Strategic Management Final Exam

By selling a laptop at $1,500 for which consumers are willing to pay up to $1,750, a consumer electronics firm makes a profit of $500 per unit. What is the economic value created in this scenario? $500 $1,000 $750 $1,250

$750

Which of the following statements about competitive advantage is false? - An effective differentiation strategy is key for establishing a competitive advantage. - A firm's competitive advantage is always absolute, not relative. - A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. - A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price.

A firm's competitive advantage is always absolute, not relative.

Which of the following statements is true? Platform businesses are dependent on electronic media and thus are a new development in the business world. A platform business exists to help make matches among users and facilitate the exchange of goods, services or social currency. Platform businesses have a major weakness: they are not very successful at value creation. A platform business usually must rely on pipeline businesses to connect it with consumers.

A platform business exists to help make matches among users and facilitate the exchange of goods, services or social currency.

Which of the following is an advantage of accounting data? Accounting data consider off-balance sheet items, which makes comparing companies with different capital structures easy. Accounting data can be easily transformed into financial ratios to help assess and evaluate the competitive performance of firms. Accounting profitability ratios not only show us the outcomes from past decisions, but also provide information to guarantee future performance. Accounting data focus mainly on intangible assets, which are more important than tangible assets in firms' stock market valuations

Accounting data can be easily transformed into financial ratios to help assess and evaluate the competitive performance of firms.

Which of the following statements is true of strategy? - Statements of desire, on their own, are strategy. - Tactical tools that are a part of a firm's functional and global initiatives are strategy. - Actions that allow a firm to address a competitive challenge are strategy. - Operational effectiveness and competitive benchmarking are strategy.

Actions that allow a firm to address a competitive challenge are strategy.

A diagnosis of the competitive challenge, which is an element of a good strategy, is primarily accomplished through strategy control. formulation. implementation. Analysis.

Analysis

Which of the following groups is most likely to be considered a firm's internal stakeholder? - customers - creditors - board members - alliance partners

Board members

In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's position and strategic plan regarding the production of DRAM (dynamic random-access memory) chips. When the functional managers at Intel came up with the simple rule of producing whichever product delivered the higher margin, the front-line managers shifted Intel's production capacity away from the lower-margin DRAM business to the higher-margin semiconductor business. This ________Blank emerged as a consequence of the firm's resource allocation process unrealized strategy intended strategy bottom-up strategy strategic alliance

Bottom-up strategy A bottom-up emergent strategy describes any unplanned strategic initiative undertaken by mid-level employees of their own volition.

According to the Level-5 leadership pyramid, the Level 2 manager is a(n) strategic leader. competent manager. contributing team member. effective leader.

Contributing team member According to the Level-5 leadership pyramid, the Level-2 manager masters the skills required at Level 1, but is also a contributing team member who works effectively with others to achieve team objectives

The board of directors of Qwik Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performance. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate? corporate strategy divisional strategy business strategy functional strategy

Corportate strategy

To make a cost-competitive mass-market vehicle, Tesla must do which of the following? - Maintain the same tooling of its manufacturing facility - Decrease production volume - Decrease the cost per vehicle as output increases - Rely less on robotics

Decrease the cost per vehicle as output increases Explanation: To make a cost-competitive mass-market vehicle, Tesla must benefit from economies of scale, decreasing the cost per vehicle as output increases.

Which of the following statements is true of the Level-5 leadership pyramid? Each level of leadership builds upon the previous one in the pyramid. Once a manager moves to higher levels, he or she loses the qualities acquired in the previous levels to gain new ones. At Level 3, managers are capable of devising a vision and mission to guide the firm toward superior performance. Successful companies are led by Level-1 executives.

Each level of leadership builds upon the previous one in the pyramid.

Which type of customer appreciates new technology that can add value to their personal lives? early adopters first movers late majority early majority

Early adopters

All of the following below are examples of external stakeholders except - Communities -Employees -Government -Customers

Employees

Gadgets n' Stuff Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Gadgets n' Stuff Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, Gadgets n' Stuff Inc. is a(n) ________Blank for the appliance manufacturing company. external stakeholder focus group representative sample internal stakeholder

External Stakeholder

The greater the difference between value creation and cost, the - Greater a firm's economic contribution - Less likely that a firm's strategic position will be competitive - Less likely a fim will gain competitive advantage - Greater a firm's competitive parity

Greater a firm's economic contribution

Which of the following questions would a firm's business strategy ideally answer? Where should we compete? How should we compete? How should we implement the functional strategy? Why should we compete?

