MGT499

If Firm A and Firm B both produce a laptop at the same total cost, but the reservation price for Firm A's laptop is $1,000 and the reservation price for Firm B's laptop is $1,200, who has the competitive advantage? Multiple choice question.

firm B

Place the three frameworks used in industry analysis in the order they should be used, with the first at the top. Instructions

1. PESTEL analysis 2. Porter's 5 forces 3. Strategic group mapping

Which statement describes the long tail?

A large amount of revenue derived from a small number of units among almost unlimited choices

Which of the following statements about platform business is true?

It creates value not only for the businesses but also for consumers.

What are the characteristics of a strategic activity system as it applies to firms? (Check all that apply.)

It is causally ambiguous. It consists of interconnected activities. It is socially complex.

______ are the firm's current level of intangible resources.

Resource stocks

A company's total return to shareholders consists of which of the following? (Check all that apply.)

Stock price appreciation Dividends received

To determine a product's producer surplus, which of the following must be compared? (Check the two that apply.)

The cost of production The price charged

Which of the following correctly describe the information used for comparing the performance of public companies based on accounting profitability? (Check all that apply.)

The information is filed in a 10-K report. The relative performance is evaluated using standardized financial metrics. The information is derived from such data as income statements and balance sheets.

What must strategic leaders keep in mind if they are going to achieve successful strategic positioning? Multiple choice question.

To achieve strategic positioning, firms must make important trade-offs.

Which of the following are aims of stakeholder strategy? (Select all that apply.)

To gain and sustain competitive advantage To manage various stakeholders effectively

An architectural innovation is ______. Multiple choice question.

a new product in which existing technologies are used in a novel way to create new markets

A customized strategy that considers the unique resources of the company while considering the external environment creates ______. Multiple choice question.

a strategic fit between them

n a subscription-based business model, customers pay for ______.

access to a product or service

During the shakeout stage of the industry life cycle, profits degrade for ______.

all but the most efficient firms

The most rigorous means of analyzing the profit potential within a specific industry is to conduct ______.

an industry analysis

The invention of small desktop copiers to create a new consumer market using the same technology as large, stand-alone copiers is an example of a(n) ______ innovation.

architectural

What is the typical result of cognitive limitations?

We choose the option that is "good enough" and satisfies immediate needs.

Public companies are required by law to release detailed accounting data, which enables ______. Multiple choice question.

comparative analysis of firms

Firms have a tendency to change the industry structure in their favor, for example by making industries more __ through mergers and acquisitions. Multiple choice question.

consolidated

The negative effect of innovative ride-sharing services, such as Uber and Lyft, on traditional taxi cab companies is an example of ______.

creative destruction

The perceived value that a company creates for consumers less the company's costs to create the value equals ______.

the economic value created

According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate.

false

Which of the following is a primary factor in avoiding creative destruction?

innovation

Intellectual property protection and social complexity are examples of mechanisms, which help a firm sustain a competitive advantage.

isolating

The economic factors that affect a firm's external environment are ______.

largely macroeconomic

Which of the following are considered off-balance sheet items? (Check all that apply.)

operating leases pension obligations

Another name for producer surplus is____ .

profit

In order to determine market capitalization, one multiplies which of the following together? (Check all that apply.)

share price number of outstanding shares

A firm's network of interconnected activities is referred to a strategic activity system because activities that are interconnected are very difficult for competitors to copy effectively.

true

In general, a firm generates ______ when its cost of capital is lower than its ROIC.

value

A ______ outlines the steps a manager will take to achieve competitive advantage in a single product market. Multiple choice question.

business-level strategy

Production costs can increase when ______. Multiple choice question.

buyers demand higher quality and more service

Bundling of products and services that are consumed in tandem to create value is an example of ______. Multiple choice question.

complements

The most common type of innovation is ______ innovation.

incremental

The type of innovation that focuses on improving an existing product by using existing technology and targeting existing markets is a(n) ______ innovation.

incremental

An industry analysis provides which of the following? (Check all that apply.)

insight into a firm's strategic position within an industry a rigorous way of identifying the industry's profit potential the level of profitability that can be expected for the average firm in the industry

Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things?

power

Which of the following are among the most commonly used metrics for comparing the performance of different companies? (Check all that apply.)

return on equity return on assets return on revenue

The intensity with which companies in an industry jockey for market share and profitability is known as ______.

rivalry

What should a successful vision do for an organization? (Check all that apply.)

