J375 midterm
Which of the following is not a construct in a competitor analysis? Response Assumptions Environment Strategies
Environment
2. A STEEP analysis is typically conducted late in the strategic planning process. True False
False
The decision by HR managers to hire more international analysts is taken at which level of strategy? Corporate Business Competitive Functional
Functional
Value Chain Analysis (VCA) aids the strategist in mapping and understanding a firm's (potential) sources of competitive advantage by: identifying the macro trends of the organization. testing top management's assumptions. decomposing the firm into strategically important activities.
decomposing the firm into strategically important activities.
Which of the following is a common criticism of VRIO? It is highly dependent on a manager's interpretation of external environmental trends It does not provide a bottom-line score or a unified view with clear recommendations: it is simply a list of metrics It creates an inwardly looking perspective of strategy There are few specified relationships between the components of the tool
it creates an inwardly looking perspective of strategy
_________________ is the notion not only that customers display differences in current and past characteristics but also that these differences are predictors of their future behavior. Market heterogeneity Market homogeneity Firm heterogeneity Firm homogeneity
Market heterogeneity
In a letter to shareholders, Amazon outlines the four goals that will guide the company: customer obsession rather than competitor focus, passion for invention, commitment to operationsl excellence, and long-term thinking. Assumptions Response Objectives Capabilities and Resources
Objectives
Which of the following is not a corporate level issue? Operational Strategies International Strategy Vertical Integration Product Diversification
Operational Strategies
Zappos logistics manager decides to improve efficiency in its supply chain infrastructure - which level is this decision taken at? Competitive Strategy Corporate Strategy Operational Strategy
Operational Strategy
In which value chain activity does the following example best fit? Toyota is well-renowned for its 6 sigma manufacturing process. When doing a value chain analysis for Toyota, where would this 6 sigma example predominately fit? Human resource management Operations Oubound logistics Marketing and sales Inbound logistics
Operations
Match the example with the SWOT element. If doing a SWOT analysis for Chick-Fil-A, where might you best put the possibility of increased international expansion? Threats Weaknesses Opportunities Strengths
Opportunities
Lululemon appeals to a narrow demographic on the basis of differentiation. Response Strategy Objectives Capabilities and Resources Assumptions
Strategy
Southwest Airlines is renowned for pursuing an integrated cost leadership/differentiation strategy i.e. simultaneously lowering costs while increasing uniqueness. Strategy Assumptions Objectives Response
Strategy
Match the example with the SWOT element. If doing a SWOT for Disney, where might you best put their current vertical integration strategy (where they own the animation studios, film distribution, theme parks and cruise ships, and their own video on demand service)? Threats Weaknesses Opportunities Strengths
Strengths
What element of SWOT could filter in insights from a VRIO analysis? Strengths STEEP Weaknesses Strengths and Weaknesses
Strengths
_____________ are factors that make a firm more competitive than its rivals. Areas in which a firm has superior resources or capabilities compared to competition. _______________ tend to focus on internal factors that are currently under firm's control. Weaknesses Strengths Opportunities Resources
Strengths
_____________ refers to the extent to which a segment or group of customers represents a sufficient size to be profitable. This could mean sufficiently large in number of people or in purchasing power. Identifiable Substantial Actionable Accessible Responsive
Substantial
A product or service that performs a similar function but lies in another industry. Rival Substitute Supplier Complement
Substitute
What the contact lens industry is to the eyeglass industry? New Entrants Substitutes Buyers Rivals
Substitutes
What the agriculture industry is for the supermarket industry? Rival Supplier Buyer New Entrant
Supplier
Facebook's decision to buy Whatsapp, Instagram and Oculus is taken at what level? Corporate Business Functional Operational
Corporate
When applying the five forces model, the first step should ideally be which of the following? A. Define the relevant industry B.Assess the overall industry structure C.Identify the underlying drivers of each force D. Draw a strategic-group map
A. Define the relevant industry Correct
Which of the following is not one of the five forces? A.The threat of network effects in the industry B. The negotiating power of suppliers C.The level of rivalry between competitors in that industry D. The threat of new entrants into the industry
A.The threat of network effects in the industry
____________ refers to the extent to which marketers can reach the targeted segments with promotional or distribution efforts. Responsive Substantial Identifiable Accessible Actionable
Accessible
____________ refers to the degree to which segments provide guidance for marketing decisions. Accessible Responsive Actionable Identifiable Substantial
Actionable
In which value chain activity does the following example best fit? To service or repair your car, Lexus will pick it up from your house and give you a loaner car to use for the during of the repairs/service. Marketing and sales Human resources management After sales service
After sales service
Audi competes using a differentiation strategy in the auto industry - which level does Audi compete on? Functional Operational Competitive Corporate
Competitive
Which of the following is a common criticism of the value chain analysis? It is hard to accurately determine the value of each (sub)activity that leads to the sale of a final product or service The value generated by joint optimization and coordination efficiencies are hard to quantify It may be seen as placing the customer last All of the above are common criticisms
All of the above are common criticisms
Spotify holds strong to the belief that it competes in a winner takes all market and pursues a freemium business model as a result of this. Assumptions Objectives Capabilities and Resources Response
