MAN4720

The _____ strategy is an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them.

differentiation

The risks of participating outside a firm's domestic markets in the global economy are labeled a(n):

"liability of foreignness"

Which of the following statements about information technology (IT) is true?

IT has become an important source of competitive advantage in virtually all industries

Firms that are able to produce distinctive or nonstandardized products for customers with differentiated features that they are willing to pay more for are successfully implementing:

differentiation strategy

_____ is a customer dimension concerned with facilitating useful interactions with customers.

affiliation

Mariah is currently looking at the sustainable advantages in terms of such issues as value, rarity, and cost to imitate. Which component of an internal analysis is she working on?

discovering core competencies

Efficiently handling customers' orders and arranging for customers' payments for delivered goods are both examples of what type of value chain activity?

distributions

When examining the Assumptions dimension for a competitor analysis, which of the following is NOT a question that is addressed?

do we assume that the code of ethics held by our company is similar to that of our competitors and the industry?

The greater a firm's capacity to favorably influence its industry environment, the greater its likelihood to:

earn above-average returns

_____ are derived from incremental efficiency improvements through experience as a firm grows larger.

economic of scale

Companies can learn to compete primarily on the basis of firm-specific differences when they:

emphasize core competencies when selecting and implementing strategies

To support ethical challenges associated with competitive intelligence practices, firms should:

establishes practices and take actions consistent with those practices

Sometimes, established competitors have cost advantages that new entrants cannot duplicate. All of the following are cost advantages that cannot be duplicated EXCEPT:

ethical practices

The probability of forming an effective mission increases when employees have a strong sense of:

ethics

the probability of forming an effective mission increases when employees have a strong sense of

ethics

Which of the following is NOT a way that a good or service can be differentiated?

exceptional customer service

Research indicates that overconfidence can lead to:

excessive risk taking

Narrow customer groups include:

buyers w special needs and buyers located in specific geographic regions

How is value measured?

by a products performance characteristics and its attributes for which customers are willing to pay

New entrants can threaten the market share of existing competitors in all of the following ways EXCEPT:

by increasing returns for competing firms

Analyzing the internal environment enables a firm to determine what it _____ do when faced with threats or opportunities.

can

_____ are used to complete the organizational tasks required to produce, distribute, and service goods or serves the firm provides to customers.

capabilities

Apple has combined financial resources and research laboratories with scientists, engineers, and organizational routines to excel in R&D to provide innovation. In this scenario, R&D is a(n):

capability

RTC, Inc., has been competing with L-Cort, Inc., the leader in its industry, for years. RTC has gathered and analyzed large amounts of competitive intelligence about L-Cort and has observed as much of the firm's internal functioning and technology as it can gain access to. In spite of this, L-Cort has maintained its competitive advantage and RTC does not know why. The source of L-Cort's success is:

causally ambiguous

Firms that implement differentiation strategies typically will:

changes premium prices

What is the essence of business-level strategy?

choosing to perform activities differently or to perform different activities than rivals

Which of the following is NOT an inbound logistic?

collecting products

Arranging for customers' payments for delivered goods is an activity for which support function in the value chain?

finance

Which of the following is an innovation resource?

firms scientific capabilities

When buyers view products as _____ (or products with few differentiated features or capabilities), rivalry intensifies.

commodities

Hypercompetition is a condition of rapidly escalating competition based on all of the following EXCEPT:

competition to reduce a competitive advantage based on economies of scale

Some core competencies may lead to:

competitive advantage

Some core competencies may lead to:

competitive advantages

What would be the competitive consequences for a capability that is valuable but is not rare nor costly to imitate and is possibly substitutable?

competitive parity

_____ is the set of data and information the firm gathers to better understand and anticipate competitors' objectives, strategies, assumptions, and capabilities.

