MGT 481 Ch1-Ch6

TaylorTech, a high-quality metals finishing company, is struggling with its margins. TaylorTech has raw materials delivered to its foundry in Pittsburgh, where the company melts the metals into castings. The firm then polishes them as a value-added process before selling the custom castings to customers. Its unique process is rare in the United States, is very secretive, and results in a more efficient cast that commands a premium price. Unfortunately, the casting process is becoming more expensive due to increased wage pressure from the workers specializing in casting. With these issues, TaylorTech has to make a decision. Which is the most viable option for TaylorTech to increase its margins? a. Layoffs of team members across the company b. Outsourcing of the casting process c. Stop offering the polishing process d. Hire less skilled workers

b. Outsourcing of the casting process

What are the advantages of pursuing diversification by entering into a greenfield venture? a. By taking advantage of intangible resources, like experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources. b. By taking advantage of tangible resources, like extra machinery, a new business can establish itself without paying the initial costs of machinery. c. By taking advantage of tangible resources through a greenfield venture, a business can claim to be environmentally friendly. d. By taking advantage of tangible resources, like experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources.

a. By taking advantage of intangible resources, like experience and knowledge of a firm, a new business can be established independently with instant ability to create value using those resources.

General Electric, the multinational conglomerate, is researching rivals in the appliance industry by analyzing the financials, current product offerings, and strategies of competitors in order to gain insight on how to act to gain a competitive advantage. What is GE performing? a. Competitor analysis b. Industry analysis c. External environment analysis d. General analysis

a. Competitor analysis

What is the term that would describe the relationship between Apple, the leading cellphone manufacturer and applications provider, and King, the developers behind the Candy Crush app? a. Complementors b. Competitors c. King is a supplier to Apple d. Apple is a customer of King

a. Complementors

What reasons keep managers from selfishly diversifying the firm for higher compensation? a. Concerns for their reputation and strong managerial talent market b. Concerns for their reputation and weak managerial talent market c. Fear that the firm would lose value d. To avoid the responsibility of a more highly complex firm

a. Concerns for their reputation and strong managerial talent market

Why does it make sense for ecommerce-based FreeForAll to competitively respond after brick-and-mortar based Hatz enters the ecommerce market with the same product offerings? a. FreeForAll's profits depend on holding the majority of the ecommerce hat and tee-shirt market. b. Hatz's profits depend on holding the majority of the ecommerce hat and tee-shirt market. c. FreeForAll's profits depend on its brick-and-mortar locations in the hat and tee-shirt market. d. Hatz's profits depend on its brick-and-mortar locations in the hat and tee-shirt market.

a. FreeForAll's profits depend on holding the majority of the ecommerce hat and tee-shirt market.

A telecommunications company is impacted by government regulations of the wireless spectrum, cell tower locations, and internet accessibility. The company decides to hire a lobbying firm to represent its interests with the U.S. government, specifically the FCC, FTC, and Congress. This is an example of a company managing which forces in the macroenvironment? a. Social forces b. Political and legal forces c. Technological forces d. Global forces

b. Political and legal forces

Many large corporations have a presence in Washington in the form of lobbyists. These individuals attempt to have their voice, and the voice of the company they represent, heard. If there is a potential advantage to be had due to new legislation or implementation/abolition of laws and rules, it is the lobbyists' duty to ensure it is in their company's favor. Which segment is this process referring to? a. Governmental segment b. Political/legal segment c. Economic segment d. Sociocultural segment

b. Political/legal segment

What are the possible repercussions of a company that performs unethically in order to receive competitive intelligence to gain an advantage? a. Significant prison sentence b. Possible jail time or fines, but not always c. No threat of legal action, as unethical actions are not necessarily illegal d. No threat as unethical actions will be kept secret

b. Possible jail time or fines, but not always

Corporate-level strategy is best described as: a. strategies firms implement to gain a competitive advantage by selecting and managing a single business competing in several product markets. b. actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. c. actions a firm takes to gain a competitive advantage by selecting and managing one business competing in a single product market. d. strategies firms implement to gain competitive advantage by selecting and managing a group of businesses competing in a single product market.

b. actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets.

A business-level strategy is: a. a marketing and positioning program designed to explain a business to its customers. b. an integrated and coordinated set of commitments and actions to gain an advantage by exploiting core competencies. c. the actions a firm takes by selecting and managing a group of different businesses competing in different product markets. d. a set of actions and commitments through which a company sells its goods and services outside of its domestic market.

b. an integrated and coordinated set of commitments and actions to gain an advantage by exploiting core competencies.

A cost leadership strategy is one in which: a. customers perceive a company's products to be superior to competitor products. b. companies use process innovations, such as advanced production or distribution methods, to operate efficiently. c. a firm produces non-standardized products that deliver superior value to customers through innovation. d. A firm must consistently upgrade its product features to keep pace with customers' expectations for value.

b. companies use process innovations, such as advanced production or distribution methods, to operate efficiently.

Firms operating in the same market, offering similar products, and targeting similar customers are: a. allies. b. competitors. c. multimarket competitors. d. market commonality.

b. competitors.

Turtlecreek owns a high-end grocery chain, a high-end outdoor gear chain, and a sporting goods chain. Its retail businesses are unrelated; however, the firm hopes to gain an advantage over its competitors by associating its perceived luxury brand with each business. By selecting and managing theses various businesses, Turtlecreek is implementing a: a. business-level strategy. b. corporate-level strategy. c. firm-level strategy. d. small business strategy.

b. corporate-level strategy.

If a company expanded its portfolio in an effort to diversify and increase compensation and job security for managers, the overall impact of the diversification would: a. increase the firm's value. b. decrease the firm's value. c. neutralize the firm's value. d. have the firm's best interest in mind.

b. decrease the firm's value.

A way in which a firm uses related diversification to create value for its customers by extending resources and capabilities across its businesses is called: a. market power. b. economies of scope. c. multipoint competition. d. vertical integration.

b. economies of scope.

A differentiation strategy is one in which: a. firms concentrate on ways to reduce cost as their primary focus. b. firms create products that have features customers value and are willing to pay a higher price for. c. a company has core competencies in production and distribution efficiencies to reduce required inputs. d. A company divides its customers into clusters of people with similar needs.

b. firms create products that have features customers value and are willing to pay a higher price for.

Steeler Manufacturing uses an unrelated diversification strategy throughout its operations. For instance, Steeler has five core businesses, all of which are unrelated. Each of its businesses is large, and indicates their success in implementing an unrelated diversification as a: a. low-diversified firm. b. highly-diversified firm. c. moderately-diversified firm. d. non-diversified firm.

b. highly-diversified firm.

A capability is nonsubstitutable when: a. competitors can't clearly understand how a firm uses its capabilities as the foundation for competitive advantage. b. it does not have strategic equivalents. c. rival firms do not have the same capability. d. it allows firms to exploit opportunities.

b. it does not have strategic equivalents.

A lawyer has grown his law firm, gaining new clients in two diverse areas - estate law and immigration law. He's not sure which specialty will become his focus in the long run. At the same time, he believes he has enough work to support hiring a paralegal. However, he is having trouble hiring a paralegal who can manage both types of clients. He was able to find a freelance paralegal referral service that connects lawyers to paralegals who have experience in a variety of specialties. He might consider outsourcing through the referral service because: a. it is less expensive than hiring a full-time paralegal. b. it provides him with the flexibility to gain capabilities to serve both types of clients without making a long-term investment. c. outsourced capabilities provide greater value to customers and are superior to internal capabilities. d. he has a friend that works for the paralegal referral business, and she will earn a bonus if he uses the service.

b. it provides him with the flexibility to gain capabilities to serve both types of clients without making a long-term investment.

