines

The goal of using the AFI strategy framework for scenario planning is to create strategic plans that are: static. pessimistic. complex. flexible.

flexible

If the problem with a business strategy results in causal ambiguity, managers will: be able to apply an isolating mechanism for competitive advantage. know to treat the problem as a transient issue. need training to communicate more clearly. have a difficult time developing a theory to deal with the problem.

have a difficult time developing a theory to deal with the problem

Business-level strategy addresses which overacting question? How should we compete? How should we treat our employees? What should we sell? What should we product?

how should we compete?

A firm's competitive advantage is determined jointly by _____ (one word) effects and firm effects.

industry

Match the explanation with the element of the pyramid of corporate social responsibility: Corporate citizenship

philanthropic responsibilities

In the group of external factors that form the PESTEL model, the "P" stands for _____ (one word) and the "L" stands for _____. (one word)

political, legal

PixelPower is a small app developer seeking to enter the highly competitive mobile games industry. In order to overcome the industry's barriers to entry and compete against incumbent firms, PixelPower has an economic incentive to: pursue radical innovations. form a join venture with other small firms. pursue incremental innovations. follow established industry standards and practices.

pursue radical innovations

Stakeholder strategy argues that focusing only on the needs of _____ places the firm at risk of failure. Managers Shareholders Competitors Employees

shareholders

Stakeholder strategy argues that focusing only on the needs of ______ places the firm at risk of failure. Multiple choice question. employees competitors managers shareholders

shareholders

Which of the following statements regarding tasks in the AFI strategy framework is true? The tasks are very interdependent. The tasks happen in sequence as separate steps. The tasks are interchangeable. Only two of the tasks need to be followed for success.

the tasks are very interdependent

The key objective for firms in the growth stage of the industry life cycle is: to establish a strong strategic position so that rivals cannot imitate it easily. to decrease focus on process innovation. to achieve market acceptance. to exit, harvest, maintain, or consolidate so that the firm can cash out.

to establish a strong strategic position so that rivals cannot imitate it easily

True or false: High exit barriers lead to intense rivalry.

true

Determining the products the customer wants and needs answers the _____ question of competition. Why What How Who

what

Which of the following conditions lead to a strong threat of substitutes? (check all that apply) When the cost of switching to the substitute is low When the established firms have many loyal customers When the price-performance trade-off is attractive When new firms lack a "cool" factor

when the cost of switching to the substitute is low, when the price-performance trade-off is attractive

Which of the following are questions that managers must answer when pursuing value innovation? (check all that apply) Which product factors to eliminate Which product factors to raise above the industry standard Which market segments to avoid Which product factors to reduce below the industry standard Which new product factors to create

which product factors to raise above the industry standard, which product factors to reduce below the industry standard, which new product factors to create

Which statement about shareholders and employees is true? Multiple choice question. Employees are often made into shareholders through employee stock ownership plans. The interests of stakeholders who are employed by a firm are the same as stakeholders who simply own stock. The separation between the claims of management and of ownership has been increasing. Shareholders and employees are entirely separate groups.

Employees are often made into shareholders through employee stock ownership plans.

What are the categories of expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) Multiple select question. Ethical Legal Economic Philanthropic Aesthetic

Ethical Legal Economic Philanthropic

True or false: A statement such as, "We will be the biggest company in the world," is an example of strategy. True false question. True False

False

True or false: Although they are more vocal, activist investors have the same amount of power as individual investors. True false question. True False

False

True or false: Since experiencing major operations problems in 2017, Tesla has largely failed to act in a way that is consistent with its competitive challenge diagnosis. True false question.TrueFalse

False

What is something that Tesla is doing to implement its guiding policy and address its competitive challenges? It is taking advantage of economies of scale so that it can offer vehicles at a competitive price point. It is creating electric-gasoline hybrid engines that allow its vehicles to operate even without electric charging stations. It is making sure that its patents and proprietary technology are kept a secret from the public. It is relying more heavily on human labor, which is inexpensive and efficient.

It is taking advantage of economies of scale so that it can offer vehicles at a competitive price point.

Which statement about strategies is true? Multiple choice question. "We will be the best!" is an example of a strategy. Statements of desire typically address economic fundamentals. Vision and mission statements cannot lay the foundation for good strategies. A statement of desire on its own often leads to goal conflict.

A statement of desire on its own often leads to goal conflict.

Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.) Multiple select question. Achieve a competitive advantage Describe the role of functional managers in strategy formulation Act as a good corporate citizen Decide where to compete

Achieve a competitive advantage Act as a good corporate citizen

What is one explanation for why Tesla underperforms when the company's profits are compared to the profits of established car companies? New companies are not able to employ good strategies. Established firms use different profit measurements. Startups often lose money early on. Investors have been unwilling to purchase the company's stock.

Startups often lose money early on.

Which of the following is the best indicator that Tesla's strategy is working as intended? Tesla provided cars to some of its employees. Tesla generated 500,000 preorders for an unseen model. Many Americans are still unaware that Tesla exists. Tesla's models outsell all other automobiles in the Unites States.