It should make employees feel that their work is important. It should inspire employees.

Which capability is required to create superior product features?

R&D

To which types of organizations can we apply the principles of strategic management?

all types of organizations

When suppliers can demand higher prices for their inputs or reduce the quality of the input factor delivered, they demonstrate that they are ______.

powerful

The resource-based model views resources as ______.

the main driver of firm performance

When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in ______. Multiple choice question.

innovation

What is one of the benefits of pursuing a differentiation strategy when it comes to the power of suppliers?

Differentiation provides protection against an increase in input prices.

Which of the following statements about the disadvantages of the accounting profitability perspective are correct?

Accounting data are historical and therefore backward-looking Accounting data focus primarily on tangible assets

Stakeholder impact analysis is a decision tool that helps a company do which of the following? (Check all that apply.)

Achieve a competitive advantage Act as a good corporate citizen

What is the result of the airline industry having powerful buyers? Multiple choice question.

Airlines' profit margins are reduced.

Why does the learning curve go down when productivity is considered?

As workers repeatedly engage in an activity, they become more efficient, driving down costs.

The VRIO framework is used to evaluate a firm's resources. VRIO is an acronym for which of the following? (Check all that apply.)

Imitate Valuable Rare

Which of the following are examples of resources for a firm? (Check all that apply.)

buildings intellectual property cash

The power of ______ is the pressure they can put on the margins of producers in the industry by demanding a lower price or higher product quality.

buyers

If Tom would have paid $1,000 for a new laptop but was able to purchase one for $800, the $200 he saved is considered his ______. Multiple choice question.

consumer surplus

The goal of a _____________ strategy is to achieve expenses below those of competitors while maintaining similar value. A firm with this strategy could or could not achieve differentiation parity. Multiple choice question.

cost leadership

Which of the following are important strategic dimensions in mapping strategic groups? (Check all that apply.)

cost structure expenditures on research and development product and service offerings

The Ritz-Carlton provides a personalized customer experience based on sophisticated analysis of data gathered about each guest. This focus on ______ allows the hotel to increase its perceived value. Multiple choice question.

customer service

A struggling retailer seeking to implement a blue ocean strategy is likely to experience difficulty with ______. Multiple choice question.

cutting costs and increasing value at the same time

The difference between the cost of producing a product and the price consumers are willing to pay for that product is known as ______.

economic value created

Taking on an economic risk in order to innovate is known as ______.

entrepreneurship

The money a firm spends to set up a sales website can be considered a ______ cost.

fixed

Michael Porter developed the five forces model to help firms do which of the following? (Check all that apply.)

gain and sustain a competitive advantage determine the profit potential of different industries

Strategic leaders use internal and external analyses in tandem to create a customized fit between a company's ______. Multiple choice question.

internal resources and external environment

Which are the four steps of the innovation process?

invention imitation idea innovation

Industry-specific factors known as ______ separate one strategic group from another.

mobility barriers

The subjectively determined maximum amount a customer would pay for a product is its ______ price.

reservation

From the view of a shareholder, the measure of competitive advantage that matters most is return on ______.

risk capital

Effective guiding policy is supported by and stays consistent through the use of ______.

strategic commitments

A core competency can help a company achieve which of the following? (Check all that apply.)

to offer products of comparable value at lower cost than rivals can to differentiate its products and services to create higher value for the consumer

An intended strategy is the outcome of a plan that has which of the following characteristics? Multiple select question.

top-down rational structured

The most a consumer is willing to pay for a product is equivalent to the product's ______. Multiple choice question.

total perceived consumer benefits

Investors in a company are mostly concerned about the company's ______.

total return to shareholders

The most significant challenge JetBlue faced in implementing its business strategy was _____.

reconciling the trade-offs between cutting costs and providing superior service

The groups or individuals who can impact or be impacted by a firm's actions are known as ______.

stakeholders

Burger Bomb is a new hamburger restaurant. In order to compete successfully against its many competitors, Burger Bomb has decided to focus on quality and an interesting, unique menu that uses locally sourced, organic ingredients. This is known as Burger Bomb's ______.

strategy

Managers implement the blueprint of their business model through which of the following? (Check all that apply.)