Apple has been known to sell its products at higher rates than competitors such as Microsoft, as it has been successful at convincing consumers that Apple products are special and more luxurious in comparison. By accomplishing this, Apple has gained: a. multipoint competition. b. market power. c. corporate-level core competency. d. brand awareness.

b. market power.

One example of a tangible resource might be a:One example of a tangible resource might be a: a. pharmaceutical company's team of research and development scientists. b. network of distribution centers in strategic locations around the world. c. secret recipe for a restaurant. d. process for moving raw materials more quickly through the plant.

b. network of distribution centers in strategic locations around the world.

An internal analysis is important because: a. it compares companies against their competitors so that they can copy competitors' successful strategies. b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths. c. the business environment is always changing, and the analysis provides insights about the future. d. company leaders do not have a good understanding of how their firms operate internally.

b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths.

What is the set of factors that directly influences a firm and its competitive actions and responses within the industry? a. Internal environment b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths. c. Political environment d. Competitor environment

b. not all strategies will work for all firms; successful strategies must be aligned with a company's strengths.

Firms use corporate-level strategies for several reasons, including to: a. decrease revenues and profits. b. pursue development of a market. c. sell a supplier or customer. d. segment themselves into limited markets.

b. pursue development of a market.

Fast-cycle markets are markets in which the firms' capabilities that contribute to competitive advantages aren't shielded from imitation and where imitation is often __________. a. slow and inexpensive b. rapid and inexpensive c. rapid and expensive d. slow and expensive

b. rapid and inexpensive

FedEx and United Postal Service compete in many of the same markets and have similar types of truck and airplane fleets, similar levels of financial capital, and other similarities. These tangible and intangible resources between the two firms describes the: a. resource differentiation. b. resource similarity. c. market similarity. d. market differentiation.

b. resource similarity.

A pharmaceutical company has a patented antidepressant that has few side effects, and has dominated the market. The company has slowly been conducting research and development to improve this drug. The slow nature of drug development categorizes the pharmaceutical company as part of a: a. fast-cycle market. b. slow-cycle market. c. standard-cycle market. d. no-cycle market.

b. slow-cycle market.

Hypercompetition describes a competitive landscape where: a. there are thousands of companies competing within the same industry for the same group of customers. b. the industry is constantly changing with global competition and innovative competitors. c. the business is dominated by a single company, pushing all competitors to imitate its strategies and develop similar resources. d. the industry has a high cost of entry in capital investment, research and development or hiring of talented employees.

b. the industry is constantly changing with global competition and innovative competitors.

The effectiveness of a business-level strategy is contingent on: a. selection of the best business-level strategy - an integrated cost leadership/differentiation strategy. b. the opportunities and threats in a firm's external environment and the strengths and weaknesses of a firm's resources. c. a firm's decision to pursue a focused strategy developed through market segmentation. d. the external communication of the strategy to a company's customers.

b. the opportunities and threats in a firm's external environment and the strengths and weaknesses of a firm's resources.

Outsourcing is: a. the decision to manufacture in a foreign country, at a facility owned by the company, because it offers lower wages. b. the purchase of a value-creating activity or support function activity from an external supplier. c. when a company chooses to pay less for a value-creating activity through a supplier. d. the decision by a company to purchase a supplier's company, bringing its capabilities into the company.

b. the purchase of a value-creating activity or support function activity from an external supplier.

In the resource-based model of above-average returns, differences in company performance can be attributed to: a. the strength and effectiveness of managers. b. the unique capabilities and resources of the company. c. the structural characteristics of the company's industry. d. the effective implementation of pricing strategies.

b. the unique capabilities and resources of the company.

A mission statement can describe: a. the strategic direction of the company and its major goals. b. what the company does in terms of its customers and their needs and what core competencies it utilizes to meet those needs. c. the competitive environment where a company is choosing to conduct its business. d. the company's marketing approach and slogan.

b. what the company does in terms of its customers and their needs and what core competencies it utilizes to meet those needs.

Suppliers are most powerful when a company: a. buys from a supplier in large quantities, making up 50 percent or more of the supplier's total sales. b. would have switching costs if it went to a different supplier because the current supplier's products are unique. c. has the capability of producing the end product without the supplier. d. has multiple suppliers to choose from who produce similar components at similar quality.

b. would have switching costs if it went to a different supplier because the current supplier's products are unique.

Which of these strategies represents a company that has selected a differentiation strategy? a. A grocery store chain that is converting their local neighborhood stores to warehouses. The chain eliminates shopping in the aisles and instead has customers select items online or through an app. The customer can then pick up their items in a drive through without having to leave their vehicles. b. A company that is developing a tablet device that sells features, such as speed and memory, as add-ons to produce a base model of its device that is below the typical market cost. c. A tool manufacturer that is investing in R&D to develop modifications to existing tools so that they can be used more effectively and safely in the oil and gas industry. d. A restaurant entrepreneur announces a new fast-food chain where every item on the menu is just $1.

a. A grocery store chain that is converting their local neighborhood stores to warehouses. The chain eliminates shopping in the aisles and instead has customers select items online or through an app. The customer can then pick up their items in a drive through without having to leave their vehicles.

What is a competitor analysis? a. An analysis of companies in which a firm competes directly b. A robust analysis of one specific competitor c. An internal report of what a competitor may discover if the competitor analyzed the company d. A SWOT report of a competitor

a. An analysis of companies in which a firm competes directly

How does diversification and firm size impact high-level managers of a firm? a. As a firm diversifies, its size increases, as does executive compensation. b. As a firm diversifies, its size decreases, as does executive compensation. c. As a firm diversifies, its size increases, while executive compensation decreases. d. As a firm diversifies, its size decreases, while executive compensation increases.

a. As a firm diversifies, its size increases, as does executive compensation.

Which of these represents a risk for companies pursuing a differentiation strategy? a. Buyers choosing to purchase lower priced products during a recession b. Failing to meet customers minimal level of acceptable service c. Competitors' imitation of the value-chain activities that make up the company's strategy d. Competitors' innovations resulting in their ability to drive costs lower

a. Buyers choosing to purchase lower priced products during a recession

What is the outcome of a firm not performing a competitor analysis? a. A firm will better understand their competitor b. A firm will be able to defend its competitive market position c. A firm will not understand its competitor d. A firm can find market commonalities

c. A firm will not understand its competitor

In what ways does the availability of tangible and intangible resources affect a firm's ability to create value through diversification? a. A resource has abundance and valuableness b. A resource is difficult to imitate and has abundance c. A resource has rarity and valuableness d. A resource is difficult to substitute and has abundance

c. A resource has rarity and valuableness

A company is debating on entering a new industry. The first order of business is to conduct an analysis of the five forces. Why is this a crucial first step in the decision-making process of entering into a new market or industry? a. If the barrier for entry is low, and suppliers and buyers have strong bargaining power, the venture will most likely fail. b. If the barrier for entry is high, and suppliers and buyers have low power, the venture will most likely fail. c. If the barrier for entry is low, and suppliers and buyers have high power, the venture will most likely succeed. d. If the barrier for entry is high, and suppliers and buyers have high power, the venture will most likely succeed.

a. If the barrier for entry is low, and suppliers and buyers have strong bargaining power, the venture will most likely fail.

