FINAL

True or False: Strategy formalization concerns the choice of strategy in terms of when, and who to compete with, in contrast strategy implementation concerns the organization, coordination, and integration of how work it's done.

false

True or False: it's up to the shareholders to make certain that their financial statements, the firms release are correct, and not misleading.

false

True or False: pursue extremely higher..., extremely lower levels of diversification perform better than those that pursue moderate levels of diversification.

false

True or False: High demand for online video streaming options is one of Netflix's core competencies.

false, Demand does not equal core competency

Which of the following best explains why Board of Directors may grant stock options as part of a compensation package.

Align incentives between shareholders and management

Maretza is trying to understand the relationship between what is legal and what is ethical. Tiffany explains that both of these terms are often synonymous in business. Your response is...

Tiffany is incorrect, and managers actions can be legal, but ethically questionable.

New cooperation has recently introduced a new production method that will make their production of medical devices more cost-effective. Which of the following will most likely be their result of this innervation.

steeper learning curve

What is the definition of market cap?

(# of shares outstanding) x (share price) = market cap

Which of the following vision statements is the most likely to produce sustainable competitive advantage for boat dealerships?

Help customers find their perfect boat for individual needs

______ are the board members who are a part of the senior management team funded by shareholders to provide the board with necessary information pertaining to the companies, internal workings and performance. What type of directors?

Inside directors

Prokaryotes simulation systems wants to globally expand its market, it intends to ensure that its mode of foreign entry allows it to have a strong control over its operations and protect its intellectual property. Though that may mean investing a significant amount of capital and other resources. In this scenario, which of the following foreign entry modes would best suit the companies simulation systems?

acquisition

All the following are external stakeholders except.

competitors

Strategic commitments our actions that are?

costly and long term oriented and difficult to reverse

What is the definition of cooperate social responsibility? Write in question

framework that helps firms recognize and address economic legal and philanthropic expectations society has of a business. It goes beyond just-be-nice society grants shareholders rights and privileges to create a public company so that the company owes something back to society.

Functional structure is recommended when...

has a low level of diversification

7 drawback exists when it comes to horizontal integration, which of the following below is not one of its drawbacks.

higher costs

The question that business level strategy answers, is ______ the firm will compete.

how

When a firm combines experience-based learning, and process innovation, the firm...?

jumps to steeper leaning curve

Lee runs a firm that has diversified into different product lines and geographies, she should probably use what form of organizational structure?

matrix or emporum

_____ is the benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

opportunity costs

Starbucks store manager that came up with the idea of the frappachino, what type of planning was that?

planned emergence

The Internet service industry provider in the country of Wakanda is characterized by the presence of strong network effects, high brand, loyalty, economies of scale, and proprietary technology of incumbent firms. Thus, in the ISP industry...

the threat of new entrants is most likely low

What's the primary objective of porters 5 forces

to see profitability of ...

_______ is a model that links strategy analysis, formulation, and implementation. Together, helps managers plan and implement a strategy that can improve performance and result in competitive advantage.

AFI strategy framework

A successful drug manufacturer, because of the pharmaceutical industry features, a high rate of change, and the threat of disruption is high. Phange and Bone Corporation should?

Be prepared to restructure as the landscape changes

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

Beating rivals on product attributes while offering a better price

When the strong dictatorial rule in Arlington unexpectedly collapsed due to the shocking death to the royal family in an explosion, the nations economy experienced drastic changes. Laws became more restrictive, the country lost many locally resources and products, and the distribution of wealth became inequitable. The unexpected event that lead to these changes can best be described as ________ event.

Black swan event

James is an honest investor who wants to decide between purchasing shares of capital up or mainframe Inc., capital up's return of investments capital is up 15% and it's cost of capital is 12%, during the same period main frame ROIC was 22%, and it's cost capital what is 25% what does this information tell James?

Capital up is more likely to create value, well mainframe is more likely to destroy value

Susan trying to determine if her company has a competitive advantage, she must be able to accomplish two critical tasks before she can substantiate this claim. First she must assess the performance of her company accurately second she must...?

Compare and benchmark performance to other competitors in the same industry.

Visionary companies differ from their competition in that...

Employees and visionary companies find meaning in their work and are motivated

Which of the following situations is is a company that exists in the telecommunications industry, most likely to face the highest threat of entry?

If the industry has recently become deregulated

A firm that uses a structure that is organized on different business functions, such as HR, R&D, sales, marketing, that also go along different geographical areas such as different countries of the world is most likely to use what type of structure?

