MGMT 3302 Chapter 5

Apple customers pay premium prices for new iPhones and iPads, reflecting the company's ____ strategy.

Differentiation

Amazon and Barnes & Noble are engaging in ____ in their rivalry for control of the e-reader market.

Direct competition

Walmart probably classifies Trader Joe's and Whole Foods Market as ____ in its strategic group, because the two smaller grocery stores have very different strategies from the larger retailer.

Secondary firms

Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

Managers can use a ____ , or an assessment of strengths, weaknesses, opportunities, and threats, to determine the best strategy for their company.

Situational (SWOT) analysis

Jill's Western Apparel, a small retailer of jeans, cowboy boots, and hats, had a ____ that kept the business just big enough for the owner to earn her living and maintain her customer base.

Stability strategy

BlackBerry's tablet would receive a ____ designation from the Boston Consulting Group because it has a small share of a fast-growing market.

Question mark

Which of the following factors should be classified as an opportunity for the team?

A number of free-agent outfielders are available for signing by the Giants this year. Many of them have better statistics than the current team members.

Containing stars, cash cows, dogs, and question marks, the ____ Correct helps managers determine what companies belong in their corporate portfolios.

BCG matrix

The ____ is much lower for vendors that sell to Walmart than it is for a vendor that sells to a small local market.

Bargaining power of buyers

The ____ between Coca-Cola and Pepsi is intense.

Character of the rivalry

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify

Company strengths and weaknesses

A company's ____ Correct is a core strength that makes people want to do business with that company.

Competitive Advantage

A company is said to have ____ when it continues to pursue strategies or produce products that have worked in the past but are no longer appropriate for the company's current environment.

Competitive inertia

One of the four components of a sustainable competitive advantage, the ____ cannot be easily replaced to produce something with a similar value to the consumer.

Nonsustainable resource

After Saab, the Scandinavian automobile maker, declared bankruptcy, its ____ strategy was developed by a Chinese entrepreneur who planned to manufacture electric cars for sale in China.

Recovery

United Airlines engaged in ____ when it acquired Continental Airlines.

Related Diversification

Companies that use the ____ Correct adaptive strategy imitate products and ideas that have proved successful for other companies.

analyzers

The ____ Correct strategy involves taking actions that will steal a competitor's clients.

attack

The ____ strategy involves taking actions that will steal a competitor's clients.

attack

The ____ Correct is much lower for vendors that sell to Walmart than it is for a vendor that sells to a small local market.

bargaining power of suppliers

A company is creating a ____ Correct when it asks, "What business are we in?"

corporate-level strategy

Similar to a competitive advantage, a ____ Correct is something a company makes, does, or performs better than any other company.

distinctive competence

The practice of ____ involves purchasing a number of different companies (or stocks in a number of different companies) in order to reduce risk of loss if any one of the companies fails.

diversification

Zombiesmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicates that Zombiesmith is using a ____ Correct to gain a competitive advantage.

focus strategy

Google was exhibiting a ____ Correct when it acquired YouTube, Picasa, and Android.

growth strategy

One of the four components of a sustainable competitive advantage, the ____ Correct is very hard for other firms to copy.

imperfectly imitable resource

Nucor's ____ Correct was developed when the steel manufacturer asked, "How can we compete against other steel makers?"

industry-level strategy

Shell Oil and British Petroleum have a high level of ____ Correct because they have similar products and customers.

market commonality

Companies that use the ____ adaptive strategy do not follow a strategic plan; instead, they do whatever is necessary to adapt to changes they face in their environment.

reactors

After Saab, the Scandinavian automobile maker, declared bankruptcy, its Correct ____ strategy was developed by a Chinese entrepreneur who planned to manufacture electric cars for sale in China.

recovery

Coca-Cola's vitaminwater business would receive a ____ Correct designation from the Boston Consulting Group because it has a large share of a fast-growing market.

star

A company that emphasizes customer service in its mission statement but pays employees on the basis of how many customers they can process in an hour has a problem with ____.

strategic dissonance

A manager might use customer service survey ratings as ____ Correct when determining whether his or her company has the processes it needs to develop a sustainable competitive advantage based on superior customer service.

strategic reference points

When a company's resources are valuable, rare, imperfectly imitable, and nonsubstitutable, it has a ____

sustainable competitive advantage

When referring to a SWOT analysis, the letter W stands for ____ Correct, and it refers to factors that are ____ Correct to the organization.

weaknesses, internal