External investors allocate capital by taking stakes in businesses with high growth and profitability potential. What is a disadvantage of external investors? a. Limited access to information b. Can't estimate the performance of individual business c. Unlimited access to information d. Can understand the operational dynamics in large organizations

a. Limited access to information

As a company works to build relationships with its customers, its leaders must determine which customer needs they will seek to satisfy. The company's leaders must also recognize that customer needs change over time. What might these leaders focus on to ensure they anticipate customers' changing needs? a. Monitoring customer trends in the industry and of consumers as a whole b. Utilizing the guidance of the Board of Directors to communicate the customers' needs c. Producing the same products and services that have been successful in the past d. Creating market segmentation to select a smaller group of customers to serve

a. Monitoring customer trends in the industry and of consumers as a whole

P&G is a consumer products company that is consistently implementing scanning systems of the environment. They want to identify early signals of environmental changes and trends. P&G's competitors also frequently utilize scanning systems but are not as competitive as P&G. What could be the reason for P&G's competitiveness? a. P&G's ability to take action on ambiguous, incomplete, or unconnected data b. The competitors are less concerned with competitive advantages c. P&G's reports are more robust and contain insider information d. The competitors are not as educated as P&G's executives

a. P&G's ability to take action on ambiguous, incomplete, or unconnected data

Many companies pursue an integrated cost leadership/differentiation strategy, working to lower cost structures while also enhancing their products and services. To successfully pursue this strategy, companies could: a. invest in developing total quality management systems and improving marketing effectiveness. b. concentrate all efforts on cost-saving projects within their production processes. c. increase exposure and brand awareness through digital and print marketing campaigns. d. develop new products every year to continue attracting customers and meet their upgrade expectations.

a. invest in developing total quality management systems and improving marketing effectiveness.

A resource or capability can be classified as a core competency that can be a source for a sustainable competitive advantage if: a. it is different and better than the way a competitor is executing the same capability. b. it is the same as the capabilities offered by competitors. c. other companies use a different capability to accomplish the same goal. d. it can be purchased through outsourcing.

a. it is different and better than the way a competitor is executing the same capability.

The number of markets with which a firm and a competitor are jointly involved, and the degree of importance of the individual markets to each is referred to as: a. market commonality. b. market analysis. c. resource similarity. d. market differentiation.

a. market commonality.

FreeForAll is an online retailer for graphic tees and hats. Previously, it was the only mass retailer for such goods. Hatz, an in-store retailer that sells predominantly baseball hats, has just launched an ecommerce site that also features tee-shirts for sale. FreeForAll has decided to respond quickly to Hatz's competitive action. This decision is based on FreeForAll's: a. market dependence. b. competitive dynamics. c. reputation. d. market independence.

a. market dependence.

Slow-cycle markets are: a. markets in which the firm's competitive advantage is shielded from imitation, commonly for long periods of time, and where imitation is costly. b. markets in which the firm's capabilities that contribute to its competitive advantages aren't shielded from imitation and where imitation is often rapid and inexpensive. c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly. d. markets in which the firm's competitive advantage is shielded from imitation, commonly for short periods of time, and where imitation is cheap.

a. markets in which the firm's competitive advantage is shielded from imitation, commonly for long periods of time, and where imitation is costly.

Sports Inc. has developed a shoe to compete with Air Jordans. In order to keep up with competitors and minimize competitor market power, the firm decides to sell branded sports equipment as well. By introducing another new business so soon outside of its shoe products, the firm stands to lose value. Sports Inc.'s reason for diversifying itself is to: a. neutralize another firm's advantage by acquiring a similar distribution outlet. b. decrease another firm's advantage by acquiring a similar distribution outlet. c. increase its value by acquiring a similar distribution outlet as a competitor. d. decrease another firm's value by acquiring a different distribution outlet.

a. neutralize another firm's advantage by acquiring a similar distribution outlet.

Which of these represents a product market stakeholder: a. A private equity firm investing in a biomedical firm b. A local pipefitters union dealing with a plumbing contractor c. A member of an ownership family in a privately owned company d. A store manager of a retail chain

b. A local pipefitters union dealing with a plumbing contractor

Which of these might be an alternative definition of business-level strategy? a. A picture of what the firm wants to be in broad terms and what it hopes to achieve b. A plan for how the company will compete in its industry against its rivals to achieve a competitive advantage c. The inputs into a firm's production process, including physical, human and organizational capital d. The source of competitive advantage for a firm to deliver above-average returns

b. A plan for how the company will compete in its industry against its rivals to achieve a competitive advantage

Which of these could be a part of the analysis stage of the strategic management process? a. A mission and vision task force developing these foundational statements for the company b. A review of a company's competitive landscape, identifying competitors, naming their differentiations and detailing a profile of those competitors' customers c. The collection of financial data used to track the success of the strategic plans the company is pursuing d. The selection of strategies the company will pursue to achieve its financial goals and satisfy its shareholders

b. A review of a company's competitive landscape, identifying competitors, naming their differentiations and detailing a profile of those competitors' customers

A nonprofit organization is focused on providing mental health services to the homeless in its geographic area. It serves people by ensuring they receive the public assistance they are eligible for and then connects them with care providers who have expertise working with transient patients. The company's primary expenses are the salary and benefits for its staff of social workers, and it receives government funding to cover those. However, the organization does not have enough people to fill its open positions and has a waiting list of homeless people in need of case workers. Which of these represents a weakness for the nonprofit organization? a. Fundraising b. Human Resources c. Distribution d. Customer Service

b. Human Resources

What is an advantage of being a part of a slow-cycle market as opposed to a fast-cycle market? a. In slow-cycle markets, firms must innovate rapidly in order to stay competitive. b. In slow-cycle markets, firms can shield themselves from imitation. c. In slow-cycle markets, firms can innovate at a slower pace, although it's often expensive. d. In slow-cycle markets, firms can innovate at a faster pace, and it's often inexpensive.

b. In slow-cycle markets, firms can shield themselves from imitation.

A secondhand computer retailer is often mistaken for an IT help business. As a result, tech savvy employees of the retailer are often fixing the customers' computer issues when they come into the store. The firm that owns the secondhand computer retailer has decided to diversify and open computer repair shops selling IT services. Diversifying on the basis of employee knowledge is considered what type of resource? a. Tangible b. Intangible c. Non-Substitutable d. Rare

b. Intangible

Marquis is the international operations manager for an athletic clothing line. As part of his responsibilities, he regularly tours the factories of the company's suppliers. He recently took a tour of one of the most efficient plants that delivers low-cost clothing. This gives his company a greater profit margin. However, on the tour, he noticed an 8-year-old child operating one of the machines. Which of these best describes how Marquis should report back to his CEO about the plant tour? a. Marquis should present a glowing recommendation for the supplier based on their financial performance and ability to help the company deliver above-average returns through higher profitability. b. Marquis should bring this issue to the attention of the CEO and other top leadership immediately. He has a personal, ethical objection to child labor and believes that it is also inconsistent with the company's core values. c. Marquis should assume that the CEO is aware of the child labor practices at the supplier because the two companies have done business together for several decades. His report should focus on the operational improvements at the plant. d. Marquis should quit. He can't work for a company that employs child labor in any way. He should contact the media immediately after he leaves the company and tell them the whole story.

b. Marquis should bring this issue to the attention of the CEO and other top leadership immediately. He has a personal, ethical objection to child labor and believes that it is also inconsistent with the company's core values.