Tesla generated 500,000 preorders for an unseen model

The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb to have a competitive advantage? The bulbs must be more expensive than competitors' offerings. The bulbs must be sold by online retailers only. The bulbs must have a lower cost than competitors' bulbs. The bulbs must be on the market for a longer period of time than competitors' bulbs.

The bulbs must have a lower cost than competitors' bulbs.

In which of the following situations can a firm providing goods and services gain a competitive advantage? (Check all that apply.) Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. Their offerings cost more to produce than competitors' offerings. Their offerings are similar to competitors' offerings at higher prices. Their offerings provide more value for consumers than competitors' offerings.

Their offerings are of similar quality to competitors' offerings but can be sold at lower prices due to lower costs. Their offerings provide more value for consumers than competitors' offerings.

Which statement is true about pricing strategies, internet strategies, alliance strategies, and brand strategies? Multiple choice question. They may be a necessary part of a firm's initiatives to support its competitive strategies. They often play a role in day-to-day operations, but they have no bearing on gaining competitive advantage. They are all that a firm needs to achieve competitive advantage. They represent a complete, consistent guiding policy and a good strategy.

They may be a necessary part of a firm's initiatives to support its competitive strategies.

Which of the following are aims of stakeholder strategy? (Select all that apply.) Multiple select question. To persuade internal stakeholders to cede control to external stakeholders To reduce the number of stakeholders of a firm To manage various stakeholders effectively To gain and sustain competitive advantage

To manage various stakeholders effectively To gain and sustain competitive advantage

Which of the following identifies the resources that can lead to a competitive advantage? VRIO framework Value chain PESTEL Resource heterogeneity

VRIO framework

Which of the following questions are part of the five steps in stakeholder impact analysis? (Check all that apply.) Multiple select question. What are our stakeholders' interests and claims? How can we gain maximum competitive advantage without taking our stakeholders into account? Who are our stakeholders? What opportunities and threats do our stakeholders present? Which stakeholders have little to no power over us?

What are our stakeholders' interests and claims? Who are our stakeholders? What opportunities and threats do our stakeholders present?

Which of the following are elements of a good strategy according to the AFI framework? (check all that apply) Strong stakeholder involvement in the strategy formulation process A leadership group with relevant prior industry experience A diagnosis of the competitive challenge A set of coherent actions to implement the firm's guiding policy A guiding policy to address the competitive challenge

a diagnosis of the competitive challenge, a set of coherent actions to implement the firm's guiding policy, a guiding policy to address the competitive challenge

Sustainable competitive advantage exists when: a firm is self-regulated and self-motivated. a firm starts up and competes for existing market share in the industry. a firm maintains superior performance relative to its industry over a long period of time. a firm formulates and implements strategy.

a firm maintains superior performance relative to its industry over a long period of time

If a firm neglects its current core competencies, such neglect may lead to all of the following, except: Competitors developing equivalent or superior skills. A possible decline in market share compares to the competitors. Competitors potentially outperforming the firm by creating competitive advantage. A guaranteed sustained competitive advantage.

a guaranteed sustained competitive advantage

A good strategy consists of three elements. The second element is accomplished through strategy formulation, resulting in the firm's functional, business-level, and corporate-level strategies. This is also called ______. a guiding policy to address the competitive challenge a set of coherent actions to implement the firms' guiding policy a diagnosis of the competitive challenge

a guiding policy to address the competitive challenge

A stakeholder has _____ when its needs are within the bounds of the law or are otherwise relevant to the firm. An urgent claim A false claim A legitimate claim Power over a company

a legitimate claim

Based on its long dominance as a coffeehouse chain, Starbucks has ______. a sustainable competitive advantage a competitive disadvantage an absolute advantage competitive parity

a sustainable competitive advantage

Which of the following are examples of sociocultural factors? (check all that apply) An increased demand by consumers for gluten-free products The growth of the Hispanic population The widespread adoption of smart phones An extended period of low interest rates

an increased demand by consumers for gluten-free products, the growth of the Hispanic population, the widespread adoption of smart phones

A group of companies that deal with more or less the same set of suppliers and buyers make up: an industry. a business group. a multi-environment. a state.

an industry

Walmart producing private-label such as Equate health and beauty items and Parent's choice baby products, is an example of: horizontal integration. forward integration. skip-hop integration. backward integration.

backward integration

Isolating mechanisms are considered to be: ways to compete away a competitive advantage. something that weakens the industry. barriers to imitation. barriers to entry.

barriers to imitation

Why do many firms fail to successfully implement a blue ocean strategy? Because they become involved in situations involving ethical dilemmas Because they merge with international competitors for value creation Because too many other companies already try to implement a blue ocean strategy, making it hard to compete that way Because they end up being "stuck in the middle," unable to increase value and lower cost at the same time.

because they end up being "stuck in the middle," unable to increase value and lower cost at the same time

During the shakeout stake of the industry life cycle, process innovation: becomes less important. drives costs up. becomes more important. yields increasing marginal returns.

