Capstone 1-6
Which of the following statements about the introduction stage of the market life cycle is TRUE?
Products or services offered by pioneers may be perceived as differentiated simply because they are new.
Effective vision statements include
a brief statement of the company's direction.
Strategic groups consist of
a group of firms within an industry that follow similar strategies.
An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called
a poison pill
A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain
a temporary competitive advantage.
In the BCG (Boston Consulting Group) Matrix, a business that has a low market share in an industry characterized by high market growth is termed a
question mark
In Porter's Five-Forces model, conditions under which a supplier group can be powerful include all the following EXCEPT
readily available substitute products.
A manufacturing business pursuing cost leadership will likely
rely on experience effects to raise efficiency.
All of the following are guidelines for managing strategic alliances EXCEPT
relying primarily on a contract to make the joint venture work.
The "balanced scorecard" provides top managers with a __________ view of the business.
fast but comprehensive
A supplier group would be most powerful when there is/are
few substitute products
The "balanced scorecard" developed by Kaplan and Norton helps to integrate
financial analysis and stakeholder perspectives.
Examples of tangible resources (in the resource-based view of the firm) include:
financial resources, physical resources, and technological resources
Fortune Brands states they will "cut corporate overhead costs by $30 million a year." This is an example of a
financial strategic objective.
According to the text, the "triple bottom line" approach to corporate accounting includes three components:
financial, environmental, and social.
One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by
repeating a process until a task becomes easier.
While working to prioritize and fulfill their responsibilities, members of an organization's board of directors should
represent the interests of the shareholders.
Threat of substitute products comes from
firms in other industries that produce products or services that satisfy the same customer need.
Firms would be most likely to face intense rivalry with competitors when they
have high fixed costs, in a slow growth industry with high exit barriers.
A firm should consider vertical integration when
he firm's suppliers of raw materials are often unable to maintain quality standards
n large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives
help resolve conflicts through their common purpose.
The creation of knowledge assets is typically characterized by
high upfront costs and low variable costs
The least effective way to retain human capital is
requiring employees to sign agreements that prevent them from working for competitors in the future.
Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform
higher than firms that achieve either a cost or a differentiation advantage.
The downsides or limitations of mergers and acquisitions include all of the following EXCEPT
it is a slow means to enter new markets and acquire skills and competences.
Buyer power will be greater when
it is concentrated or purchases large volumes relative to seller sales.
It may be advantageous to vertically integrate when
lower transaction costs and improved coordination are vital and achievable through vertical integration
The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?
maturity
Social capital has many potential benefits. However, according to the text, social capital
may or may not be beneficial to a firm
According to Michael Porter: "There's a tremendous allure to __________. It's the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front page story, and create excitement in markets."
mergers and acquisitions
The three primary means by which a firm can diversify are
mergers and acquisitions; joint ventures and strategic alliances; internal development.
A firm following a focus strategy
must focus on a market segment or group of segments.
One of the reasons the Internet is eroding sustainable competitive advantages is
nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage
Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.
negative; negligible
Product differentiation by incumbents act as an entry barrier because
new entrants will have to spend heavily to overcome existing customer loyalties.
"We want to be the top-ranked supplier to our customers." (PPG) This is an example of a
nonfinancial strategic objective.
The most intense rivalry results from
numerous equally balanced competitors, slow industry growth, high fixed or storage costs.
A firm can achieve differentiation through all of the following means EXCEPT
offering lower prices to frequent customers.
There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that
one can only gain at the expense of someone else
An organization's mission statement and vision statement set the overall direction of the organization. Strategic objectives
operationalize the mission statement.
Gillette combines several technologies (e.g., metallurgy, physiology, physics) to attain unparalleled success in the wet shaving industry. This is an example of their
organizational capabilities.
internet business models
outline methods that online businesses use to create value
Primary value chain activities that involve the effective layout of receiving dock operations (inbound logistics) and support value chain activities that include expertise in process engineering (technology development) characterize what generic strategy?
overall cost leadership
Customer service would include
parts supply.
