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Business-level strategies are concerned specifically with: A. A firm's position within its industry, relative to competitors B. The industries in which the firm will compete C. How functional areas will be organized within the firm D. How a business with multiple physical locations will operate in one of those locations.

A. A firm's position within its industry, relative to competitors

Why would a firm choose to outsource knowledge functions such as financial functions? A. Its in-house systems cannot handle the activities efficiently. B. It's a way to ensure there is not an over-dependence on a particular core competency. C. Its firm-specific knowledge should not impact the value creation system. D. It's a way to prevent having to offshore the process.

A. Its in-house systems cannot handle the activities efficiently.

Why do firms need to scan the health of economies outside of their host nation? A. Nations are interconnected through the global economy. B. Technology could be used to impact those economies. C. Laws and regulations will be different. D. Managerial styles will likely be different in other economies.

A. Nations are interconnected through the global economy.

A cost leadership strategy can be summarized as: A. Providing products with features acceptable to customers at the lowest competitive price B. Providing products with features that are very inexpensive so that theprice of the product is very low C. Providing products that are so unique that customers are willing to pay a premium D. Focusing on a few unique features for which customers are willing to paya premium

A. Providing products with features acceptable to customers at the lowest competitive price

Why are causally ambiguous competencies and competitive advantages costly to imitate? A. Rivals do not understand how a firm uses capabilities for competitive advantage. B. Rivals do not know how to manage the social complexity tied to the competencies. C. Historical conditions cannot be imitated by rival firms. D. They are based on trust and interpersonal relationships that may be lacking in the rival's firm.

A. Rivals do not understand how a firm uses capabilities for competitive advantage.

Why is it often difficult to interpret environments effectively? A. They are often global and complex. B. Threats are often unforeseen. C. It is difficult to know who real competitors are. D. Scanning processes work only in highly volatile environments.

A. They are often global and complex.

Why is understanding the value chain important in organizations? A. Value has to be greater than costs to make above-average returns. B. It has a direct impact on a firm's ability to borrow capital. C. Not all resources are observed and quantifiable. D. It has to be nurtured to allow firms to engage in competitive battles.

A. Value has to be greater than costs to make above-average returns.

How do firms create value for customers? A. by leveraging resources to form capabilities and core competencies B. by leveraging tangible resources C. by achieving competitive advantage over rivals D. by utilizing strategic human capital

A. by leveraging resources to form capabilities and core competencies

When firms possess the same types of resources that are mobile, how can a firm increase performance? A. by using resources to implement strategy with the highest profit potential B. by developing a unique resource C. by imitating profitable firms in other industries D. by standardizing products

A. by using resources to implement strategy with the highest profit potential

How can competitors compete against a firm that has rare, valuable, and costly-to-imitate resources? A. create new resources that create different value for the customer B. focus on the external industry C. pursue only those resources that are non-substitutable D. create core competencies

A. create new resources that create different value for the customer

What serves to limit an industry's formation of strategic groups? A. high mobility barriers B. high resources among firms in the industry C. low rivalry D. low profitability

A. high mobility barriers

How do firms create economies of scale? A. improvements in experience B. eliminating rivals C. increased sales D. increasing barriers to entry

A. improvements in experience

In which way can a firm create sustainability in its business practices? A. promote gender equality B. promote greenwashing initiatives C. increase corporate social responsibility initiatives D. outsource in a wider global environment

A. promote gender equality

In addition to a firm's resources and capabilities, what accounts for the variance in a firm's profitability? A. strategic actions by managers B. the supply chain C. the product line D. unique internal resources

A. strategic actions by managers

Why is it important for firms to develop a dynamic strategic management process? A. to be able to respond to changing markets and conditions B. to achieve permanent competitive advantage C. to achieve competitiveness D. to eliminate risk

A. to be able to respond to changing markets and conditions

How should firms handle the ethical and legal implications of intelligence gathering? A. Only use intelligence from professional associations. B. Ensure all actions are consistent with established principles of ethics. C. Hire an outside firm to gather intelligence. D. Use the strategic group as the source of intelligence.