A new family-owned organic grocer has been successful since its grand opening nearly a year ago. With little competition in the area, the organic grocery has been particularly successful in serving organic food consumers. The grocer has just found out that Whole Foods will be starting construction on a new store nearby. The grocery feels that its family ownership and locally grown foods offerings give it a position in which to take action against the developing Whole Foods. However, as a small business, the organic grocery does not have the financial means to launch a rivalry against Whole Foods. In this instance, the organic grocery is missing which driver of competitive behavior? a. Awareness b. Motivation c. Ability d. The grocery is not missing any driver of competitive behavior

c. Ability

Which of these represent a scenario in which Apple and Google participate in multimarket competition with one another? a. Google operates a search engine and Apple offers a television streaming service b. Google offers Glass and a self-driving vehicle c. Both compete in the personal computer, tablet, and smartphone industries d. Each participate in unrelated markets

c. Both compete in the personal computer, tablet, and smartphone industries

You are hired as strategic analyst for a Fortune 500 company. Your first task is to develop a competitive intelligence report to find key insights on the rivals' latest actions, current capabilities, and potential future actions. Being new to this type of report and the ethical protocols, what should be your first action? a. Calling the competitors' CEO for an interview b. Infiltrate the competitors' headquarters and plant devices to receive information c. Contact Strategy and Competitive Intelligence Professionals d. Analyze the publically released financial records from 6 months ago

c. Contact Strategy and Competitive Intelligence Professionals

A CEO is in an argument with his Board of Directors over the direction of the software company he is leading. The CEO wants to branch out and take advantage of its competencies and capabilities to pursue opportunities enabled by new technology that are forecasted to be very profitable. But, these activities are not what the company is used to, and it would have to develop hardware alongside its specialty in software. The Board is arguing that the company is a software company and should remain a software company. What concept must the CEO overcome? a. Strategic flexibility b. Core capabilities c. Core rigidity d. Resources

c. Core rigidity

Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the largest challenges a new entrant would need to overcome to be successful when entering an industry? a. Very few customers are currently buying a product b. Several powerful retailers provide the only access to customers c. Production costs are high and require high volumes to achieve profitability d. Lack of products that go along with the product

c. Production costs are high and require high volumes to achieve profitability

How can sharing primary or supporting activities throughout a firm's businesses create value? a. Heightens risk b. Lowers return on investments c. Reduces risk d. Takes away risk

c. Reduces risk

Glow Makeup company is a moderately-diversified firm, as it has three main related businesses including a skin care business, nail polish business, and facial cosmetic business. Its divisions are composed of different products, but they are all related to cosmetics. As a result, the firm maintains many of the same resources and certain core competencies within each of its operations. Based on this information, Glow Makeup uses what diversification strategy? a. Unrelated diversification strategy b. Related linked diversification strategy c. Related constrained diversification strategy d. Dominant-business diversification strategy

c. Related constrained diversification strategy

Which of these represents a core competency for Alibaba as presented in the opening case in the chapter? a. The company's controls surrounding fraudulent, banned and recalled goods. b. The company's purchase announcement of ChinaVision Media for online media streaming and video services. c. The company's diversification of web services tailored to the Chinese market directly, which has resulted in transactions that account for more than 2 percent of China's GDP. d. The company's strategic position compared to brick and mortar retailers because 90 percent of China's marketplace sales are online.

c. The company's diversification of web services tailored to the Chinese market directly, which has resulted in transactions that account for more than 2 percent of China's GDP.

An intangible resource is one that: a. is based on optimism and planning; they are resources the company is in the process of establishing. b. is created to fill a void in the company so that it might more easily compete with its rivals. c. is rooted deeply in the company history, is gathered over time, and is difficult for competitors to analyze or imitate. d. a service a company provides to satisfy customers' needs.

c. is rooted deeply in the company history, is gathered over time, and is difficult for competitors to analyze or imitate.

A capability can be considered costly to imitate when: a. it requires an investment of half of the company's financial assets. b. other companies possess the same capability. c. it is developed because of unique historical conditions. d. there are costs associated with purchasing it, as in outsourcing.

c. it is developed because of unique historical conditions.

Standard-cycle markets are: a. markets in which the firm's competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly. b. markets in which the firm's capabilities, which contribute to its competitive advantages, aren't shielded from imitation, and where imitation is often rapid and inexpensive. c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly. d. markets in which the firm's competitive advantages are shielded from imitation, commonly for short periods of time, and where imitation is cheap.

c. markets in which the firm's competitive advantages are partially shielded from imitation, and imitation is moderately costly.

The likelihood of a firm taking competitive action is affected by the: a. organization's structure. b. organization's management. c. organization's size. d. organization's industry.

c. organization's size.

Strategic leaders: a. can only be people in the C-suite of a company, such as the CEO, CFO, and COO. b. answer only to the demands made by capital market stakeholders for greater profitability. c. promote exploratory and exploitative learning as well as innovation. d. revise a company's vision statement on an annual basis.

c. promote exploratory and exploitative learning as well as innovation.

The five competitive forces includes all of the following forces that shape competition within an industry except: a. risk of entry by a potential competitor. b. power of suppliers. c. rate of innovation and change. d. substitutes to an industry's products.

c. rate of innovation and change.

Cost leadership strategies can be attractive to companies looking to address the competitive forces of rivalry with existing competitors because: a. it is easier to cut costs than it is to generate greater differentiation among products or services. b. brand loyalty is a byproduct of this strategy, leading customers to choose the company's product over its rivals' products. c. rivals are hesitant to slash their own prices, and often their profitability, to compete with a low cost leader. d. rivals are forced to compete using substitute products, rather than with their core offering.

c. rivals are hesitant to slash their own prices, and often their profitability, to compete with a low cost leader.

A firm that responds to the first mover's competitive action, typically though imitation, is called a: a. first mover. b. late mover. c. second mover. d. last mover.

c. second mover.

A vision statement differs from a mission statement in that it: a. should be completed after a company formulates its strategic plan. b. is realistic, achievable, and measurable. c. speaks in broad terms of what the company ultimately would like to achieve. d. identifies which business and what customers the company intends to serve.

c. speaks in broad terms of what the company ultimately would like to achieve.

Capabilities are: a. the advanced degrees that are held by members of the senior leadership team. b. the physical attributes of the company, including its buildings, machinery, and other assets. c. the combination of tangible and intangible resources to complete the organizational tasks required to produce, distribute and service the goods or services for customers. d. the human capital, through knowledge and experience, applied to producing products.

c. the combination of tangible and intangible resources to complete the organizational tasks required to produce, distribute and service the goods or services for customers.

As an industry environment evolves over time the: a. industry becomes more profitable. b. strategic groups become less attractive to new entrants. c. the strength of the competitive forces in the industry change. d. the number of companies is reduced and it becomes more consolidated.

c. the strength of the competitive forces in the industry change.

Companies must effectively manage their relationships with customers because: a. they are the only stakeholders that matter. b. their rivals are managing customer relationships. c. they must satisfy customers' needs to achieve a competitive advantage. d. it's the most effective use of their core competencies.

c. they must satisfy customers' needs to achieve a competitive advantage.