Matrix

Waylan Utani, supermarket chain is implementing a multi domestic strategy, Americore, a company that manufactures solar panels for a commercial in domestic purposes, is pursuing a global standardization strategy. how will the two companies most likely differ from each other?

Multi domestic strategy tailors product to local population, but incur higher costs. Global standardization, low tailorization, consistency location economies.

Firms that consider international expansion will often examine absolute metrics to which countries pursue investments but also consider relative distance to help firms decide where to compete the _________ was made to help firms make this decision.

Porters dime work

In order to better achieve competitive advantage firms must now adopt a holistic approach towards satisfying multiple stakeholders, opposed to focusing on the needs of stockholders. This integrated approach is referred to as?

Stakeholder strategy

John is a bit confused about the difference between stakeholders and stockholders. You meet with John and warn him that the main differences are...

Stakeholders can be both internal and external, while stockholders own shares of a firm and are classified as internal to the firm.

Which of the following statements accurately brings out the difference between tangible and intangible resources?

Tangible assets can be bought in the open market by anyone with necessary cash, where as intangible assets cannot be easily purchased.

Card C inc., Cardtifc Inc., and Cluster Card Inc. Are three consumer product retailing companies. Their products consist primarily of day-to-day items that are easy to imitate and sell. All three companies use the same resources and capabilities in the production and distribution of their products. Judging from the market conditions described. in the scenario which of the following is true?

The industry structure will be far from perfect

After creation of social networking websites were introduced, their value was increased exponentially as the number of users increased. This is positive effect of __________.

The network effect

Which of the following summarizes the difference between a firms, vision and mission?

Vision states that when a firm wants to accomplish, mission states how affirm plans to accomplish this.

Janet hires Vanessa to perform a critical task in her organization, However Vanessa misrepresented her knowledge, skills, and abilities. Janet has no way of knowing that Vanessa can indeed perform well. This is an example of?

adverse selection

A perfectly competitive industry is one that...

all the above

Which of the following stages of the strategic management process involved in the evaluation of a firms, external and internal environments?

analysis

We-clean, the manufacture cleaning agent supplies it's products to Goodings. Inc. the supermarket chain it demands that Goodings create more shelf space in its stores for we-cleans products. However, Goodings refuses to do this instead, it decides to produce its own range of cleaning agents with its own label. All washed. In this scenario, Gooding's is exercising hey Siri power as a buyer through...

backward integration

Best reads spent 10 million dollars to buy the rights of a best selling novel, the company then prepared for production by hiring a screen writer to adapt the novel. Casting the main roles, renting cameras, and other equipment, and scouting locations in southern Montana. Which of the following pairs of resources are both intangible?

best selling novel, and screen writers experience adapting novels

Managers at suntrusts US properties are surprised to hear that interest rates are likely to remain low for the next six months. Which of the following is an implication of low interest rates?

consumer demand will increase

_______ allows a firm to differentiate its products and services from those of its rivals. Creating higher value with a customer or offering products and services at comparable value at lower costs.

core competencies

While creating its AFI strategy, Gordon's consultants decide what markets to firm to compete in by doing this white type of strategy did the company devise?

corporate

Most consumers and investors today want the firms they do business with to look beyond just the profit motive, in fact, they want firms that behave legally, and ethically, while also giving back to communities via philanthropic activities.

corporate social responsibility

Which of the following summarizes the difference between and business strategy?

corporate strategy answers where, business answers how

Bill burk is a CEO of project Inc. a supply, chain, firm bills company considers, installing a new piece of machinery, and one of its factories. Installing this new machinery will cost money. Paying the technicians to install, the machinery, transporting machinery, buying the parts and so on. Bill plans on financing his operations by issuing stock, equity, and issuing bonds. His return on investment capital to exceed his_________ in order to determine if he should take on the project.

cost of capital

When two neighboring democratic countries follow different religions and social norms, they most likely have high _______ distance.

cultural

XYZ as a publicly, traded company and highly diversified, however, XYZ's most recent stock prices value less than some of its individual business units. We can conclude that XYZ is currently experiencing...

diversification discount

PEGs sells big dog, choppers, a special type of motorcycle, its business roughly generates 80% revenues from selling these motorcycles and about 20% on motorcycle return service. What type of diversification is PEG's company engaged in?

dominant

Type of consumer is vital to affirm introducing a new innovation and are________ who are willing to pay higher prices, and like to tinker with

early adaptors

At the time Lauren decided to purchase a tablet computer. The products had just become accessible to the mass market. She did not purchase a tablet until after she was convinced that the benefits it would offer her would for exceed its price. She also waited for her friends to try the product and popular gadgets to endorse it.