How should we compete?

Instant Grub is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Instant Grub also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? - Instant Grub will be able to create higher value for its customers. - Instant Grub will not face any direct competition in the industry. - Instant Grub will face low profit potential. - Instant Grub will be better placed to gain a competitive advantage in the industry.

Instant Grub will face low profit potential

Which of the following is a feature of a fragmented industry? It allows firms to set prices. It tends to generate high profitability. One large firm dominates the industry. It consists of many small firms.

It consists of many small firms.

Which of the following is not true concerning a customer-oriented mission? -It has a higher likelihood of remaining relevant in the long-term. - It has more flexibility than a product-oriented mission. - Organizations that have customer-oriented missions are more likely to be successful. - It defines the means of how a customer need will be met.

It defines the means of how a customer need will be met.

Free 2 Roam Inc., an all-terrain vehicle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Free 2 Roam Inc. from this scenario? - It has a competitive advantage over the other firms. - It has competitive parity with the other firms. - It has a direct investment in the other firms. - It has an exchange relationship with the other firms

It has a competitive advantage over the other firms.

Which of the following is a disadvantage of the balanced scorecard approach to measure firm performance? It fails to allow managers to align their different perspectives to create a more focused corporation overall. It fails to allow managers and executives to find a balance between financial and strategic goals. It provides only limited guidance about which performance metrics to choose. It only relies on an internal view of the firm, ignoring the external view.

It provides only limited guidance about which performance metrics to choose.

Which of the following statements accurately brings out the difference between economies of scale and learning effects? Economies of scale reduce cost per unit, whereas learning effects increase cost per unit. While there are no diseconomies to scale, there are diseconomies to learning. Firms experience economies of scale when output increases, and they experience learning effects when output decreases. Learning effects occur over time, whereas economies of scale are captured at one point in time when output is increased.

Learning effects occur over time, whereas economies of scale are captured at one point in time when output is increased.

________ is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? - Profit - Literacy - Legitimacy - Authenticity

Legitimacy

Mei has been recently promoted to the position of team leader in an investment firm. This promotion was based on her boss's assessment that Mei does things the right way and is efficient and effective in organizing resources to accomplish stated goals and objectives. From this scenario, we can say that Mei is at ________Blank of the Level-5 leadership pyramid. Level 4 Level 2 Level 3 Level 5

Level 3 Level 3 leaders have learned to do things right and are efficient and effective in organizing resources to accomplish stated goals and objectives.

An organization's ________Blank describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete. Code of conduct Promissory Rate Mission Vision

Mission

________ are industry-specific factors that separate one strategic group from another. Complementary products/services Competitive differences Barriers to entry Mobility barriers

Mobility Barriers

A firm is likely to have a competitive advantage when it - Minimize the difference between value creation and the costs involved - Performs at a level similar to the other firms in the industry - Provides goods similar to those of competitors, but at a higher price - Provides services that consumers will value more than those of its rivals

Provides services that consumers will value more than those of its rivals

Which is an example of a philanthropic program by a firm? - providing software to people without access to computer technology - making sure all contracts follow legal requirements - providing diversity training for employees - paying all suppliers in full and on time

Providing software to people without access to computer technology

The ________Blank effect happens when companies copy other companies, thereby keeping the relative strategic position the same. Black Swan Ugly Duckling Rumpelstiltskin Red Queen

Red Queen

The annual net profit after taxes for Smith Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit? local communities managers Shareholders Government

Shareholders

________ is an important tool because it allows a manager to recognize, prioritize and address the needs of various stakeholders. Shareholder voting proxies Stockholder appreciation Shareholder Right's Plan Stakeholder impact analysis

Stakeholder impact analysis

________is best described as executives' use of power and influence to direct the activities of others when pursuing an organization's goals. Intrapreneurship Strategic leadership Venture capitalism Machiavellianism

Strategic Leadership

All of the following are examples of internal stakeholders except - employees. - board members. - stockholders. - Suppliers.