A crash R&D program by one firm cannot replicate a successful technology developed by another firm when research findings cumulate. This is an example of
path dependency
The term "golden parachutes" refers to
pay given to executives fired because of a takeover
A competitive advantage based on inimitability can be sustained for at least some time if it has the following characteristics:
physical uniqueness, path dependency, causal ambiguity, and social complexity.
All of the following are examples of Internet business models EXCEPT
prescription-based model.
Advertising is a __________ activity. Supply of replacement parts is a __________ activity
primary; primary
A __________ can be defined as the total profits in an industry at all points along the industry's value chain
profit pool
Which of the following is not an advantage of Just-In-Time inventory systems?
Reduced dependence on suppliers
In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity?
Repairing the product for the consumer.
__________ is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change
Restructuring
Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
SWOT's focus on the external environment is too broad and integrative.
All of the following are the benefits of diversity in a firm's workforce except:
Similarity in Perspectives Argument.
__________ can be defined as the "network of relationships that individuals have throughout the organization."
Social capital
Which of the following statements about strategic groups is FALSE?
Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.
__________ may be considered the "advance work" that must be done in order to effectively formulate and implement strategies.
Strategy analysis
_________ involves ensuring proper strategic controls and organizational designs.
Strategy implementation
Which of the following is FALSE regarding how a differentiation strategy can help a firm to improve its competitive position vis-à-vis Porter's five forces?
Supplier power is increased because suppliers will be able to charge higher prices for their inputs.
Which of the following is a support activity?
Technology development
When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow would be known as a
star
A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of
strategic alliance
The four key attributes of strategic management include the idea that
strategy must be directed toward overall organizational goals and objectives.
Human resource management consists of activities involved in recruiting, hiring, training, development, and compensation of all types of personnel. It
supports both individual primary and support activities and the entire value chain.
New knowledge involves the continual interaction between __________ and __________ knowledge
tacit; explicit
As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on
tangible resources to intangible resources
The three key types of resources that are central to the resource-based view of the firm's are
tangible resources, intangible resources, and organizational capabilities.
Crowdsourcing can be defined as
tapping the latent talent of the online crowd
All of the following are potential pitfalls of an integrated overall low cost and differentiation strategy EXCEPT
targeting too large a market that causes unit costs to increase.
In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed
the "Pied Piper effect."
Scanning the general environment would identify information on
the aging population and ethnic shifts.
The bargaining power of the buyer is greater than that of the supplier when
the buyer's profit margin is low.
Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm) if
the cost to the firm of replacing them is high.
Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is
the expectation that business will strive to improve the overall welfare of society.
All of the following are important elements of the political/legal segment of the general environment EXCEPT
the increased use of Internet technology.
Emerging sociocultural changes in the environment include
the increasing educational attainment of women in the past decade.
The resource-based view (RBV) of the firm combines two perspectives:
the internal analysis of the firm as well as the external analysis of the industry and competitive environment.
Generally, employees are most likely to stay with an organization if
the organization's mission and values align with the employee's mission and values
WellPoint Health Network states: "WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future." This is an example of a
vision statement.
Examples of __________ include: "To be the happiest place on earth" (Disneyland), and "Restoring patients to full life" (Medtronic).
vision statements
The hierarchy of organizational goals is in this order (least specific to most specific):
vision statements, mission statements, strategic objectives.
Inbound logistics include
warehousing and inventory control.
Corporate-Level Strategy 2 Related Issues
what biz competes in how biz can achieve synergy
The "organizational versus individual rationality" perspective suggests that
what is best for a functional area may not be best for the organization
The value-adding activity known as problem-solving
is typically used in the context of providing unique services.
The growth stage of the industry life cycle is characterized by
"in-kind" competition (from the same type of product).