structures processes culture

The threat of ______ is one of the five forces and can be exemplified by the threat that videoconferencing presents to business travel. Multiple choice question.

substitutes

A business model in which companies can obtain a large part of their revenues by selling a small number of units from among almost unlimited choice is referred to as _____.

the long tail

Both strategy formulation and strategy implementation are aspects of ______.

the strategy prcoess

What is strategic leadership?

the use of influence and power by executives to direct the activities of individuals while pursing an organization's goals

According to upper-echelons theory, the way strategic leaders of a firm interpret a situation is influenced by which of the following?

the values and experiences of the firm's leaders

Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?

theory of bounded rationality

In terms of productivity, which of the following is true of learning curves?

they go down

The risk that potential competitors will enter the industry is known as the ______.

threat of entry

The _______ is the idea that products or services available from outside the given industry will come close to meeting the needs of current customers.

threat of substitutes

How are intangible resource stocks acquired? Multiple choice question.

through investments over time in intangible resources

Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in?

top-down strategic planning

Implementing a blue ocean strategy requires making competition irrelevant and creating a new market space, otherwise known as ______. Multiple choice question.

value innovation

In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's ______.

vision

The Luminarium Corporation has a market capitalization of $100,000,000, and each share is worth $100. How many outstanding shares of Luminarium Corporation are there?

1,000,000

Which of the following statements is best illustrated by the decades-long business rivalry between the technology giants Apple and Microsoft?

A firm's competitive advantage is transitory.

Why is employee involvement crucial when developing an inspiring vision and mission? (Check all that apply.)

Because employees may develop helpful strategic initiatives. Because belief in the vision and mission statements motivates employees.

Which of the following industries use a subscription model? (Check all that apply.)

Cellphone providers Magazines Internet providers

Which two of the following variables can managers primarily manipulate in order to answer the question, "How should we compete?"

Cost Value

Which of the following statements about legal factors as an external force is true?

Regulatory changes tend to affect entire industries at once.

______ is a framework that allows mangers to synthesize insights obtained from internal and external analysis.

SWOT analysis

What are the three aspects of mapping strategic groups?

choosing two key dimensions for the horizontal and vertical axes graphing the firms in the strategic group and indicating each firm's market share identifying the most important strategic dimensions

When implementing the razor-razorblade strategy, companies make their profit from ______.

complementary goods

A(n) ______ is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission.

core values statement

The firm's accounting profitability, ability to create shareholder value, and ability to generate economic value tend to be ______.

correlated

Successfully transitioning from one stage of the industry life cycle to the next is referred to as ______.

crossing the chasm

Compared to the past, the importance of firms' intangibles has increased. Therefore the importance of a firm's book value has ______ as part of the firm's total stock market valuation. Multiple choice question.

decreased

To measure firm-level competitive advantage, a company must ______. Multiple choice question.

estimate the economic value created for all products and services offered by the firm

True or false: Sociocultural factors tend to be fixed.

false; they tend to be in flux

In terms of business strategy, blue oceans represent which of the following? (Check all that apply.)

increased demand untapped market space

An auto manufacturer that has access to cheaper labor and raw materials than its rivals will have a competitive advantage regarding lower cost of ______ factors.

input

A producer of consumer headphones that successfully differentiates its products with a patented noise-canceling technology and celebrity endorsements will enjoy which of the following benefits? (Check all that apply.)

less intense competition from imitators the ability to charge a premium price

Which of the following tend to result from strong competitive rivalry? Multiple choice question.

limits to the industry's profit potential

A (fill out one word only) outlines what an organization does, while a vision outlines what the organization wants to do.

mission

Place the five steps of the stakeholder impact analysis in order, with the first step at the top.

Who are our stakeholders what are their interests what opportunities and threats what economic, ethical, legal what should we do to effectively address concerns

What must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

What is the relationship between innovation and competitive advantage?

Innovation is a powerful weapon for gaining and maintaining competitive advantage.

Which of the following statements are true concerning a firm's business model? (Check all that apply.)

It essentially explains how the firm intends to make money. It details the firm's competitive tactics and initiatives. It indicates the way the firm works with buyers and suppliers.

Which of the following statements about Airbnb is correct? Multiple choice question.

It handles more accommodations than the three biggest hotel chains combined.

Which statement best describes the speed of innovation over the past hundred years?

It has accelerated dramatically.