Assumptions
Who initially developed the five forces model? A. Igor Ansoff B. No one listed here C. Richard Rumelt D. Henry Mintzberg
B. No one listed here
At what level of strategy are Tissot, Swatch, Breguet, Omega, Longines (they are all owned by The Swatch Group, Inc.)? Corporate Operational Functional Business
Business
________________ is about developing and sustaining a competitive advantage for a business delivering an identifiable set of products and/or services. It is relevant for a single business in a larger corporation, or for a firm with a single business providing related offerings. Business Strategy Operational Strategy Functional Strategy Corporate Strategy
Business Strategy
What movie theatre industry is for the film distribution industry? Suppliers Buyers Rivals Substitutes
Buyers
What is the rule of thumb behind Porter's five forces model? A.The weaker the five forces, the lower the industry's profit potential—making the industry less attractive B.The stronger the five forces, the lower the industry's profit potential—making the industry more attractive C.The weaker the five forces, the greater the industry's profit potential—making the industry more attractive
C.The weaker the five forces, the greater the industry's profit potential—making the industry more attractive
Which of the following is not a typical resource classification? Financial resources Causal resources Human resources Physical resources
Causal resources
When making a strategic recommendation, the manager/ strategist should focus on which of the following? Clarity, conciseness, precision, persuasion Industry, market, and segmentation Resources, capabilities, and core competences Self-actualization, esteem, belonging and safety
Clarity, conciseness, precision, persuasion
At which level is Microsoft Corporation, which operates various SBUs, including intellegent cloud, Productivity & Business Processes and More Personal Computing and whose CEO is Satya Nadella? Competitive Strategy Corporate Strategy Functional Strategy Operational Strategy
Corporate Strategy
The C-Level executives of a diversified firm predominately deal with what strategic level? Functional Strategy Business Strategy Corporate Strategy Managerial Strategy
Corporate Strategy
_________ is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of businesses Functional Strategy Corporate Strategy Competitive Strategy Operational Strategy
Corporate Strategy
What does the 'I' signify in the VRIO analysis? Impeccable Interested Industry Costly to imitate (inimitable)
Costly to imitate (inimitable)
A 5 forces analysis is used primarily by managers and practitioners to assess... A. The firm's strengths and capabilities B. Their direct competitors C. The macro-environment D. The major factors impacting an industry's profit potential
D. The major factors impacting an industry's profit potential
A strategy planning meeting develops four proposed solutions, of which they prioritize one which they will implement in the next quarter' would fit best into which of the 3 D's? Delivery Decide Diagnosis Deliberate
Decide
The _________ element entails using a structured, analytical approach to make reasoned, insightful, and logical choices about what will be done to overcome the key challenge or to seize on the opportunity. Deliver Deliberat Diagnose Decide
Decide
Which of the following would be typically the first step in carrying out a value chain analysis? Define the focal company's boundaries and define its strategic business units. In doing this, it is important to do so consistently with unit operations, which may or may not overlap with organizational charts. Analyze the wider vertical process involved in converting raw materials into final sales and service, and the focal company's position in it. Conduct a cost analysis of each of the activities identified, by attempting to isolate and break down cost drivers specific to each activity. It is inconsequential which of the three options you choose to do first - all carry equal importance regarding sequencing.
Define the focal company's boundaries and define its strategic business units. In doing this, it is important to do so consistently with unit operations, which may or may not overlap with organizational charts.
The __________ element entails designing solutions to integrate a policy or choice into a business and then taking coherent action to implement that solution. Deliver Decide Diagnose Deliberate
Deliver
Many middle-level managers are tasked with specific roles to execute a planned strategic initiative' would fit best into which of the 3 D's? Decide Delivery Discuss Deliberate
Delivery
The question: "What's going on inside an organization that may be impacting firm competitiveness or maybe a source of competitiveness in the future?" is typically asked in which of the three D's? Deliver Discuss Diagnose Deliberate
Diagnose
'Internal strategy group during a workshop specifies the increased threat of e-commerce' would fit best into which of the 3 D's? Delivery Decide Diagnosis Discuss
Diagnosis
A CEO identifies that they have a core competence in supply chain and logistics' would fit best into which of the 3 D's? Diagnosis Delivery Deliberate Decide
Diagnosis
Which category of STEEP would: 'A sharp shift for manufacturers to find more sustainable energy sources' best fit into? Technological Ecological Economic Political/Legal Sociocultural
Ecological
Which category of STEEP would: 'A sharp increase in inflation in the past year, with a similar jump in inflation expected in the coming year' best fit into? Sociocultural Technological Ecological Economic
Economic
In which value chain activity does the following example best fit? Many people wish to work in Google due to the unique culture they have developed. When carrying out a value chain analysis for Google, where would this example fit? Marketing and sales Technological development/ R&D Human resource management Operations Outbound logistics
Human resource management
______________ refers to the extent to which managers can identify or recognize distinct groups within the marketplace. Responsive Substantial Identifiable Actionable Accessible
Identifiable
Which of the following is the first step in a competitor analysis? Consolidate, analyze, and organize information. Derive strategic implications for the focal firm. Gather intelligence on competitors. Identify current and future competitors.
