Coronel Midterm chapter 1-6

Outside directors

Virtually all boards of directors have an audit committee, which is always composed entirely of a. inside directors b. shareholders c. majority shareholders d. outside directors e. minority shareholders

ongoing need of company managers to react and respond to changing market and competitive conditions.

A company's strategy is a "work in progress" and evolves over time because of the a. importance of developing a fresh strategic plan every year that keeps employees from becoming bored with executing the same strategy year after year. b. ongoing need to imitate the new strategic moves of the industry leaders. c. need to make regular adjustments in the company's strategic vision. d. ongoing need of company managers to react and respond to changing market and competitive conditions. d. frequent need to modify key elements of the company's business model.

shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces.

A company's strategy is increasingly effective the more it can match the company strategy to competitive conditions, so the firm can a. pursue avenues that expose the firm to as many of the different competitive pressures as possible. b. shift the competitive battle in favor of the firm by altering the underlying factors driving the five forces. c. pursue ways to identify and complement the five forces' contradictions and inferences to attract competitive growth opportunities. d. pursue avenues that promote strategic thinking about how to contest competitor strengths and weaknesses and to create a checklist of potential profitability preferences. e. shift societal concerns, attitudes, and lifestyles by altering the pattern of competition.

is competitively unattractive from the standpoint of earning good profits.

A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers a. is competitively unattractive from the standpoint of earning good profits. b. offers little ability to build a sustainable competitive advantage. c. is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand. d. offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage. e. requires that industry members have a strongly differentiated product offering in order to be profitable.

Crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

A creative, distinctive strategy that delivers a sustainable competitive advantage is important because a. without a competitive advantage a company cannot become the industry leader. b. without a competitive advantage a company is likely to fall into bankruptcy. c. crafting a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance. d. a competitive advantage is what enables a company to achieve its strategic objectives. e. how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company.

enabled and constrained by the set of capabilities they have at hand.

A rival's strategic moves and countermoves are a. indicators for the visualization of strategic mapping techniques. b. enabled and constrained by the set of capabilities they have at hand. c. measured by the extent to which they can unveil financial objectives. d. responses to the broader definition of the industry opportunities. e. signs of the competitive pressures from the industry.

offering high-cost specialized salsas that could be consumed only by customers with specific food allergies.

A salsa manufacturing company that enjoys the lest bargaining power with its suppliers would most likely be a. involved in mass production of its products to cater to an expanding customer base. b. actively catering to a broad, price-sensitive customer base. c. manufacturing high-quality salsa and related products from readily available raw materials for a broad customer base. d. selling salsa and related products deemed to be highly popular and easily available across most supermarkets. e. offering high-cost specialized salsas that could be consumed only by customers with specific food allergies.

allowing users to view ads on previously made related searches.

A search engine giant specializes in all types of search items; provides a free translation feature for 80 different languages; stores all passwords for commonly visited sites in encrypted form; allows users to view ads on previously made related searches; provides suggestive search items to assist the user; allows users to view a collection of related web pages users might want to visit; and provides a faster load time and more accurate hits than its rivals. This search engine company uses a profit formula that primarily consists of a. providing a free translation feature for 80 different languages. b. allowing users to view ads on previously made related searches. c. allowing users to view a collation of related web pages users might want to visit. d. providing a faster load time and more accurate hits than its rivals. e. providing suggestive search items based on history of sites visited.

the strength of the federal banking system.

A strategically relevant political factor in the macro-environment that will influence the performance of all firms across the board is most likely to be a. the strength of the federal banking system. b. the exogenous forces related to the general environmental demand. c. social factors that could fuel a political agenda and create greater transparency. d. bailouts and energy policies that are industry specific. e. tax policy, fiscal policy, and tariffs providing impetus for antitrust matters.

flexible, focused, and directional

An effectively worded strategic vision statement is? a. achievable, profitable, and ethical b. realistic, customer-focused, and market-driven c. balanced, responsible, and rational d. challenging, competitive, and "set in concrete" e. flexible, focused, and directional

their need to respond to short-term swings in the stock market that impact timing of an initial public offering (IPO).

An evolving strategy for a ride-share business like Uber or Lyft is not likely to be triggered by a. their need to keep strategy in step with changing circumstances, market conditions, and changing customer needs and expectations. b. the proactive efforts of their managers to fine-tune and improve one or more pieces of the strategy. c. their need to abandon some strategy features that have been faltering or are no longer working well. d. their need to respond to the newly initiated actions and competitive moves of manufacturers of autonomous vehicles. e. their need to respond to short-term swings in the stock market that impact timing of an initial public offering (IPO).