B. Ensure all actions are consistent with established principles of ethics.

Why is mastery of the strategic management process important in creating strategic competitiveness? A. It creates a unified international strategy. B. It has a major affect on performance. C. It eliminates the need to create value for stakeholders. D. It prevents competitors from properly responding to a firm's actions.

B. It has a major affect on performance.

How is organizational culture used to shape how the firm conducts business? A. It creates the mission for the firm. B. It helps to establish core values among employees. C. It is the driver of reciprocity in the organization. D. It provides a picture of what the firm ultimately wants to achieve.

B. It helps to establish core values among employees.

How does a capability become a source of competitive advantage? A. It limits the impact of the global environment. B. It provides superior value over competitors. C. It allows resources to create value for the firm. D. It compliments intangible resources.

B. It provides superior value over competitors.

Why is a disciplined approach to the strategic management process important for firms? A. It serves as the foundation of their mission, values, and vision. B. It serves as the foundation for developing a competitive advantage. C. It serves as the foundation for developing core competencies. D. It serves as the foundation for the elimination of integration activities between departments.

B. It serves as the foundation for developing a competitive advantage.

Why do strategic decisions about the internal organization significantly influence a firm's ability to earn above-average returns? A. The decisions have intra-organizational impact. B. The decisions are based on the resources the firm needs to collect and how to leverage them. C. The decisions will affect a competitor's response to the actions of the firm. D. The decisions tend to include fewer resources and have increased complexity.

B. The decisions are based on the resources the firm needs to collect and how to leverage them.

Why is forecasting demand for technology products difficult to do? A. There are too many opportunities in the technology market. B. The product life cycles are continually being shortened. C. Intellectual property protection is difficult to establish. D. Threats from competitors are difficult to anticipate.

B. The product life cycles are continually being shortened.

How are resources used to establish competitive advantage? A. They are the basis of all intangible resources. B. They are bundled to create capabilities. C. They eliminate uncertainty about the general and industry environments. D. They aid in judgment development.

B. They are bundled to create capabilities.

Why do firms prefer to rely on intangible resources as the foundation for capabilities? A. They are less likely to rely on marketplace competence. B. They are more difficult for competitors to understand and imitate. C. They are less likely to be impacted by changes in technology. D. They are more easily observed by competitors and consumers.

B. They are more difficult for competitors to understand and imitate.

How should firms respond when they do not have core competencies in areas required to achieve competitive advantage? A. They must redevelop their business-level strategy. B. They must build the needed capabilities and competencies. C. They must offshore to establish competitive advantage. D. They must increase the quantity of resources available.

B. They must build the needed capabilities and competencies.

How do firms ultimately create above-average returns? A. by monitoring threats in the external environment B. by creating more value for customers C. by expanding internal and external resources D. by improving the global mindset

B. by creating more value for customers

What is key to an organization's ability to be strategically flexible and gain competitive advantage from that flexibility? A. corporate social responsibility B. continuous learning C. big data analytics D. globalization

B. continuous learning

How can firms create value for customers? A. increase levels of social complexity within the industry B. effectively utilize capabilities to exploit opportunities C. utilize the value chain analysis to maintain its cost position D. make sure capabilities are tangible for the customer

B. effectively utilize capabilities to exploit opportunities

When a firm has no unique advantage over competitors, what can a value chain analysis do for managers? A. help them determine how to change culture to increase competence B. help them identify activities with potential to be competent C. help them increase social capital with the public D. help them determine where core rigidities are

B. help them identify activities with potential to be competent

Which of the following can be applied to a functional area of an organization to help achieve a strategic objective? A. customer value creation B. strategic human capital C. core rigidities D. core competencies

B. strategic human capital

Why is it important for firms to conduct a value chain analysis on a regular basis? A. to determine which competencies should be off shored B. to determine which competencies should be maintained or outsourced C. to identify internal strengths and weaknesses D. to find areas of core rigidities

B. to determine which competencies should be maintained or outsourced

Why is it important that firms manage the internal organization in ways that are not dependent on a single country, culture, or context? A. to ensure resources and capabilities are leveraged B. to ensure a global mindset C. to improve the value chain function of external suppliers D. to identify new areas of outsourcing