becomes more important

Diseconomies of scale often appear when a firm: becomes too large and complex to manage efficiently. decides to use specialized production equipment. reduces its output. places too much emphasis on the minimum efficient scale.

becomes too large and complex to manage efficiently

Which of the following are advantages, independent of size, that incumbent firms possess? (check all that apply) Fast reaction times to environmental changes due to their small size Brand loyalty Proprietary technology Cumulative experience effects Inertia related to their structure Preferential access to distribution channels

brand loyalty, proprietary technology, cumulative experience effects, preferential access to distribution channels

Which of the following are ways in which standards can emerge? (check all that apply) By being imposed by government or other agencies Through market competition By having firms purchase the license for a standard By letting consumers vote for their preferred standard

by being imposed by government or other agencies, through market competition

A patent holder typically has a: Permanent monopoly Temporary monopoly Sustainable competitive advantage Temporary competitive advantage

temporary monopoly

Shareholder activists, such as Bill Ackman and Carl Icahn, have much more power over a firm than individual investors, because they ______. Multiple select question. can exercise block-voting rights or otherwise influence the corporate government process are less common and own less stock than individual investors have a small amount of assets under management are able to buy or sell a much larger number of shares than individuals can

can exercise block-voting rights or otherwise influence the corporate government process are able to buy or sell a much larger number of shares than individuals can

The external forces called technological factors: capture the application of knowledge to create new processes and products. represent official government decisions and regulations. quantify characteristics of the economy and business climate. describe society's norms and values.

capture the application of knowledge to create new processes and products

Cowgirl Boots, inexpensive leather boots for women, are selling at record-high numbers. The CEO of the company however, cannot figure out why. Was it caused by the company's recent advertisement campaign or the newly reduced price of the boots or some other unknown factor? Based on this information, what concept describes the CEO's confusion regarding recent success? Path dependence Social Complexity Causal ambiguity Time compression diseconomies

causal ambiguity

Understanding the cause and effect of a strategy may help managers avoid: time compression diseconomies. social complexity. causal ambiguity. path dependence.

causal ambiguity

Which of the following can help a firm extend its competitive advantage? (check all that apply) Resource stocks and flows Causal ambiguity Depletion of tangible and intangible resources Better expectations of future resource value Path dependence

causal ambiguity, better expectations of future resource value, path dependence

Dynamic capabilities are most relevant in: stable markets. changing markets. virtual markets. international markets.

changing markets

A firm pursuing a blue ocean strategy can increase its profit margins by implementing which of the following pricing options? (check all that apply) Charging a lower price than the cost leader Charging a higher price than the differentiator Charging a lower price than the differentiator Charging a higher price than the cost leader

charging a lower price than the differentiator, charging a higher price than the cost leader

Firms should identify a ______ so that employees can determine if they are making progress in addressing it. Multiple choice question. source of goal conflict clear competitive challenge statement of desire previous competitive advantage

clear competitive challenge

When Samsung and Google cooperate as complementary to compete against Apple's strong position in the mobile device industry while at the same time becoming increasingly competitive with each other, this is referred to as: collaboration competition co-opetition

co-opetition

A(n) ______ occurs when a firm performs below the industry average or is outperformed by its competitors. competitive parity purchasing parity underperforming norm negative advantage competitive disadvantage

competitive disadvantage

If a firm has a 10% return on invested capital while the industry average return on invested capital is 18%, the firm has a(n) ______. purchasing parity competitive parity overperforming norm competitive disadvantage

competitive disadvantage

Which of the following factors would be examined in the External Analysis stage of the AFI strategy framework? (check all that apply) Competitive forces Strategic groups The firm's own resources Corporate strategy Company culture

competitive forces, strategic groups

Michael's Deli is able to perform at the same level as its primary competitor. Michael's Deli has ______. competitive parity a noncompetitive business a competitive disadvantage a competitive advantage

competitive parity

Which of the following are significant threats to a firm pursuing a cost-leadership strategy? (check all that apply) Competitors adopting similar business strategies A unique product becoming commoditized and causing a price war Value falling below the acceptable threshold Replacement by innovative substitutes

competitors adopting similar business strategies, value falling below the acceptable threshold, replacement by innovative substitutes

A firm that successfully executes a strategy benefits society by ______. (Check all that apply.) Multiple select question. eliminating legal restrictions on controversial practices limiting competition creating value reinvesting profits and increasing employment

creating value reinvesting profits and increasing employment

Which of the following are primary strategy objectives? (check all that apply) Creating value Strengthening relationships Controlling costs Maximizing sales

creating value, controlling costs

According to the _____ rule, increasing the surface area (size) of a storage unit or retail facility results in a disproportionate increase in volume (space). Minimum efficient Maximum effective Cube square Superstore

cube square

When identifying stakeholders, a firm should focus on those stakeholders that ______. Multiple choice question. are directly involved with the production or distribution of the company's products can be ignored with no material impact to the firm currently have, or could potentially have, a material effect on the firm purchase and use its products

currently have, or could potentially have, a material effect on the firm

When identifying stakeholders, a firm should focus only on those stakeholders that: can be ignored with no material impact to the firm. currently have, or could potentially have, a material effect on the firm. are directly involved with the production or distribution of the company's products. purchase and use its products.

