mgmt. 464 final

A popular financial strategy in which a company is acquired in a transaction financed largely by debt eventually paid off with money generated from the acquired company's operations or by sale of its assets is A) a good way to build a core competency. B) an example of internal financing. C) the leveraged buyout. D) an application of the capital asset pricing model. E) illegal in most countries.

C

A(n) _____ occurs when firms enter into a partnership based on contractual agreements, which results in vertical strategic alliances, that connect different parts of the industry value chain. A. equity alliance B. joint venture C. non-equity alliance D. greenfield venture

C

In a radical innovation, a firm targets: A. existing markets by using new technologies. B. new markets by using existing technologies. C. new markets by using new technologies. D. existing markets by using existing technologies.

C

Research suggests that boards of directors tend to look outside the firm for the next CEO under which following circumstance? A) when the company is prosperous B) when the company is having temporary difficulty C) when the company needs to expand in order to continue growing D) when the company is in trouble E) when the company needs to follow a stability strategy

C

The concept of a(n) _____ attempts to capture both learning effects and process improvements at firms. A. managerial grid B. growth matrix C. experience curve D. diminishing utility curve

C

The customers entering the market in the growth stage are primarily _____. A. technology enthusiasts B. laggards C. early adopters D. late majority

C

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy. A) knot B) hold C) push D) pull E) lengthening

C

When a firm diversifies into different product lines and geographies, a _____ structure is preferred. A. simple B. functional C. multidivisional D. network

C

Which of the following forces is most closely related to industry effects within the automobile industry? A. The actions taken to improve employee productivity within a firm B. The human resource strategy managers adopt to acquire the best talent from the industry C. The types of products and the services offered within the industry D. The decisions made within a firm regarding pricing of a product in the market

C

Which of the following forces tends to be more important in determining a firm's performance? A. The underlying economic structure B. The entry barriers in the industry C. The actions of managers within the firm D. The number and size of other firms in the industry

C

Which of the following is a feature of the shakeout phase of the industry life cycle? A. There is rapid industry growth during this stage. B. Market demand in this stage primarily consists of first-time adopters. C. Competitive intensity within the industry increases. D. The mode of competition shifts from price to non-price in this stage.

C

Which of the following is an example of a firm's intangible resources? A. The firm's cash at bank B. The firm's finished goods inventory C. The firm's organizational culture D. The firm's land and building

C

Which of the following is an example of a firm's resources? A. Routine activities like order taking and invoicing customers, performed in a firm B. Assistance available from the government in the form of rules and regulations C. Assets such as land and building owned by a firm D. Liabilities such as bills payables and short-term debts

C

_____ is best described as cooperation by competitors to achieve a strategic objective. A. Limited liability B. Proprietorship C. Co-opetition D. Commerce

C

_____ is best described as the commercialization of any new product, process, or the modification and recombination of existing ones. A. Direct imitation B. Mass customization C. Innovation D. Headhunting

C

Creating resources that meet the VRIO criteria is strategically important to a firm because it: A. helps the firm curb its resource heterogeneity and resource immobility. B. facilitates greater knowledge diffusion in the industry. C. leads to competitive parity within the industry. D. helps the firm to gain and sustain a competitive advantage.

D

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally: A. execute an integrated cost-leadership and differentiation position. B. copy the strategies of other firms through competitive benchmarking. C. provide goods or services similar to its competitors' at higher prices. D. stake out a unique position within the industry.

D

Organizational and managerial skills that find their expression in a company's structure, routines, and culture are referred to as _____. A. tangible resources B. reserves C. capital gains D. capabilities

D

The four-step innovation process ends with: A. idea generation. B. invention. C. idea testing. D. imitation.

D

Which of the following drivers simultaneously increases value while lowering cost? A. Economies of scale B. Superior customer service C. Availability of complements D. Innovation

D

Which of the following is a competitive benefit experienced by the first mover firm in an industry? A. The first mover will be able to achieve a less steeper learning curve. B. The first mover will be able to reduce the switching costs. C. The first mover will not have to patent its products or technology. D. The first mover will be able to reduce costs through economies of scale.

D

Which of the following sources of differential appeal is least effective in helping a firm sustain its advantage? A. Reputation for innovation B. Reputation for quality C. Superior customer experience D. Observable product features

D

Which of the following statements best describes groupthink? A. It is a process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure. B. It is a situation in which organizations compete with one another for resources, but they also need to cooperate to share competencies. C. It is a process whereby employees internalize an organization's values and norms through immersion in its day-to-day operations. D. It is a situation in which opinions coalesce around a leader without individuals critically challenging and evaluating that leader's opinions and assumptions.

D

Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy? A) dynamic industry expert B) cautious profit planner C) turnaround specialist D) analytical portfolio manager E) professional liquidator

D

Why is the phase after the growth stage of the industry life cycle referred to as the shakeout stage? A. The barriers to entry increase during this stage. B. The firms in the industry yield the highest profits during this phase. C. Rivalry among competitors decreases in this stage. D. The weaker firms are forced out of the industry in this stage.