B. to ensure a global mindset

Why should managers consider the global implication when looking at the demographics in the general environment? A. to understand the impact of the economy on the global market B. to understand competition in the global market C. to understand various cultural values D. to ensure sustainable physical environmental practices

B. to understand competition in the global market

Why should firms identify important stakeholders when monitoring environmental changes? A. to understand the potential impact of trends B. to understand the firm's reputation as the foundation for serving their needs C. to measure the relevance of data for the industry D. to determine the demographic segment most impacted

B. to understand the firm's reputation as the foundation for serving their needs

Why is it important for firms to study the internal organization environment? A. to understand what it might want to do B. to understand what it can do C. to develop strategy to compete against rivals D. to choose what to do in the future

B. to understand what it can do

Why is it important for firms to understand the cultural orientation in the markets they hope to serve? A. Emphasis can be placed on the consumer instead of national values. B. Less effort can be spent on scanning and monitoring the market. C. Attitudes and culture form the cornerstone of a society. D. Firms can merge the cultural values of several markets into their products.

C. Attitudes and culture form the cornerstone of a society.

How does an organization know its strategies have created a competitive advantage? A. Returns are above average. B. The firm outperforms rivals. C. Competitors cannot duplicate it. D. It is costly to imitate.

C. Competitors cannot duplicate it.

How does a hypercompetitive environment challenge those in an industry? A. Firms have to commit to digital leadership. B. Managers have to adopt a mindset that values flexibility. C. Firms have to aggressively strengthen market position through performance. D. Managers have to develop multiple strategies to compete.

C. Firms have to aggressively strengthen market position through performance.

Why is trust a critical part of building social capital? A. It is a tangible resource that competitors cannot duplicate. B. It lessens the impact of strategic human capital. C. Resources such as knowledge are more likely to be transferred across the organization. D. It creates sustained competitive advantage.

C. Resources such as knowledge are more likely to be transferred across the organization.

Why do all competitive advantages have to continuously be reevaluated and improved? A. to ensure the right resources are available to create competitive advantage B. New, substitute core competencies need to be prevented. C. Rivals quickly learn how to duplicate the benefits derived from them. D. to be sure the environment has not changed

C. Rivals quickly learn how to duplicate the benefits derived from them.

Why do new entrants pose a threat to the market? A. They increase demand for the good or service. B. They decrease the profitability potential of the industry. C. They increase production capacity. D. They decrease the efficiency of firms.

C. They increase production capacity.

How do sociological changes that are occurring in other countries impact an organization? A. by decreasing government control B. by improving processing capabilities C. by changing labor practices D. by changing the complexity of financial transactions

C. by changing labor practices

How can a firm develop and implement the most effective strategy possible? A. by focusing on the customer B. by avoiding potentially turbulent and complex external environments C. by integrating insights from the general, industry, and competitive environments D. by developing a strong mission and vision for the firm

C. by integrating insights from the general, industry, and competitive environments

How does digital technology help to create a foundation for innovation that creates value for the customer? A. by minimizing the impact of the business-level strategy B. by allowing a firm to move out of a single-product market C. by providing greater clarity about customer needs D. by replacing the need for a core strategy

C. by providing greater clarity about customer needs

How can a global supply chain increase a firm's competitive advantage in an industry? A. by reducing the number of "shocks" to the supply chain B. by improving the competitive output of workers C. by providing the best and most inexpensive supplies D. by eliminating the liability of foreignness

C. by providing the best and most inexpensive supplies

How do firms gain value from the assessment process? A. by incorporating data into the economic environment B. by applying data to population data C. by understanding the relevance of data D. by using it to predict potential industry trends

C. by understanding the relevance of data

How do firms complete organizational tasks required to produce and distribute goods to customers? A. strategic human capital B. judgment C. capabilities D. tangible resources

C. capabilities

How can outsourcing impact a firm? A. increased control B. limited flexibility C. decreased capital investments D. increased risk

C. decreased capital investments

When an employee feels their performance review accurately reflects their efforts, and the firm recognizes the employee's contributions are appropriate, which type of organizational justice has occurred? A. interactional B. procedural C. distributional D. formal