early majority

Teslas addressing environmental concerns regarding carbon emissions of gasoline powers cars by build zero emissions battery powered vehicles. This best represents which of the following PESTL categories?

ecological

Given the structure of the automobile industry, entering the auto manufacturing industry seemed risky, at Tesla join the... rather than attempting to compete head on with internal combustion engines, Tesla motors entered the all electric car segment. Much less crowded niche in the overall car industry which of the following is Tesla, most hoping to benefit from this market niche?

economies of scale

Company C furniture is a brand reputed for its wide variants of sofas, that introduced a new range of mattresses and bed frames a few years ago. Since most of its products could be produced using the same resources and technology companies cost structured lower while its product portfolio widened. In this scenario, which of the following value of cost drivers is Company, C implying?

economies of scope

Tom was under a personal fitness tracking device, he is in the process of firing employees after receiving investment funding. In considering on how to structure his company he should...

first establish a strategy and let that be his guide

Jill is the CEO notes, etc. stationary manufacturer, she decides to open up a retail store to sell her directly to consumers, instead of just selling to retailers. In order to do joe will need to engage in _______ which is a corporate level strategy.

forward integration

What does it mean for a firm to have a 80% learning curve?

if you have an 80% learning curve you double your output, so it is a 20% decrease in costs per unit.

Which of the following tasks in the AFI framework involves putting the formulated strategy into practice through organizational structure, culture, and controls?

implementation

Vast majority of innovations in an industry are______ because they build on a firms, existing knowledge base and reinforced existing organizational structure and network relationships.

incremental

According to the resource based view, a firms, competitive advantage, often stems from...

intangible resources

When firms sells their products overseas the integration, responsiveness framework, with little or no change to the products they may increase the expropriation of intellectual property, increase the risk of hierarchy, this is considered a serious disadvantage when it comes to pursuing which strategy?

international

Teresa wants to take her firm internationally but is concerned with_______ which refers to the possibility of higher cost of doing business in unfamiliar, cultural and economic environment.

liability of foreignness

Walmart sells live animals, snakes, eels, toads for food preparation in china, where IKEA sells kimchi, refrigerators and metal chopsticks in South Korea. These examples illustrates the need for______ which often requires the competing firm to tailor their products and services to meet the needs of the market in which they are competing.

local responsiveness

Spotless Inc outsources its production to contract manufactures located in underdeveloped nations or unskilled laborers at its lowest wages is plentiful. Does this help the company become a price leader in the chemicals industry? Which of the following is the key driver behind that company's strategic position?

low cost input factors

Which of the following is a drawback of porter 5 forces?

managers cannot determine the changing speed of an industry for the rate of innovation.

Company scientist at a biotech company decides to work on his own research project on company time, uses company resources while he's working on the clock. However, company stockholders are unaware of the situation. This is an example of ______ in the context of the principal agent problem.

moral hazard

Amy is the CEO of a line of accessories and cosmetics, which retail stores and production units in five countries. In this scenario, and the companies most likely...

multinational enterprise

ABC ink, it's electric Inc., the three largest firms in the consumer electronics industry. Holds close to 85% of the industries market share. these companies mainly compete against each other by providing unique features in their products rather than pricing on low. These firms are interdependent, and each firm must consider the strategic actions of its competitors. Which of the following industry, competitive structures does a scenario best illustrate?

oligopoly

Leslie has completed the organizational design of her firm, but is now interested in the second key, informal building block, which she believes will help her firm and achieve competitive advantage. Specifically, she's interested in how things will get done in day-to-day, and the intangible piece of her organization that cannot easily codified. Leslie wants to build an effective...

organizational culture

Incumbent firms preferred to focus on incremental innovation's, which reinforce that established organizational structure and power distribution and avoid radical innovation that can disrupt their existing power distribution. This is also known as what?

organizational inertia

Jerry's one of the SBU managers for a firm that has been in business for over 50 years. The external environment in which they had operated has changed significantly in the past decade. But this firm is still operating under a business as usual mantra. Jerry can't seem to convince upper level management to re-organize the firms structure and formal reporting relationships. This firm is probably experiencing what?

organizational inertia

which of the following statements should ideally reflect a firm strategy for a competitive advantage?

