SEVI EXAM 2
Which of the following best illustrates forward integration
A firm that manufactures and sells car engines to major automobile companies launches its own line of cars
Billy is the founder and CEO of Billy's Kicks, a soccer ball retailer. He decides to purchase a synthetic rubber manufacturing firm so he can create his own soccer balls and sells them nationally in his retail stores. Billy will engage in
Backward Vertical Integration
Amerie îs the strategic business unit (SBU) leader in charge of manufacturing men's bow ties. While the market Amerie's firm competes in is low growth, its SBU earnings and cash flow are both ranked high and stable. When examining Amerie's SBU through the Boston Consulting group growth-share matrix lens, we can conclude the SBU would be classified as a
Cash Cow
Which of the following is most often true of mature markets?
Few or no competitors enjoy a significant operating advantage due to experience effects.
________ is best described as a situation in which one party possesses private information and is therefore better informed than another party
Information asymmetry
Intech developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the time. The technology was leased to Accent Technologies, a consumer electronics company, for five years. Which of the following alternatives to integration does this best illustrate?
Licensing
What is the name of the situation that can arise when strategic leaders pursue their own interests in conflict with the firms goals?
Principal-agent problem
which of the following statements about the intro stage of the marketing life cycle is true
Products offered by new pioneers may be perceived as differentiated because they are new
A differentiation strategy enables a business to address the five forces by
Providing protection against rivalry
Which of the following is an example of an internal transaction cost?
The cost of maintaining a production unit
the primary aim of strategic management at the business level is
achieving and sustaining competitive advantage
which of the following most exemplifies a way in which a firm can achieve differentiation
better customer service
which of the following is not a risk (or potential pitfall) of cost leadership?
cost leadership is difficult to imitate
which of the following is a reason for the possible erosion of company competitive advantage?
globalization
One aspect of using a cost leadership strategy is that the experience curve may lead to lower costs. the experience curve lowers costs by
increasing speed and decreasing mistakes as tasks become easier through repetition
which of these statements regarding industry life cycle is true
it is important for company generic strategies, functional areas, value creating activities and overall objectives
Many financial service firms, IT firms, and health-care companies are amongst the most active when it comes to __________, which occurs when value chain activities are taken care of outside the home country of the firm.
offshore outsourcing
Since Coca-cola focuses on selling only non-alcoholic beverages, a low degree of product diversification, we would conclude that it competes in a ________, versus its main competitor PepsiCO, which sells a wide variety of products.
single product market
A company that engages in strategic outsourcing reduces its level of
vertical integration
which statement regarding competitive advantages is true
with an overall cost leadership strategy, firms need to be concerned with competitive parity.