C. distributional

How can a firm increase innovation and sales growth while encouraging employees to share information about how to improve the products or processes being used? A. pay higher than average wages B. change the mission to match the vision of employees C. increase feelings of trust D. strive for more efficiency

C. increase feelings of trust

What does an analysis of the five factors in the industry environment tell a firm about the industry? A. its position in the industry B. how to respond to rivals C. its profitability potential D. choices of competitive actions

C. its profitability potential

How can a firm use its competitive advantages to achieve strategic competitiveness? A. only by expanding the reach dimension of the business-level strategy B. only by increasing competitive scope C. only by satisfying a group of customers in an individual product market D. only by achieving market segmentation

C. only by satisfying a group of customers in an individual product market

Who best exemplifies successful strategic leaders in an organization? A. only those who manage front-line employees B. only those responsible for creating organizational culture C. only those committed to helping the firm create value for stakeholder groups D. only those at the senior-most positions in a firm, such as the CEO

C. only those committed to helping the firm create value for stakeholder groups

Who or what would be considered a threat in the industry environment? A. governments B. labor C. product substitutes D. technology

C. product substitutes

Which type of resources are most likely to become sources of competitive parity for firms within an industry? A. those that are rare B. those that are similar to those of some competitors C. those that are valuable but common D. those possessed by most rivals

C. those that are valuable but common

How can a firm make core competencies the center of activities it performs especially well when compared to competitors? A. through use of a value chain analysis B. through the use of offshoring processes that do not work well in-house C. through accumulating and learning how to deploy resources D. through the use of outsourcing

C. through accumulating and learning how to deploy resources

How can a firm make capabilities stronger and more difficult for competitors to imitate? A. by using strong levels of distributional justice B. through additional layers of complexity C. through continuous use D. by using corporate social performance norms

C. through continuous use

How can managers use the five forces model of competition as an analytical tool when attempting to achieve above-average returns? A. to find the break-even point between sustainability and profitability B. to determine how to imitate the strategies of competitors C. to find the industry that is the most attractive for them D. to determine which firms have the same or similar strategies

C. to find the industry that is the most attractive for them

When does a unique core competency create a unique value for customers? A. when it is rooted in a firm's history B. when it makes a firm more innovative C. when competitors cannot duplicate it D. when it produces above-average returns

C. when competitors cannot duplicate it

Why would a firm choose to use "arms-length" transactions with stakeholders? A. when it is bringing new products to market B. when close stakeholder relationships are critical C. when stakeholder motivation is not as important D. when stakeholder loyalty is important

C. when stakeholder motivation is not as important

The risks of the differentiation strategy include: A. Being stuck in the middle B. Other firms being able to match the low cost of the firm C. Customers being willing to pay a premium for the features D. A decision that the differentiated features are not worth the price

D. A decision that the differentiated features are not worth the price

Who is typically included in a business ecosystem? A. Any group that provides data and intelligence about rivals in the industry. B. Any group with similar strategic dimensions and strategies for pursuing a customer. C. Any group that produces products that improve how another firm's product is viewed by the user. D. Any group whose efforts are associated with the satisfaction of a particular value proposition.

D. Any group whose efforts are associated with the satisfaction of a particular value proposition.

Why is outsourcing typically effective for organizations? A. Firms typically do not want to invest in strategic human capital. B. Firms typically pursue capabilities only that are rare and valuable. C. Firms typically suffer from unrecognized core rigidity. D. Firms typically do not possess all capabilities required to achieve competitive superiority.

D. Firms typically do not possess all capabilities required to achieve competitive superiority.

When managers use the I/O model, why do they consider industry characteristics such as economies of scale and market frictions in their decision making? A. Profit maximization is often less important than the mission of the firm. B. It highlights unique resources that are strategically relevant. C. The mobility resources can greatly impact competitive advantage. D. It determines the profit potential of the industry.

D. It determines the profit potential of the industry.

Why is a community where a firm opens a facility considered to be a primary stakeholder in the firm? A. It drives the interactional justice elements for the firm. B. It does not directly create value in the firm. C. Its needs are considered less important to the firm. D. It is directly affected by what a firm does.