Using a corporate-level strategy over a business-level strategy is based on these key issues: a. what product markets the firm can compete in as a standalone business. b. what businesses the firm should plan to acquire to increase its competitive advantage. c. what product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses. d. what product market and business the firm should compete in and how the business should manage itself.

c. what product markets and businesses the firm should compete in and how corporate headquarters should manage those businesses.

Cisco is a technology company looking to diversify its portfolio and compete in a new market. After conducting a scan and forecast, the consultants hired by Cisco provided several options. In which of the following economic segments should Cisco seek to compete? a. A very stable economy with low growth potential b. An unstable, new economy that has an attractively high-growth potential c. A stable economy with a declining growth potential d. A relatively stable economy with strong growth potential

d. A relatively stable economy with strong growth potential

Every organization has groups of people that it must establish and manage relationships with to be successful. These groups include: a. Customers b. Shareholders and investors c. Employees d. All of these

d. All of these

Which of the following would be deemed as unethical when developing competitor intelligence? a. Analyzing competitors' financial reports b. Attending trade shows solely to obtain knowledge of their competitors' new products c. Obtaining court records in an attempt to find statements that may not be found anywhere else d. All of these actions are ethical

d. All of these actions are ethical

Which of these represents an example of an external incentive for value-neutral diversification? a. A company that is operating inefficiently and has an uncertain forecast b. A firm that has opportunities to transfer its capabilities to another profitable business area and spread its investment risk c. A company that has a predictable and steady revenue stream and is meeting its customers' needs efficiently d. An organization forced to pursue a new business unit because of changes in tax laws and regulations

d. An organization forced to pursue a new business unit because of changes in tax laws and regulations

Which of the following would be motive(s) for top-level executives to diversify their firm beyond value-creating and value-neutral? a. Decreased compensation and reduction of managerial risk b. Seeking a managerial challenge c. Interest in a promotion to a board position d. Increased compensation and reduced managerial risk

d. Increased compensation and reduced managerial risk

An industry-leading technology firm utilizing a differentiation strategy has decided to increase prices on its patented product to bolster profit margins and deliver a higher return to investors. Consider the impact of this decision in light of the Five Forces of Competition. Which of these situations should the firm prioritize? a. Dealing with new entrants b. Bargaining power of suppliers c. Bargaining power of buyers d. Industry rivalry

d. Industry rivalry

Apple, a leader in mobile technology products, wasn't always focused on mobile technology. In 2007, the company changed its name from Apple Computers to Apple Inc. This change was indicative of a shift in the industry. Apple began introducing iPods, iPhones, iPads, iTunes, and the App Store. Apple recognized its core competencies in hardware design and software engineering should serve as the foundation of its future strategy. What tool did Apple use to determine its competitive advantage? a. External analysis b. Competitive analysis c. Industry analysis d. Internal analysis

d. Internal analysis

In an external analysis, there are two important elements that need to be identified. What are those two elements? a. Strengths and weaknesses b. Threats and strengths c. Opportunities and weaknesses d. Opportunities and threats

d. Opportunities and threats

The term "white space" has become a very popular term over the last few years. This term describes a space in the competitive landscape that competitors are not occupying. Pricing, quality, and distribution channels are examples of what may be plotted along strategic dimensions to determine points of parity and points of difference. As a company, do you want to be in the "white space"? a. Yes, as you will be easily identifiable from the competition as having vastly different capabilities. b. No, as the void in that space mostly likely is due to a disadvantage. c. No, as you will not be associated with the competition. d. Possibly, as the "white space" could be a place that is competitive but was neglected. It could also be a space that is not competitive or profitable.

d. Possibly, as the "white space" could be a place that is competitive but was neglected. It could also be a space that is not competitive or profitable.

Which of these strategies could be implemented to improve a company's richness in its customer relationships? a. A radio and billboard advertising campaign featuring a celebrity endorsing your product b. Offer a customer loyalty program with multiple fine print requirements c. Announce a baby products sale through a mailed postcard to your entire database of customers d. Provide email updates on shipping status and satisfaction surveys following the arrival of a produce

d. Provide email updates on shipping status and satisfaction surveys following the arrival of a produce

Firms should study their internal organization as part of the strategic management process because: a. they are required to report their results to the government. b. it is the only method for identifying threats and opportunities to the business. c. without this study, strategic leaders do not have a working understanding of how their business operates. d. it provides the insights the firm requires, to match what a firm can do, with what a firm might do when formulating strategies.

d. it provides the insights the firm requires, to match what a firm can do, with what a firm might do when formulating strategies.

Firms use the strategic management process to: a. make hiring decisions about key leadership positions. b. plan financial resources and define annual budgets. c. identify the organization's stakeholders. d. meet the needs of its stakeholders and achieve financial goals.

d. meet the needs of its stakeholders and achieve financial goals.

As soon as UPS moved into overnight delivery, FedEx's strong point, FedEx bought trucking and ground shipping assets to gain advantage over UPS's strong point. These activities between UPS and FedEx are referred to as: a. market power. b. economies of scope. c. vertical integration. d. multipoint competition.

d. multipoint competition.

In the resource-based model of above-average returns, a core competency is a. something that a company is really good at internally and customers are willing to pay a premium for. b. something that prevents a company from producing above-average returns. c. something that positions strategic leaders for success in managing people, processes and resources. d. something that gives a company an edge over the competition, something that the company possesses that its competitors do not have, and something that is too difficult or costly for competitors to copy or produce an alternative.

d. something that gives a company an edge over the competition, something that the company possesses that its competitors do not have, and something that is too difficult or costly for competitors to copy or produce an alternative.

If a start-up U.S.-based automobile parts supplier were to apply a global mind-set to its internal analysis, it would: a. review sales data of its North American dealerships to determine its most popular vehicles. b. research the history of the invention of the car and the evolution of the automobile industry. c. find information about the transportation infrastructure in emerging automobile markets around the world, including Asia and Africa. d. study all of its internal resources with an understanding of which capabilities offer value to meet the needs of U.S., Japanese, European and Korean automakers.

d. study all of its internal resources with an understanding of which capabilities offer value to meet the needs of U.S., Japanese, European and Korean automakers.

Differentiation strategies are successful in addressing the competitive force of the bargaining power of suppliers because: a. the company is operating at such high volumes that it can leverage its buying position to receive lower prices. b. they prevent new companies from entering into the industry through economies of scale. c. brand loyalty is a byproduct of this strategy, leading customers to choose the company's product over its rivals' products. d. the higher margins of the firm can reduce the influence of increases in supplier costs.

d. the higher margins of the firm can reduce the influence of increases in supplier costs.

What is a set of competitive firms emphasizing similar strategic dimensions and using a similar strategy? a. Collusion group b. Business partners c. Strategic group d. Complementors

Strategic group

Product market stakeholders often have very different priorities, but each can exert power and influence over a company. Which of these correctly describes a way that a product market stakeholder exerted its power to the potential detriment of a company? a. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision allowing it an exemption from covering employees' contraceptives on religious grounds. b. During the Great Recession, the United Auto Workers (UAW) union agreed to a pension restructuring with the three big U.S. car manufacturers. c. AIG's shareholders sued the U.S. government, arguing that the bailout the company received wasn't beneficial enough to financial investors. d. McDonald's announced wage increases for employees at its corporate-owned stores after months of protests by employees.

a. Protesters swarmed and picketed Hobby Lobby after it won a U.S. Supreme Court decision allowing it an exemption from covering employees' contraceptives on religious grounds.