currently have, or could potentially have, a material effect on the firm

Two important features that managers can adjust in an effort to improve the firm's strategic position are: (pick two) Planned emergence Salient value Investment value Customer service Product features

customer service, product features

A company with a _____ vision statement tends to be more flexible and more likely to succeed. Marketing-oriented Resources-oriented Customer-oriented Product-oriented

customer-oriented

A successful blue ocean strategy requires strategists to reconcile the trade-offs between: private and public investment. profit margins and sales volume. number of employees and high wages. differentiation and cost-leadership.

differentiation and cost-leadership

Which of the following are considered the two generic business-level strategies? (check all that apply) Differentiation Monopolistic competition Oligopoly Cost-leadership Value gap

differentiation, cost-leadership

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be: compressed tangible dynamic causal ambiguous

dynamic

A significant different between technology enthusiasts and early adopters is that: early adopters dominate the decline stage of the industry life cycle. technology enthusiasts have much more disposable income. early adopters are primarily interested in technical details rather than practical applications. early adopters are interested in how a technology will improve their lives, rather than in the details of the technology itself.

early adopters are interested in how a technology will improve their lives, rather than in the details of the technology itself

According to the PESTEL model, which of the following are kinds of forces that exist in the general external environment? (check all that apply) Leveraged Ecological Technological Economic Stakeholder

ecological, technological, economic

Which of the four corporate social responsibilities is considered first and foremost for business enterprises? Multiple choice question. legal philanthropic economic ethical

economic

Match the explanation with the element of the pyramid of corporate social responsibility: Gain and sustain competitive advantage

economic responsibilities

The most important cost drivers are: (check all that apply) Economies of scale Diseconomies of scale Learning curve effects Complement choices Experience curve effects Cost of input factors

economies of scale, learning curve effects, experience curve effects, cost of input factors

Which of the following incentivize workers by offering them discounted shares or retirement plans based on company stock? Multiple choice question. employee welfare benefit plans employee stock ownership plans initial public offerings stock buyback plans

employee stock ownership plans

Which of the following are important factors in determining the intensity of rivalry among existing competitors? (check all that apply) Exit barriers Entry barriers Short-term contracts Industry growth Competitive industry structure

exit barriers, industry growth, competitive industry structure

The concept of a(n) _____ attempts to combine both learning effects and process improvements. Minimum efficient scale Experience curve Technological innovation Strategic implementation

experience curve

In the ______ step of a stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially can have, a material effect on the company. Multiple choice question. second third fifth first fourth

first

In the _____ step of the stakeholder impact analysis, firms identify their various social responsibilities to stakeholders. Multiple choice question. third fourth second first fifth

fourth

What is one significant challenge that Tesla faces? lack of consumer interest in environmentally friendly alternatives to traditional vehicles gaps in the infrastructure needed to keep its vehicles on the road all over the country traditional competitors who already produce affordable, attractive, zero-emissions vehicles mistrust on the part of investors, who routinely threaten to sell stock or withdraw loans

gaps in the infrastructure needed to keep its vehicles on the road all over the country

Which of the following are important sources of entry barriers? (check all that apply) The high profitability of a particular industry Government policy Network effects Economies of scale Credible threat of retaliation Capital requirements

government policy, network effects, economies of scale, credible threat of retaliation, capital requirements

Effective stakeholder management _____. Multiple choice question. causes a loss of trust with business partners helps a firm build a strong public reputation results in greater likelihood of negative outcomes with employees leads to dissatisfaction with customers

helps a firm build a strong public reputation

Resource _____ and resource _____ are they key assumptions behind the resource-based model of the firm. Heterogeneity, mobility Homogeneity, mobility Homogeneity, immobility Heterogeneity, immobility

heterogeneity, immobility

When suppliers do not depend heavily on the industry for a large portion of their revenues, the power of suppliers is: high. moderate. insignificant. low.

high

Managers must make strategic trade-offs involving choices between cost and value because: lower value leads to higher customer satisfaction. lower value tends to require higher costs. higher value tends to require higher costs. higher value tends to assume low quality.

higher value tends to require higher costs

"How do we implement the formulated strategy through an organizational structure, culture, and control system that values and encourages ethical behavior?" would most likely be examined by managers in the _____ phase of the AFI strategy framework. Implementation Formulation Analysis

implementation

The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______. implementation of its secret strategy adherence to an aspirational vision products' proven track records reliance on government subsidies

implementation of its secret strategy

The high market valuation achieved by Tesla by 2019 can be largely attributed to its ______. Multiple choice question. implementation of its secret strategy adherence to an aspirational vision products' proven track records reliance on government subsidies

implementation of its secret strategy

Strong resource flows _____ a firm's resource stocks. Increase Destroy Decrease Have no impact on

increase

During the growth stage of the industry life cycle, firms focus on process innovation in order to: (check all that apply) Increase production volume Reduce per-unit production costs Improve customer service Generate new product ideas

increase production volume, reduce per-unit production costs

The stakeholders of a firm are ______. Multiple choice question. individuals or groups that can affect and are affected by the actions of the firm only those who directly profit from a firm's success only those firms that contribute to the production and distribution of a company's products individuals or groups who own at least one share of a firm's stock

individuals or groups that can affect and are affected by the actions of the firm