competitor intelligence

A firm should analyze the internal organization to identify its strengths and weaknesses as reflected by all of the following EXCEPT:

competitors

An organization can be confident that its strategy has resulted in one or more competitive advantages only after:

competitors efforts to duplicate its strategy have failed

Customers buying General Motors (GM) automobiles are given trial packages for OnStar road assistance with the purchase of a new vehicle. As such, OnStar would be called a:

complementor

_____ are companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service.

complementors

JoAnn Tucker recently took over as Chief Executive Officer (CEO) of Burger-Rama, Inc. Burger-Rama has seen declining profits over the past five years and has struggled to remain competitive in the fast-food industry. In order to achieve strategic competitiveness, JoAnn must:

conduct training programs and hire educated and experienced employees

In order to develop a competitive advantage, JBH Corporation and Starr Enterprises have decided to form a partnership to share their resources and capabilities. JBH and Starr have formed a(n) _____ strategy.

coorperative

Companies unable to effectively integrate the value chain activities and support functions typically lack which of the following?

core competencies needed to successfully use the cost leadership strategy

Which of the following is a risk of a focus strategy?

core competencies of a competitor are used to focus on an even more narrowly defined segment, thereby skimming off the most desire customers

Strategic groups can be useful for analyzing an industry's competitive structure. Such analyses can be helpful to diagnose all of the following EXCEPT:

internal controls of firms within the group

Bonita and Jay, two managers at MTS, disagree regarding the best way to manage the firm's resources. Which condition is impacting the managerial decision?

intraorganizational conflict

Which of the following is NOT an outbound logistic?

inventory control of products

A strategy:

is an integrated coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Which of the following statements is NOT correct regarding projections about the workforce?

it is projected that there will be a higher growth rate of the female labor force relative to that of men through 2050

Which of the following statements is NOT correct regarding projections about the workforce?

it is projected that there will be higher growth rate of the female labor force relative to that of men through 2050

Which of the following statements about globalization is true?

it is the increasing economic interdependence among countries and their organizations as reflected in the flow of good and services, financial capital, and knowledge across country borders

The amount of rivalry between competitors can be reduced when firms form _____ and increase the amount of profitability enjoyed by firms in the industry.

joint ventures

Which of the following is an example of an intangible resource?

knowledge

_____ is composed of information, intelligence, and expertise.

knowledge

The degree of rivalry between competitors includes all of the following EXCEPT:

less flexibility than competitors when faced with product substitutes

Access to distribution is _____ a barrier for products that can be sold on the Internet.

less of

Firms lacking the appropriate internal knowledge resources are _____ likely to _____.

less; invest money in research & development

The key to Southwest's success has been its ability to continuously maintain _____ costs while providing customers with _____ levels of differentiation.

low; acceptable

Powerful customers can force a cost leader to reduce its prices, but not below the level at which the cost leaders':

next-most-effecient industry competitor can earn average returns

Which of the following is NOT a part of the external environmental analysis to increase an understanding of incomplete environmental data?

observing

A firm's resources are typically classified into all of the following categories of capital EXCEPT:

occupational capital

_____ is a capability that is based in the functional area of manufacturing.

product and design quality

Membership in a particular strategic group defines the essential characteristics of the firm's strategy. All of the following are essential characteristics EXCEPT:

product skew numbers

Which of the following is a typical risk for a cost leadership strategy?

production and distribution processes becoming obsolete

Which of the following is a tangible resource?

production equipment

Outsourcing is the:

purchase of a support function activity from an external supplier

Which of the following is NOT a factor that can increase competitive rivalry?

rapid industry growth

_____ is a critical dimension for social network sites due to the value these sites create that allow users to connect to others.

reach

Assets that can be observed and quantified are called _____ resources

tangible

Assets that can be observed and quantified are called _____ resources.

tangible

Apple has combined financial resources and research laboratories with scientists, engineers, and organizational routines to excel in R&D to provide innovation. In this scenario, financial resources and research laboratories is a(n):

tangible resource

Issues of product innovation would most likely be addressed in the arena of the _____ segment.

technological

Which of the following technological inventions took the longest to penetrate 25 percent of the homes in the United States?

