Business Strategy Ch 1 - 10 Quiz
Question 8 Ethical principles in business A. are useless. B. are generally less stringent than the ethical principles for society at large. C. are not materially different from ethical principles in general. D. are generally more stringent than the ethical principles for society at large.
C
Question Which is the essential difference between business process reengineering, TQM, and Six Sigma? A. Business process reengineering aims at improved productivity and reduced costs whereas TQM and Six Sigma focus on better product quality and greater customer satisfaction. B. Business process reengineering aims at quantum gains on the order of 30 to
0 percent or more, whereas programs such as TQM and Six Sigma stress incremental progress. C. Business process reengineering and TQM aim at onetime quantum improvement, while continuous improvement programs such as Six Sigma aim at ongoing improvements. D. All of these are correct. 5 B
A company's strategy __________________ A. tends to be a combination of both proactive and adaptive elements. B. is initially established by reactive moves. C. generally consists of new strategy elements that emerge as changing conditions warrant. D. is mostly emergent, but also includes deliberate elements.
A
In making an overall assessment of a company's competitiveness, the answers to which questions are of particular interest? A. (1) How does the company rank relative to competitors on each of the important factors that determine market success, and (2) does the company have a net competitive advantage or disadvantage versus major competitors? B. (1) Is a company's resource strength sufficient to allow it to earn bigger profits than rivals, and (2) are market opportunities unique, rare, long lasting, and not able to be copied by rivals? C. (1) How does the company rank relative to the competitors on each important market success factor, and (2) is a company's resource strength sufficient to allow it to earn bigger profits than rivals? D. (1) Does the company have a gross competitive advantage or disadvantage versus major competitors, and (2) how does the company rank relatively to competitors in value chain activities?
A
Question Which one of the following is not a factor that makes competing across national borders more difficult than competing domestically? A. The difficulty in achieving strategic fit in sales and marketing activities. B. Country-to-country variations in host-government policies and economic conditions. C. Vulnerability to adverse shifts in currency exchange rates. D. Variations in market growth rates from country to country and important country-to-country differences in consumer buying habits.
A
Question 1 A focused low-cost strategy aims at ___________________ A. securing a competitive advantage by serving buyers in the target market niche at lower cost than those of rival competitors. B. dominating more market niches in the industry via a lower cost and a lower price than any other rival. C. becoming the industry's lowest-cost provider rather than just being one of perhaps several competitors with comparatively low costs. D. All of these.
A
Question 1 The "triple bottom line" refers to what three performance metrics? A. Economic, social, environmental B. Pay, power, performance C. Planning, exertion, results D. None of the above
A
Question 1 The essential requirement for different businesses to be "related" is that A. their value chains possess competitively valuable cross-business relationships. B. the products of the different businesses are sold in the same types of retail stores. C. the production methods that they employ both entail economies of scale. D. the products of the different businesses are bought by much the same types of buyers.
A
Question 10 A company expands outside its home market in order to _____________________ A. gain access to new customers for the company's products/services. B. increase the bargaining power of alliance members over suppliers or buyers. C. strengthen its capability to employ vertical integration strategies, especially those that involve partial integration (building positions in selected stages of the industry's value chain). D. gain economic incentives offered by governments of developing countries wishing to expand industry and job creation.
A
Question 2 Which statement points out the main difference between the global strategy and the transnational strategy? A. A transnational strategy gives local managers more room to make minor strategy changes to better satisfy local buyers and to better match local market conditions. B. A "think global, act global" approach entails extensive strategy coordination across countries, and a "think global, act local" approach entails little or no strategy coordination across countries. C. A global strategy has to cope with high production and distribution costs due to greater variety, whereas a transnational strategy can create large economies. D. A global strategy involves selling under a single brand name worldwide whereas a transnational strategy focuses on utilizing multiple brands.
A
Question 3 Good corporate citizens A. go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all. B. identify up-and-coming managers who have a future in local- or state-level politics. C. create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors. D. All of these.