D. It is directly affected by what a firm does.

How can firms develop strategies so that they correctly allocate resources and align with opportunities? A. Make them strong enough to encourage ongoing interaction with customers. B. Make them generic enough to fit with most changes in the environment. C. Make them unique enough to avoid engaging rivals in the marketplace. D. Make them consistent with the realities of the internal and external environments.

D. Make them consistent with the realities of the internal and external environments.

Why is intra-strategic group competition more intense than inter-group competition? A. Groups are more likely to work in international markets. B. Industry analysis is more difficult to achieve. C. The industry is considered unattractive. D. Performance leaders can follow similar strategies.

D. Performance leaders can follow similar strategies.

Why do firms have to continuously nurture intangible resources? A. They allow firms to easily change core competencies B. They cannot be leveraged easily. C. They impact a firm's borrowing capacity. D. They help firm's maintain their ability engage in competitive battles.

D. They help firm's maintain their ability engage in competitive battles.

Why are some capabilities not necessarily core competencies? A. They are focused on innovation rather than the immediate needs of the firm. B. They may not be global in nature. C. They do not fit within the value chain. D. They may not be valuable, rare, costly to imitate, or non-substitutable.

D. They may not be valuable, rare, costly to imitate, or non-substitutable.

Why does competitive rivalry within strategic groups tend to be intense? A. Each firm uses different strategies to compete. B. Strength across the five forces are similar among all rivals. C. No firm has a greater ability to threaten profitability. D. They offer similar products to the same customer.

D. They offer similar products to the same customer.

How can paying attention to the external environment help a firm earn above-average returns? A. They can determine the timing and significance of environmental changes. B. They will better understand how to respond to the economic environment. C. They can avoid unwanted regulation. D. They will know what it takes to outperform competitors.

D. They will know what it takes to outperform competitors.

How do firms decide who their target customer is that will be served with its business-level strategy? A. based on data collected in a digital strategy B. based on how the firm plans to integrate activities C. based on culture and geographic regions D. based on differences in customer needs

D. based on differences in customer needs

Why should a CEO include a variety of managers and employees in the development of a mission statement? A. to ensure fairness to all stakeholders in the organization B. to eliminate the need for procedural justice C. so all employees have the same ethical norms D. because a mission deals with customers and markets

D. because a mission deals with customers and markets

When analyzing the competitive environment of an industry, why should firms also consider the customers of the industry in the analysis? A. to create lower barriers to entry B. to encourage the customers to buy more C. forward integration becomes less critical D. customers become competitors

D. customers become competitors

When developing strategy, why is it important to decide if the firm will perform activities differently from competitors or perform different activities? A. to integrate activities to create superior value B. to determine the degree of reach needed for each customer C. to define how to achieve success D. to position itself differently

D. to position itself differently

Where could a stakeholder go to learn more about the ideals of an organization and its intended future? A. mission B. values C. ethics D. vision statement

D. vision statement

When should a firm consider outsourcing support functions in the organization? A. when they are more critical than finished goods and components B. when social capital is waning C. when some stakeholders feel another party is taking advantage of them D. when they are not competencies

D. when they are not competencies

Why is the primary use of a business model tied to business-level strategies? A. The firm's core strategy has to be supported. B. All processes followed to create the product should be similar. C. It is the framework for delivering value. D. Less adjustment will be needed in the long-term.

A. The firm's core strategy has to be supported.

How do firms using a cost leadership strategy distinguish themselves from other low-cost competitors in the market? A. by offering levels of differentiation that are appealing to the most typical customers B. by targeting specific customers who have specific needs not addressed by competitor C. by pursuing a niche market in the industry D. by simultaneously improving the value chain while maintaining a low-cost position

A. by offering levels of differentiation that are appealing to the most typical customers

Why do firms need to pay attention to intense competition in the industry? A. to prevent it from eroding first-mover advantage B. to lessen the impact of the economic environment C. to control trends in industry segments D. to understand the demographics of the target group

A. to prevent it from eroding first-mover advantage

How can firms lessen the impact of changes in the general environment's segments? A. try to predict the effects of trends B. try to directly control the general environment C. try to influence those that impact the industry D. try to apply general trends to the middle class

A. try to predict the effects of trends

What is the basis of assumption for how profit is generated in the resource-based model of above-average returns? A. unique resources and capabilities B. competitive advantage C. organizational capital D. the external environment

A. unique resources and capabilities

Why is strategic human resource management considered to be a critical core competence in many environments? A. Human resources can be used to learn more about customers. B. Human resources should reflect best practices in the industry. C. Human resources reflect the "who" aspect of a business model. D. Human resources rarely impact other core competencies.