Suppliers

Which of the following groups will not be considered a company's internal stakeholder? - Shareholders - managers - board members - Suppliers

Suppliers

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? sustainable competitive advantage long-term capital gain strategic positioning consistent power position

Sustainable competitive advantage

The mode of thinking used in decision making that applies rationality and relies on analytical and logical reasoning is System 2. System 1. Level 1. Level 2.

System 2 System 2 is one of the two distinct modes of thinking used in decision making. It applies rationality and relies on analytical and logical reasoning. Thus, it is an effortful, slow, and deliberate way of thinking

If a company chooses to keep its vision product-oriented rather than customer-oriented, what will be the implication of that decision? - Managers throughout the organization will have more strategic flexibility. - The company will define its business in terms of providing solutions to customer needs. - Top management will be more likely to adhere to the organization's core values. - The company will tend to be less flexible when adapting to changing environments.

The company will tend to be less flexible when adapting to changing environments.

How are the early majority and late majority different in their attitudes toward technology? The early majority is very concerned with what new technology can do for them; the late majority is not. The early majority is strongly influenced by the endorsements of others; the late majority is not. The early majority is confident in their ability to master the new technology; the late majority is not. The early majority is concerned that many new technologies will fade away; the late majority is not.

The early majority is confident in their ability to master the new technology; the late majority is not.

Which of the following statements will effectively guide a strategist? - It is necessary to isolate the key stakeholders and their needs when formulating a strategy. - Strategy is all about competitive benchmarking and operational effectiveness. - Industry and firm effects that determine firm performance are independent of each other. - The principles of strategic management can be applied universally to all organizations.

The principles of strategic management can be applied universally to all organizations.

Which of the following is true of public stock companies? Public stock companies are not required to disclose financial statements. The public stock company is not an important institutional arrangement in developing economies. There exists an implicit contract based on trust between society and the public stock company. Society expects public stock companies to add value to society by making profits for shareholders.

There exists an implicit contract based on trust between society and the public stock company.

Which of the following statements is true of a monopoly? it is often analyzed using game theory. There is only one, often large firm supplying the market. Competing firms are most often independent of one another. It is characterized by low entry barriers.

There is only one, often large firm supplying the market.

Which of the following statements is true of customer-oriented visions? They tend to force managers to take a myopic view of the business environment. They are inflexible with regard to adapting to changing environments. They state an organization's goals in terms of a good or service provided to customers. They define a business in terms of providing solutions to people's needs.

They define a business in terms of providing solutions to people's needs.

Which of the following is a disadvantage faced by first movers in an industry? They will have no access to intellectual properties such as critical patents. They will have to find distribution channels and complementary assets. They cannot benefit much from network effects. They cannot benefit from learning and experience curve effects like the late entrants.

They will have to find distribution channels and complementary assets.

Evaluating the data collected from environmental analysis, the corporate executives of BigPharma Inc. realized that it was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate? bottom-up strategic approach scenario planning reverse mentoring top-down strategic planning

Top-down strategic approach Top-down strategic planning is a rational, top-down process through which executives attempt to program future success. In this approach, all strategic intelligence and decision-making responsibilities are concentrated in the office of the CEO

________is a theoretical framework to explain and predict the boundaries of the firm. Horizontal diversification Transaction cost economics Economic investment forecasting Corporate-level strategy

Transaction cost economics

Strategic positioning requires which of the following? - Adopting a zero-sum strategy - Trying to be everything to everybody - Using trade-offs - Focusing on one activity instead of combining them

Using trade-offs

A good strategy should be able to provide products and services to customers at an attractive price point while maintaining internal costs, resulting in value creation. sustainable competitive advantage. competitive benchmarking. shareholder appreciation

Value creation

Which of the following statements accurately brings out the difference between an organization's vision and mission? Vision is short-term: oriented and related to the organization's present, whereas the mission is futuristic. Vision is valid at the functional level of the organization, whereas mission covers the entire organization. Mission is the organization's aspirations for the future and vision is about how these aspirations can be made true over time. Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Organizational core values are the answer to which of the following questions? What is the value added to a good or service at each step in the production? What commitments do we make to act both legally and ethically? Which of the value chain activities are primary? What is the company's customer lifetime value?