A
Question 3 Which of the following is not an example of an unhealthy company culture? A. Hyper-adaptive cultures B. Change-resistant cultures C. Highly politicized cultures D. Insular, inwardly focused cultures
A
Question 3 Which of the following is not one of the big risks of outsourcing value chain activities presently performed in-house? A. A company may be less flexible in accommodating shifting buyer preferences. B. A company's ability to lead the development of innovative new products may be weakened in the outsourcing process. C. Outside parties may not make investments specific to the needs of the outsourcing company's value chain. D. The company's loss of direct control may make it difficult to monitor and coordinate activities of outside suppliers.
A
Question 6 A blue ocean type of offensive strategy __________________ A. offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. B. involves a preemptive strike to secure an advantageous position in a fast-growing market segment. C. focuses on product outsourcing. D. refers to initiatives by a market leader to steal customers away from unsuspecting smaller rivals.
A
Question 6 An internal development strategy involves _______________ A. creating a subsidiary business in a foreign market by setting up all aspects of the operation from the ground up. B. avoiding the risk of committing resources to enter foreign markets. C. exporting into a foreign market by marketing indirectly through local forward channel allies. D. None of these.
A
Question 6 Best-cost provider strategies work best when _______________________ A. product differentiation is the norm and there is an attractively large number of value-conscious buyers. B. great masses of buyers become value-conscious and are attracted to economically priced products. C. numerous buyer segments exist and when buyer needs are diverse. D. it is costly or difficult for multisegment competitors to put capabilities in place to meet the specialized needs of buyers.
A
Question 8 Successful differentiation allows a firm to __________________ A. command a premium price for its product, increase unit sales, and/or gain buyer loyalty to its brand. B. take sales and market share away from rivals by undercutting them on price. C. gain enormous competitive power, enabling fast rates of growth. D. perform value chain activities faster, more accurately, and more cost-effectively than rivals.
A
Question 8 Which of the following is an advantage of an export strategy? A. Export strategies minimize risks and capital requirements. B. Export strategies are the most efficient and flexible method to discover and accommodate changes in local demand. C. Export strategies are used to avoid tariffs and curb the effects of fluctuating exchange rates. D. Export strategies are the best method to overcome high entry barriers.
A
Question 9 The global strategy that emphasizes a "think global, act global" strategic theme focuses on ________ A. the same basic competitive approach in all countries where the firm does business. B. varying the product offering and competitive approach from country to country. C. incorporating elements of both multidomestic and global strategies. D. All of the above.
A
Question 9 The marketing emphasis of a company pursuing a focused differentiation strategy usually is to _____________________________ A. highlight carefully designed products or services appealing to the unique preferences and needs of a narrow, well-defined group of buyers. B. out-advertise rivals and make frequent use of discount coupons. C. emphasize selling direct to end users and promoting personalized customer service. D. All of these are correct.
A
Question 9 Which of the following is not one of the substantial disadvantages of a vertical integration strategy? A. Vertical integration may hollow out a company's core competencies. B. Integrating backward potentially results in less flexibility in accommodating shifting buyer preferences when a new product design doesn't include parts and components that the company makes in-house. C. Integration forward or backward often requires the development of new skills and business capabilities. D. Vertical integration increases a firm's capital investment in the industry.
A
The balanced scorecard ______________________ A. entails putting balanced emphasis on financial and strategic objectives. B. primarily tracks a company's financial performance to deliver better financial results from its operations. C. provides a company's management detailed information on how each employee contributes to the company's overall success. D. links financial performance objectives to specific strategic objectives that derive from a company's business model.
A
The competitive pressures from potential new entrants tend to be weaker when _______ A. industry members are willing and able to contest new entrants. B. existing industry members are looking to expand their market reach by entering product segments or geographic areas where they do not have a presence. C. newcomers can expect to earn attractive profits. D. buyer demand is growing rapidly.
A
When can a company achieve sustainable competitive advantage? A. Whenever an attractively large number of buyers develop a durable preference for its products or services over the offerings of competitors, despite the efforts of competitors to overcome or erode its advantage. B. Whenever it possesses the most profitable business model in the industry. C. Whenever it emulates the vision, mission, and values of its closest competitor as closely as possible but then offers its products/services at a lower price or significantly differentiates its product/service offering from that of its closest competitor. D. Whenever it consistently achieves both its strategic and financial objectives, regardless of whether its current financial situation appears unfavorable at the moment and its long term strategic prospects seem limited.