In managing a firm's portfolio, the BCG matrix would suggest that
"question marks" can represent future "stars" if their market share is increased
For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. What are these requirements?
A. The competence must help the business gain strength relative to its competition. B. The new business must be similar to existing businesses to benefit from a core competence. C. The collection of competencies should be unique, so that they cannot be easily imitated.
The risks of vertical integration include all of the following
A. costs and expenses associated with increased overhead and capital expenditures. C. problems associated with unbalanced capacities along the value chain. D. additional administrative costs associated with managing a more complex set of activities.
For firm's such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to
A. differentiate service. B. automate some operations. C. respond to consumer needs. D. all of these. *******************
Environmental forecasting involves developing plausible projections about the ________ of environmental change
A. direction B. scope C. speed D. all of these *****
Changes in our economy have forced firms to be more concerned with protecting their
A. knowledge workers. B. social capital. C. intellectual capital. D. all of these. *****************
Transaction costs include all of the following costs
A. search costs. B. negotiating costs. C. monitoring costs D. contracting costs E. enforcement costs
In a 360-degree evaluation and feedback system, __________ rate a person's skill and performance
A. superiors B. direct reports C. colleagues D. all of these **************
Unique content will not add value to an Internet website under the following condition(s):
A. the cost of developing the content exceeds the benefits gained. B. visitors to the website do not value or use the content. C. the content is unreliable. D. all of these **************
Which of the following is most often true of mature markets?
Advantages that cannot be duplicated by other competitors are difficult to achieve.
Which of the following statements regarding internal development as a means of diversification is FALSE?
An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.
Which of the following examples demonstrates how successful organizations manage their primary activities?
By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one.
__________ reflect(s) the collective learning in organizations such as how to coordinate production skills, integrate multiple streams of technologies, and market and merchandise diverse products and services
Core competencies
Portfolio management matrices are applied to what level of strategy?
Corporate level
Which of the following is a risk (or potential pitfall) of cost leadership?
Cost cutting may lead to the loss of desirable features.
According to the text, the strategic management process entails three ongoing processes:
analyses, decisions, and actions
Support value chain activities that involve excellent applications engineering support (technology development) and facilities that promote a positive firm image (firm infrastructure) characterize what generic strategy?
Differentiation
For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes?
Easy for competitors to substitute.
_____________ tracks the evolution of environmental trends, sequences of events, or streams of activities.
Environmental monitoring
Peter Senge, of MIT, recognized three types of leaders. __________ champion and guide ideas, create a learning infrastructure, and establish a domain for taking action.
Executive leaders
Which of the following firms would you expect to have the highest ratio of market value to book value?
Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics?
Grid dimensions are based on external environments and internal capabilities/market positions.
Which of the following would be considered part of a firm's general environment?
Higher unemployment rates
__________ includes creativity and problem solving ability.
Human capital
Which of the following lists consists of support activities?
Human resource management, technology development, procurement, and firm infrastructure.
Which statement regarding competitive advantages is true?
If several competitors pursue similar differentiation tactics, they may all be perceived as equals in the mind of the consumer.
According to value-chain analysis, which of the following would be considered part of a firm's general administration?
Information systems
__________ are typically embedded in unique routines and practices that have evolved and accumulated over time - such as trust and effective work teams
Intangible resources
__________ may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.
Internal development; mergers; acquisitions
Peter Senge, of MIT, recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas
Internal networkers
A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the
Interrelationships among functional areas and firm strategies
Which of these statements regarding the industry life cycle is correct?
It has important implications for a firm's generic strategies, functional areas, value-creating activities, and overall objectives
XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system
Just-in-time (JIT)
Which of these categories of financial ratios is used to measure a company's ability to meet its short-term financial obligations?
Liquidity ratios
__________ are the competencies or skills that a firm employs to transform inputs into outputs.
Organizational capabilities
___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling
Outbound logistics
Convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?
Overall cost leadership.
