Management 5-8 (1-20)

Which of the following best defines a SWOT analysis?

It involves assessment of the strengths and weaknesses in an organization's internal environment.

Which of the following statements is true of a portfolio strategy?

It is a corporate-level strategy with the purpose of reducing risk in the entire collection of stocks.

Which of the following best defines competitive inertia?

It is a reluctance to change strategies or competitive practices that have been successful in the past.

Which of the following best defines a distinctive competence?

It is what a company can make, do, or perform better than its competitors.

In the context of portfolio strategy, _____ is the purchase of a company by another company.

acquisition

Which of the following is the last step of a strategy-making process?

Choosing strategic alternatives

_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.

Diversification

Which of the following best defines strategic dissonance?

It is a discrepancy between a company's intended strategy and the strategic actions taken by managers while implementing that strategy.

Which of the following can help managers improve the speed and accuracy with which they determine the need for strategic change?

Looking for signs of strategic dissonance

_____ are used by managers to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.

Strategic reference points

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

The resources must be valuable, rare, and nonsubstitutable.

In the context of sustainable competitive advantage, unlike rare resources, imperfectly imitable resources:

are impossible or extremely difficult to duplicate.

Unlike valuable resources, rare resources:

are not controlled or possessed by many competing firms.

Unlike a long-lasting competitive advantage, a sustainable competitive advantage is one where:

competitors have tried unsuccessfully to duplicate the advantage and have, for the moment, stopped trying to duplicate it.

A competitive advantage becomes a sustainable competitive advantage when: Group of answer choices

other companies cannot duplicate the value a firm is providing to customers.

_____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate.

other companies cannot duplicate the value a firm is providing to customers.

Organizations can achieve a competitive advantage by using their resources to:

provide greater value for customers than competitors can.

In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be:

replaced by other resources to produce similar value.

Which of the following is the first step of a strategy-making process?

Assessing the need for strategic change

Unlike the distinctive competencies of a company, the core capabilities of a company:

determine how efficiently inputs can be turned into outputs