A
Which of the following cannot be learned when using a strategic group map? A. Strategic group maps reveal which companies have the highest profit margins. B. Strategic group maps determine which companies seem destined to struggle because of their position. C. Strategic group map analysis entails drawing conclusions about where on the map is the best place to be and why. D. Strategic group maps reveal which companies are close competitors and which are distant competitors.
A
Which of the following does not accurately describe a strategic vision? A. A strategic vision provides a panoramic view of "who we are, what we do and why we are here." B. Creating a strategic vision involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense. C. A clearly articulated strategic vision communicates management's aspirations to stakeholders and helps steer the energies of company personnel in a common direction. D. A strategic vision charts a strategic course for the organization and provides a rationale for why this course makes good sense.
A
Which of the following is not included in the five competitive forces? A. Competitive pressure stemming from incremental innovations within the industry. B. Competitive pressures stemming from the threat of entry of new rivals. C. Competitive pressures stemming from other firms in the industry. D. Competitive pressures stemming from supplier bargaining power.
A
A company's value chain consists of _______________________ A. the steps that the company goes through to convert its net income into value for shareholders. B. primary activities and support activities. C. Both A and B D. Neither A nor B
B
Commonly used strategic objectives include ___________________ A. profit margins of x percent. B. winning an x percent of market share. C. an x percent increase in annual revenues. D. annual dividend increase of x percent.
B
Question A best-cost provider's resources and capabilities must allow ______________________ A. custom-made products to be developed that match the tastes and requirements of niche members. B. the incorporation of upscale attributes into its product offering at a lower cost than rivals. C. the company to incorporate whatever differentiating features buyers are willing to pay. D. for the development of products that meet the basic needs of niche members at a low cost.
B
Question The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves A. assessing whether the diversification move will make the company better off by spreading shareholder risks across a greater number of businesses and industries. B. evaluating whether the diversification move offers potential for the company's existing businesses and new businesses to perform better together under a single corporate umbrella. C. assessing whether the diversification move will make the company better off because it will produce a greater number of core competencies. D. evaluating whether the diversification move will benefit shareholders due to gains in earnings per share and faster stock price appreciation.
B
Question The most frequently used approach to defending a company's present position involves ___________ A. actions creating and deploying company resources in ways that cause rivals to struggle to defend themselves. B. actions that restrict a challenger's option for initiating a competitive attack. C. actions displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals. D. actions employing the element of surprise as opposed to doing what rivals expect and are prepared for.
B
Question Which of the following is not a potential pitfall of a low-cost provider strategy? A. Becoming too fixated on cost reduction and misreading or ignoring increased buyer interest in added features or service. B. A low-cost provider strategy is always doomed when competitors are able to quickly copy most or all of the appealing product attributes a company devises. C. Selling at a lower price can result in revenue gains that are smaller than the increases in total costs. D. Overly aggressive price cutting can reduce profitability.
B
Question Which of the following is not an advantage of utilizing a licensing strategy? A. The ability to generate income from royalties. B. Being able to have better local market knowledge than would be possible with a strategic alliance strategy. C. Being able to leverage the company's technical know-how or patents without committing significant additional resources to markets that are unfamiliar, politically volatile, economically uncertain, or otherwise risky. D. Avoiding risks of committing resources to country markets that are unfamiliar or otherwise risky.
B
Question 10 Any company that seeks competitive advantage by being a first-mover needs to ask some hard questions. Which of the following is not one of them? A. Are there influential competitors in a position to delay or derail the efforts of a first mover? B. Does the market consist of many fast followers? C. Will buyers encounter high switching costs? D. Is new infrastructure required before buyer demand can surge?
B
Question 2 A "cash hog" type of business _______________________ A. has good resource fit with a cash cow business and is essential to a diversified company's lineup of businesses. B. generates cash flows that are too small to fully fund its operations and growth. C. generates cash flows over and above its internal requirements. D. generates cash flows exactly matching the demand for operations and growth.
