MGMT 490

The higher a company's costs are above those of close rivals, the more:

competitively vulnerable the company becomes.

In identifying an industry's key success factors, strategists should:

consider on what basis customers choose between competing brands, what resources and competitive capabilities firms need to be competitively successful, and what shortcomings are almost certain to put a company at a significant competitive disadvantage

Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to:

decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods

The objective of a best-cost provider strategy is to:

deliver superior value to value-conscious buyers at a comparatively lower price than rivals

External threats may pose various degrees of adversity upon the company and can surface from many sources and examples, EXCEPT for:

demographic shifts that can curtail product innovation

Mergers and acquisitions are often driven by such strategic objectives as:

expanding a company's geographic coverage or extending its business into new products categories

A winning strategy is one that

fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

A strategic group:

is a cluster of industry members with similar competitive approaches and market positions in the market

A strategic alliance:

is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, the joint contribution of resources, shared risk, shared control, and mutual dependence

With its focus on value-creating activities, the value chain:

is an ideal tool for examining how a company delivers on its customer value proposition.

Which of the following questions tests the merits of the firm's strategy and distinguishes it as a winning strategy?

is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in better company performance?

The market opportunities most relevant to a particular company are those that:

offer the best prospects for growth and profitability

Relying on outsiders to perform certain value chain activities offers such strategic advantages as:

reducing the company's risk exposure to changing technology and/or changing buyer preferences

Rivalry among competing sellers is generally more intense when: (?)

rivals are active in making fresh moves to lower prices, introduce new products, increase promotional efforts and advertising, and otherwise gain sales and market share

The four tests of a resource's competitive power are often referred to as:

the VRIN test, which asks if a resource is a valuable, rare, inimitable, and non-substitutable

What makes the marketplace a competitive battlefield is:

the constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals

What does the scope of the firm refer to?

the range of activities the firms performs internally and the breadth of its products offerings, the extent of its geographic market, and its mix of businesses

What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is:

their concentrated attention on serving the needs of buyers in a narrow piece of the overall markey

A pitfall to avoid in pursuing a differentiation strategy is:

trying to differentiate on the basis of attributes or features that are easily and quickly copied

Sometimes it makes sense for a company to go on the offensive to improve its market position and business performance. The best offensives tend to incorporate the following EXCEPT:

using a strategic offense to allow the company to leverage its weaknesses to strengthen operating vulnerabilities

What is the primary target market for a best cost-provider?

value-conscious buyers

The strength of competitive pressures that suppliers can exert on industry members is MAINLY a function of:

whether needed inputs are in short supply and whether suppliers provide differentiated input that enhances performance of the product.

A winning strategy must pass which three tests

The Fit test, the competitive advantage test, and the performance test

Which of the following is a clear representation of a company's capability?

The capacity of a firm to perform some activity

What makes the marketplace a competitive battlefield is:

The constant rivalry of firms to strengthen their standing with buyers and win a competitive edge over rivals

What is the foremost question in running a business enterprise?

What must managers do, and do well, to make a company a winner in the marketplace?

Which of the following is NOT among the factors that affect whether competitive rivalry among participating firms is strong, moderate, or weak?

Whether the industry's key driving forces yield firms in the industry with adequate profits are strong or weak

A company's mission statement typically addresses which of the following questions?

Who are we and what do we do?

The primary difference between a company's mission statement and the company's strategic vision is that:

a mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why."

The extent to which firms are meeting objectives (good performance) suggests they:

are likely to continue their present strategy with only minor fine-tuning

Which of the following is NOT a factor that causes buyer bargaining power to be stronger?

Buyers are small and numerous relative to sellers

Which of the following are integral parts of the managerial process of crafting and executing strategy?

Developing a strategic vision, setting objectives, and crafting a strategy

Which of the following is NOT one of the principal components of strategic significance in the PESTEL analysis?

Environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business

2 out of 2 points Which of the following does NOT represent a potential core competence?

Having a wider product line than rivals

Which of the following is NOT a good example of a company's resources?

Having higher earnings per share and a higher stock price than key rivals

Which one of the following questions can be used to distinguish a winning strategy from a mediocre or losing strategy?

How well does the strategy fit the company's situation

Which of the following is the best example of a well-stated financial objective?

Increase earnings per share by 15 percent annually

Which one of the following is inaccurate as concerns a distinctive competence?

A distinctive competence is typically less restrictive for rivals to copy than a core competence

Achieving a differentiation-based competitive advantage can involve:

All of these

The competitive power of a company resource strength or competitive capability hinges on:

All of these