D

_____ is when a firm is searching for new knowledge that could enhance its future performance. A. Pattern recognition B. Reverse mentoring C. Exploitation D. Exploration

D

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few? A) demand pricing B) loss-leader pricing C) penetration pricing D) competitive pricing E) skim pricing

E

A _____ is best described as a form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea. A. patent B. promissory note C. franchise D. royalty

A

All of the following reflect characteristics of a successful integration manager EXCEPT A) an ability to hire like-minded people. B) a deep knowledge of the acquiring company. C) a flexible management style. D) an ability to work in cross-functional project teams. E) a willingness to work independently.

A

As a result of _____, a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate. A. resource immobility B. resource homogeneity C. resource perishability D. resource equality

A

Downsizing is often used to implement a(n) ________ strategy. A) retrenchment B) integration C) stability D) hold

A

In a successful _____, the trade-offs between differentiation and low cost are reconciled. A. integration strategy B. focused differentiation strategy C. liquidation strategy D. divestment strategy

A

New Communications Inc. is a newspaper publishing company whose average return on invested capital is approximately 5 percent. Because newspaper publishing is a declining industry, the industry average has been negative (-5 percent) for the last few years. In this scenario, New Communications Inc. has a _____. A. competitive advantage B. balanced scorecard C. competitive disadvantage D. power position

A

The past black swan events in the United States demonstrate that: A. managerial actions can affect the economic well-being of large numbers of people around the globe. B. decisions and strategies implemented within a firm will only affect the firm and not the entire industry. C. corporate governance is unnecessary as firms are becoming socially responsible. D. industry effects are more important than firm effects in determining firm performance.

A

The perfectly competitive industry structure differs from the resource-based model in its view that: A. all firms have access to the same resources. B. accessibility to bundles of resources differ across firms. C. resources tend to be "sticky." D. competencies differ across firms working in the same industry.

A

To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities, many corporations move people from one job to another utilizing the technique of A) job rotation. B) job design. C) job enrichment. D) job enlargement. E) job specialization.

A

When a firm adopts a differentiation strategy to attain competitive advantage, it focuses on: A. delivering unique features to its customers. B. providing the lowest prices to its customers. C. maximizing its profits by providing minimal customer service. D. lowering costs by employing low-skill employees.

A

Which of the following customer segments as described in the chasm framework make up the mass market? A. The early and late majority together B. The early adopters alone C. The technology enthusiasts and laggards together D. The technology enthusiasts alone

A

Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos? A. Their culture reflects complex relationships with their employees, customers, and suppliers. B. They produce products that cannot be copied easily because of their complex designs. C. The employees in the organization themselves are unaware of the factors contributing to their organizational culture. D. It is not commercially viable for other companies to implement the same culture.

A

An intrapreneur is described as a person who: A. restricts changes within an organization. B. innovates within existing companies. C. introduces new products or services by starting his or her own ventures. D. invests funds in the ideas of another person in the same organization.

B

The "Gold Crisps" potato wafers manufactured by True Foods Inc. have been the highest selling wafers in the market. Though the market for wafers is flooded with competitors, True Foods Inc. has been able to maintain its market position for a long time. This is mainly attributed to the unique taste of the wafers that comes from the unique natural flavoring used by the company. This competency of True Foods Inc. will be considered as a(n) _____ resource in the VRIO framework. A. inexhaustible B. rare C. intangible D. virtual

B

The hiring of new people with new skills, firing of people with inappropriate or substandard skills, and/or training existing employees to learn new skills are included the process of A) financing B) staffing. C) operating. D) structuring. E) training.

B

The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy. A) human resource management B) marketing C) functional D) operations E) financial

B

The type of marketing strategy in which a company captures a larger share of an existing market for current products through market saturation or market penetration or develops new markets for current products is called A) pull strategy. B) market development. C) skimming the cream. D) push strategy. E) product development.

B

Which of the following is an advantage of non-equity alliances? A. They produce strong ties between alliance partners as they are permanent in nature. B. They are flexible and easy to initiate and terminate. C. They facilitate the sharing of tacit knowledge between the alliance partners. D. They are based on ownership rather than contracts.

B

Which of the following statements is true of organizational culture? A. Changes in culture are too frequent to have any impact on strategic implementation. B. It is better for founder CEOs to create a relevant culture, structure, and strategy in the early stages. C. It is always better to focus on output control and performance than on organizational culture. D. According to research, more than 50 percent of firms change culture successfully.

B

Which type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth? A) cautious profit planner B) dynamic industry expert C) professional liquidator D) analytical portfolio manager

B

With regard to the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were: A. invaluable and common. B. easy to imitate. C. extremely expensive. D. non-substitutable.

B

____ are best described as unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost. A. Resource leverages B. Core competencies C. Capital gains D. Equity reserves

B

_____ is best described as the process of manufacturing a large variety of tailor-made products or services at a relatively low unit cost. A. Just-in-time manufacturing B. Mass customization C. Unit-cost production D. Product diversification

B