our aim is to create superior customer value, while controlling and costs

Homestyle is a company that manufactures and sells home furniture, it sources its material from another country to keep costs low and assembly line worker in one of the manufacturing centers noticed that there was increasing in concern about the potential toxicity of the flame-retardant materials used in the furniture. In response she compiled a list of non-toxic, flame resistant materials that the company could use, when her manager learned about this, he presented to top management team, what type of planning is that?

planned emergence

Which of the following most likely have prevented the account scandals in the early 2000s in the global financial crisis?

practicing effective corporate governance

Stratton Oakmont is a publicly traded company, stockholders in this company delegate the authority to make decisions for the company to a CEO named Terry. Stockholders expect Terry to make decisions that will benefit the company. However, Terry finds ways to maximizes his total compensation, which hinders Stratton Okamonts performance.

principle agent problems

Customer service and _______ are two of the value drivers that managers can utilize when trying to improve a firms differentiation strategic position.

product uniqueness

Generally as the level of _____ innovation declines, the level of ______ innovation increases.

product, process

Nan zim sells it's e-book readers at the cost of $15 each, however, the company makes his profits from users have to download or buy books online. Which of the following business models is Nan zim implementing?

razor blades

Which of the following is an unintended side effect of a high degree of specialization in an organization?

reduced employee satisfaction due to repetition of tasks

Executives of a firm, consider business opportunities only where they can leverage their existing competencies and resources, it can be concluded that the firm is using...

related constraint diversification

In large multinational conglomerate Company had begun and to experience declining revenues over the years top management and headquarters of the company decided, and that it was important for the company to avoid divested from its core competencies. Thus, a few of the company's key businesses, like energy, telecom, and automobiles were centralized. Giving the top management team more control over them also relatively newer businesses like beverages and food processing were divested. What is this called?

restructuring

Executives at Disney and sons are developing strategic plans too address plowable future situations, like rides and the price of cotton, synthetic fabrics by 20% appreciation and the value of the dollar increase the cost of labor by 30% and increase of demand for the companies products. By doing so the company will be well prepared for for its planned responses and any of these situations occur in the future. what type of planning is the company employing for the development of strategy?

scenario

Voluntary arrangement between firms that involve sharing of knowledge, resources, and capabilities within intent to developing processes, products, services is best described as...

strategic alliance

The former CEO of Sam's club division with its own profit and loss responsibility, Roselyn Brewer reported to Walmart CEO, Douglas McMullen, who has corporate executive oversees Walmarts entire operations. Sam's club therefore is a _________ of Walmart.

strategic business unit

When a firm makes choices between costs and a value position to achieve competitive advantage, its primarily involved in what?

strategic tradeoff

________ is best described as a set of .... A firm takes to gain, sustain superior performance relative to competitors.

strategy

Type of assets that are the primary focus of accounting data that are no longer most important to competitive advantage are?

tangible assets

Amazons network of distribution centers allows it to drastically, reduce its delivery times compared to other online retailers. These distribution centers are examples of?

tangible resources

IKEA sales of 44 billion in 2019 Company turned a profit by recycling waste into some of its best selling products. Before those, waste had to cost the company more than 1 million per year and the company as well on its way to zero waste to landfill worldwide according to IKEA's head of sustainability, and for the UK "we don't do this because were tree huggers, do this because it's very cost-effective". Passage below best represents which of the following frameworks?

triple bottom line

True or False: Gary is he's senior manager at a large, publicly traded corporation, he has access and to insider information about the companies profits, losses, mergers, and acquisitions. It is legally and ethically acceptable for him to have this information as long as he does not use it to buy or sell stocks

true

True or False: Managers must first evolve a strategy that is likely to produce a competitive advantage before implementing a balanced scorecard approach

true

True or False: a music distributor that decides to launch a proprietary music streaming service to respond to changes in the music consumption. Trend exhibit is dynamic capabilities.

true

True or false: a firm operating on a 70% learning curve will achieve lower per unit costs after doubling its output then affirm operating on an 80% learning curve well.

true

We compute inks competency in designing and manufacturing efficient microprocessors has made its laptops the most advanced computers in the market. This competency, along with just-in-time manufacturing has enabled WeCompute Inks to increase its profitability by lowering its production costs. Thus, WeCompute Inks competency and design in manufacturing microprocessors will be considered a _______ resource in the VRAO framework.

valuable

Massive dynamic computer sources the components for its laptops and various suppliers on the market. The firm pays $100 for processors, $35 for disk drives, $50 for screens, $10 for memory, $40 for graphics and wireless Internet cards. Massive dynamic has determined that it would cost $200 per unit to produce all of the necessary components and its in-house manufacturing facility. In this scenario massive dynamic should?

vertically integrate