Identify current and future competitors.
Where does the example fit? IKEA is an illustration of social complexity, path dependency and causal ambiguity making it extremely tough to copy their business model. Rare Inimitable Valuable Organized
Inimitable
Which of the following is not a limitation of a competitor analysis? It may prompt firms to become competitor-obsessed It may blind a company to new and innovative approaches and technologies that emerge from outside a firm's competitor set It may result in firm instituting a copy-cat approach to strategy development, in which the strategies of competitors are the source of new ideas, rather than developing new ideas internally or seeking new ideas from other industries and markets It contains sensitive internal information that may be used against the focal firm by its closest rivals
It contains sensitive internal information that may be used against the focal firm by its closest rivals
Which of the following is not a common criticism of SWOT? SWOT is sometimes criticized for being overly simple and hence masking complexity. It is not very widely used. Interpretation of information generated by a SWOT is likely to vary between different managers and practitioners. SWOT analysis does not really identify key actions to be taken.
It is not very widely used.
What insight or value does a VRIO create? It provides a means for managers and practitioners to focus on a firm's most valuable elements when developing a strategy It allows managers to scan the external environment It is a useful tool to understand macro environmental trends It forces managers into a holistic understanding of their firm
It provides a means for managers and practitioners to focus on a firm's most valuable elements when developing a strategy
What is the purpose of SWOT? It provides a means to account for internal and external factors plus positive and negative factors confronting a firm, thereby providing a balanced perspective of strategic issues. It is used to identify the initiating, or root, of a causal chain that leads to the undesirable outcome observed. The purpose of a SWOT analysis is to understand and interpret the evolution of a market, product, or technology so as to make informed strategic decisions about where value may be created now and in the future. SWOT Analysis aids the strategist in mapping and understanding a firm's (potential) sources of competitive advantage by decomposing the firm into strategically important activities.
It provides a means to account for internal and external factors plus positive and negative factors confronting a firm, thereby providing a balanced perspective of strategic issues.
What is the purpose of a Segmentation Analysis? It provides the strategist in mapping and understanding a firm's (potential) sources of competitive advantage by decomposing the firm into strategically important activities. It provides the decision maker with an efficient mechanism for reducing uncertainty using an inferential procedure to test the credibility of a potential solution to a strategic challenge. It provides insight into the options that a firm has when it wishes to expand into a new market. It provides a means to understand and partition a broad consumer or business market into subgroups of consumers or businesses (called segments), such that a firm can effectively target specific segments rather than the market as a whole.
It provides a means to understand and partition a broad consumer or business market into subgroups of consumers or businesses (called segments), such that a firm can effectively target specific segments rather than the market as a whole.