What commitments do we make to act both legally and ethically?

Which of the following statements related to a firm's stakeholders is not true? - If internal or external stakeholders withhold participation in the firm's exchange relationships, it can have severe negative performance implications. - While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits. - A firm's stakeholders include organizations and groups along with individuals who can affect or be affected by the firm's actions. - Effective stakeholder management is an example of how managers can act to enhance a firm's competitive advantage.

While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits.

In which of the following cases was a company at a major competitive disadvantage? - Sam's Club decided to prescreen its customers via required membership to establish creditworthiness. - Strategy executives at UPS used scenario planning to identify issues critical to shaping the firm's future. - Facebook hired Sheryl Sandberg because Mark Zuckerberg, Facebook's founder, lacked important business skills. - Without a clear strategic position, Sears tried to be too many things for too many types of customers.

Without a clear strategic position, Sears tried to be too many things for too many types of customers.

The tenet behind the triple bottom line is that a firm's primary objective should be increasing the total returns to its shareholders. a firm's return on revenue can be broken down into three ratios: COGS/Revenue, R&D/Revenue, and SG&A/Revenue. a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy. a firm should solely focus on increasing the economic value created for its customers.

a firm should achieve positive results along the economic, social, and ecological dimensions to gain a sustainable strategy.

Controlling the cost of inputs, leveraging economies of scale, and learning by doing are all tools used primarily to improve customer service. achieve cost leadership. increase perceived value. reach differentiation parity.

achieve cost leadership.

A firm's _______ are best described as distinct and fine-grained business processes such as taking orders, delivering products, or invoicing customers. resource flows capital gains capabilities activities

activities

In the context of the VRIO framework, a resource is said to be valuable if it leads to competitive parity within an industry. results in a perfectly competitive industry structure. helps a firm increase its costs but lower its prices. allows a firm to take advantage of an external opportunity.

allows a firm to take advantage of an external opportunity.

Zahra is a manufacturing strategist at Do-Right Drugs. She has invented a new way to process and pack the company's over-the-counter medications that would avoid the usage of wasteful blister packs. Which of the following terms best describes Zahra? a category captain an intrapreneur a venture capitalist a franchised dealer

an intrapreneur

What metaphor is used to describe events that are considered highly unexpected but have a high impact on businesses when they do occur? purple squirrel boiling frog black swan camel's nose

black swan

Supreme Coffee Roasters is a premium cafe that is reputed for its superior customer service. The coffee shop also serves gourmet food to its customers, which allows it to charge a premium price. Cheap Beans, in contrast, is a chain of coffee shops that charges the lowest price in the industry due to its self-service policy. However, Vale's Coffee Inc. has found a balance between these two strategic groups by using automated ordering to free up its employees to work as master baristas and bakers, thus focusing on creating excellent products. It charges a price slightly above that of Cheap Beans. In this scenario, Vale's Coffee is following a market penetration strategy. blue ocean strategy. product diversification strategy. liquidation strategy.

blue ocean strategy.

If costs are equal, when a firm has a higher value gap than its competitor, it can be inferred that the firm can charge a premium price for its products and services. has achieved a competitive parity in its chosen industry. has lost its competitive advantage to its competitor. can adopt a cost-leadership strategy.

can charge a premium price for its products and services.

Strategic group mapping establishes that rivals inside a strategic group serve different customers. competitive pressures within an industry are similar among all strategic groups. competitive rivalry is strongest between firms that are within the same strategic group. product features and prices are irrelevant to a strategic group.

competitive rivalry is strongest between firms that are within the same strategic group.

In the context of the SWOT matrix, which of the following best exemplifies an external opportunity for a firm? increasing inflation rates in the target market increasing productivity of the employees decreasing government interference in the target market decreasing employee attrition within the firm

decreasing government interference in the target market

In a focused differentiation strategy, a firm seeks to focus on reducing the value gap to differentiate itself from the competitors. create higher customer value than the competitors in different segments of a mass market. offer low-priced products and services with a narrow focus on a niche market . deliver products or services with unique features to a specific, narrow part of the market.

deliver products or services with unique features to a specific, narrow part of the market.