telephone

What is a global mind-set?

the ability to analyze, understand, and manage a internal organization in ways that are not dependent on the assumptions of a single country, culture, or context

By pursuing an opportunity to create a marketplace through which businesses could introduce goods and services to customers at a discounted price, Groupon made use of a _____ capability.

vaulable

Within the United States, governmental decisions and policies regarding antitrust issues, such as disallowing proposed mergers that would create a firm that is too dominant within an industry, is the responsibility of the:

Anti-trust division of the justice department or the federal trade commission

Which of the following businesses would be most likely to measure its returns in terms of the amount of growth?

BizTech, a small computer-repair business with eight employees that begin operations last year

Amy's responsibilities at L-Cort, Inc., include procurement of the raw materials that the firm needs to convert into final products. In this capacity, Amy is performing what type of value chain activity?

Supply-chain management

Which of the following would NOT be considered a resource?

a competitor's skills

Which of the following would NOT be considered a resource?

a competitors skills

Which of the following statements about a firm's vision and mission is true?

a firms vision tends to be enduring while its mission can change with new environmental conditions

People buy products from Soco Outfitters because it is a brand name they know and trust. Soco's costly-to-imitate capabilities arise from:

a historical source

Over the years, the television broadcasting industry has shifted from three major networks of ABC, NBC, and CBS to a large menu of networks available through cable and satellite offerings. As a result, the business strategy for these newer networks has resulted in _____ than the major three networks.

a narrower target market

The flip side, or dark side, of core capabilities can be revealed due to external events such as:

a new competitor figures out a bettie way to serve the firm's customers

BioLab Pharmaceuticals has just discovered a new treatment for multiple sclerosis. In order to protect proprietary technology, Biolab should apply for:

a patent

_____ returns are returns in excess of what an investor expects to earn from other investments with a _____ amount of risk.

above-average;similar

What is more important than accurately assessing trends in the general environment of a firm?

accurately interpreting trends

Performance is reflected in a firm's ability to:

achieve strategic competitiveness

If a firm does not have core competencies in an area required to achieve a competitive advantage, it must:

acquire the resources needed to build those competencies

Strategic leaders can best leverage partnerships with external parties and organizations when their organizations:

are both innovative and good at execution

A firm's customers:

are more important than its other product market stakeholders

Rare capabilities are those that:

are not possessed by many others

Compared to tangible resources, intangible resources:

are rooted in the firm's history

While the U.S. labor force between 2010 and 2050 is expected to drop, showing slow growth in the Caucasian members, which member segment is expected to double in size during the period?

asians

The part of the external environmental analysis that determines the timing and importance of environmental changes and trends for firms' strategies and their management is:

assessing

Which of the following practices would NOT be considered unethical?

attending trade fairs to obtain competitors brochures

Analysis of the five forces within a given industry allows the firm to determine the industry's attractiveness in terms of the potential to earn _____ returns.

average or above-average

Which of the following is NOT one of the forces that affect the ability of all firms to operate profitably within a given industry?

barriers to entry

The likelihood that firms will enter an industry is a function of which two factors?

barriers to entry and retaliation expected from current industry participants

Why do firms use the integrated cost leadership/differentiation strategy?

bc most consumers want to pay low prices for products w somewhat highly differentiated features

Why do firms use the integrated cost leadership/differentiation strategy?

bc most consumers want to pay low prices to products with somewhat highly differentiated features

Why are the five business-level strategies considered to be generic?

bc they can be used in any organization competing in any industry

Picture This is a small business that specializes in videos and photography. It creates videos to be shown at events, as well as videos and photos of events that are then packaged in unique and creative ways. Picture This once experienced a high demand for its services and was known for its high quality, creativity, and fast delivery times. Now that more people have easy access to photo and video apps through their personal electronic devices, the demand for the services offered by Picture This has lessened and the business is earning lower-than-average returns. This is an example of:

core competencies that have become core rigidities

_____ is a process used to cluster people with similar needs into individual and identifiable groups.

core competency

For the diversified firm, _____ strategy is concerned with determining the businesses in which the company intends to compete as well as how to manage its different businesses.