__________ is when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures
Parenting
Which of the following would be most difficult to assess?
The legitimacy and reputation of a firm.
Human capital includes
an individual's capabilities, knowledge, and skills.
Which of the following phrases best completes this sentence: Because of the Internet, firms that use a focus strategy have new opportunities to
access niche markets in a highly specialized fashion.
The primary aim of strategic management at the business level is
achieving competitive advantage(s)
McKesson, a large distribution company, sells many product lines such as pharmaceuticals and liquor through its super warehouses. This is an example of
achieving economies of scope through related diversification
Individual investors are dependent on corporations managers to
add value to their investments in a way that the stockholders could not accomplish on their own
Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should
adopt effective retention strategies.
Examples of value-adding content often found on websites include all of the following except
advertising
Divesting businesses can accomplish many different objectives, including
all of these
End users are
all of these.
Exit barriers arise from
all of these.
Strategy formulation and implementation is a challenging ongoing process. To be effective, it should involve
all of these.
All of the following are potential pitfalls of a differentiation strategy EXCEPT
all rivals share a common input or raw material.
All of the following are potential pitfalls of a focus strategy EXCEPT
all rivals share a common input or raw material.
According to the text, corporate restructuring includes
apital restructuring, asset restructuring, and management restructuring
According to Henry Mintzberg, the realized strategies of a firm
are a combination of deliberate and emergent strategies
The corporate office of Cooper Industries adds value to its acquired businesses by performing such activities as auditing their manufacturing operations, improving their accounting activities, and centralizing union negotiations. This is an example of
attaining the benefits of parenting through unrelated diversification
According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by
attracting and retaining knowledgeable workers.
A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of
backward integration.
In assessing its primary activities, an airline would examine
baggage handling
Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to
balance efforts in the attraction, selection, and retention of top talent.
In the knowledge economy, if a large portion of a firm's value is in intellectual and human assets, the difference between the company's market value and book value should ___________ a company with mostly physical and financial assets
be larger than
Dynamic capabilities include all of the following EXCEPT
becoming more efficient in operational processes
Many companies use referrals by current employees as a source for new hiring and even monetarily reward them for the following reasons:
both because current employees are careful in their recommendations because of their credibility and also because it is less expensive than the fees paid to headhunters.
Cooperative relationships such as __________ have the potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies
both joint ventures and strategic alliances
In social network analysis __________ stress(es) the importance of ties connecting heterogeneous people, helping to ensure a wide range of diversity in information and perspective
bridging relationships
A narrow market focus is to a differentiation-based strategy as a
broadly-defined target market is to a cost leadership strategy.
How do infomediaries and consumer information websites increase the intensity of competitive rivalry?
by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over
Tacit knowledge
can be accessed only with the consent of the employees because it is in the minds of the employees.
Philip Morris bought Miller Brewing and used its marketing expertise to improve Miller's market share. This justification for diversification is best described as
capitalizing on core competencies
In social network analysis, high levels of __________ often come at a price. For example, groups can become too insular and fail to share what they have learned with people outside the group
closure
The use of information technology (e.g., e-mail) has increased in recent years in many organizations. This has helped to
communicate information efficiently.
Which of the following firms would likely pose the least competitive threat?
competitor to your product where a high switching cost exists
The following are examples of socially complex organizational phenomena EXCEPT
complex physical technology.
The management of intellectual property involves all of the following EXCEPT
converting explicit knowledge to tacit knowledge
The bargaining power of suppliers is enhanced under the following market condition:
dominance by a few suppliers.
The best measure of a company's ability to meet imminent financial obligations is known as the
current ratio
During the decline stage of the industry life cycle, __________ refers to obtaining as much profit as possible and requires that costs be decreased quickly
harvesting
In the __________ stage of the industry life cycle, there are few segments, the emphasis on process design is low, and the major functional areas of concern are general management and finance.
decline
The most likely time to pursue a harvest strategy is in a situation of
decline in the market life cycle.