Fast n'Fresh Pizza: "Get fresh, hot pizza, delivered under 20 minutes—or it's free."

Based upon its advertising slogan, the pizza restaurant that likely offers the best value proposition to its customers is a. Johnny's Pie Shop: "The Tastiest Pizza You've Ever Had." b. Fast n'Fresh Pizza: "Get fresh, hot pizza, delivered under 20 minutes—or it's free." c. Sustainable Slices: "Organic and sustainably sourced ingredients that are good for you and the planet." d. Loyalty Pizza: "One pizza, 5 points: to be redeemed with a pan pizza upon reaching 50 points." e. Crackerjack Pizza: "Open your pizza box and find a free gift. Hurry! Free gifts for 100 lucky customers."

A focused differentiation strategy

BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with a guaranteed hassle-free holiday experience at a premium price. What strategy is BloomsJay using to gain competitive advantage? a. a low-cost provider strategy b. a broad differentiation strategy c. a focused low-cost strategy d. a focused differentiation strategy e. a best-cost provider strategy

Account for why a company's strategy evolves over time

Changing circumstances and ongoing managerial efforts to improve the strategy a. account for why a company's strategy evolves over time. b. explain why a company's strategic vision undergoes almost constant change. c. make it very difficult for a company to have concrete strategic objectives. d. make it very hard to know what a company's strategy really is. e. are consistent with a planned strategy approach.

customers have low brand preferences and low degrees of loyalty to seller.

Competitive pressures associated with the threat of entry are greater in all of the following situations except when a. incumbent firms are willing to strongly contest the entry of newcomers with moves designed to make entry unprofitable. b. a large pool of potential entrants exists, some of which have the capabilities to overcome high entry barriers. c. entry barriers are relatively low and buyer demand for the product is growing rapidly, and newcomers can expect to earn attractive profits without inviting a strong reaction from incumbents. d. existing industry members are looking to expand their market reach by entering product segments or geographic areas where they currently do not have a presence. e. customers have low brand preferences and low degrees of loyalty to seller.

consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods.

Crafting a deliberate strategy involves developing strategy elements that a. imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. b. comprise a five-year strategic plan that is then fine-tuned during the remainder of the plan period; big changes in strategy are thus made only once every five years. c. consist of a blend of proactive new planned initiatives plus ongoing strategy elements continued from prior periods. d. deliberately eliminate the ongoing strategic elements and implement new planned initiatives. e. consist of adaptive change plans to new market situations along with abandoned redundant ongoing elements.

Cancelling the job cuts till the market situation and entry operations stabilize

Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided to outsource its programming operations to an emerging market, India, to obtain cheaper labor. Since then, this social networking company has encountered criticism that has diminished its current market position and staff productivity. You have been retained by this company to develop an appropriate reactive (emergent) strategy that would begin by a. hiring and training new talent to begin operations in the emerging market. b. acquiring a local computer chip marketing and distribution specialist firm in the new location. c. cancelling the idea of outsourcing and retaining the existing workforce to run operations. d. shifting the existing workforce to the new geographical location and paying them according to new standards. e. cancelling the job cuts till the market situation and entry operations stabilize.

winning the support of employees to help make the vision a reality.

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of a. winning the support of employees to help make the vision a reality. b. helping company personnel understand why "making a profit" is so important. c. making it easier for top executives to set strategic objectives. d. helping lower-level managers and employees better understand the company's business model. e. letting employees know about what the company once did and does now.

A distinctive element that attracts customers and produces a competitive edge.

Every strategy needs a. a distinctive element that attracts customers and produces a competitive edge. b. to include similar characteristics to rival company strategies. c. to pursue conservative growth built on historical strengths. d. to employ diverse and sundry operating practices for producing greater control over sales growth targets. E. to mimic the plans of the industry's most successful companies.

the best test of managerial excellence and the best recipe for making a company a standout performer.

Excellent execution of an excellent strategy is a. the best test of managerial excellence and the best recipe for making a company a standout performer. b. a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. c. the best test of whether a company is a true industry leader. d. the best evidence that managers have an emerging business model. e. the best test of whether a company enjoys sustainable competitive advantage.

Developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones

FaberRoad, a respected courier brand, is fast losing its market share to competitors who do overnight deliveries of packages or offer lower prices. The company's research department has found that many customers care more about knowing exactly when a package will arrive than getting it the next day. Which strategy would best address the current state of FaberRoad and help it regain its market? a. employing night delivery drivers at a high cost and maintenance charges b. developing radio tags that could be attached to packages to allow for real-time tracking by customers' PCs and mobile phones c. diversifying the different types of packages that can be transported and enabling booking through calls d. acquiring small transportation companies with cheaper trucks and tempos, rebranding, and using them for deliveries e. engaging in expensive advertising with new tag lines and famous celebrities to enhance its brand image in the market

is the clearest indicator of good management.

Good strategy combined with good strategy execution a. offers a surefire guarantee for avoiding periods of weak financial performance. b. is the best sign that a company is a true industry leader. c. is a more important management function than forming a strategic vision combined with setting objectives. d. is the clearest indicator of good management. e. signals that a company has the best business model in a market.

A mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going."

How would you best characterize the definitive difference between a vision and a mission? a. A mission statement addresses "how we are trying to make a profit today," while a strategic vision concerns "how will we make money in the markets of tomorrow." b. A mission statement deals with the values, corporate culture, and ethics of a company, whereas the strategic vision deals with the realization of strategies and goals. c. A mission statement deals with "where we are going," whereas a strategic vision provides the critical answer to "who we are, what we do, and why we are here." d. A vision statement is usually quite brief, whereas the mission statement offers large and descriptive explanations of "who we are, what we do, and why we are here." e. A mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going."

Mimic the successful strategies of rivals

If you were advising Rebel Toad Brewing, a local brewpub, about how to set itself apart from rivals and achieve a sustainable competitive advantage, you would most likely not recommend that Rebel Toad Brewing a. strive to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage. b. outcompete rivals on the basis of differentiating features such as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money. c. mimic the successful strategies of rivals. d. focus on a narrow market niche to achieve a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche. e. develop a cost advantage based on offering more value for its patrons' money.

Need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals.

In crafting a company's strategy, managers a. face the biggest challenge of how closely to replicate strategies of successful companies in the industry. b. have comparatively little freedom in choosing the "hows" of strategy. c. are wise not to decide on concrete courses of action in order to preserve maximum strategic flexibility. d. need to come up with a sustainable competitive advantage that draws in customers and produces a competitive edge over rivals. e. are well-advised to be risk-averse and develop a "conservative" strategy—"dare-to-be-different" strategies are rarely successful. A

scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance.

In evaluating proposed or existing strategies managers should a. initiate new initiatives even though they don't seem to match the company's internal and external situation. b. scrutinize the company's existing strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage, and result in above-average performance. c. evaluate the firm's business model at least every three years. d. ensure core capabilities are incorporated for establishing a competitive advantage. e. align existing strategies with new strategies to emphasize incremental gains.

establishing long-run and short-run strategic and financial objectives

In most situations, managing the strategy execution process does not primarily include which of the following principal aspects? a. motivating people and tying rewards and incentives directly to the achievement of performance objectives b. installing information and operating systems that enable company personnel to carry out their roles effectively and efficiently c. establishing long-run and short-run strategic and financial objectives d. exerting the internal leadership needed to propel implementation forward e. organizing the work effort along the lines of best practice

share the strategy publicly to obtain additional customer and shareholder support.

In the course of crafting a strategy, managers typically do not a. abandon certain strategy elements that have grown stale or become obsolete. b. modify the current strategy when market and competitive conditions take an unexpected turn or some aspects of the company's strategy hit a stone wall. c. revamp the current strategy in response to the fresh strategic maneuvers of rival firms. d. take proactive actions to improve this or that piece of the strategy. e. share the strategy publicly to obtain additional customer and shareholder support.

Buyers are dubious about using substitutes.

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products? a. The costs to buyers of switching over to the substitutes are low. b. Buyers are dubious about using substitutes. c. The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements. d. Buyer brand loyalty is weak. e. Substitutes are readily available at competitive prices.

when the items purchased from suppliers are in short supply

In which one of the following instances is supplier bargaining power and leverage not weakened? a. when industry members pose a credible threat of backward integration into the business of suppliers b. when the cost of switching from one supplier to another is low c. when the items purchased from suppliers are in short supply d. when the buying firms purchase in large quantities and thus are important customers of the suppliers e. when the item being supplied is a commodity

is the strongest force among the five forces that drive profitability in an industry.