corporate-level

The five forces model suggests that firms can earn above-average returns by using either a _____ strategy or a _____ strategy.

cost leadership; differentiation

_____ is an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors.

cost of leadership strategy

A firm should outsource only activities where it:

create value or where it is at a substantial disadvantage compared to competitors

Ultimately, the source of above-average returns for a firm is:

creating value for the customers

_____ is a process that allows employees to undertake a variety of responsibilities on their jobs.

cross-training

Two courses of action to meet the needs of customers while reducing the workforce include:

cross-training employees and paying extra attention to the best customers

Compared to a vision, a firm's mission deals more directly with:

customers

Which of the following is a reputational resource?

customers opinions about the firm

Which of the following is NOT a business-level strategy used by firms to establish and defend their desired strategic position against competitors?

delineation

Companies manufacturing customized products can respond quickly to customers' needs primarily in lieu of:

developing economies of scale

Which of the following would a firm use that was pursuing the differentiation or focused differentiation strategy?

developing flexible systems that allow for rapid response to changing customer needs

All of the following are value-creating activities associated with differentiation EXCEPT:

development of efficient hiring/retention policies to keep costs low, with minimal customer service training

Kristine Woods and her husband, Liam, own a café, Simply Healthy, in their hometown. Simply Healthy offers only natural and healthy options on its menu and uses only locally grown food. It charges slightly higher prices than the other restaurants in town, but health-conscious customers are willing to pay a premium. Simply Healthy operates using a ______ strategy.

differentiation

Which of the following is characteristic of an unattractive industry?

intense rivalry among competitors

Firms choose between _____ business-level strategies to establish and defend their desired strategic position against competitors.

five

To find the industry that is the most attractive for a firm, it may use the _____ model of competition.

five forces

What are three sources of flexibility in completing primary and support activities when using the integrated strategy?

flexible manufacturing systems, total quality management, and information networks

The _____ strategy is an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment.

focus

Landon's Landscaping is a successful business that has built its reputation on high-quality work, on time and within budget, and excellent customer service. For continued long-term success, Landon's owners should:

focus on developing their future competitive advantages

Around the United States, there is a new trend in lunch trucks that set up in "high-end" designated areas for street cuisine, similar to food fairs, food courts, or food tasting events. What type of strategy is this trend following?

focused differentiation

Amy works in tech support at L-Cort, Inc., where her job involves providing technical support to customers after the sale. In this capacity, Amy is performing what type of value chain activity?

follow-up company

Once scanning and monitoring identify events and trends in a general environment, _____ identifies how quickly these trends will affect the marketplace.

forecasting

Understanding the amount of time that will be required for a new technology to reach the marketplace or how much time will elapse before changes in governmental taxation policies affect consumers' purchasing patterns is an example of:

forecasting

Resources have a greater likelihood of being a source of competitive advantage when they are:

formed into a capability

According to Jeffrey Immelt, the Chief Executive Officer (CEO) of U.S.-based General Electric (GE), most of GE's future economic growth will come:

from emerging economies

Core competencies are often visible in the form of organizational:

functions

A firm's competitive actions and responses are influenced by the conditions in which three parts of its external environment?

general, industry, and competitor

When a core competency becomes a core rigidity, it can:

generate inertia

The informal economy is an expanded collection of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state. As such, which segment includes the informal economy?

global

_____ is often used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets

globalfocusing

_____ is often used by firms with moderate levels of international operations who increase their internationalization by focusing on global niche markets.

globalfocusing

The competition between firms within a strategic group is _____ the competition between a member of a strategic group and companies outside that strategic group.

greater than

A company can earn above-average returns only when the value it creates is:

greater than the costs incurred to create that value

The basis of competition has shifted from _____ to _____.