Which characteristic best describes tactical actions? a. Relatively easy to implement and reverse b. Involves signification resources c. Difficult to implement and reverse d. Counters the effects of a competitor's actions

a. Relatively easy to implement and reverse

Research indicates that a competitive advantage in logistics is a primary strategy that creates the most value for a cost leadership strategy. Choose which of these value-creating activities should be a focus for a company pursuing a cost leadership strategy. a. Supply chain b. Human resources c. Marketing d. Customer service

a. Supply chain

What is the most likely outcome for a company if the executives never analyze a competitor's possible reaction to competitive actions the firm takes? a. The company will most likely fail because the competitor might neutralize their competitive advantage. b. The company will most likely fail due to unlawful actions that it was unaware of. c. The company will still succeed, as long as they have an efficient corporate structure. d. The company will still succeed if they have effective marketing.

a. The company will most likely fail because the competitor might neutralize their competitive advantage.

Capital market stakeholders are most satisfied when: a. a company's returns align with the amount of risk they incurred by investing in a company or lending the company money. b. a company's product market stakeholders are dissatisfied. c. a company's leadership team is earning performance-based compensation. d. a company's employees have a low turnover rate and receive higher than labor market salaries.

a. a company's returns align with the amount of risk they incurred by investing in a company or lending the company money.

Value is measured by: a. a product's performance characteristics and by its attributes for which customers are willing to pay. b. the price of a product set by the manufacturer to be sold in a retail environment. c. the inputs required to produce a product, including human, physical and financial capital. d. the amount of investment required to achieve a competitive advantage.

a. a product's performance characteristics and by its attributes for which customers are willing to pay.

Strategic groups exist because: a. companies within the same industry may position themselves differently regarding distribution channels, market segments, and other differentiators. This affects their strategies. b. government regulators have different rules for companies, based on the size of the company, geographic headquarters, and number of employees. c. customers want variety in the products and services they select, and different brands can serve customers' needs differently. d. industries are one dimensional, and all businesses within an industry utilize the same resources and same strategies to achieve their goals.

a. companies within the same industry may position themselves differently regarding distribution channels, market segments, and other differentiators. This affects their strategies.

Awareness, motivation, and ability are drivers of: a. competitive behavior. b. competitive analysis. c. competitive rivalry. d. competitive dynamics.

a. competitive behavior.

A company is analyzing its value chain to discover its value-creating activities. While formulating its strategy, the firm will: a. consider the operational functions and support functions to determine which activities contribute the greatest value in the product or service being sold to customers. b. create functional departments to manage these activities. c. expand into multiple markets to serve as many customers as possible with its value-creating activities. d. prioritize only its support activities as a source of competitive advantage.

a. consider the operational functions and support functions to determine which activities contribute the greatest value in the product or service being sold to customers.

Intangible resources are more flexible than tangible physical assets in facilitating: a. diversification. b. firm operations. c. product production. d. value-creation.

a. diversification.

Cost savings realized through improved allocations of financial resources based on investments inside or outside the firm are called: a. financial economies. b. assets. c. economies of scope. d. capital markets.

a. financial economies.

As part of its selection of a business-level strategy, a firm will decide which customers it will serve and what goods or services it will use to satisfy customers' needs. It must determine: a. how it will satisfy those customers' needs using its core competencies to implement value-creating strategies. b. when it will implement its strategies to best optimize its exposure to customers and achieve a competitive advantage. c. where it will locate its resources and facilities to best serve its targeted customers and obtain the lowest costs of production. d. which functional teams and strategic leaders will be responsible for implementation of the business-level strategy.

a. how it will satisfy those customers' needs using its core competencies to implement value-creating strategies.

Corporate-level diversification strategy is used to: a. increase the firm's value by improving its overall performance. b. maintain the firm's value by improving its overall performance. c. decrease the firm's value by improving its overall performance. d. increase the firm's value by decreasing its overall performance.

a. increase the firm's value by improving its overall performance.

Logan is an entrepreneur and president of his own company with a new software product that manages benefits administration for large multinational corporations. His start-up company grew quickly to a team of about 25. A new federal law recently passed by Congress will cause small business owners to invest in software like his to manage employee healthcare. Logan announces that the company will be investing in training for employees to better understand small business owners and research and development to create a small business version of the software. This is an example of: a. promoting exploratory and exploitative learning as well as innovation as a strategic leader. b. utilizing the I/O model to determine the strategic direction of the firm. c. answering to demands made by capital market stakeholders for greater profitability. d. revising a company's vision statement to reflect changes in the competitive environment.

a. promoting exploratory and exploitative learning as well as innovation as a strategic leader.

The industrial organization (I/O) model of above-average returns: a. puts emphasis on the external environment, which plays a role in determining a company's ability to achieve above-average returns. b. concentrates on the internal assets, resources, and capabilities of a firm to direct its strategic management process. c. is a new approach to strategic management that emphasizes technological advancement. d. is critical to competing in the global economy and the information age because of its emphasis on organizational development.

a. puts emphasis on the external environment, which plays a role in determining a company's ability to achieve above-average returns.

A company owns a patent, with six more years of protection, on a prescription medication that is used by people around the world. This resource is: a. rare and valuable. b. nonsubstitutable and valuable. c. costly to imitate and nonsubstitutable. d. an example of outsourcing.

a. rare and valuable.

Identifying internal strengths and weaknesses is important because: a. strategies are more successful when they are aligned with a company's resources, capabilities, and core competencies. b. company Boards of Directors are required to submit documentation to the SEC for publicly traded companies. c. it is impossible to select strategies to implement without first having completed an internal analysis. d. these are more important than understanding external threats and opportunities.

a. strategies are more successful when they are aligned with a company's resources, capabilities, and core competencies.

Organizational culture is: a. the complex set of ideologies, symbols and core values that are shared throughout a firm that influence how the firm conducts business. b. the structure of a business' organizational chart of strategic leaders, including their roles and responsibilities. c. the attitude of a company's owners or shareholders. d. the policies and procedures detailed in the company's employee handbook.

a. the complex set of ideologies, symbols and core values that are shared throughout a firm that influence how the firm conducts business.

An integrated cost leadership/differentiation strategy is able to address the competitive forces because: a. the strategy, when executed effectively, offers the strengths of both the cost leadership strategy and the differentiation strategy. b. all business-level strategies offer strengths to address all of the competitive forces. c. the strategy has no weaknesses and is inherently a better strategy than the other business-level strategy options for a company. d. it relies on market segmentation to address a specific niche of customers.

a. the strategy, when executed effectively, offers the strengths of both the cost leadership strategy and the differentiation strategy.

The strategic management process is a. the way that businesses formulate initiatives that will create superior value for customers and then implement them to out-perform competitors. b. the analysis of internal and external forces at work on a company that may prevent it from achieving average returns. c. the utilization of the resource-based model of above-average returns to identify the internal resources a company should leverage to achieve strategic competitiveness. d. the identification of the industry in which a company should compete due to the attractiveness of that industry's profitability.

a. the way that businesses formulate initiatives that will create superior value for customers and then implement them to out-perform competitors.

A firm owns several businesses, including a personal loan office and a furniture store. Another standalone personal loan office is suffering financially because of the allocation of its assets. The furniture business decides to buy the standalone personal loan business, restructure its assets, and then sell it as operations resume more successfully. This is an example of: a. unrelated diversification. b. value-neutral diversification. c. value-creating related diversification. d. vertical integration.

a. unrelated diversification.