B. Human resources should reflect best practices in the industry.

Why is product innovation critical to the successful use of a differentiation strategy? A. Innovation prevents focus on cost reductions as a competitive strategy B. Innovation creates the differentiation that satisfies customer needs. C. Product innovation is the basis of all business-level strategies. D. Firms have to find ways to differentiate products across their digital strategy.

B. Innovation creates the differentiation that satisfies customer needs.

How might process innovation in the industry affect the position of the cost leader? A. New entrants will be forced to compete on price, limiting their market share. B. Innovation might allow rivals to become the cost leader. C. Customers will lose the ability to perceive competitive levels of differentiation. D. Fewer rivals will be able to imitate the cost leader in terms of differentiation.

B. Innovation might allow rivals to become the cost leader.

Why is the potential for counterfeits an important element of a differentiation strategy? A. It emphasizes the brand rather than the differentiated features. B. It lessens the degree of differentiation. C. It narrows perception of the value of differentiated features. D. It results in a large gap between the price of the product and what competitors charge.

B. It lessens the degree of differentiation.

When firms choose between business-level strategies to defend their desired strategic positions, what should the chosen strategy allow them to do? A. satisfy the needs of all stakeholders B. exploit competitive advantage C. prevent inertia D. develop a framework to capture value

B. exploit competitive advantage

How can a new entrant combat the perception of uniqueness in a competitor's product? A. create economies of scale B. offer products at lower prices C. establish a joint venture D. increase switching costs

B. offer products at lower prices

How can a firm be effective when using a differentiation strategy to earn above-average earnings? A. Firms have to know which customer to market goods to. B. Firms have to know projected price increases of rivals. C. Firms have to know what customers are willing to pay a premium for. D. Firms have to know which particular buyer group they want to pursue.

C. Firms have to know what customers are willing to pay a premium for.

When customers have a significant amount of bargaining power, what typically happens to the cost leader's position in the market? A. It can be forced into niche markets. B. It can be forced to reduce prices to below its next-most-efficient competitor. C. It can be forced to reduce prices. D. It can be forced out of the market by competitors.

C. It can be forced to reduce prices.

Which strategy can a firm use to provide customers with products that create value for them? A. acceptable features at the same cost as competitors B. acceptable features with high costs C. highly differentiated features with acceptable cost D. highly differentiated features with high costs

C. highly differentiated features with acceptable cost

How does a firm create and deliver value for employees? A. return on investment B. digital strategies C. skill development D. product features

C. skill development

Why is having a low-cost position valuable when dealing with rivals? A. Firms can develop a dependence on a particular market. B. Firms will have a lower degree of inertia. C. More profits will be available for innovation within the firm. D. Rivals will be hesitant to compete based on price.

D. Rivals will be hesitant to compete based on price.

Why are strategies used in the political/legal segment, such as lobbying efforts, considered non-market strategies? A. The strategies have no impact on the global market. B. The environment typically addresses technology issues. C. Social movements typically direct the strategies. D. The strategies do not deal directly with competition.

D. The strategies do not deal directly with competition.

Why is it important to allow those at lower levels of the firm to have a role in choosing and implementing a firm's strategy? A. They are responsible for motivating employees. B. It allows the CEO to focus on more global issues. C. The strategy does not always support the mission or vision. D. They are closest to the action.