hard assets; intangible resources

At Condiment King, top management believes that producing a high-quality product on a consistent basis is key to the company's success. Top managers act as role models by performing their jobs with great precision. As a result, they expect Condiment King's employees to perform up to the same standards and set goals for their employees to meet. For those employees that do, managers recognize their accomplishments by rewarding bonuses on a weekly basis. Management also recognizes that work should be fun as well. Employees' birthdays are celebrated every month with an end-of-the-month company party. Condiment King also has an on-site fitness center and relaxation stations. Based on this information, it can be said that Condiment King:

has a strong organizational culture

Perpetual innovation is a term used to describe:

how rapidly and consistently new, information-intensive technologies replace older ones

When you determine how firms integrate the activities they perform within each different business-level, what can you tell about these firms?

how they differ from one another

Capabilities are often based on developing, carrying, and exchanging information and knowledge through the firm's:

human capital

Selecting and training employees are activities for which support function in the value chain?

human resources

The strategic management process involves all of the following EXCEPT:

identification

Motorvate is a start-up rental car company. Its owners have decided to use the resource-based model to pursue strategic competitiveness and earn above-average returns. Motorvate's first step in using the model would be to:

identify the firm's resources

Demographic analyses of changes in the age structure of the world's populations has implications for all of the following EXCEPT:

identifying expatriates

Which of the following statements about technology and innovation is true?

in order to enhance the value of an innovation. firms must build the new technology into their products

Superior integration of activities _____ the likelihood of being able to gain an advantage over competitors and to earn _____ returns.

increases; above-average

All of the following are VISTA countries EXCEPT:

india

A(n) _____ is a group of firms producing products that are close substitutes.

industry

The _____ is the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms.

industry environment

Knowledge, trust, and skills are all _____ resources.

intangible, humans

Starla Mfg. has pioneered "cheap chic" pens that resemble Mont Blanc pens and offers them at relatively low prices. To implement the strategy to expand into more businesses as advertising promotions, Starla uses sophisticated designers and effective means of managing costs. These are all characteristics of which business level strategy?

integrated cost leadership/differentiation

The _____ strategy involves engaging in primary value-chain activities and support functions that allow a firm to simultaneously pursue low cost and differentiation.

integrated cost leadership/differentiation

Total quality management is most advantageous for firms using which strategy?

integrated cost leadership/differentiation

Delta Air Lines offering frequent flyer miles is primarily an example of an offer:

intended to increase customers switching costs

Firms evaluate two types of potential competitive advantages when selecting a business-level strategy, which are _____ and _____.

lower cost than rivals or the ability to differentiate; the ability to command a premium price that exceeds the extra cost of differentiation

To combat the perception of uniqueness, new entrants frequently offer products at _____ prices, which may result in _____ profits.

lower;lower

Ability to envision the future of a product line is a capability within which functional area?

management

Value chain activities include all of the following EXCEPT:

management information systems

Which of the following is an intangible resource?

managerial capabilities

All of the following are considered to be a firm's product market stakeholders EXCEPT:

managers

Sony possesses the capability to miniaturize components and products. This capability lies within which functional area?

manufacturing

____ is a process used to cluster people with similar needs into individual and identifiable groups.

market segmentation

_____ is a process used to cluster people with similar needs into individual and identifiable groups.

market segmentation

Maria is a salesperson for L-Cort, Inc. Her job provides what type of value chain activity?

marketing

Supplies To Schools (STS) is a nonprofit that provides free school supplies to schools in the metro area. STS was struggling to get the word out about its existence and couldn't build a customer base. Several volunteers worked together to design an eye-catching logo and crisp, clear brochures that were sent to all area schools. They also built a user-friendly web page. These volunteers shared their expertise in:

marketing

Support functions include all of the following EXCEPT:

marketing

In the competitive landscape of the twenty-first century, only companies capable of _____ typically have the capability to earn above-average returns.