A core rigidity is: a. when a resource becomes an obstacle, generating inertia and stifling innovation, often because of conditions in the external environment. b. when a corporation refuses to change its strategies without an action by the Board. c. when a company puts all of its strategic decisions up for a vote by the company employees. d. when a firm is led by a CEO with a rigid sense of mission that cannot be swayed.

a. when a resource becomes an obstacle, generating inertia and stifling innovation, often because of conditions in the external environment.

Which of the following capabilities meets the criteria for being a core competency, in that it is rare, valuable, costly to imitate, and nonsubstitutable? a. The human resources function b. A company history and brand c. A manufacturing facility d. The CEO

b. A company history and brand

Which of these describes a company that has delivered above-average returns to its investors? a. A biotech firm that recently announced it has received FDA approval for its new orphan drug to treat a rare heart condition. The company will be able to sell the treatment for $10,000 per year per patient beginning in the fall. b. A tool manufacturer that announced it will increase its dividend payment - the highest dividend amongst all of its industry competitors - for the upcoming quarter due to market share gains in overseas markets. c. A retail company that announced it saw growth in same store sales from last year to this year and will open 250 new stores to capitalize on its growing popularity. d. An airline that reported weaker than projected earnings this year because of increased maintenance costs for its aging fleet of planes.

b. A tool manufacturer that announced it will increase its dividend payment - the highest dividend amongst all of its industry competitors - for the upcoming quarter due to market share gains in overseas markets.

A company president for a software firm has chosen to implement a differentiation strategy, offering his product in a Software as a Service (SaaS) platform with a monthly subscription. Most of his competitors are selling their products as a one-time purchase. Which of these represents the greatest risk to the strategy? a. There's a shortage of technical workers to maintain the software platform, causing HR to increase wages to attract quality employees. b. An established competitor has announced it will begin offering its programs in an SaaS model next quarter. c. As the number of users increases, the company will need to invest resources to scale the SaaS platform. d. The biggest company in this software market is slashing its prices to below your annual rate.

b. An established competitor has announced it will begin offering its programs in an SaaS model next quarter.

Car maker, BAAS, is known for its risky competitive behavior, including drastically changing its prices over short time spans. Based on this information, what is the most likely competitor response? a. Competitor will be more likely to respond because of BAAS's risky behavior. b. Competitor will be less likely to respond because of BAAS's risky behavior. c. Competitor will be more likely to respond because of BAAS' stability in the market. d. Competitor will be less likely to respond because of BAAS' stability in the market.

b. Competitor will be less likely to respond because of BAAS's risky behavior.

An oil company develops an innovative refining process that reduces the time required to produce gasoline by 25 percent. The company has identified its unique process as a core competency. Which of these strategies would be most beneficial for the company to pursue and would best be aligned with the firm's internal analysis? a. Differentiation strategy b. Cost leadership strategy c. Focused differentiation strategy d. Integrated cost leadership/differentiation strategy

b. Cost leadership strategy

Which of the following is not a concern of a competitive analysis? a. Information about what drives the competitor, as shown by its future objectives b. Data on what the competitor's available funds are for innovation, as shown by their balance sheet c. Information about what the competitor is doing and can do, as revealed by its current strategy d. Intelligence about what the competitor believes about the industry, as shown by its assumptions

b. Data on what the competitor's available funds are for innovation, as shown by their balance sheet

What is the term that is concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution? a. Economic segment b. Demographic segment c. Political/legal segment d. Sociocultural segment

b. Demographic segment

A company is working through its strategic management process to develop a long-term strategic plan that will help it to achieve a competitive advantage. The company's leaders have completed the work of developing a mission, a vision, and core values. They have also researched and conducted a thorough SWOT analysis identifying general, industry, and competitor environments, as well as internal resources, capabilities, and core competencies. As they determine the business-level strategy they will pursue for their core business unit, which of these steps would they take? a. Outline a tactical plan for each department detailing how the team will create value in the value chain, identifying individuals who will be responsible, and setting product pricing based on these anticipated contributions b. Determine if the company will compete by reducing the cost structure or by focusing on generating greater perceived value by its customers - or both - based on conclusions reached in the research and decisions up to this point c. Research the countries and regions of the world in which the company will operate and identify the macroenvironment factors that are at play in those places to identify opportunities for international sales d. Consider additional business units for the company to explore and invest in, including businesses that could be served by the company's existing core competencies, as well as businesses that would require building new resources

b. Determine if the company will compete by reducing the cost structure or by focusing on generating greater perceived value by its customers - or both - based on conclusions reached in the research and decisions up to this point

What are the two ways an unrelated diversification strategy can create value through financial economies? a. Efficient external capital allocations and the restructuring of acquired allocations b. Efficient internal capital allocations and the restructuring of acquired assets c. Efficient external capital allocations and the structuring of acquired assets d. Inefficient internal capital allocations and the restructuring of acquired assets

b. Efficient internal capital allocations and the restructuring of acquired assets

Market segmentation is a part of all business-level strategies and is used to determine which customers to serve. This is most critical for which business-level strategies? a. Broad segment and integrated cost leadership/differentiation strategies b. Focused differentiation and focused cost leadership strategies c. Cost leadership and focused cost leadership strategies d. Differentiation and focused differentiation strategies

b. Focused differentiation and focused cost leadership strategies

Often a company's business-level strategy can be easily identified by reviewing its marketing materials. Consider the marketing slogans of the following companies and identify which one is pursuing a business-level strategy of differentiation. a. Walmart - Save Money. Live Better. b. HBO - It's not TV, It's HBO c. Days Inn - The Best Value Under the Sun d. Payless Shoesource - Everybody Loves to Payless

b. HBO - It's not TV, It's HBO

The country's largest landscape company is the result of a merger between two multi-state firms, Brickman Group and ValleyCrest. Now called BrightView, the $2 billion firm was created in 2015. The company is operating in a fragmented industry dominated by small, local businesses. Which of the following identifies a relevant competitive force and a way the company might leverage it? a. Bargaining Power of Buyers: BrightView can expect customers to purchase from them because of brand loyalty b. Risk of Entry by Potential Competitors: BrightView may be able to lessen the impact of this force in a low-barrier industry through economies of scale, specifically discounts on bulk purchases of raw material inputs c. Bargaining Power of Suppliers: BrightView will have difficulty leaving the landscape industry because of its investment in this merger and the cost of all of the landscape equipment included among both companies' assets d. Complementors: BrightView will need to collaborate with other companies to develop outdoor products because there are not enough complementary products in the marketplace to make homeowners value their landscaping

b. Risk of Entry by Potential Competitors: BrightView may be able to lessen the impact of this force in a low-barrier industry through economies of scale, specifically discounts on bulk purchases of raw material inputs

Which of these could be a definition of strategic competitiveness? a. The status of a company with the largest top line sales number in an industry. b. The ability of a firm to outperform its rivals by forming and executing a strategy that creates value for its stakeholders. c. A solid company with predictable sales and profitability every year, delivering predictability for its shareholders. d. A start-up company with an innovative new product that changes an industry.

b. The ability of a firm to outperform its rivals by forming and executing a strategy that creates value for its stakeholders.