Market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry a. is less strong than the competitive pressures that stem from the ready availability of attractively priced substitute products. b. is the strongest force among the five forces that drive profitability in an industry. c. emerges from close collaboration with suppliers and the competitive pressures that such collaboration creates. d. is less important than competitive pressure associated with the potential entry of new competitors. e. has about the same impact as bargaining power and leverage that large customers are able to exercise.

Striving to be the industry's high-price provider

Strategic approaches to set a company apart from rivals and achieve a sustainable competitive advantage are not likely to include a. striving to be the industry's low-cost provider. b. outcompeting rivals on the basis of differentiating features that will appeal to a broad spectrum of buyers. c. developing a best-cost provider strategy that gives customers more value for the money. d. focusing on a narrow market niche and serving buyers' special needs and tastes. e. striving to be the industry's high-price provider.

the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors.

Strategic group mapping is a visual technique for displaying a. how many rivals are pursuing each type of strategy. b. which companies have the biggest market share and who the industry leader really is. c. the different market or competitive positions that rival firms occupy in an industry and for identifying each rival's closest competitors. d. which companies have the highest degrees of brand loyalty. e. which companies have failing business models.

Developing lasting success that can support growth and secure the company's future over the long term.

Strategy, at its essence, is about a. matching rival businesses' products and quality dimensions in the marketplace. b. building profits for short-term success. c. realigning the market to provoke change in rival companies. d. developing lasting success that can support growth and secure the company's future over the long term. e. re-creating a business model with regularity.

an integral part of this company's DNA; its executives seek to ingrain designated core values into corporate culture.

TOMS Shoes' company values are a. focused on the wealth maximization of shareholders. b. strictly limited in number (not more than two per company). c. barely distinguishable among those of other rivals in the footwear industry. d. directly linked to this company's strategic vision, whereas its mission has other underlying assets. e. an integral part of this company's DNA; its executives seek to ingrain designated core values into corporate culture.

provides a company's employees with clear guidelines about how their jobs are linked to the overall objectives of the organization.

The Balanced Scorecard: a. primarily tracks a company's financial performance to deliver better financial results from its operations. b. provides a company's employees with clear guidelines about how their jobs are linked to the overall objectives of the organization. c. strikes a balance between past results and future performances. d. provides a company's management with detailed information on how each employee contributes to the company's overall success. e. links financial performance objectives to executive bonus programs.

Apple launching a global network of driverless cars, buses, and trucks on demand via a mobile app.

The biggest strategy-shaping impact on on-demand transportation providers such as Uber and Lyft is most likely to be a. Yellow Cab companies launching mobile app campaigns for community-connect and awareness. b. Amazon launching a mobile delivery service via drones. c. Apple launching a global network of driverless cars, buses, and trucks on demand via a mobile app. d. Tesla and ZipCar announcing a joint venture for electric automobile sharing services. e. Greyhound developing and marketing a mobile app for customers to purchase intercity bus tickets.

those associated with environmental factors such as water shortages.

The competitive pressures on companies within an industry come from all of the following except a. those associated with the market maneuvering and jockeying for buyer patronage that goes on among rival firms in the industry. b. those companies in other industries attempting to win buyers over to their substitute products. c. those associated with the threat of new entrants into the marketplace. d. those associated with the bargaining power of suppliers and customers. e. those associated with environmental factors such as water shortages.

are likely to continue their present strategy with only minor fine-tuning.

The extent to which firms are meeting objectives suggests they a. are likely to prosper in the future. b. are likely to continue their present strategy with only minor fine-tuning. c. are virtually certain to make fresh strategic moves. d. recognize the status quo as the best course of action to adopt e. realize that refocusing will ensure competitive gains.

Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry.

The impact of the macro-environment on a company's strategic opportunities is not exemplified by the following situation? a. Sales of Stolichnaya Vodka in the United States dwindle on account of a boycott of Russian products. b. Consumer confidence in Volkswagen drops precipitously because of falsified emissions data. c. Netflix squares off with Amazon Prime as its most potent rival in the streaming television and film industry. d. Traffic increases at the outlets of Whole Foods following its introduction of stores comprised solely of generic products. e. Sales of FitBit surge on account of a new feature that monitors users' blood pressure

the industry has more than two strong driving forces and whether the industry has more than two diverse and capable strategic groups.