meeting, if not exceeding, global standards

Ranger Landscaping's website states the following: "Ranger Landscaping is a service-oriented business that provides lawn care and landscape design, installation, and maintenance. We are committed to a professional approach to our business and to providing our customers with individualized attention and 100 percent satisfaction." This statement represents Ranger Landscaping's:

mission

Which of the following specifies the businesses in which a firm intends to compete and the customers it intends to serve?

mission

Using smartphone access to links on social media sites, such as Facebook or Twitter, in order to collect customer purchasing behavior data is an example of:

monitoring

The _____ established the relationships between parties, the _____ the switching costs.

more;greater

Tom's General Store is locally owned and operates in only one location. Tom's would have:

one business-level strategy and no corporate-level strategy

All of the following are dimensions of a competitor analysis EXCEPT:

operating cash flows

Supplies To Schools (STS) is a nonprofit that provides free school supplies to schools in the metro area. STS was struggling to serve its customers. Several volunteers worked together to reorganize the layout of both the store front and the warehouse. Now the store is easy for customers to navigate through, and workers at STS can easily see when they need to refill the shelves. These volunteers shared their expertise in:

operations

A(n) _____ is a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness.

opportunity

According to the text, which state has become one of the most popular destinations for relocation?

oregon

Which of the following is an assumption of the industrial organization (I/O) model?

organizational decision makers are assumed to be rational and committed to acting in the firms best interests

The purchase of value-creating activity from an external supplier is:

outsourcing

According to the industrial organization (I/O) model, all of the following would determine a firm's performance EXCEPT:

patents

In order to analyze its external environment and internal organization, a firm should:

perform SWOT analysis

Consumer privacy issues would most likely be addressed in the arena of the _____ segment.

political/legal

Deregulation philosophies address concerns in which of the following segment of the general environment?

political/legal

Issues of educational philosophies and policies would most likely be addressed in the arena of the _____ segment.

political/legal

Outsourcing allows a firm to nurture a smaller number of capabilities, which

prevent firm from becoming overextended

Outsourcing allows a firm to nurture a smaller number of capabilities, which

prevents the firm from becoming overextended

_____ are newly designed production and distribution methods and techniques that allow the firm to operate more efficiently.

proccess innovations

The source of capabilities is:

resources

_____ are inputs into a firm's production process.

resources

Which of the following is an assumption of the resource-based model?

resources and capabilities are not highly mobile across firms

Amazon has capitalized on which dimension with customers in order to satisfy customer-centric relationships?

richness

_____ is a customer dimension concerned with the depth and detail of the two-way flow of information between the firm and the customer.

richness

When a company assumes that a core competence will be a permanent competitive advantage, that competency runs the risk of becoming a core:

rigidity

The part of the external environment analysis that is most likely to use software to identify potential changes for web page designers in volatile environments is:

scanning

Which part of the external environmental analysis identifies early signals of environmental changes and trends?

scanning

For implementation of focus strategies, firms

serve the specialized needs of a market segment

Which of the following would be considered to be part of Seaside Bar & Grill's capital market stakeholders?

shareholders

Which of the following is NOT a consumer market basis for customer segmentation?

skill factor

Tony Rush is the Chief Executive Officer (CEO) of Smithson Enterprises, a U.S.-based multinational corporation (MNC). Due to his company's success domestically, Tony has decided to enter the global market by opening operations in China and Brazil. Which of the following statements about Smithson's decision to enter the global market is true?

smith sons performance may suffer initially in both china and brazil due to the amount of time required to learn how to compete effectively against established firms

Issues of workforce diversity would most likely be addressed in the arena of the _____ segment.

sociocultural

The response of McDonald's restaurants to specific concerns for health by purchasing only chicken that has not received antibiotics is an example of what segment of the general environment?

sociocultural

_____ are used to find low-cost suppliers to outsource functions to and keep costs low.

sourcing strategies

Which of the following is NOT a high exit barrier?

specialized assets that can be used in another business or location

Which of the following statements about an organization's stakeholders is true?