Which of the following statements are true about the rival businesses Apple and Microsoft? (Check all that apply.)

Microsoft leveraged its computer operating system to sell other software programs. Apple introduced a series of popular consumer electronic devices.

What are the approaches that can be utilized when strategizing for competitive advantage?

Strategy as planned emergence Scenario planning Strategic planning

Which of the following are questions that managers are likely to ask when beginning the strategic management process? (Check all that apply.)

What are our values? What do we ultimately hope to achieve? How can we achieve our goals?

A stakeholder has ______ when its needs are within the bounds of the law or are otherwise relevant to the firm.

a legitimate claim

Global warming would be an example of ______ factor in a firm's external environment.

an ecological

If two firms produce very similar products at the same rate of output, and firm A is able to achieve lower per-unit costs than firm B by taking advantage of a new manufacturing technology, firm A is benefiting from

an experience-curve effect based on process innovation.

A(n) ______ is a unique strength, embedded deep within a firm, that is critical to gaining and sustaining competitive advantage. Multiple choice question.

core competency

A(n) ______ strategy attempts to increase the perceived value of a product while controlling costs.

differentiation

Which of the following dimensions make up the triple bottom line? (Check all that apply.)

ecological economic social

Growth rates, interest rates, and levels of employment would be considered ______ factors in a firm's general environment.

economic

True or false: Stock market valuations are often unreliable due to market fluctuations and are therefore not used to assess competitive advantage. True false question.

false

True or false: The best measure of competitive advantage can be found in the performance of specific departments. True false question.

false

The balanced scorecard approach helps managers balance ______ goals. Multiple choice question.

financial and strategic

In the maturity stage of the industry life cycle, industry growth ______.

flattens or even declines

For a product that has a large economic value, a firm can choose to charge the same price as competitors in order to ______.

gain market share

The pay-as-you-go model is ______.

gaining momentum

In the PESTEL model, political factors are those that relate to ______.

government bodies

Which of the following would be labeled variable costs by a computer manufacturer? (Check all that apply.)

hard drives display screens

The relationship between the natural environment and business organizations can best be described as ______. Multiple choice question.

interdependent

The value chain describes ______ of a firm.

internal activities

Which of the following are factors in a firm's legal environment? (Check all that apply.) Multiple select question.

laws regulations mandates court decisions

An example of a recent innovation in process technology is ______.

lean manufacturing

ncreases in the value of a product or service that result from a corresponding increase in the number of users are known as ___.

network effects

Products in the affordable "business-casual" clothing market have largely become commoditized, and most retailers have begun to compete mainly on price rather than product features. In this environment, it is impossible for one retailer to gain market share without another losing it. This is an example of a ______ ocean.

red

A cost leader can achieve a competitive advantage by ____

reducing costs below those of competitors while maintaining a similar value

_____ planning is a strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses.

scenario

The legal owners of publicly traded companies are called ______. Multiple choice question.

shareholders

A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______.

stakeholder strategy

Which of the following is the least formal approach to setting the strategy process?

strategy as planned emergence

A firm's attempts to shorten the length of time a process takes, may lead to disappointing outcomes because of ______.

time compression diseconomies

In addition to the static nature of the PESTEL, Porter's five forces, and strategic group mapping frameworks, what is their other shortcoming?

It does not help us understand why there are performance differences among firms in the same strategic group.

Along which of the following dimensions do strategic groups differ from one another? (Check all that apply.)

customer service market segments distribution channels research and development

The pressures that industry suppliers can exert on an industry's profit potential, is also called the ______.

bargaining power of suppliers

Which of the following are examples of sociocultural factors? (Check all that apply.)

an increased demand by consumers for gluten-free products the widespread adoption of smart phones the growth of the Hispanic population

The concept of a(n) ______ attempts to combine both learning effects and process improvements.

experience curve

Stakeholder impact analysis is a _____-step process that allows managers to better understand and address stakeholders' needs. Multiple choice question.

five

______ are any assets that a firm can draw on when formulating and implementing a strategy.

resources

Core competencies of a business are generated by the interaction of ______.

resources and capabilities

Which of the following statements regarding tasks in the AFI strategy framework is true? Multiple choice question.

tasks are very interdependent

Which of the following would provide the best benchmark of a computer firm's performance relative to other high-tech firms?

the NASDAQ computer index

Burger Bomb has been outperforming other burger restaurants for a decade. This indicates that Burger Bomb has which of the following?