The _____ identifies how industries tend to develop and change over time. VRIO framework AFI framework Network effects Industry life cycle

industry life cycle

When a new firm enters an industry, which of the following often occur? (check all that apply) Industry profit potential declines Incumbent firms spend more to satisfy customers Incumbent firms increase their market share Incumbent firms raise prices Incumbent firms lower prices

industry profit potential declines, incumbent firms spend more to satisfy customers, incumbent firms lower prices

When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in: Cost control Branding Innovation Franchising

innovation

An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of _____ (one word) factors.

input

Dynamic capabilities can be described as a(n): Heterogeneous resource Tangible resource Immobile resource Intangible resource

intangible resource

The relationship between the natural environment and business organizations can be best described as: A U-shape Unconnected Interdependent Insignificant

interdependent

Which of the following are likely outcomes of a competitive rivalry based entirely on price cutting? (check all that apply) Investments from firms drop off Firms struggle to make profits Most or all value is transferred to customers Product offerings improve

investments from firms drop off, firms struggle to make profits, most or all value is transferred to customers

Greener Grocers provides goods that are similar to competitors' goods at a comparable price. Greener Grocers cannot lower prices more without facing financial difficulties. What is another way Greener Grocers could gain a competitive advantage? It could offer price discounts on some items but increase the price on other items. It could allow itself to be purchased by a competitor. It could try to eliminate the competition. It could provide goods or services that its consumers would value more highly than competitors' offerings.

it could provide goods or services that its consumers would value more highly than competitors' offerings

Deflation is a serious threat to economic growth for which of the following reasons? (check all that apply) It forces sellers to increase prices to meet a rise in demand It distorts expectations about the future It stops companies from investing in new production capacity because they expect a further decline in prices It encourages companies to invest in new production capacity because they expect a further rise in prices

it distorts expectations about the future, it stops companies from investing in new production capacity because they expect a further decline in prices

In order for a firm to successfully implement a business-level strategy, it must limit the impact of: (check all that apply) Consumer demand Its own internal weaknesses External threats Technological advancements

its own internal weaknesses, external threats

The economic factors that affect a firm's external environment are: Usually regional Primarily ecological Largely macroeconomic Often unidentifiable

largely macroeconomic

Managers have ______ resources in their quest for competitive advantage. Multiple choice question. unique zero limited unlimited

limited

Which of the following are considered non market strategies? (check all that apply) Lobbying Public relations Advertising Litigation

lobbying, public relations, litigation

The threat of entry is high when capital requirements are _____ (one word) in comparison to the expected returns.

low

A perfectly competitive barrier has _____ entry barriers and _____ small firms. Low, many High, few Low, few High, many

low, many

A _____ (one word) outlines what an organization does, while a vision outlines what the organization wants to do.

mission

As utility companies tend to serve a whole market exclusively, they are known as _____ because the governments involved believe that the product or service would not be supplied otherwise. Rivals Differentiated oligopolies Perfect competitors Natural monopolies

natural monopolies

Increases in the value of a product or service that result from a corresponding increase in the number of users are known as: Strategic objectives Network effects Harvest strategies Core competencies

network effects

The third step of stakeholder impact analysis requires managers to identify the ______ presented by internal and external stakeholders. Multiple choice question. social responsibilities and stakeholder interests stakeholder interests and opportunities threats and responsibilities opportunities and threats

opportunities and threats

_____ suggests that sometimes even random events may have large impacts on an outcome. Upper-echelons theory Path dependence Agency theory The VRIO framework.

path dependence

There is a(n) _____ relationship between competitive intensity and the power of buyers and suppliers. Inverted Positive Negative Disconnected

positive

Better expectations of future resource value _____ a firm's competitive advantage. Positive impact Never have an impact Have no immediate impact Negatively impact

positively impact

To determine economic value, one must subtract the cost of production from the: total overhead of a firm. profit margins of the average competitor. value of a firm's product or service. marketplace.

value of a firm's product or service

In the five forces model, threat of entry refers to the risk that: startup costs for a given company will be excessive. that government regulators will target a given industry. an established market will gain more customers. potential competitors will enter a given industry

potential competitors will enter a given industry

After a standard is established in an industry, firms tend to focus more on _____ innovations. Process Personnel Product Dominant

process

Firms are able to create near monopoly by maximizing: prices and costs. their advertising revenue. product differentiation. competition.