B
Question 6 Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? A. Acting in a socially responsible manner is in the overall best interest of shareholders. B. Every business has a moral duty to be a good corporate citizen. C. Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. D. Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, training, and improved worker productivity).
B
Question 7 The three tests for judging whether a particular diversification move can create value for shareholders are A. the resource fit test, the profitability test, and the shareholder value test. B. the attractiveness test, the cost-of-entry test, and the better-off test. C. the attractiveness test, the profitability test, and the shareholder value test. D. the strategic fit test, the competitive advantage test, and the return on investment test.
B
Question 9 The cost-of-entry test for evaluating whether diversification into a particular industry is likely to build shareholder value involves A. determining whether a newly entered business presents opportunities to cost-efficiently transfer competitively valuable skills or technology from one business to another. B. considering whether a company's costs to enter the target industry are so high that the potentials for good profitability and return on investment are eroded. C. determining whether the cost to enter the target industry will strain the company's credit rating. D. determining whether the cost to enter the target industry will raise or lower the company's total profits.
B
The most widely encountered entry barriers candidates must hurdle include all of the following except __________________ A. sizable economies of scale in production. B. small market size and special customer requirements. C. strong buyer loyalty to existing brands. D. the difficulties of building a network of distributors or dealers and securing adequate space on retailers' shelves.
B
The two best indicators of how well a company's strategy is working are _____________ A. (1) whether customer and employee satisfaction is high, and (2) whether it has more core competencies than close rivals. B. (1) whether the company is recording gains in financial strength and profitability, and (2) whether the company's competitive strength and market standing is improving. C. (1) whether the company has more competitive assets than it does competitive liabilities, and (2) whether its strategy is built around at least two of the industry's key success factors. D. (1) whether it is subject to weaker competitive forces and pressures than close rivals (a good sign), or (2) whether it is disadvantaged by stronger competitive forces and pressures (a bad sign).
B
Top management's views and conclusions about the company's long-term direction and what product-customer-market-technology mix seems optimal for the road ahead constitute a company's __________________ A. strategic objective and goal. B. strategic vision. C. company values. D. overall strategy.
B
Which of the following are among the tests a winning strategy must pass? A. The performance test and the cost advantage test. B. The fit test and the performance test. C. The fit test and the profitability test. D. The competitive advantage test and the profitability test
B
A company's business model ___________________________ A. is management's blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit. B. consists of two crucial elements: (1) its customer value proposition and (2) its profit formula. C. Both A and B. D. Neither A nor B.
C
A well-thought-out, forcefully communicated strategic vision pays off in several respects, except _____ A. providing a beacon for lower-level managers in forming departmental missions. B. reducing the risk of rudderless decision making by management at all levels. C. conveying a company's purpose in language specific enough to give the company its own identity. D. crystallizing senior executives' own views about the firm's long-term direction.
C
Competing in the marketplace on the basis of a competitive advantage _____________ A. gives buyers an immediate preference for a company's products or services over those of competitors. B. means that a company has to offer the lowest price for differentiated goods that at least match the feature and performance of higher-priced rival brands. C. enhances the company's prospects for winning in the marketplace and earning superior long-term profits relative to rivals. D. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner that keeps the company's prices as low as possible.
C
Question According to the school of ethical universalism, the most important concepts of what is right and what is wrong _____________ A. vary significantly according to local cultural beliefs, traditions, or religious convictions. B. are mandatory, and every company has to apply and adhere to a set of rules. C. are universal and transcend culture, society, and religion. D. are based on the belief that local moral standards should take precedence over what the ethical standards may be in the company's home market.
C
Question Diversifying into new businesses can be considered a success only if it A. helps a company escape the rigors of competition in its present business. B. results in increased profit margins and bigger total profits. C. builds shareholder value. D. leads to the development of a greater variety of distinctive competencies and competitive capabilities.
C
Question Which of the following factors make an alliance "strategic," as opposed to just a convenient business arrangement? A. It helps open important new market opportunities. B. It mitigates a significant risk to a company's business. C. Both A and B. D. Neither A nor B.