In which value chain activity does the following example best fit? Amazon's ability to deliver millions of orders in less than two days with its prime service would fit best into which of the activities within a value chain analysis? After sales service Outbound Logistics Human Resource Management Inbound Logistics Marketing & Sales
Outbound Logistics
Which category of STEEP would: 'A presidential election in the coming year with potential regulatory impacts for your industry' best fit into? Ecological Sociocultural Economic Political/Legal
Political/Legal
Which category of STEEP would: 'The FTC and the DOJ potentially taking an anti-trust case against the two major firms in the industry' best fit into? Ecological Sociocultural Technological Political/Legal Economic
Political/Legal
A major distinguishing characteristic of VCA that helps to uncover its theoretical foundation is _____________ that firms can follow to optimize the activities in their value chain. Porter's formulation of generic strategies The Ansoff Matrix Rumelt's levels of diversification Mintzberg's 5Ps of strategy
Porter's formulation of generic strategies
In a Value Chain Analysis, a firm's after-sales service will be referred to as its _____________. Resource flow Static resource Support activity Primary activity
Primary activity
Where does the example fit? Nike has been able to consistently capture and sponsor the best basketball players in the world... the scarcity of these superstar athletes allows Nike to develop a competitive advantage Inimitable Organized Rare Valuable
Rare
If Pepsi lower's the price on its 2-liter bottle of cola, chances are Coke will do the same almost instantaneously. Capabilities and Resources Objectives Response Strategy
Response
The question: "What is the competitor's real (versus claimed) focus?" would be best asked in which of the competitor analysis main sections? Response Capabilities and Resources Strategies Assumptions
Response
_____________ refers to the extent to which consumers in a defined segment are likely to respond to marketing offers targeted at them. Substantial Actionable Identifiable Accessible Responsive
Responsive
A potential challenge or opportunity may come to the attention of a manager through a variety of different channels - which of the following is not a typical channel? Inside-out channel Top-down channel Bottom-up channel Rhetoric channel
Rhetoric channel
What Coca-Cola and Pepsi are in the soda production industry? Substitutes Rivals Buyers Suppliers
Rivals
Which of the following statements is most correct? SWOT analysis is an exclusively external analysis tool SWOT analysis is the pinnacle of all strategic thinking SWOT analysis should be the cornerstone of all strategy SWOT analysis is, in the eyes of the scholarly community, remarkably under-theorized
SWOT analysis is, in the eyes of the scholarly community, remarkably under-theorized
In a segmentation analysis, what does S-T-P refer to? Segmentation, Positioning & Targeting Solvable, Pertinent, Technical Stone, Temple Pilots
Segmentation, Positioning & Targeting
Which category of STEEP would: 'Individuals valuing convenience and time saving more and more' best fit into? Sociocultural Ecological Political/Legal Technological
Sociocultural
in which value chain activity does the following example best fit? 3M is renowned for its ability to innovate and its R&D capabilities. When carrying out a value chain analysis for 3M, where would this example fit? Inbound logistics Procurement Marketing and sales Technological development/ R&D Human resource management
Technological development/ R&D
Within a STEEP analysis, the 'T' prompts users to consider what types of trends and changes? Turbulence Theological Transformational Technological/ Technical
Technological/ Technical
Which of the following is not a rationale for effective segmentation analysis to drive competitive advantage and superior performance? Identify segments of industry demand and unique abilities to serve particular segments The core belief around understanding value resources that the firm has that can be the source of competitive advantage. Target specific segments of demand that they are able to serve Develop specific strategies for each targeted market segment
The core belief around understanding value resources that the firm has that can be the source of competitive advantage.
A STEEP analysis is used primarily to assess trends and changes in which of the following? The external environment in which a firm operates Within a firm's top management team The firm's resources and capabilities Competitor firm
The external environment in which a firm operates
Which of the following is not a classic limitation of a Segmentation Analysis? It can be difficult to manage the balance between becoming too niche and too broad Segments are almost never static The segment has many large firms competing there For some undifferentiated products, economies of scale and scope may render the mass market to be the most attractive segment
The segment has many large firms competing there
In a SWOT analysis what does the 'T' signify? Technology Threat Trajectory Thoughts
Threat
Match the example with the SWOT element. If doing a SWOT for Uber Eats, where might you best put the intense competition between Postmates, Doordash and Grubhub? Threats Strengths Weaknesses Opportunities
Threats
What is the purpose of a competitor analysis? To provide managers and practitioners with a complete picture of the competitive landscape confronting a firm. To provide managers and practitioners a holistic view of their firm To provide managers and practitioners with a better understanding of the macro environment To provide managers and practitioners an understanding into the vertical integration strategies of their competitors
To provide managers and practitioners with a complete picture of the competitive landscape confronting a firm.
When conducting a STEEP analysis, the factors that come up in one category should be integrated and considered alongside the factors that relate to another category. True False
True
Where does the example fit? Honda's ability to design & build engines allows them to increase the perceived value of its products. Inimitable Organized Valuable
Valuable
Match the example with the SWOT element. If doing a SWOT analysis for Netflix, where might you best put their over reliance on Amazon Web Services for hosting capabilities? Weaknesses Opportunities Strengths Threats
Weaknesses
Which of the following academics were instrumental in the development of the Resource-Based View (RBV)? Mintzberg, Christensen & Porter Porter & Ansoff Wernerfelt, Barney & Rumelt Fisher, Wisneski & Bakker
Wernerfelt, Barney & Rumelt
Which of the following is not one of the three D's i.e. the three elements that are central to the strategic management process? a) Diagnose b) Deliver c) Dodge d) Decide
c) Dodge
What is the purpose of a VRIO analysis? to systematically identify resources and capabilities that may serve as a key source of competitive advantage to examine a firm's current situation by accounting for a firm's Strengths, Weaknesses, Opportunities, and Threats to understand and interpret the evolution of a market, product, or technology so as to make informed strategic decisions about where value may be created now and in the future to provide the decision maker with an efficient mechanism for reducing uncertainty using an inferential procedure to test the credibility of a potential solution
to systematically identify resources and capabilities that may serve as a key source of competitive advantage