stakeholders have enforceable claims on the firm's performance

Which of the following statements about an organization's stakeholders is true?

stakeholders have enforceable claims on the firms performance

Rubin Collins opened a coffee and sandwich shop, Rubin's Coffee Shop, in his local hometown five years ago. Rubin's has earned above-average returns for the past three years and has outperformed the local Dunkin' Donuts and Subway in terms of sales. Rubin credits low overhead costs and offering high-quality products at low prices as the reason why his shop is so successful. Because of the success of Rubin's Coffee Shop in his hometown, Rubin plans to expand operations and open three new locations in neighboring cities. Based on these facts, it can be concluded that Rubin's has achieved:

strategic competitiveness

What is critical or the key to sustainability of competitive advantage for all firms?

strategic fit among the many unique activities the firm performs

A set of firms emphasizing similar strategic dimensions and using a similar strategy is known as:

strategic groups

Which of the following is NOT an implication of strategic groups?

strategic groups have less threats to each firms profitability

Ben is a line manager at a food distribution company. He often works more than 50 hours a week, and his work is often filled with ambiguous decision situations. Ben's fellow employees would say that he is a hard worker, is tenacious, is brutally honest, and always pushes them to hit their goals and become the best workers possible. Based on this description, Ben is a(n):

strategic leader

Mariah makes successful decisions regarding her firm's resources and their management. Mariah is a(n):

strategic leader

Toy Joy Company is a start-up toy company. Its owners have decided to use the industrial organization (I/O) model to pursue strategic competitiveness and earn above-average returns. Toy Joy's first step in using the model would be to:

study the external environment, especially the industry environment

An attractive industry has all of the following EXCEPT:

suppliers and buyers with strong bargaining power

The main competitive advantage of a particular major U.S. technology firm is sourcing and procurement of raw materials. This company is facing increasing competition on price and is strongly considering outsourcing as a means of reducing costs. The LAST function this firm should consider outsourcing is:

supply-chain management

Cost leaders carefully examine all _____ to find additional potential cost reductions.

support activities

A _____ competitive advantage exists only when competitors are unable to duplicate the benefits of a firm's strategy or when they lack the resources to attempt imitation.

sustainable

Global warming and energy consumption are aspects of the _____ segment of the general environment that firms should monitor.

sustainable physical

When a company like Walmart announces that its goal is to produce zero waste and to use 100 percent renewable energy to power its operations, it is referring to positive practices in its _____ segment.

sustainable physical environment

Which of the following statements is false regarding powerful customer buyer groups?

switching to another product would be expensive

The best thing to do when faced with a failure is to:

take corrective actions

Crates for You, Inc., provides inexpensive crates to canneries providing canned goods to institutional units, such as schools and prisons. The company has always competed on a cost leadership basis. Most of its products are purchased by a few institutions, so it is fairly dependent on these institutions for selling its product. The next most-efficient competitor compared to Crates for You is The Box Company, which earns average returns. Crates for You earns above-average returns. The institutional budgets are being squeezed, and these institutions are putting pressure on Crates for You to reduce its prices. If Crates for You reduces its prices below those of Box's prices, it is likely that:

the box company will go out of business, and crates for you will gain higher power over its customers

In which industry would the use of differentiated products be least effective?

the commodity industry

For firms using the cost leadership strategy and the understanding of sources of differentiation accompanying the cost leader's product, who defines the term "acceptable"?

the customer receiving the product

HD Construction, Inc. subscribes to the industrial organization (I/O) model of above-average returns. HD would most likely attribute which of the following factors to its success?

the degree of concentration of firms in the construction industry

The industrial organization (I/O) model assumes that:

the external environment imposes pressures and constraints that determine the strategies that would result in above-average returns

Strategic competitiveness results only when:

the firm satisfies a group of customers by using it competitive advantages as the basis for competing in individual product markets

Having lower costs is synonymous with:

the firm's ability to perform activities differently than rivals

Which of the following statements is false?