Recently, a knowledge worker's loyalty to his or her employing firm has __________ compared to his or her loyalty to his or her profession and colleagues.
decreased
High product differentiation is generally accompanied by
decreased emphasis on competition based on price.
The aging of the population, changes in ethnic composition, and effects of the baby boom are
demographic changes.
The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following EXCEPT
deriving benefits from highly focused and high technology markets.
ABC, Incorporated desires to have the most qualified people in every position throughout its organization. This is an example of a concern for
developing human capital.
Incumbent firms may enjoy increased bargaining power because the Internet
diminishes the power of many distribution channel intermediaries.
Effectiveness" is often defined as
doing the right thing.
Members of Boards of Directors are
elected by the shareholders as their representatives.
The four key attributes of strategic management include all of the following EXCEPT:
emphasis on the attainment of short-term objectives
In contrast to an organization's vision, its mission should
encompass both the purpose of the company as well as the basis of competition.
Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished through
encouraging the sharing of ideas between employees in the firm
Social network analysis is helpful because the configuration of group members' social ties within and outside the group affects the extent to which members connect to individuals who do all of the following EXCEPT:
ensure that everyone has the same perspective on strategic and operational issues.
Two of the key inputs to developing forecasts discussed in the text are
environmental scanning and competitor intelligence.
In order to take advantage of investment in human capital, a firm should
establish practices that will enhance employee retention.
The balanced scorecard enables managers to consider their business from all of the following perspectives EXCEPT
ethical perspective.
Which of the following is NOT one of the ways the Internet is lowering transaction costs?
evaluating employee performance
Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because
every company is trying to implement them and hence it does not make a company different from others.
Vision statements are used to create a better understanding of the organization's overall purpose and direction. Vision statements
evoke powerful and compelling mental images.
Piecemeal productivity improvements during a turnaround typically does NOT involve
expansion of a firm's product market scope.
In the value net analysis, complementors are
firms that produce products or services that have a positive impact on the value of a firm's products or services.
An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of
forward integration.
Many organizations have a large number of functional areas with very diverse, and sometimes competing, interests. Such organizations will be most effective if
functional areas work together to attain overall goals.
Internet search activities include
gathering information.
Research shows that the following are all strategies used by firms engaged in successful turnarounds EXCEPT
global expansion
Antitakeover tactics include all of the following EXCEPT
golden handcuffs
Advantages of effective social networks for career success include all of the following EXCEPT
greater redundancy in knowledge sources.
An antitakeover tactic called (a) __________ is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.
greenmail
The experience curve suggests that cutting prices is a good strategy
if it can induce greater demand and thereby help a firm travel down the experience curve faster.
Historical comparisons provide information to managers about changes in a firm's competitive position. Historical comparisons are often misleading
in periods of recession or economic boom.
Maintaining a competitive workforce is very challenging in today's economy. The role of evaluating human capital, in recent years, has
increased
Because the Internet lowers barriers to entry in most industries, it
increases the threat of new entrants.
Stakeholders are
individuals, groups, and organizations who have a stake in the success of the organization
According to Henry Mintzberg, decisions following from a firm's strategic analysis are its
intended strategy.
All of the following are ambidextrous behaviors EXCEPT
intensely focusing on one's own responsibilities and maximizing the output of one's department in an organization.
An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
interests of the stockholders are not the only interests that matter.
In general, the threat of substitutes is heightened because the Internet
introduces new ways to accomplish the same task.
In the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low.
introduction
The value net is a game-theoretic approach that
is a way to analyze all the players in a game and analyze how their interactions affect a firm's ability to generate and appropriate value.
Gathering "competitive intelligence"
is good business practice.
All of the following are limitations (or downsides) of the BCG (Boston Consulting Group) matrix EXCEPT
it takes a dynamic view of competition which can lead to overly complex analyses
The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50% of the value of GDP of developed countries is based on
knowledge
Which of the following would be an entry barrier?
large economies of scale
A differentiation strategy enables a business to address the five competitive forces by
lessening competitive rivalry by distinguishing itself.