Competitive advantage

Business-level strategy addresses which overarching question? Multiple choice question.

How should we compete?

Which of the following best describes the core competency of the Five Guys Burgers and Fries company?

Making high-quality burgers without limiting costs

Which of the following statements about the maturity stage of the industry life cycle is true?

Only a few large firms remain.

Which of the following are types of innovation? (Check all that apply.)

radical disruptive architectural incremental

Achieving competitive advantage means maximizing the difference between which of the following? (Check the two that apply.)

cost to produce the good or service consumers' willingness to pay

Which type of strategy is being used if a company offers a product at a lower cost than its competitors?

cost-leadership strategy

Economies of scale are ______. Multiple choice question.

decreases in cost per unit as output increases

What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action?

devil's advocacy

Which of the following is true about shareholders of a public company?

They can be individuals or organizations.

The ______ is a theoretical model that explains and predicts what resource attributes underpin competitive advantage. It identifies which types of resources are key to firm performance. Multiple choice question.

VRIO framework

Which statements about stock market valuations are true?

Viewed over the long term, stock market valuation is a useful metric for assessing competitive advantage. Stock market valuation is equal to the number of outstanding shares multiplied by the share price.

Which of the following are essential questions that strategic leaders need to consider to increase the probability of entering an industry successfully? (Check all that apply.)

When to enter? Who are the players? How to enter? What type of entry should be made?

A firm that increases its output of a given product and experiences a simultaneous decrease in per unit costs is taking advantage of ______.

economies of scale

An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants and that depends on the infrastructure that the platform manages is a(n) ______.

platform business

In the five forces model, threat of entry refers to the risk that ______. Multiple choice question.

potential competitors will enter a given industry

If a firm has a successful ______ strategy, its product will have a higher perceived value and the firm will have a competitive advantage over a competitor that creates a product at equal cost but with a lower reservation price. Multiple choice question.

product differentiation

Which of the following performance dimensions matter in judging the effectiveness of a firm's strategy? (Check all that apply.)

quantitative qualitative

A cost leader can achieve a competitive advantage by ______.

reducing costs below those of competitors while maintaining a similar value

The concept, or framework, of corporate social guides firms in identifying and addressing their economic, legal, ethical, and philanthropic obligations to society.

responsibility

Which of the following helped Airbnb develop a successful business in the peer-to-peer rental space? (Select all that apply.)

Ensuring a smooth transaction between hosts and guests Fortuitous timing that led to growing demand Presenting a well-designed website

Which statements about creating and implementing an effective business model are true?

Firms must implement their competitive strategy blueprint through processes, procedures, culture, and structure. Firms must transform their competitive strategy into a blueprint of initiatives and actions that support their goals.

Which of the following statements about industry dynamics is true?

The five forces model is a static model. Over time, industry structures are not stable.

Which of the following best defines economies of scope? Multiple choice question.

They are the savings that come from producing two or more outputs at less cost than producing each output individually.

Which of the following are advantages of platform businesses compared to pipeline businesses? (Check all that apply.)

They benefit from community feedback. They scale efficiently by eliminating gatekeepers. They unlock new sources of value creation and supply.

Which of the following are ways that powerful suppliers are a threat to firms? (Check all that apply.)

They can force the cost of production to increase. They can capture part of the economic value created by firms. They can reduce the industry's profit potential.

Which of the following were resources and capabilities that helped Five Guys gain a competitive advantage and develop into a successful restaurant chain? (Check all that apply.)

Focusing on such details as store layout and design Carefully choosing the supplier of the potatoes for their fries

What is the overall purpose of strategic management? Multiple choice question.

Gain competitive advantage

What question is asked along the horizontal axis of the markets-and-technology framework?

Does the innovation build on existing technologies or create new ones?

Managers have ______ direct influence over external forces in the firm's general environment than those in the firm's task environment.

less

Which of the following are approaches for answering the question "How to enter?" when a firm is considering entering an industry?