product differentiation

Because it targeted a new market and used new technologies, the first mass-produced automobile is considered a(n) _____ innovation. Architectural Disruptive Radical Incremental

radical

Incumbent firms that are part of an innovation ecosystem are less likely to produce radical innovations because: radical innovations are too expensive to produce. radical innovations disrupt established relationships within the ecosystem. radical innovations would increase the firm's reliance on the ecosystem. the danger of other members of the ecosystem stealing key intellectual property is too high.

radical innovations disrupt established relationships within the ecosystem

Which of the following are input factors? (check all that apply) Distribution Raw materials Labor Marketing and sales Capital Information technology services

raw materials, labor, capital, information technology services

During the introductory stage of the industry life cycle, an innovator will likely devote most of his time, money, and effort to: Operations management Management Human resource recruitment Research and development

research and development

The cost advantages that a firm obtains by increasing output, such as by spreading fixed costs over more units, are called economies of _____. (one word)

scale

Economies of _____ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually. Integration Scope Scale Regulation

scope

_____ describe(s) random events, pleasant surprises, and accidental happenstances that can have a profound impact on a firm's strategic initiatives. Resource-allocation process (RAP) Strategic initiatives Autonomous actions Serendipity

serendipity

Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny is likely in the _____ stage of the industry life cycle. Introduction Growth Shakeout Decline

shakeout

Which of the following help determine competitive industry structure? (check all that apply) Size and number of competitors The firm's resources Firms' degree of pricing power Composition of the board of directors Height of entry barriers

size and number of competitors, firms' degree of pricing power, height of entry barriers

Price discounts, frequent new product releases with minor modifications, and intense promotional campaigns are all tactics indicative of an industry with _____ growth. Exponential Slow or negative Fast and postive Stable

slow or negative

The concept of social complexity suggests that: decisions int he past affect present decision-making. certain phenomena occur for reasons that are not clear. social and business systems that work in one firm may be hard to imitate due to complex interactions between these systems. social and business systems that work in one firm tend to work in another as long as they can be identified as the basis for competitive advantage.

social and business systems that work in one firm may be hard to imitate due to complex interactions between these systems

_____ describes a situation in which different social and business systems interact with each other. Path dependence Social complexity Planned emergence Causal ambiguity

social complexity

Price _____ (one word) is the lack of change in price levels of goods and services.

stability

Which of the following is a tool that managers can use to address the needs of stakeholders while maintaining a competitive advantage? Group happiness strategy Corporate citizen strategy Stakeholder impact analysis Ethical choice analysis

stakeholder impact analysis

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. Multiple choice question. stakeholder strategy integrative strategy happiness management strategy shareholder strategy

stakeholder strategy

Effective guiding policy is supported by and stays consistent through the use of ______. social responsibilities trade-offs strategic commitments grandiose statements

strategic commitments

Which of the following factors would be examined in the External Analysis stage of the AFI strategy framework? (check all that apply) Corporate strategy The firm's own resources Strategic groups Competitive forces Company culture

strategic groups, competitive forces

Which of the following is NOT one of the three approaches by which strategic leaders formulate and implement strategy? Strategic leadership Strategy as planned emergence Scenario planning Strategic planning

strategic leadership

The field of management that focuses on attaining competitive advantage by combining analysis, formulation, and implementation is known as ______. strategic management human resources management management of foundational behavior management of stakeholder impact

strategic management

Choosing a business-level strategy helps to define a firm's _____ in a given product market. Strategic postion Mission statement Industry structure Ethical climate

strategic position

Andrew's Home Center has created a unique position for itself in its industry that allows the company to not only provide excellent value to its customers but also to control its costs. This is known as: the competitive challenge. competitive parity. competitive disadvantage. strategic positioning.

strategic positioning

Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______. Multiple choice question. the competitive challenge strategic positioning competitive parity competitive disadvantage

strategic positioning

Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. This is known as Burger Bomb's ______. competitive parity strategy vision core values statement

strategy

Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. This is known as Burger Bomb's ______. strategy vision core values statement competitive parity

strategy

In order to achieve and sustain competitive advantage, a company devises and adopts a set of goal-directed actions known collectively as a(n) _____. (one word)

strategy

Which of the following is the least formal approach to setting the strategy process? Scenario planning Top-down strategic planning Strategy as planned emergence Strategic planning

strategy as planned emergence

The threat of _____ (one word) is one of the five forces and can be exemplified by the threat that videoconferencing presents to business travel.

substitutes

According to Porter's model, which of the following should be considered when analyzing a firm's competition? (check all that apply) The regulations in possible host countries Suppliers Buyers The threat of substitutes

suppliers, buyers, the threat of substitutes

Research and development, information systems and human resources are examples of _____ activities. Value Primary Support Assessed

support

What does the concept of resource heterogeneity imply? That each firm has different resources That firms all have resources that are "sticky" or hard to transfer That each firm has the same resources That different firms value different things

that each firm has different resources

A powerful strategy commitment assures: that the firm is ultimately successful. that sales will continuously increase, leading to increased profits and satisfied owners. a reduction of overall employee frustration because now things are getting done. that steps are taken to achieve the mission.

