Strat

Which of the following is an example of a strategy for competitive advantage?

"We will leverage our IT systems to provide superior customer service"

Which of the following are elements of a good strategy according to the AFI framework?

- a diagnosis of the competitive challenge - a set of coherent actions to implement the firm's guiding policy - a guiding policy to address the competitive challenge

Which of the following elements comprise strategic management?

- analysis - formulation - implementation

Which of the following factors would be examined in the External Analysis stage of the AFI framework?

- competitive forces - strategic groups

the intensity of a rivalry in an industry is largely based on what factors?

- competitive industry structure - industry growth - strategic commitments - exit barriers

Which of the following are advantages, independent of size, that incumbent firms possess?

- cumulative experience effects - proprietary technology - preferential access to new technology - brand loyalty

Important sources of entry barriers include:

- economies of scale - network effects - customer switching costs - capital requirements - advantages independent of size - government policy - credible threat of retaliation

The five economic factors that impact a firm's general impact are:

- growth rates - levels of employment - interest rates - price stability (inflation and deflation) - currency exchange rates

Which of the following help determine competitive industry structure?

- height of entry barriers - firm's degree of pricing power - size and number of competitors

What should a successful vision do for an organization?

- it should make employees feel that their work is important - it should inspire employees

Which of the following are the four main competitive industry structures?

- monopolistic competition - oligopoly - monopoly - perfect competition

According to the five forces model, a firm seeking to compete in an established industry should seek to do which of the following?

- position itself in a way that leverages weak forces - position itself in a way that relaxes the constraints of strong forces

Which of the following helped Airbnb develop a successful business of perr-to-peer rental space?

- presenting a well designed website - fortuitous timing that led to growing demand - developing a smooth transaction between hosts and guests

A firm can gain a competitive advantage by providing goods and services ______

- that are similar quality to a competitors offerings, but can be sold at a lower price due to lower costs - that create more value for consumers than competitors' offerings

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

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

Which of the following are characteristics of a perfectly competitive industry?

- the industry is fragmented - individual firms have little to no ability to raise prices - firms in the industry sell a commodity product

An industry analysis provides which of the following?

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

Which of the following are ways that powerful suppliers are a threat to firms?

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

Which of the following conditions lead to a strong threat of substitutes?

- when the cost of switching to the substitute is low - when the price-performance trade-off is attractive

Sustainable competitive advantage exists when

a firm maintains superior performance relative to its industry over a long time

when restrictive government policies do not exist or when industries become deregulated, the threat of _____ is high

entry

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

ethics and morals

Although _____ coordination such as price fixing is illegal in the United States, _____ coordination such as an "unspoken understanding" is not

explicit; tacit

A competitive advantage

is assessed relative to other competitors in the industry

The stronger the five forces in Porters model, the ________ the industry's potential

lower

A _____ outlines what an organization does, while a _____ outlines what they want to do

mission; vision

In order to influence changes in their political environment, firms pursue _____

non market strategies (i.e. lobbying, public relations, contributions, litigation, etc)

The type of vision statement that tends to limit a managers flexibility and ability is the ______ vision statement

product-oriented

Strategic positioning allows managers to _____

provide customer value while controlling costs

The cultures, norms, and values of the society in which a firm competes are considered _______ factors

sociocultural

price ______ is the lack of change in price levels of goods and services

stability

In order to achieve and sustain a competitive advantage, a company devises and adopts a set of goal-directed actions known collectively as a(n) _____

strategy

Tesla's current success can first and foremost be attributed to...

the implementation of its secret strategy

Employees tend to adhere to organizational core values when _____

the leaders of the organization also adhere to the values

What are strategic commitments?

they are actions that are costly, long-term oriented, and difficult to reverse

In Porter's model, competition in an industry is a function of five forces:

threat of entry, power of suppliers, power of buyers, threat of substitutes, and rivalry among existing firms

Why might a company develop organizational core values?

to encourage employees to make ethical choices

In the strategic management process, which basic principle must be defined first?

vision

The element of a firm's strategy that summarizes the ultimate goals of the firm is known as the...

vision

Governments sometimes set up a natural monopoly when a venture ______

would otherwise not be profitable

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

Regulatory changes tend to affect entire industries at once

a well devised strategy helps a firm understand

What to do and what not to do