Mgmt 493 Chapter 6

A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to as a:

strategic rollup

Which of the following is NOT one of the risks of the focus strategy?

-Focusers exit the industry.

One company that has successfully found a propitious niche is:

-Frank J. Zamboni & Company.

The book Hypercompetition was written by:

-Maslow

A secret salary cap was the contention in a 2012 collusion lawsuit filed against:

-NFL

According to Barney, under which condition would tacit collusion most likely be successful?

-One firm tends to act as the price leader.

Which of the following is NOT considered a strategic alliance success factor?

-Operate with short-term time horizon.

An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is:

-SWOT

The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a(n):

-TOWS Matrix.

Which of the following is NOT one of the risks of a cost leadership strategy?

-achieving excessive success causes jealousy amongst competitors.

In a TOWS Matrix, WT Strategies:

-are basically defensive and primarily act to minimize weaknesses and avoid threats.

In a TOWS Matrix, SO Strategies:

-are generated by thinking of ways in which a company or business unit could use its strengths to take advantage of opportunities

The active cooperation of firms within an industry to reduce output and raise prices to get around the normal law of supply and demand is referred to as:

-collusion

As an industry becomes hypercompetitive, firms initially respond by:

-competing on cost and quality.

Business strategy is composed of:

-competitive and cooperative strategy.

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called:

-competitive scope.

When firms follow each other's lead to reduce the level of competition such as GE and Westinghouse did in steam turbines, it is referred to as:

-conscious parallelism.

In a TOWS Matrix, ST Strategies:

-consider a company's or unit's strengths as a way to avoid threats.

As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n:

-consolidated industry

In manufacturing toilet paper for grocery store chains (and avoiding competing directly against Charmin), Potlach has followed which of Porter's generic competitive strategies?

-cost focus

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?

-cost focus

Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization, and quantitatively based incentives is required for which of the following generic competitive strategies?

-cost leadership

Walmart, as a discount retailer, is an example of a company following which of Porter's competitive strategies?

-cost leadership

What are the three generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry?

-cost leadership, differentiation, and focus

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called:

-cost leadership.

When a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far above the price of the competition, the company is using the process of:

-cost proximity

According to Porter, the generic competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service is called:

-differentiation

Apple is an example of a company following which of Porter's generic competitive strategies?

-differentiation

If it is to be successful, Porter advises that a division possess strong marketing abilities, product engineering, a creative flair, strong capability in basic research and a corporate reputation for quality or technological leadership, for which one of the following generic competitive strategies?

-differentiation

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

-differentiation focus

Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line segment, or geographic market?

-differentiation focus

The particular capabilities and resources a firm possesses and the superior way in which they are used is called:

-distinctive competencies

According to D'Aveni:

-except for a few stable industries, strategy initiatives do not provide sustainable competitive advantage.

A car's cruise control, known as a "bell and whistle," is an example of which of the eight dimensions of quality?

-features

Most entrepreneurial ventures follow

-focus strategies

The focus strategies will likely predominate when many small and medium sized local companies compete for relatively small shares of the total market in a(n):

-fragmented industry

Business strategy focuses on:

-improving the competitive position of a corporation's products or services within the industry or market segment served.

All of the following reflect criticisms of the SWOT analysis EXCEPT:

-it provides a rational link to strategy implementation.

Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe?

-licensing arrangement

In the development of a SFAS matrix, the first step is to:

-list the most important EFAS and IFAS items.

Disadvantages of joint ventures include all of the following EXCEPT:

-mutual dependence

The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources to gain a benefit that is too expensive to develop alone is the:

-mutual service consortia.

The "cell" chip created by IBM, Sony Electronics, and Toshiba was a result of pooling their resources in a:

-mutual service consortium.

The text authors note that the essence of strategy is:

-opportunity divided by strengths minus weaknesses.

A corporation's specific competitive role which is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it.

-propitious niche

Jet airplane manufacturers often enter into strategic alliances to:

-reduce financial risk.

Which of the following is NOT one of the questions that development of a competitive strategy should raise?

-should we compete by garnering political support of influential leaders?

The concept that advocates management's attempt to find a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses is called:

-situation analysis.

The two general types of cooperative strategies are:

-strategic alliances and collusion.

According to the text, unique market opportunities that are available for only a particular time are called:

-strategic windows

According to Porter, a business unit in a competitive marketplace with no generic competitive strategy is:

-stuck in the middle

Which of the following is NOT a reason companies or business units may form a strategic alliance?

-to set prices in the industry

Which of the following is NOT one of the eight dimensions of quality?

-value

The kind of strategic alliance in which a company forms a strong and close long-term relationship for mutual advantage with a key supplier or distributor is the:

-value-chain partnership

When P&G (the maker of Folgers and Millstone coffee) worked with Mr. Coffee, Krups, and Hamilton Beach to market Home Café, they engaged in a:

-value-chain partnership.

The last stage of a hypercompetitive industry is reached when the remaining large global competitors:

-work their way to a situation of perfect competition in which no one has any advantage and profits are minimal.