The threat of new entrants is high when there are
low economies of scale.
A "cash cow," referred to in the Boston Consulting Group Portfolio management technique, refers to a business that has
low market growth and relatively high market share
To illustrate interrelationships among different segments of the general environment: The persistence of large U.S. trade deficits (__________) has led to greater demand for protectionist measures, such as trade barriers and quotas (__________). These measures lead to higher prices for U.S. consumers and fuel inflation (__________).
macroeconomic, political/legal, economic
In the Boston Consulting Group's (BCG) Growth Share Matrix, the suggested strategy for "stars" is to
maintain position and after the market growth slows use the business to provide cash flow
A danger of forecasting discussed in the text is that
managers may view uncertainty as "black and white" while ignoring important "gray areas."
An important implication of the "balanced scorecard" approach is that
managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously
lthough general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following EXCEPT
marketing expertise increasing a firm's revenues and enabling it to enter new markets.
Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of
mass customization
Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies?
mass customization
A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage?
maturity
In a given market, key technology no longer has patent protection, experience is not an advantage, and there is a growing need to compete on price. What stage of its life cycle is
maturity
In the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.
maturity
A CEO made a lot of mistakes such as committing errors in assessing the market and competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership
romantic
The text addresses two perspectives of leadership as well as their implications. These two perspectives are
romantic and external control.
Four Internet-based activities that are enhancing firms' capabilities to use the Internet to add value include
search, evaluation, problem-solving, and transaction.
When management uses common production facilities or purchasing procedures to distribute different but related products, they are
sharing activities
Among the downsides of social capital is/are
social capital may both breed "groupthink" and the socialization processes to create it (orientation, training, etc.) can be expensive
A variety of firm's resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon
social complexity
Increasingly larger numbers of women entering the work force since the early 1970s is an example of
sociocultural changes.
Supplier power has increased because of the Internet for all of the following reasons EXCEPT
some suppliers have created Web-based purchasing systems that encourage switching.
The text discusses three areas a firm must be concerned with in order to keep their best and brightest employees from leaving. These include all of the following EXCEPT
sorting/absorbing
Outback Steakhouse has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. According to the text, this is an example of __________
stakeholder symbiosis
Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that
stakeholders are dependent on each other for their success.
Social capital is a source of strength to many firms. Firms leverage their social capital in an effort to create competitive advantages. A firm's social capital is based on
the relationships among a firm's employees.
The three participants in corporate governance are
the shareholders, board of directors, and management
Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that
the similarity required for sharing core competencies must be in the value chain, not in the product
Which is considered a force in the "Five-Forces" model?
the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry
As markets mature,
there is increasing emphasis on efficiency.
Successful organizations are effective in motivating people. Employees work best when
they are striving toward specific goals.
Many successful firms use internal labor markets. The most important reason they do this is because
they want to keep highly mobile employees motivated and challenged.
The bargaining power of suppliers increases as
threat of forward integration by suppliers increases.
Developing human capital is essential to maintaining a competitive advantage in today's knowledge economy. Efforts and initiatives to develop human capital should be directed
throughout the firm at all levels
Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization?
throughout the organization
The text argues that a strategic perspective in an organization should be emphasized
throughout the organization.
Vertical integration is attractive when
transaction costs are higher than internal administrative costs
Ratios that reflect whether or not a firm is efficiently using its resources are known as
turnover ratios.
Firms must compete for top talent. When attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an effort to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should
use a pre-interview quiz or "bozo filter" (e.g., Cooper Software).
Mary Stinson was required to take over a project after the entire team left the company. She was able to reconstruct what the team had accomplished through reading e-mails exchanged by the previous team's members. This is an example of
using explicit knowledge
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of
vertical integration
Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with
vertical integration