Which of the following is a decision framework that begins with one team generating a detailed course of action that is then challenged and criticized by a second team? devil's advocacy dialectic inquiry decision tree DACI model

devil's advocacy

The viability of a differentiation strategy is severely undermined when the difference between perceived value and costs is significant. differential appeal is based more on intangible resources than tangible resources. focus of competition shifts to value-creating features rather than price. differentiated products become commoditized throughout the industry.

differentiated products become commoditized throughout the industry.

Japanese carmakers first introduced small fuel-efficient cars and then leveraged their low-cost and high-quality advantages into high-end luxury segments, dominated by brands such as Lexus, Infiniti, and Acura. This initiative best illustrates a(n) disruptive innovation. incremental innovation. progressive innovation. radical innovation.

disruptive innovation.

The sum of consumer surplus and producer surplus for a good or service equals the economic value created. firm's profit. total return to shareholders. reservation price.

economic value created.

The pattern of faulty and biased decision making that occurs when opinions coalesce around a leader without individuals critically evaluating and challenging that leader's opinions and assumptions is called groupthink devil's advocacy. bounded rationality. brainstorming.

groupthink Groupthink is a situation in which opinions coalesce around a leader without individuals critically evaluating and challenging that leader's opinions and assumptions.

Because a consolidated industry tends to be more profitable than a fragmented one, firms have a tendency to change the industry structure in their favor, making it more consolidated through horizontal mergers and acquisitions. a reduction in barriers to the industry restrictive government policies. increasing the number of products or services offered.

horizontal mergers and acquisitions.

A(n) ________Blank occurs when a firm steadily improves an existing product, thereby targeting an existing market while using existing technology. radical innovation incremental innovation architectural innovation process innovation

incremental innovation

The relative bargaining power of suppliers is most likely low when the suppliers' industry is more concentrated than the industry it sells to. there are no readily available substitutes for the products and services they offer. the suppliers provide products that are differentiated. incumbent firms face low switching costs when changing suppliers.

incumbent firms face low switching costs when changing suppliers.

ABC Hardrives Inc., All Digital Inc., and FastFax Corp. are all companies that manufacture and sell consumer electronics. They procure their component parts from a similar set of suppliers in China and sell the final product to customers with similar needs. Thus, the three companies together are a part of a(n) occupational group. plant. industry. focus group.

industry

A patent is a form of electronic payment. permanent monopoly. economic market. intellectual property.

intellectual property.

A firm's ________Blank strategy is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy realized dominant intended recognized

intended

One major limitation of using shareholder value appreciation as a measure for assessing competitive advantage is that stock prices often times reflect the irrational and psychological mood and behaviors of investors. Alan Greenspan, former head of the Federal Reserve referred to this as the efficient-market hypothesis. irrational exuberance. the tragedy of the commons. economic value creation.

irrational exuberance.

A large conglomerate is deciding on the range of new products and services it can offer to its customers to further expand its operations. This decision determines the firm's vertical integration. geographic scope. horizontal integration. level of diversification.

level of diversification.

Hector owns shares of Space Games Corp., an online gaming platform. The company's financial situation takes a turn for the worse and ends up in severe debt. Despite owning shares of Space Games, Hector is not responsible for bringing more money into the company to get it out of its debt. Which characteristic of public stock companies does this scenario best exemplify? limited liability for investors transferability of investor ownership legal personality separation of legal ownership and management control

limited liability for investors

According to the upper-echelons theory, strong strategic leadership is solely the result of learning. top managers of a company should isolate themselves from the organizational values. organizational outcomes reflect the values of the top management team. strategic commitments made by upper-level managers are inexpensive and short-term.

organizational outcomes reflect the values of the top management team.

An organizational statement that provides managers with goals to improve service is a(n) customer-oriented vision statement. product-oriented vision statement. statement of ethical core values. aspirational mission statement.

product-oriented vision statement.

As differentiation and cost-leadership are distinct strategic positions that require important trade-offs, it is quite difficult to translate a blue ocean strategy into reality. best for firms to avoid pursuing a generic business-level strategy. easy to build an ambidextrous organization. easy to increase value and lower cost at the same time.

quite difficult to translate a blue ocean strategy into reality.