C
Question 1 When building an organization capable of proficient strategy execution, three types of organization-building actions are paramount: A. optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency. B. centralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and staffing the organization. C. staffing the organization, building and strengthening core competencies and competitive capabilities, and structuring the organization and work effort. D. building core competencies and competitive capabilities, implementing a corporate social responsibility strategy and triple bottom line, and maximizing internal operating efficiency.
C
Question 1 Which of the following statements does not accurately describe the first-mover advantage? A. Moving first is no guarantee of success because first movers may face some significant disadvantages. B. Timing is especially important when first-mover advantages or disadvantages exist. C. Signaling a willingness to move first into new markets is an effective offensive strategy. D. When to make a strategic move is often as critical as what move to make.
C
Question 10 In high-performance cultures _____________________________________ A. the work climate is supportive of managers and employees at all ranks who propose or initiate useful change. B. there is the clear and unyielding expectation that all company personnel will strictly follow company policies and procedures. C. there is a strong sense of involvement on the part of company personnel and emphasis on individual initiative and creativity. D. there is willingness on the part of organization members to accept change and take on the challenges of introducing and executing new strategies.
C
Question 10 Which of the following is an important appeal of a related diversification strategy? A. Related diversification is less profitable than unrelated diversification is, but related diversification builds greater shareholder wealth than unrelated diversification does. B. Related diversification always passes the cost-of-entry and better-off tests. C. Related diversification offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another. D. Related diversification offers significant opportunities to strongly differentiate a company's product offerings from those of rivals.
C
Question 2 Overspending on efforts to differentiate the company's product offering and the possibility that competitors quickly copy most of the appealing product attributes a company comes up with are possible drawbacks of _____________________ A. a low-cost provider strategy. B. a defensive strategy. C. a differentiation strategy. D. a best-cost provider strategy.
C
Question 2 The purpose of defensive strategies is ____________________________ A. to weaken the impact of any attack that occurs, to increase capital reserves, and to deploy resources efficiently. B. to pressure challengers to aim their efforts at other rivals, to hedge all financial transactions, and to increase capital reserves. C. to lower the risk of being attacked, to weaken the impact of any attack that occurs, and to influence challengers to aim their efforts at other rivals. D. to help protect a competitive advantage, to deploy competitive assets, and to build a sustainable competitive advantage.
C
Question 3 Government policies and regulations in host countries have a major effect on the operations of foreign companies. Which of the following does not reflect a typical regulation? A. Requiring prior approval of capital spending projects. B. Implementing rules and policies that protect and prefer local companies over foreign firms. C. Obliging foreign companies to support operations of local companies by increasing vertical integration. D. Enacting deliberately burdensome customs procedures and requirements or imposing tariffs/quotas.
C
Question 6 Which of the following is a principal managerial component of the strategy execution process? A. Implementing actions to protect and sustain the environment. B. Checking the competitive advantage potential of cross-business strategic fit and strategy execution fit. C. Installing information and operating systems that support strategy execution activities. D. All of these are correct.
C
Question 7 Strategic offensives should be grounded in ______________ A. creation of high profits and reduction of costs. B. satisfying employees and creating a stable work environment. C. a company's competitive assets and strong points and should be aimed at exploiting competitor weaknesses. D. None of these.
C
Question 7 Which of the following strategic approaches becomes most appealing when a market is not important to industry leaders? A. A broad differentiation strategy B. An offensive strategy C. A focused strategy D. A low-cost provider strategy
C
Question 8 Economies of scope A. arise only from strategic fit relationships in the production portions of the value chains of sister businesses. B. are more associated with unrelated diversification than with related diversification. C. are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation. D. are present whenever diversification satisfies the attractiveness test and the cost-of-entry test.
C
Question 8 Merger and acquisition strategies ___________________ A. are one of the best ways for helping a company strongly differentiate its product offering. B. are aimed at facilitating a company's shift from a broad differentiation strategy to a low-cost provider strategy. C. are well suited for situations in which strategic alliances or joint ventures do not go far enough in providing a company with access to needed resources and capabilities. D. tend to be the most often used and most effective strategic options available to multibusiness companies.
