MGMT 449

Which one is not true about strategic alliances? Managing alliance relationship itself is a critically important organizational capability. Strategic alliances are a cooperative relationship between firms involving the sharing of resources in pursuit of common goals. Relational capability in strategic alliances is related to building trust, developing inter-firm knowledge-sharing routines, and establishing mechanisms for coordination. Because commonly shared knowledge is the most critical factor that determines the success of strategic alliances, the alliances are formed only between companies in the same industry.

Because commonly shared knowledge is the most critical factor that determines the success of strategic alliances, the alliances are formed only between companies in the same industry.

When an industry consists of [Raw material producer]-[Supplier]-[Firm]-[Channel], which stage is a downstream player? Supplier Firm Channel Raw material producer

Channel

Which one is not SM(strategic management)'s key attributes that are introduced in the lecture? A. SM includes multiple stakeholders in decision making. B. SM needs incorporate short-term and long-term perspectives. C. SM recognizes trade-offs between efficiency and effectiveness. D. SM leads every company to make profits in business. E. SM directs the organizations toward overall goals and objectives.

D

Among generic strategies, which generic competitive strategy does this explain? "Lush is unlike any other makeup brand on the marketplace. This cosmetics maker has international reach with a local "warm and fuzzy" approach that isn't afraid to push the boundaries. So, what makes LUSH so different from the likes of Sephora or even Etsy? Handmade products. Advocates of LUSH are committed to ethical buying, and are obsessed with the purity that comes from a handmade item. The company's biggest success is knowing that its core buyers value social and corporate responsibility over a luxurious and out-of-reach image." Internationalization Overall cost leadership Differentiation Vertical integration

Differentiation

Which one is not a source of first-mover advantages? High level of technological and market uncertainty Reputation and brand awareness by consumers Significant learning curve effect Buyer switching costs Preemption of assets

High level of technological and market uncertainty

_____________ comprise all the expenses that network users incur in order to establish and maintain platform affiliation. Opportunity costs Average costs Multi-homing costs Diversified costs

Multi-homing costs

Among generic strategies, which generic competitive strategy does this explain? "To attract price-sensitive customers away from competitors, 7-Eleven stores offer $1 coffee or iced coffee." Differentiation Overall cost leadership Blue Ocean Focus differentiation

Overall cost leadership

Which one is not true about overall cost leadership? Often firms avoid marginal customer accounts. Overall cost leadership always implies some limitations on the overall market share achievable. This strategy usually provides substantial entry barriers. Firms can achieve overall cost leadership by tight cost and overhead control.

Overall cost leadership always implies some limitations on the overall market share achievable.

Which one is not a benefit of vertical integration strategy? A secure source of new materials Control over production timing across stages Secure flexibility to choose alternative transaction partners Simplified procurement and administrative procedures

Secure flexibility to choose alternative transaction partners

Which company does this description explain? "This company positions in the market to deliver low-cost, convenient service on particular type of route. They use only 737 aircrafts, they don't have first-class or business-class service. They do not assign seats for passengers. The first bag check-in is free. All these things are well aligned to pursue its strategic direction." Southwest Airlines Delta Airlines American Airlines United Airlines

Southwest Airlines

There are two levels of strategies. While ______________ is about how the firm competes within a particular industry, _____________ is about managing organizational boundary related to diversification, vertical integration, merger & acquisition, and resource allocation. corporate strategy, business strategy No answer text provided. business strategy, corporate strategy No answer text provided.

business strategy, corporate strategy

In traditional businesses, growth beyond some point usually leads to diminishing returns. However, in the digital age, successful platforms enjoy increasing returns to scale. So we observe mature two-sided network industries are dominated by a handful of large platforms. This phenomenon is called __________________. Innovator's dilemma Market disruption Winner-takes-all Winner's curse

Winner-takes-all

Which one is not an attribute that explains when a resource can create sustainable competitive advantage from the RBV perspective? inimitable valuable non-substitutable rare approachable

approachable

Economies of scale is a phenomenon that the ___________ decreases as a company's production level increases. total cost average cost marginal cost switching cost opportunity cost

average cost

When an industry is growing, the intensity of rivalry is likely to be _____________. low high

low

When buyers' switching cost is high, the bargaining power of buyers is likely to be _____________. low high

low

When economies of scale is significant, the threat of new entrants is likely to be __________________. low high

low

To understand the competitive intensity of two industries, a business consultant conducted market concentration analysis by using Hirshman-Herfindahl Index (HHI). The HHI of industry X was 0.40 and the HHI of industry Y was 0.15. Based on this calculation, the consultant concludes that industry X is _______ concentrated market than industry Y and that industry X is _______ competitive market. less, more less, less more, more more, less

more, less

According to Michael Porter's paper, 'What is strategy?', while _________ is about achieving excellence in individual activities, _________ is about combining activities. operational effectiveness, outsourcing strategy, operational effectiveness change management, strategy operational effectiveness, strategy

operational effectiveness, strategy

Which activity is one of the primary activities in the value chain analysis? procurement technology development operations firm intrastructure human resource management

operations

A firm successfully implementing a differentiation strategy would expect _______ customers to perceive the product as standard to have high levels of power over suppliers to charge premium prices customers to be sensitive to price increases

to charge premium prices