Which of the following is a key criterion in the VRIO framework? verifiable rare imitable original

rare

An industry with high exit barriers has ________Blank because excess capacity often remains much longer than economically justifiable. reduced competition reduced brand loyalty increased profit potential reduced profit potential

reduced profit potential

When less than 70 percent of a firm's revenues come from a single business and some other business activities share linkages to the main business focus while others do not, the firm is using which of the following strategies? related-constrained diversification taper integration related-linked diversification unrelated diversification

related-linked diversification

A firm decides to retain $20,000 from its annual earnings and invest it in developing an advanced manufacturing system. According to the dynamic capabilities perspective, the $20,000 would most likely be referred to as the firm's resource flow. capital gain. frozen asset. marginal utility.

resource flow.

Even though Easy Speak and KM Com operate in the same industry—telecommunications—each firm has a different and loyal customer base. While Easy Speak attracts students and professionals through its efficient network coverage and pricing, KM Com attracts elderly customers solely due to its excellent customer service. Thus, both firms draw their strengths from distinct resource bundles. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate? resource substitution resource mobility resource heterogeneity resource imitation

resource heterogeneity

According to the SWOT analysis, which of the following choices concerns a firm's internal strengths and weakness? general environment resources, support activities, and future prospects dynamic strategic fit resources, capabilities, and competencies

resources, capabilities, and competencies

A consolidated industry turns into a fragmented industry when restrictive government policies are introduced in the industry. technological advances lead to industry convergence. network effects enjoyed by incumbent firms within the industry become stronger. firms reduce competition within the industry through mergers and acquisitions.

restrictive government policies are introduced in the industry.

Which of the following is an example of a firm's capabilities? skills involved in training and managing a workforce specific tasks involved in the invoicing of customers routine activities performed in the firm, like physical delivery of products assets such as plant and machinery owned by the firm

skills involved in training and managing a workforce

What occurs when a firm's static fit no longer matches competitive realities? devil's advocacy serendipity strategic dissonance dialectic inquiry

strategic dissonance

When a blue ocean strategy is successfully formulated and implemented, investments in differentiation and low costs are not substitutes but complements. complements but substitutes. cost drivers but value drivers. value drivers but cost drivers.

substitutes but complements.

The online retailer SW19 Inc. has successfully created a higher perceived value in the tennis equipment and apparel industry, even though it offers the same products at slightly higher prices than its competitors. This has been mainly attributed to the company's easy-to-navigate website, simple return procedures, and fast delivery. Thus, the value driver for SW19 is its economies of scale. lower value gap. superior customer service. availability of complements

superior customer service.

Carlos waited in line for 12 hours to purchase the first smartphone introduced to the market. He then started a blog to talk about workarounds for some of the bugs in the phone's first operating system. Which of the following customer segments does Carlos best represent? early adopters first mover laggards technology enthusiasts

technology enthusiasts

According to ________, a firm's transition between the different parts of the industry life cycle is difficult because there is a big gulf separating the early adopters from customer segments that make up the mass market. markets-and-technology framework architectural innovation the crossing-the-chasm framework winner-takes-all markets

the crossing-the-chasm framework

Which of the following actions of an automobile firm will be considered as a strategic commitment? - the firm launching an existing model of a car in red as a limited edition for six months - the firm promoting its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer - the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future - the firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars

the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

When a company makes improvements in its social, economic, and ecological performance, it is adopting a ________Blank approach to assessing competitive advantage. strategic triple-bottom-line customer-centric balanced scorecard

triple-bottom-line

The two primary competitive levers that managers can use in order to answer the question of how to compete are value and cost. accounting profitability and shareholder returns. core competencies and competitive advantage. profit and loss.

value and cost.

The ________Blank describes the internal activities a firm engages in when transforming inputs into outputs. value chain resource-based view PESTEL model SWOT analysis

value chain

Using the ________Blank, strategic leaders can see how competitive advantage flows from a firm's distinct set of activities. SWOT analysis VRIO framework resource-based view value chain analysis

value chain analysis

A company's vision primarily states how the company plans to accomplish its goals. how the company plans to compete in its industry. what the company actually does to generate revenues. what the company wants to ultimately accomplish.

what the company wants to ultimately accomplish.

Strategy formulation centers around the key questions of ________Blank and how to compete. how much when where why

where