that steps are taken to achieve the mission

The major assumption in the top-down strategic planning process is that: the future can be predicted based on information from the past. the future has no relationship to the past. bigger is better. the future cannot be planned for.

the future can be predicted based on information from the past

Different value drivers contribute to competitive advantage if: premium pricing is used. the increase in perceived value exceeds the corresponding cost increase. product customization is offered. customer service prices exceed the cost of product features.

the increase in perceived value exceeds the corresponding cost increase

Which of the following indicates that investors expect future growth for Tesla? the increasing value of the company's stock the firm's philanthropic efforts the lack of a defined competitive challenge the large upfront investment Tesla had to make

the increasing value of the company's stock

Which of the following indicates that investors expect future growth for Tesla? Multiple choice question. the lack of a defined competitive challenge the large upfront investment Tesla had to make the increasing value of the company's stock the firm's philanthropic efforts

the increasing value of the company's stock

Employees tend to adhere to organizational core values when: they observe other employees being let do when not adhering values. they are constantly reminded of the values via email notification. they are often asked about the values. the leaders of the organization also adhere to the values.

the leaders of the organization also adhere to the values

First-mover disadvantages can include which of the following? (check all that apply) The need to continuously perfect a product The need to find distribution channels The need to educate potential customers about the product's benefits The need to compete on price instead of product features

the need to continuously perfect a product, the need to find distribution channels, the need to educate potential customers about the product's benefits

A resource is considered valuable in which of the following situations? (check all that apply) The resource helps a firm exploit an external opportunity The resource is both heterogeneous and immobile The resource helps the firm produce tangible, but not intangible competencies The resource helps the firm increase its economic value creation (V-C)

the resource helps a firm exploit an external opportunity, the resource helps the firm increase its economic value creation (V-C)

The key take away from the five forces model is that: the higher the threat of new suppliers, the more buyers exit. the stronger the forces, the lower the industry's ability to earn profits. the weaker the forces, the lower the industry's ability to earn profits. the more stable the forces, the greater the new entrants.

the stronger the forces, the lower the industry's ability to earn profits

Walmart and Nordstrom maintain very different strategic profiles, one based on cost-leadership and the other based on differentiation through superior customer service. This is an example of ______. Multiple choice question. the trade-offs required by strategic positioning a strategic failure by Walmart a strategic failure by Nordstrom differences in industry norms

the trade-offs required by strategic positioning

The primary reason incumbent firms are vulnerable to disruptive innovations is that: disruptive innovations can only be produced by small start-ups. they are out of touch with the needs of their current users. they are too committed to exiting products to make rapid changes in the face of disruptive innovations. their R&D budgets are often spread across numerous innovation rather than a single promising idea.

they are too committed to exiting products to make rapid changes in the face of disruptive innovations

Which of the following are characteristics of the early majority? (check all that apply) They are not concerned with cost They have a strong sense of practicality They rely on reviews by reputable magazines They are quick to commit to new products They weigh benefits and costs carefully

they have a strong sense of practicality, they rely on reviews by reputable magazines, they weigh benefits and costs carefully

Which of the following are advantages of platform businesses compared to pipeline business? (check all that apply) They are not constrained or influenced by community feedback They scale more efficiently by eliminating gatekeepers They own and control all their resources They unlock new sources of value creation and supply

they scale more efficiently by eliminating gatekeepers, they unlock new sources of value creation and supply

Which of the following is NOT a characteristic of industries that are monopolies? They tend to have a high cost of entry They often have one large firm They typically have low profits They have only one firm

they typically have low profits

The risk that potential competitors will enter the industry is known as the: Threat of entry Power of suppliers Threat of substitutes Rivalry amongst competitors Power of buyers

threat of entry

A firm's attempts to shorten the length of time a process takes, many lead to disappointing outcomes because of: social complexity. time compression diseconomies. causal ambiguity. path dependence diseconomies.

time depression diseconomies

Managers often have to make decisions between two conflicting strategic options, otherwise known as ____. Bad choices Hot-points Managerial dilemmas Trade-offs

trade-offs

True or false: A company that achieves differentiation parity at a lower cost has implemented a successful cost-leadership strategy.

true

True or false: Innovation can create value for one firm while destroying value for another.

true

True or false: The chasm separating the early adopters from the early majority is the largest.

true

Competitive parity occurs when ______. two or more firms achieve the same performance results two or more firms rely on international outsourcing to remain competitive two or more firms enter into a strategic alliance the performance of two or more firms is superior to the industry average

two or more firms achieve the same performance results

In terms of business strategy, blue oceans represent which of the following? (check all that apply) Increased competition A crowded market space Untapped market space Increased demand

untapped market space

A resource is considered _____ if it helps a firm to deal with an external threat. Commonplace Valuable Easily imitated Dynamic

valuable

According to the VRIO framework, in order for a firm to gain a temporary competitive advantage, a resource must be AT LEAST both _____ (one word) and _____. (one word)

valuable, rare

Implementing a blue ocean strategy requires making competition irrelevant and creating a new market space, otherwise known as: economies of scope. value innovation. asset attainment. market definition.