Reconfiguring value chains Leverage existing assets Establishing a niche

Upper-echelons theory views organizational outcomes as a reflection of the values of the ______.

top management teams

The business model used by telecommunication companies when they provide a basic cell phone at no charge when the customer signs a two-year contract is a combination of which of the following types of business models? (Check all that apply.)

subscription razor--razor-blade

In a nutshell, strategy is the art and science of ______.

success and failure

Which of the following types of questions does scenario planning ask?

what if

Strategy formulation concerns the choice of strategy in terms of ______ to compete.

where and how

Which of the following statements about the disadvantages of the value creation perspective are correct?

It is difficult to determine the value that consumers place on a given good. For large firms, it is difficult to estimate the economic value created for all products and services offered by the firm. The value that a consumer places on a good can vary according to how the consumer feels at a particular moment.

Which of the following statements about a business pipeline is true?

It is the traditional system of horizontal business organization.

______ describes a process in which the options one faces in the current situation are limited by decisions made in the past.

Path dependence

______ suggests that sometimes even random events may have a large impacts on an outcome.

Path dependence

Which of the following are characteristics of the companies in a strategic group? (Check all that apply.)

The companies form part of a specific industry. The companies differ in important dimensions from companies in other strategic groups. The companies pursue similar strategies.

Many drivers find a GPS navigation system useful. Because installing a GPS system in an automobile adds value to the vehicle, the system functions as ______.

a complement

According to Michael Porter, the profit potential of an industry is ______. Multiple choice question.

a function of five forces related to competition

In addition to having the lowest cost, a low-cost leader is likely to have ______.

a large market share

A group of companies that deal with more or less the same set of suppliers and buyers make up ______.

an industry

Time compression diseconomies occur when a firm ______.

attempts to reach an outcome in a reduced amount of time

Isolating mechanisms are considered to be ______. Multiple choice question.

barriers to imitation

Why do many firms fail to successfully implement a blue ocean strategy?

because they end up being "stuck in the middle," unable to increase value and lower costs at the same time

When a firm goes bankrupt, shareholders ______. Multiple choice question.

cannot recover their risk capital

The external forces called technological factors ______.

capture the application of knowledge to create new process and products

Unique features and attributes that differentiate a product from competitors' offerings allow the firm to ______.

charge premium pricing

When a firm implements a strategy that leads to superior performance relative to other companies in the same industry, it is said to have achieved ______.

competitive advantage

Economic value created is the ______ the cost to produce a product/service and the amount the buyer is willing to pay for it. Multiple choice question.

difference between

A ______ strategy aims to create higher value for customers by offering products with unique features but a similar level of costs to those of competing products.

differentiation

A successful blue ocean strategy requires strategists to reconcile the trade-offs between ______. Multiple choice question.

differentiation and cost-leadership

Which of the following are business strategies JetBlue pursued in order to gain a competitive advantage?

differentiation and cost-leadership

A core values statement provides information to employees regarding the company's ______.

ethics and morals

Which of the following are stages of the industry life cycle? (Check all that apply.)

growth introduction decline shakeout maturity

Resource ______ and resource ______ are the key assumptions behind the resource-based model of the firm.

heterogeneity; immobility

Which of the following contribute to consumer buying power?

low switching costs real time, accurate price comparisons

Which of the following are examples of ways that a large retailing firm can increase the perceived value of its offerings by focusing on customer service? (Check all that apply.)

maintaining a domestic call center that is open 24 hours per day offering a "no questions asked" return policy

Top-down strategy is derived from ______.

military strategy

What are cognitive biases?

obstacles in thinking that result in systematic errors in decision making and hinder rational thinking

The business structure that is linear and has producers at one end and consumers at the other is known as a(n) ______.

pipeline

Although the five forces model is useful in understanding an industry's profit potential, it provides only a ___.

point-in-time snapshot of a moving target

Simone was the first among her peers to try the new unicorn hair dye. For months she was the only person with unicorn hair. After some time, though, the product became available everywhere, and nearly every other person began sporting unicorn hair, even Simone's mom. This situation describes which of the following?

the crossing-the-chasm framework

True or false: According to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.

true

True or false: Industries often tend to follow a predictable industry life cycle

true

True or false: Innovation can create value for one firm while destroying value for another.

true

True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision. True false question.

true

To determine the value of a good in the eyes of consumers, a firm can ______.

examine consumers' purchasing habits for their revealed preferences

Which of the following are true of a firm's book value? (Check all that apply.)

Its importance has declined over time. It captures the historical cost of a firm's assets. It is calculated as costs of assets minus accumulated depreciation.