C
Question 8 Which of the following is not a step in the Six Sigma DMAIC process? A. Measure B. Control C. Adapt D. Define
C
Question 9 While different strategies and company circumstances sometimes call for different mixes of backgrounds, experiences, and know-how, the most important consideration when assembling a capable management team is to ________________ A. select managers who have similar management styles, leadership approaches, business philosophies, and personalities. B. choose managers based on their social responsibility and their compliance to ethical norms. C. fill key managerial slots with people who are good at figuring out what needs to be done and skilled in "making it happen" and delivering good results. D. All of the above.
C
The primary purpose of benchmarking is to ________________ A. measure the lead time it takes to push a product from production to the customer. B. examine how a company delivers on its customer value proposition throughout all activities both in and around a company's value chain. C. facilitate a comparison, activity by activity, of how effectively and efficiently a company delivers value to its customers, relative to its competitors. D. assess the efficiency of primary activities and support activities.
C
Threats to a company's profitability and competitive well-being most likely will not stem from ____________ A. emergence of cheaper or better technologies. B. rivals' introduction of new or improved products. C. deficiencies in competitively important areas of the business. D. vulnerability to a rise in interest rates or tight credit conditions.
C
When trade-offs have to be made between achieving long-run and short-run objectives, ______________________ A. long-run objectives should always take precedence because they are critical for achieving optimal long-term performance. B. short-run objectives should always take precedence because they satisfy shareholder expectations for near-term progress. C. long-run objectives should take precedence, unless the achievement of one or more short-run performance targets has unique importance. D. short-run objectives should take precedence, unless the achievement of one or more long-run performance targets has unique importance.
C
Which market opportunities are most important for a company? A. Opportunities that involve high capital requirements and high regulative burdens. B. Opportunities that are unique, rare, long lasting, and not able to be copied by rivals. C. Opportunities that offer the best growth and profitability. D. Opportunities that involve low capital requirements and low regulative burdens.
C
Which of the following is not a valuable technique for revealing a company's competitiveness and for helping company managers match their strategy to the company's circumstances? A. Competitive strength assessment B. Value chain analysis C. Strategic group mapping D. SWOT analysis
C
Which of the following steps is not a part of the SWOT analysis? A. Identify the company's market opportunities. B. Identify external threats to the company's future well-being. C. Identify the company's alignment of vision, mission, values, and strategy. D. Identify company weaknesses and competitive deficiencies.
C
A firm's capabilities ___________ A. are competitive assets that are owned or controlled by a company. B. enable the superior performance of important cross-functional capabilities. C. are frequently referred to as a core competencies, as the terms are synonymous. D. are developed and enabled through the deployment of a company's resources.
D
A frequently used and dependable strategic approach to setting a company apart from rivals and winning a competitive advantage includes _______________________ A. developing expertise and resource strengths that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own. B. focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche. C. outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, technological superiority, or unusually good value for the money. D. All of these.
D
An industry's key success factors ___________________________ A. are the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities with the greatest impact on competitive success in the marketplace. B. point to those things that every firm in the industry needs to attend to in order to retain customers and weather competition. C. vary from industry to industry and even from time to time in the same industry. D. All of these are correct.
D
Concrete, measurable objectives are managerially valuable for which reason? A. They focus efforts and align actions throughout the organization. B. They can stretch an organization to perform at its full potential. C. They serve as yardsticks for tracking a company's performance and progress. D. All of these are correct.
D
Question Unethical business behavior tends to be driven by such factors as A. overzealous pursuit of personal gain, wealth, and other selfish interests. B. a company culture that puts profitability and good business performance ahead of ethical behavior. C. heavy pressures on company managers to meet or beat earnings targets. D. All of these.
D
Question Why does a company's ability to marshal adequate resources in support of new strategic initiatives have a major impact on the strategy execution process? A. Changes in strategy often require resource reallocation and organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently. B. Too little funding slows progress and impedes the efforts of organizational units to execute their pieces of the strategic plan proficiently. C. Too much funding wastes organizational resources and reduces financial performance. D. All of these are correct.