value innovation

The expected competition is _____, when the other four forces are _____. (select two) Weaker, weaker Weaker, stronger Stronger, weaker Stronger, stronger

weaker, weaker; stronger, stronger

Which of the following types of questions does scenario planning ask? Why me? What if? So what? And when?

what if

A well-devised strategy is about which two things? what not to do market trends in unrelated industries past successes or failures what to do

what not to do what to do

Why are businesses with product-oriented vision statements more likely to fail than business with customer-oriented vision statements? Because customer-oriented companies attract better employees. Because product-oriented companies have less flexibility to meet consumer needs. Because product-oriented companies tend to produce old-fashioned goods that customers no longer need. Because product-oriented companies are required to pay more federal taxes.

Because product-oriented companies have less flexibility to meet consumer needs

The pressures that industry suppliers can exert on an industry's profit potential, is also called the: bargaining power of suppliers. bargaining power of buyers. rivalry amongst existing competitors. threat of new entry.

bargaining power of suppliers

The power of _____ is the pressure they can put on the margins of producers in the industry by demanding a lower price or higher product quality. Buyers Existing competitors New entrants Suppliers

buyers

Many firms of all sizes actively compete in the computer hardware industry, and there are no firms with a large market share. Product offerings tend to be similar but are differentiated in ways that enable some firms to raise or impact pricing. The computer hardware industry is an example of: monopolistic competition. oligopolistic competition. natural monopoly. perfectly competitive industry.

monopolistic competition

If employees need guidelines to determine how their employer expects them to behave in terms of ethical standards and norms, they should consult the firm's: product-oriented vision statement. aspirational visions. missions statement. organizational core values.

organizational core values

Which of the following are types of corporate social responsibilities that a firm may identify during the fourth step of stakeholder impact analysis? (check all the apply) Philanthropic Ethical Legal Economic Medical

philanthropic, ethical, legal, economic

An industry analysis provides which of the following? (check all that apply) The level of profitability that can be expected for the average firm in the industry A rigorous way of identifying the industry's profit potential Insight into a firm's strategic position within The stability of the firm's internal structure

the level of profitability that can be expected for the average firm in the industry, a rigorous way of identifying the industry's profit potential, insight into a firm's strategic position within

The pressure of rivalry increases when which of the following dories increase in intensity? (check all that apply) The power of buyers and suppliers The barriers to entry The threat of entry The threat of substitutes

the power of buyers and suppliers, the barriers to entry, the threat of entry, the threat of substitutes

Which of the following topics should be considered during the strategy analysis phase of the AFI framework? (check all that apply) The role of strategic leadership and the strategy-making process The amount and types of compensation to offer employees The firm's business model and competitive advantages The external environment and associated challenges The firm's internal strengths and resources

the role of strategic leadership and the strategy-making process, the firm's business model and competitive advantages, the external environment and associated challenges, the firm's internal strengths and resources

Which of the following topics should be considered during the strategy analysis phase of the AFI framework? (check all that apply) The role of strategic leadership and the strategy-making process The firm's internal strengths and resources The external environment and associated challenges The amount and types of compensation to offer employees The firm's business model and competitive advantages

the role of strategic leadership and the strategy-making process, the firm's internal strengths and resources, the external environment and associated challenges, the firm's business model and competitive advantages

Among the various types of responsibilities a business firm has, which of the following are specifically considered to be economic responsibilities? (check all that apply) To obey consumer protection laws To give investors a return on invested capital To do what society deems just and fair To repay debts to suppliers

to give investors a return on invested capital, to repay debts to suppliers

Which of the following are aims of stakeholder strategy? (check all that apply) To manage various stakeholders effectively To reduce the number of stakeholders a firm has To persuade internal stakeholders to cede control to external stakeholders To gain and sustain competitive advantage

to manage stakeholders effectively, to gain and sustain competitive advantage

True or false: The resource-allocation process (RAP) can be designed to support planned emergence.

true

Competitive parity occurs when: two or more firms achieve the same performance results. the performance of two or more firms is superior to the industry average. two or more firms rely on international outsourcing to remain competitive. two or more firms enter into a strategic alliance.

two or more firms achieve the same performance results

A firm's strategic position relates to its ability to create _____ (one word) for customers while containing the _____ (one word) to do so.

value, cost

Which of the following is an example of a strategy for competitive advantage? "We will destroy the competition." "We will leverage our IT systems to provide superior customer service." "We will keep our eyes on the prize, undeterred by what others are doing." "We will implement an HR strategy."

we will leverage our IT systems to provide superior customer service

Which of the following are questions that managers are likely to ask when beginning the strategic management? (check all that apply) What do we ultimately hope to achieve? How can we achieve our goals? What are our values? Is out vision product- or customer-oriented?

what do we ultimately hope to achieve, how can we achieve our goals, what are our values