The intensity of rivalry among competing sellers does not depend on whether the industry has more than two strong driving forces and whether a. the industry has more than two diverse and capable strategic groups. b. competitors are diverse in terms of long-term directions, objectives, strategies, and countries of origin. c. strong companies outside the industry have acquired weak firms in the industry and are launching aggressive moves to transform the acquired companies into strong market contenders. d. one or two rivals have particularly powerful and successful strategies to grow the business, attract and retain buyers, and develop a sustained competitive advantage. e. industry conditions attract industry members to use price cuts or other competitive weapons to boost total sales volume and market share.

are those competitive factors that most affect industry members' abilities to prosper in the marketplace—the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.

The key success factors in an industry a. are those competitive factors that most affect industry members' abilities to prosper in the marketplace—the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss. b. are determined by the industry's driving forces, which are essential to surviving and thriving in the industry. c. hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages. d. depend on how many rivals are trying to move from one strategic group to another without losing momentum. e. are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse.

gain sales and market share with lower prices despite increased costs.

The pattern of actions and business approaches that would not define a company's strategy include actions to a. strengthen market standing and competitiveness by acquiring or merging with other companies. b. strengthen competitiveness via strategic coalitions and partnerships. c. upgrade competitively important resources and capabilities. d. gain sales and market share with lower prices despite increased costs. e. strengthen the firm's bargaining position with suppliers and distributors.

whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product.

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of a. whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product. b. whether suppliers self-manufacture what they supply or source their items from other manufacturers. c. whether the industry's position in the growth cycle is favorable. d. whether technological change in the businesses of suppliers is rapid or slow. e. whether the needs and expectations of supplier-seller relationships are changing slowly or rapidly.

How well does the strategy fit the company's situation?

To distinguish a winning strategy from a mediocre or losing strategy, a strategic manager should ask which question? a. How good is the company's business model? b. Is the company a technology leader? c. Does the company have low prices in comparison to rivals? d. Is the company putting too little emphasis on behaving in an ethical and socially responsible manner? e. How well does the strategy fit the company's situation?

Is the strategy helping the company achieve a sustainable competitive advantage, and is it resulting in better company performance?

To test the merits of a firm's strategy and distinguish it as a winning strategy, which major question needs to be addressed? a. Is the company's strategy ethical and socially responsible, and does it put enough emphasis on good product quality and good customer service? b. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? c. Is the strategy resulting in the development of additional competitive capabilities? d. Is the strategy helping the company achieve a sustainable competitive advantage, and is it resulting in better company performance? e. Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

Strategic Vision

Top management's views and conclusions about the company's long-term direction and which product-customer-market-technology mix seems optimal for the road ahead together constitute a company's a. corporate culture. b. public relations identity. c. competitive advantage. d. mission statement. e. strategic vision.

establishing a comparison feature tab that allows customers to compare offerings from other online retailers

Troopline Inc., an online laptop retailer, sells laptops of similar range and features as other online laptop retailers. Which of the value propositions would not benefit the company? a. providing free delivery of purchased laptops b. allowing customers to pay through gift coupons c. updating the site with better high-resolution pictures of laptops d. providing mobile friendly version of the site and compatible apps for mobile users e. establishing a comparison feature tab that allows customers to compare offerings from other online retailers

building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry.

Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves a. building the picture of competition in three steps: (1) identify the different parties involved, along with specific factors that bring about competitive pressures; (2) evaluate how strong the pressures stemming from each of the five forces are (strong, moderate or weak); and (3) determine whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry. b. building the picture of competition in two steps: (1) determine which rival has the biggest competitive advantage and (2) assess whether the competitive advantages possessed by various industry members allow most industry members to earn above-average profits. c. evaluating whether competition is being intensified or weakened by the industry's driving forces and key success factors. d. assess whether the collective impact of all five forces is weak enough to allow industry members to go on the offensive or use a defensive strategy to insulate against fierce competitive pressures. e. gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members.