the generalized forms of value that goods or services provide are either hit cost with acceptable features or poorly differentiated features with acceptable cost

What is true regarding mistakes in the decision-making process?

the learning generated by making and correcting mistakes can be important to efforts to create new capabilities and core competencies

Two primary concerns with outsourcing are:

the potential loss in a firms' ability to innovate and the loss of jobs within the firm

Two primary concerns with outsourcing are:

the potential loss in firms ability to innovate and the loss of jobs within the firm

If interdependencies between the outsourcing firm and the suppliers becomes too great, what is the likely result?

the supplier may increase the price of the food and services harming the outsourcing firm and resulting in its loss of low cost competitive advantages

Guinness Enterprises is a multinational corporation (MNC) that was established 75 years ago. One of the goals of Harry Walker, the new Chief Executive Officer (CEO), is to make the firm strategically flexible. Harry should know that:

the task is not easy, largely because of inertia that can build up over time

Which of the following statements about the current competitive landscape is true?

the traditional managerial mind-set is unlikely to lead a firm to strategic competitiveness

Research suggests that executives often fail to analyze which of the following that can lead to a potential competitive disadvantage?

their competitors' possible reactions to competitive actions taken by an executives' firm

A(n) _____ is a condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness.

threat

Which of the following is NOT one of the five factors included in the industry environment that directly influences a firm's competitive actions and responses?

threat of new technologies

All of the following are ways that firms develop and use total quality management (TQM) systems EXCEPT:

to achieve competitive advantage

What is the purpose of a business-level strategy?

to create differences between the firms position and those of its competitors

What is the fundamental objective of using any type of strategy?

to gain strategic competitiveness and earn above-average returns

_____ is a managerial process that emphasizes an organization's commitment to the customer and to continuous improvement of all processes through problem-solving approaches based on empowerment of employees.

total quality management

RTX Power Tools has seen sales decline on their gas-powered tools. The market seems to be shifting to tools using rechargeable batteries, but it is not clear if that market segment has staying power. The RTX managers are making decisions under conditions of:

uncertainty

Resources are _____ when they allow a firm to take advantage of opportunities or neutralize threats in its external environment.

valuable

In the grocery and convenience store industry, rewards cards and fuel points are examples of capabilities that are _____ but no longer _____.

valuable, rare

From a strategic perspective, a basic need of all customers is to buy products that create _____ for them.

value

One criterion to determine if a capability is a core competence and a source of competitive advantage is if it performs a(n):

value-creating activity that competitors cannot perform

Joplin Tires' corporate website states "Joplin Tires strives to be the top-selling tire manufacturer in the United States." This statement is Joplin Tires':

vision

The operational term used for a dream that challenges and energizes a company is:

vision

_____ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.

vision

Which of the following best describes how Walmart lost its bargaining power with suppliers?

walmart reduced the number and type of products sold in store, thereby losing its position to gain the lowest price on goods relative to competitors

When examining the dimension of Future Objectives for a competitor analysis, which of the following is NOT a question that is investigated?

what is our future break-even point?

When developing a Response from a competitor analysis, which of the following is NOT a question that is addressed?

what is the worst-case scenario if we take a status quo approach?

In order to gain insights from which to select strategies, the firm needs to match:

what it can do with what it might do

When does a product substitute become a concern for the cost leader?

when its features and characteristics, in terms of cost and differentiation, are potentially attractive to the firms customers

According to the industrial organization (I/O) model, an attractive industry is one:

whose structural characteristics suggest above-average returns

Which of the following would NOT be included when assessing the demographic segment?

wireless network connectivity

What is the benefit of a flexible manufacturing system?

with this system, the lot size needed to manufacture a firm's product efficiently is reduced

Tom Bellinger is the Chief Executive Officer (CEO) of Bellinger Bakery. He has decided to revise the firm's vision. In order to get the most effective vision statement for the organization, experience shows that Tom should:

work with other stakeholders in the organization when writing it