D
Question 1 To use location to build competitive advantage when competing on domestic and international levels, a company must __________________ A. use acquisition and rapid-growth strategies to better defend against expansion-minded internationals. B. try to change the local market to better match the way the company does business elsewhere. C. be prepared to modify aspects of the company's business model or strategy to accommodate local circumstances. D. None of the above.
D
Question 10 A company's corporate social responsibility strategy commonly does not include __________ A. actions to promote workforce diversity. B. actions to ensure the company operates honorably and ethically. C. actions to protect and sustain the environment. D. actions to maximize the return for shareholders.
D
Question 10 What are the two ways a company can translate its low-cost advantage over rivals into attractive profit performance? A. Either focusing on price-sensitive buyers or increasing production to achieve greater economies of scale and even lower costs. B. Either using its cost advantage to spend heavily on advertising or increasing price to earn the biggest possible profit margin on each unit sold. C. Either using the cost advantage to add a few inexpensive differentiating features or cutting its price to levels significantly below the prices of rivals. D. Either using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.
D
Question 2 An important nonmonetary approach companies use to enhance motivation is _________ A. maintaining attractive office space. B. creating a work atmosphere in which there is genuine caring and mutual respect among the workers. C. sharing information with employees about strategy, operational measures, and market conditions. D. All of these are correct.
D
Question 2 Which one of the following is false as concerns the merits of why acting in a socially responsible manner is "good business"? A. Well-conceived social responsibility strategies help avoid or preempt legal and regulatory actions that could prove costly to the company. B. Operating in a socially responsible manner protects the company from consumer, environmental, and human rights activist groups that are quick to criticize businesses whose behavior they consider to be out of line. C. Companies with good reputations for contributing time and money to bettering society are better able to attract and retain employees compared to companies with tarnished reputations. D. Acting in a socially responsible manner nearly always results in higher profits and a higher stock price for shareholders.
D
Question 3 One strategic fit-based approach to related diversification would be to A. acquire companies in forward distribution channels (wholesalers and/or retailers). B. acquire rival firms that have broader product lines so as to give the company access to a wider range of buyer groups. C. expand into foreign markets where the firm currently does no business. D. diversify into new industries that present opportunities to combine value chain activities of two or more businesses to lower costs.
D
Question 3 When choosing a differentiation strategy which of the following actions can a company select to deliver superior value to the customers? A. Including product attributes and user features that lower the buyer's costs. B. Incorporating tangible features that improve product performance. C. Incorporating intangible features that enhance buyer satisfaction in noneconomic ways. D. All of these are correct.
D
Question 6 The task of crafting corporate strategy for a diversified company encompasses A. initiating actions to boost the combined performance of the businesses the firm has entered. B. pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage. C. steering corporate resources into the most attractive business units. D. All of these.
D
Question 7 A company's social responsibility strategy is typically comprised of all but which one of the following elements? A. Actions to protect or enhance the environment B. Making charitable contributions and donating the time of company personnel to community service endeavors C. Conscious efforts to ensure that all elements of the company's strategy are ethical and actions to protect or enhance the environment (beyond what is legally required) D. Actions to keep prices low enough that the company's profits will not be viewed by the general public as obscenely high or exorbitant
D
Question 7 The first step in fixing a problem culture is for top management to _____________________ A. talk openly about problems of the present culture and how new behaviors will improve company performance. B. follow with visible, forceful actions to ingrain a new set of behaviors, practices, and norms. C. specify what new actions, behaviors, and work practices should be prominent in the new culture. D. identify facets of the present culture that are conducive to good strategy execution and those that are not.
D
Question 7 Why might a company locate different value chain activities in different parts of the world? A. To exploit location-based advantages that vary from country to country. B. To integrate forward into wholesale and/or retail activities in order to gain visibility for products in foreign countries. C. To reap major manufacturing cost advantages because of lower input costs. D. All of these are correct.
D
Question 9 The exercise of corporate social responsibility is good business because __________ A. such actions can lead to increased buyer patronage. B. a strong commitment to socially responsible behavior reduces the risk of reputation-damaging incidents. C. well-conceived social responsibility strategies work to the advantage of shareholders. D. All of these are correct.
