Strategic Management Chapter 6 Review

Which tactic deals with where a company implements a strategy?

a market location tactic

All of the following reflect criticisms of the SWOT analysis EXCEPT

a rational link to strategy implementation.

A tactic is defined by the text as

a specific operating plan specifying how a strategy is to be implemented in terms of when and where it is to be put into action.

The book Hypercompetition was written by

D'Aveni.

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

Distinctive Competencies

According to a survey in the United Kingdom, the top tool used in strategic analysis is

Spreadsheet Analysis

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 (an)

TOWS Matrix

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

To build new facilities.

According to the text, the industry that has been affected by the tactic of guerilla warfare is

alcohol beverages

Which of the following is true of defensive tactics?

-Defensive tactics aim to lower the probability of attack. -Defensive tactics divert attacks to less threatening avenues. -Defensive tactics lessen the intensity of an attack. -Defensive tactics reduce short-term profitability to ensure long-term profitability.

The strategy formulation process includes:

-Strategic planning or long range planning. -Primarily analytical, not action oriented. -Concerned with developing a corporation's mission, objectives, strategy, and policies. -Analyze corporation's strategic factors in light of current situation.

According to the text, a rivalry that was based on a competition strategy of flanking maneuver occurred with

AMD and Intel.

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

Achieving excessive success causing jealousy amongst competitors.

According to a survey in the United Kingdom, all of the following represent tools and techniques used in strategic analysis EXCEPT

BTU Analysis

Which of the following is NOT one of the reasons why the corporation's current mission and objectives should be periodically reexamined?

Changing the mission or objectives could interrupt the continuity of the organization's operation.

Which of the following is NOT an advantage of being a first mover?

First movers may be able to keep R & D costs low by imitating the technological advances of others.

One company that has successfully found a propitious niche is

Frank J. Zamboni & Company

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

One way to summarize a corporation's strategic factors is to combine the external factors with the internal factors into a

SFAS Matrix

In a TOWS matrix, SW is the attempt by the company to combine

SW is not a valid combination.

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

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

Situational Analysis

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

The exit of focusers from the industry.

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.

In a TOWS Matrix, WO Strategies

attempt to take advantage of opportunities by overcoming weaknesses.

Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game?

bypass attack

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.

According to the eight dimensions of quality, the degree to which a product meets certain standards is known as

conformance.

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

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

When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called

cost focus and differentiation focus.

Which of Porter's competitive strategies support a low cost position to give the company a defense against rivals while allowing it to earn profits during times of heavy competition?

cost leadership

When lower cost and differentiation strategies have a broad mass market target, they are simply called

cost leadership and differentiation.

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 company is using the process of

cost proximity.

According to Porter, strategies to raise structural barriers include all of the following EXCEPT

decrease scale economies

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

differentiation

Which of Porter's competitive strategies supports creating brand loyalty in the broad mass market to reduce customer sensitivity to price?

differentiation

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

differentiation focus

According to Porter, the competitive strategy that applies to 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.

When a company is concerned that cost proximity is lost, this company is worried about the risk of

differentiation.

Which offensive tactic usually occurs as an attacking company surrounds the competitor's position in terms of products or markets or both?

encirclement

According to the eight dimensions of quality, "bells and whistles" is another name for

features

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 first company to manufacture and sell a product or service is called a(n)

first mover

Which offensive tactic advocates attacking a part of the market where the competitor is weak

flanking maneuver

The risk of a strategy being imitated is characteristic of a risk derived from a _____ strategy.

focus

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.

When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers, they were using the tactic

frontal assault

Which offensive tactic utilizes a head to head approach with the firm's competitor by matching every category of competition from price to promotion to distribution channel?

frontal assault

Which offensive tactic utilizes a "hit and run" approach characterized by the use of small, intermittent assaults on different market segments

guerilla warfare

Business strategy focuses on

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

Which defensive tactic acts to increase the perceived threat of retribution for an attack?

increase expected retaliation

An agreement in which a firm grants rights to another firm in another country or market to produce and sell a product is known as a(n)

licensing arrangement

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

list the most important EFAS and IFAS items

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

lower cost and differentiation

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

lower cost.

Which defensive tactic acts to reduce a challenger's expectation of future profits to discourage entry into the industry?

lower the inducement for attack

In order for a company to use a generic strategy of differentiation, the organization should have

subjective measurement and incentives.

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

operate with short term time horizon

The text authors note that the essence of strategy is

opportunity divided by capacity

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?

overall cost leadership

According to the eight dimensions of quality, a product's overall reputation is referred to as

perceived quality.

Which defensive tactic acts to block a challenger's logical avenues of attack such as exclusive agreements with distributors or an increase scale of economies to reduce unit costs?

raise structural barriers

Which of the following is NOT an offensive tactic?

raising structural barriers

According to the eight dimensions of quality, the degree to which a product will continue to function without any significant maintenance is also called

reliability.

The two general types of cooperative strategies are

strategic alliances and collusion.

A method developed in the mid-1990s as a means to quickly consolidate a fragmented industry can be referred to as a(n)

strategic rollup.

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

strategic windows

In a TOWS Matrix, SO is the attempt by the company to combine

strengths and opportunities.

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

stuck in the middle.

The T in SWOT represents

threat

In order for a company to use a generic strategy of overall cost leadership, the organization must have

tight cost control

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.

Timing tactics answer the question

when a company implements a strategy.

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.