Whether buyer-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of a. the speed with which general economic conditions and interest rates are changing. b. the extent to which buyers can exercise enough bargaining power to influence the conditions of sale in their favor and whether strategic partnerships between certain industry members can adversely affect other industry members. c. how many buyers purchase all of their requirements from a single seller versus how many purchase from several sellers. d. the number of buyers versus the number of sellers. e. whether industry members are spending more or less on advertising.

a vision of where it is headed, a set of performance targets, and a strategy to achieve them

Which are the primary components of a strategic plan? a. a vision of where it is headed, a set of core values, and a strategy to achieve it b. a set of performance targets, a balanced scorecard, and a strategy to implement both c. a strategy and management's specific, detailed plans for implementing it d. a vision, a strategy, and a specific financial plan as to how to support the execution e. a vision of where it is headed, a set of performance targets, and a strategy to achieve them

product attributes and service characteristics that buyers consider to be crucial

Which of the following can aid company strategists in identifying key success factors in their industry? a. global distribution capabilities of suppliers b. product attributes and service characteristics that buyers consider to be crucial c. low switching costs of buyers and suppliers d. accurate filling of buyer orders e. short delivery time capability

changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration

Which of the following does not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions? a. changes in who buys the product and how they use it, and changes in the long-term industry growth rate b. changes brought about by the entry or exit of major firms, product innovation, and marketing innovation and cost efficiency c. changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration d. changes in buyer preferences for differentiated products instead of mostly standardized or identical products e. changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities

shifts in who buys the product and how the product is used

Which of the following driving forces would have the least impact on the attractiveness of the automobile industry? a. changes in the long-term industry growth rate b. entry or exit of major firms c. shifts in who buys the product and how the product is used d. changes in costs and efficiency e. regulatory influences and government policy changes

the industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors

Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits? a. the industry's growth potential, whether competition appears destined to become stronger or weaker, how the industry's driving forces might affect overall industry profitability, the company's competitive position relative to rivals, and the company's proficiency in performing industry key success factors b. an assessment of which firms in the industry have the best and worst competitive strategies, c. whether the number of strategic groups in the industry is increasing or decreasing, and whether economies of scale and experience curve effects are a key success factor d. whether there are more than five key success factors, more than five barriers to entry, and more than five industry drivers whether the market leaders enjoy competitive advantages and how difficult it is to promote innovation to develop a strongly differentiated product or service for which a price premium may be charged e. constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group

Buyers are small and numerous relative to sellers.

Which of the following is not a factor that causes buyer bargaining power to be stronger? a. Some buyers are a threat to integrate backward into the business of sellers and become an important competitor. b. Buyers are small and numerous relative to sellers. c. Buyers have considerable discretion over whether and when they purchase the product. d. Buyers purchase the item frequently and are well-informed about sellers' products, prices, and costs. e. The costs incurred by buyers in switching to competing brands or to substitute products are relatively low.

What are the industry product R&D capabilities and expertise in product design?

Which of the following is not a question asked to deduce a marketing-related key success factor? a. What are the industry product R&D capabilities and expertise in product design? b. On what basis do buyers choose between the competing brands of sellers? c. What product attributes and service characteristics are crucial? d. What resources must a company have to be competitive? e. What shortcomings are almost certain to put a company at a significant disadvantage?

movement in the economy and in interest rates

Which of the following is not generally a "driving force" capable of producing fundamental changes in industry and competitive conditions? a. changes in the long-term industry growth rate b. increasing globalization of the industry c. product innovation and technological change d. movement in the economy and in interest rates e. regulatory influences and government policy changes

provide comparable quality furniture at a much lower price than your rivals but leave the final assembly of purchased furniture to customers accompanied by an easy-to-follow assembly guide.

You have been asked to advise Waltham Furniture, a company that seeks to serve a target middle-class customer demographic obsessed with the quality and price of products. Your proposed value proposition for this company to offer to its customers would be to a. identify the unique features of your client's furniture without comparing it with a rival's products. b. offer copycat furniture at low cost but an average quality compared to your client's rivals. c. offer the same quality of furniture as do your client's rivals but at a high cost based on greater market share and higher brand value. d. provide comparable quality furniture at a much lower price than your rivals but leave the final assembly of purchased furniture to customers accompanied by an easy-to-follow assembly guide. e. market and sell only average quality furniture compared to your rivals at an imperceptible difference in price.

is vague, fairly uninformative, and blurs the essence of this company's business activities.

You have been asked to evaluate Kampus Kombucha's mission statement, "to heal and refresh everyone we touch." You would most likely observe that Kampus Kombucha's mission statement a. specifies the buyer needs that it seeks to satisfy and the customer groups or markets it serves. b. specifically informs customers and employees "who we are, what we do, and why we are here." c. portrays this company's aspirations for the future. d. describes more of an objective and a result of what this company does instead of its purpose. e. is vague, fairly uninformative, and blurs the essence of this company's business activities.