D
Supplier bargaining power is weaker when ___________________________________ A. supplier products are differentiated and short in supply. B. the supplier industry is more concentrated than the industry it sells to. C. suppliers are not dependent on the industry for a large portion of their revenues. D. industry members have the potential to integrate backward and self-manufacture their own requirements.
D
The best technique for revealing the market positions of industry competitors is __________ A. the SWOT analysis. B. the macro-environment analysis. C. the five-forces model of competition. D. strategic group mapping.
D
The heart and soul of any strategy is the actions and moves in the market place that managers are taking to gain a competitive edge over rivals. Which of the following is not a condition that would lead managers to modify the company's strategy? A. In response to mounting evidence that the strategy is not working well. B. In response to unexpected moves of competitors and shifting buyer needs. C. In response to emerging market opportunities. D. In response to employee demands for higher wages and better working conditions.
D
The strategy formulation, strategy execution process A. is often delegated to members of a company's board of directors so as not to infringe on the time of busy executives. B. is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved. C. Both A and B. D. Neither A nor B.
D
What is the reason that a company's strategy tends to be a "work in progress" and evolves over time? A. The competitive advantage potential of developing new strategic moves annually. B. Changes in a company's vision and values cause it to constantly alter its strategy to meet the ongoing need to imitate the new strategic moves of industry leaders. C. The changing nature of employee skills and capabilities. D. The changing circumstances in the market and the competitive arena.
D
Which are among the primary factors that determine whether competitive pressures from substitute products are strong, moderate, or weak? A. Whether buyers view the substitutes as attractively priced in relation to their quality, performance, and other relevant attributes and whether the substitutes target a small customer group or the mass market. B. Whether the costs that buyers incur in switching to the substitutes are low or high and whether the substitutes target a small customer group or the mass market. C. Whether substitutes are priced lower than competitive products and whether the buyer loyalty in the market is high or low. D. Whether substitutes are readily available and whether the costs that buyers incur in switching to the substitutes are low or high.
D
Which are the main components of a strategic plan? A. A company's strategy and management's specific, detailed plans for implementing it. B. A set of performance targets, a balanced scorecard, and a strategy to implement both. C. A vision of where the company is headed, a set of core values, and a strategy to achieve. D. A vision of where the company is headed, a set of performance targets, and a strategy to achieve them.
D
Which of the following does not accurately describe a mission statement? A. It typically concerns a company's present business scope and purpose whereas a strategic vision sets forth "where we are going." B. It describes the company's current business and purpose—"who we are, what we do, and why we are here." C. It can be found in a company's annual reports or posted on company websites and is typically quite brief. D. It mainly expresses that making a profit is a company's true business purpose.
D
Which of the following statements about an industry's driving forces is false? A. Although some drivers of change are unique and specific to a particular industry situation, most driving forces are comparable and fall into specific categories. B. For each industry no more than three or four driving forces are likely to be powerful enough to qualify as the major determinants of why and how an industry's competition is changing. C. Driving forces are major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions. D. Driving forces appear when an industry begins to mature but are seldom present during early stages of the industry life cycle.
D
Which of the following statements about strategies is correct? A. Strategy is about competing differently from rivals and doing what competitors can't do. B. The strategic choices a company makes are seldom easy decisions and often involve difficult trade-offs. C. Every strategy needs a distinctive element that attracts customers and produces a competitive edge. D. All of these.
D
Which of the following statements accurately describes the SWOT analysis? A. It is an analytical tool to identify the market segments in which a company is strongly positioned and weakly positioned. B. It is a powerful analytic tool that involves determining how the drivers of change are affecting industry and competitive conditions. C. It is an advanced statistical method to improve quality by reducing defects and variability in the performance of business processes. D. It is a powerful tool for sizing up a company's resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being.
D
Which of the following statements is accurate about competitive pressures created by the rivalry among competing sellers? A. Rivalry is usually stronger in slow-growing markets and weaker in fast-growing markets. B. Rivalry intensifies when competing sellers regularly launch fresh actions to boost their market standing and business performance. C. Rivalry is stronger in industries where competitors are equal in size and capability. D. All of these are correct.
D