D. They are closest to the action.

How can firms meet and exceed customer expectations across time and maintain advantage over rivals? A. by improving the business model B. by using a differentiation strategy C. by eliminating product substitutes D. by continuously upgrading their capabilities

D. by continuously upgrading their capabilities

How can performance leaders maintain distinctiveness within a strategic group? A. customer service B. distribution channels C. technology D. differentiation

D. differentiation

How can managers increase the likelihood of an individual resource creating a competitive advantage? A. avoid reliance on core competencies B. make sure resources are valuable C. avoid resources that might be costly to imitate D. integrate resources to form a capability

D. integrate resources to form a capability

How can a CEO develop the most effective vision statement possible? A. include specific details and steps toward success B. make it achievable only with the help of all employees C. allow it to change as new environmental conditions evolve D. involve stakeholders in its development

D. involve stakeholders in its development

What is the foundation of any firm's efforts to achieve strategic competitiveness and outperform rivals? A. having strong organizational culture B. achieving above-average returns C. knowing how to build and maintain a corporate vision D. knowing how to use a competitive advantage in marketplace competition

D. knowing how to use a competitive advantage in marketplace competition

When using a competitor analysis, how can a firm best understand what drives the competitors? A. review their current strategy B. understand the assumptions they made C. analyze their strengths and weaknesses D. look at their future objectives

D. look at their future objectives

How can firms remain ahead of competitors over the long term? A. improve the value chain analysis process B. outsource functions in the value chain. C. improve tangible resources that impact the marketplace D. manage current core competencies while developing new ones

D. manage current core competencies while developing new ones

What advantage can firms achieve by bundling and leveraging resources to create value for the customer? A. a global mindset B. better judgment C. more confident decision making D. strategic competitiveness

D. strategic competitiveness

What makes an industry attractive in the global market? A. lower barriers to entry B. product substitutes C. intense rivalry among competitors D. suppliers and buyers with little bargaining power

D. suppliers and buyers with little bargaining power

How can managers use judgment to build a strong reputation among stakeholders? A. leverage unique resources B. use a global mindset C. improve value D. take intelligent risks

D. take intelligent risks

When a firm's focus strategy is based on serving the needs of customers on an industry-wide basis, what is the basis of its customer group? A. a specific geographic region B. those with unique, specialized needs C. the narrow market D. the broad market

D. the broad market

How do firms achieve strategic competitiveness? A. through the creation of technology diffusion B. by creating hypercompetition C. by competing in the global economy D. through the use of value-creating strategy

D. through the use of value-creating strategy

Why is it important that a firm understand conditions in the general, industry, and competitor environments? A. to determine where and how to compete in the global market B. to ensure the nature of products do not change C. to meet the demands of diverse consumer groups D. to develop appropriate competitive actions

D. to develop appropriate competitive actions

How should a manager determine what employee efforts should be rewarded and reinforced? A. above-average returns B. culture C. capabilities D. values

D. values

When is business model innovation most likely to occur? A. when a firm experiences inertia B. when the external environment changes C. when new product features and benefits are created D. when a firm decides its current model is outdated

D. when a firm decides its current model is outdated

When are some decision makers more likely to become more focused on finding the right resources and capabilities? A. when resources cannot be obtained through outsourcing B. when analyzing the internal organization for weaknesses C. when developing the foundation for creating value for customers D. when total resources and capabilities are constrained

D. when total resources and capabilities are constrained

Which capability would be the most difficult for firms to find substitutes, making the capability key in a firm's value-creating strategy? A. firm-specific knowledge B. formal reporting structures C. manufacturing facilities D. production processes

A. firm-specific knowledge

How should information gathered from intelligence efforts be used by the organization? A. to improve strategic decision making B. to create a threat of substitute products C. to create standardization within the industry D. to create power over suppliers

A. to improve strategic decision making

In addition to sustainability, why should firms consider their impact on the natural environment? A. They need to monitor the cost of sustainability against profits. B. ISO standards are different in most countries. C. Climate change will always be an issue for the environment. D. Social movements can magnify global climate concerns and the firm's response to them.

D. Social movements can magnify global climate concerns and the firm's response to them.

Why are those with a strong understanding of country-specific factors and unique cultures important to developing a global mindset in an organization? A. They have better sources for outsourcing goods and services. B. They are better able to determine a firm's strengths and weaknesses. C. They can more easily control support functions. D. They can more easily span artificial boundaries.

D. They can more easily span artificial boundaries.