Which of the following statements is true about a firm's stock price? Multiple choice question.

The price determines in part the stock's market valuation.

Which of the following statements about platform businesses is true? Multiple choice question.

They can grow faster than pipeline businesses.

Netflix had a successful business model based on a large library of streaming content but then achieved even more success by also producing and distributing original content. This is an example of the potential value of ______. Multiple choice question.

business model innovation

Combining the razor-razor-blade model and the subscription model means that telecom providers make their money through lengthy service plans, which in turn means that it is crucial that they keep their ______ rate, or the proportion of subscribers who leave, down.

churn

A ______ is a product or service that adds value to the original product offering.

complement

A tablet manufacturer that includes a free stylus with every purchase is using ______ to enhance users' experiences and increase the perceived value of its tablets.

complements

Which value driver would be the focus of a company that sells products that are similar to competing products and that provides a 60-day guarantee with no questions asked? Multiple choice question.

customer service

For a firm to sustain any competitive advantage over time, the fit between its internal strengths and external environment needs to be ______. Multiple choice question.

dynamic

Enterprise Machinists is always improving upon its core competencies by training its machinists constantly so that they are equipped to deal with technological changes and advancements. Based on this information, this is an example of which concept? Multiple choice question.

dynamic capabilities

Which of the following are elements of the social dimension of the triple bottom line? (Check all that apply.)

human sustainability achieving work/life balance

Fixed costs are ______ consumer demand.

independent of

A(n) __________ strategy is the outcome of a rational and structured, top-down strategic plan.

intended

Research about how CEOs spend their days suggests that CEOs spend most of their time ______.

interacting with others

Which of the following are input factors? (Check all that apply.)

labor raw materials information technology services capital

An organization's ______ is what an organization actually does, including the products and services it plans to provide and the markets in which it will compete.

mission

When managers understand the forces in the external environment, they are better able to ______.

mitigate threats and leverage opportunities

In the airline industry, the ______________ of offering international routes restricts movement between hub-and-spoke and point-to-point airlines.

mobility barrier

When a firm does favorably compared to similar firms, it is said to ______. Multiple choice question.

outperform

In order to be considered a legal owner of a public company, a person or organization must ______. Multiple choice question.

own at least one share of the company's stock

When you join the vehicle-sharing company Zoooomm, you are allowed to use a motorized scooter whenever you like, though you do not have to own the machine. You have to pay by the hours of usage. Zoooomm operates on a ______ model.

pay-as-you-go

______ factors result from the processes and actions of government bodies that influence the decisions and behavior of firms.

political

Which competitive forces can result in erosion of margins for both differentiation and cost-leadership business strategies?

power of buyers threat of entry power of suppliers

Innovation can ______. (Select all that apply.)

provide firms with a competitive advantage make existing products or businesses obsolete

A firm that successfully leverages network effects can ___. Multiple choice question.

push its industry into the growth stage

When a company offers video-game consoles at a steep discount, but charges customers high fees for games, they are operating on a ______ business model.

razor—razor-blade

What do the best firms in an industry seek to identify and manage on an ongoing basis as sources to respond to their external environment? (Check all that apply.)

resources core competencies capabilities

From the view of a shareholder, the measure of competitive advantage that matters most is return on ______. Multiple choice question.

risk capital

Economies of ______ are the savings that come from producing two or more different outputs at a lower cost than producing each output individually. Multiple choice question.

scope

The resource-based view classifies all resources as ______. Multiple choice question.

tangible or intangible

When managers analyze a wide variety of internal and external performance metrics in order to set financial and strategic goals, they often turn to a framework known as ______.

the balanced scorecard

What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?

the brain's default mode

Which of the following topics should be considered during the analysis phase of the AFI framework?

the role of strategic leadership and the strategy process the firm's business model and competitive advantages the firm's internal strengths and resources the external environment and associated challenges

Strategy is ______.

the set of actions a firm takes to achieve a competitive advantage

Which of the following are the three important stakeholder attributes managers must pay particular attention to during stakeholder impact analysis? (Check all that apply.)

urgency power legitimacy

The ______ describes the internal activities a firm engages in when transforming inputs into outputs.

value chain

A firm that manages to avoid competition entirely by offering a product or service that creates an uncontested market space is engaging in ______.

value innovation

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?

vision