A construction company is pursuing a focused differentiation strategy, and after reviewing its core competencies, the leaders have decided to specialize in hospital construction. Which of these is an example of how that strategy is addressing the bargaining power of buyers - customers? a. The company accepts a lower profit margin rather than raise prices after its supplier of medical regulators raised prices. b. The company participates in competitive bidding processes, and despite often submitting a higher bid than competitors, it is awarded the job based on its expertise. c. In a year where only a few hospitals are being built, the company's leaders decide to offer discounted pricing to customers to ensure that they have a steady stream of work. d. Seeing the success of the hospital construction company, other construction firms decide to narrow their focus and create business units dedicated to this customer segment.

b. The company participates in competitive bidding processes, and despite often submitting a higher bid than competitors, it is awarded the job based on its expertise.

Which of these might be a definition for a value-generating activity? a. A service the company provides to customers that they pay for b. The core competencies that a company holds that make it possible for it to serve customers in a different way from its competitors c. A new machine that reduces energy costs within a company d. A customer promotion or sale

b. The core competencies that a company holds that make it possible for it to serve customers in a different way from its competitors

Which of these is an example of a disruptive technology? a. The introduction of television boxes that enable recording of shows and on-demand content for playback at the viewers' convenience b. The introduction of Global Positioning System (GPS) technology, which is used in standalone and hand-held navigation tools, smartphone apps, and in-car navigation systems c. The use of touch screens on mobile phones and tablets for selecting apps, texting and dialing d. The invention of laser eye surgery for corrective vision procedures

b. The introduction of Global Positioning System (GPS) technology, which is used in standalone and hand-held navigation tools, smartphone apps, and in-car navigation systems

A top executive of a tire manufacturer is considering diversifying and expanding operations into China, where labor and materials are cheaper. The firm has already diversified itself to double its original number of locations. All of its newest locations have been implemented by the same executive. So far, the return on investment for each of the newer locations is negative. Why might the executive want to open yet another location? a. The larger the firm gets, the less compensation the executive will receive because no value has been created. b. The larger the firm gets, the more compensation the executive will receive, even if no value has been created yet. c. The executive is worried about creating jobs, even if there is no value created for the manufacturer. d. The executive predicts that the return on investments will provide positive returns soon.

b. The larger the firm gets, the more compensation the executive will receive, even if no value has been created yet.

Which of these represents a criticism of the industrial organization (I/O) model of above-average returns? a. Research indicates that 20 percent of a firm's profitability is explained by the industry in which it chooses to compete. b. The model assumes that most firms operating in an industry have similar valuable resources that are mobile across companies, which is not necessarily true. c. The model suggests that firms must adopt strategies to address the structural characteristics of the industry in which they operate. d. The model puts too much emphasis on the effectiveness and personality of the firm's managers and not enough on the characteristics of the industry.

b. The model assumes that most firms operating in an industry have similar valuable resources that are mobile across companies, which is not necessarily true.

A local community arts nonprofit organization is seeking to expand its programming and is considering putting just one new program in place this year. It may choose painting workshops, youth summer camps, a musical performing arts series or classes for seniors. The organization's most committed volunteer is a kindergarten art teacher who has offered to be the leader of whichever new program the organization implements. If the nonprofit is utilizing the resource-based model of above-average returns, it should expand its programming in the following way: a. Workshops because they are not currently being offered by any other organizations in the community b. Youth summer camps because the organization should use the knowledge of its passionate volunteer to their greatest advantage c. A musical performing arts series because it has the widest appeal in the community d. A class for seniors because it can be hosted during the day and have good attendance among those who are retired

b. Youth summer camps because the organization should use the knowledge of its passionate volunteer to their greatest advantage

Myspace, the social networking site, was a leader and innovator for modern social networking. However, not long after Myspace's peak, a new social networking site was quickly gaining ground, Facebook. Myspace was quickly made obsolete because of Facebook's superior functionality, design, and features. What was Myspace lacking that resulted in the company losing its competitive advantage? a. A mission statement because the company lacked a clear understanding of where it was operating and who it was serving b. Valuable capabilities because Myspace didn't exploit the opportunity of people's need to connect c. Costly-to-imitate capabilities because it became inexpensive to start a social networking site d. Intangible resources were unavailable to the company

c. Costly-to-imitate capabilities because it became inexpensive to start a social networking site

Through research and development, a cable company has found a way to use its existing network lines to serve customers with a new product offering - home security systems. The company is offering the service with a lower monthly fee than most other security companies. However, the sales force didn't see a lot of interest among its customers who had an existing security system from a competitor until they ran a promotion for reduced prices on equipment and free installation. Which of the competitive forces is at play? a. Cost conditions b. Bargaining power of suppliers c. Customer switching costs d. Complementors

c. Customer switching costs

Below are several statements from companies. Which of these is a vision statement? a. Nike: Just Do It. b. Disney: To be one of the world's leading producers and providers of entertainment and information. c. Habitat for Humanity: A world where everyone has a decent place to live. d. Allstate: You're in good hands with Allstate.

c. Habitat for Humanity: A world where everyone has a decent place to live.

A company has identified a core competency in providing telecommunications services for mid-sized businesses through a combination of simple technology and software, excellent customer service, and low-cost hardware. As competitors gain ground in competing for mid-sized companies, how might this core competency become a core rigidity? a. If the company starts to target smaller businesses with its bundle of capabilities b. If the company chooses to shift its focus to large-scale enterprises to offer its products and services c. If the company doesn't keep up with advances in technology and customers begin to expect greater value from the technology d. If the cost of hardware rises it would increase the company's costs of production

c. If the company doesn't keep up with advances in technology and customers begin to expect greater value from the technology

When pursuing a business-level strategy, sometimes a company is unable to fulfill elements of the strategy because it has a split focus, resulting in a strategy that fails to satisfy customers' needs. This is a major risk of which business-level strategy?

c. Integration cost leadership/differentiation strategy

When pursuing a business-level strategy, sometimes a company is unable to fulfill elements of the strategy because it has a split focus, resulting in a strategy that fails to satisfy customers' needs. This is a major risk of which business-level strategy? a. Focused cost leadership strategy b. Differentiation strategy c. Integration cost leadership/differentiation strategy d. Focused differentiation strategy

c. Integration cost leadership/differentiation strategy

About six months ago, a mid-sized manufacturer of athletic shoes decided to pursue an integrated cost leadership and differentiation strategy. The company reduced its internal costs by consolidating the number of colors and variations it offers to customers. At the same time, the R&D team added a patented sole to all of its shoes. Which of these represents the best argument for the company to continue pursuing its current business-level strategy? a. We're getting some complaints from long-standing customers about the fact that they can only get shoes in hot pink or lime green. b. Our women's shoes are selling at higher volumes and at greater margins than our kid's and men's shoes. However, women represent 50 percent of the population but only 25 percent of our business. c. It's true we've seen our net sales decline, however, our gross profit has increased and our volumes are up year-over-year. Our patent for the sole has been approved and the legal department says we're good to go on our advertising claims about the new sole. d. We're getting a lot of pressure from our suppliers. They're telling us that they're going to increase the raw material cost for our soles. Even comparing against other suppliers, we simply can't get a better price at the volumes that we're purchasing.

c. It's true we've seen our net sales decline, however, our gross profit has increased and our volumes are up year-over-year. Our patent for the sole has been approved and the legal department says we're good to go on our advertising claims about the new sole.

A hospital system operates 22 physicians' offices, 5 skilled nursing facilities, and 2 hospitals. The system employs more than 500 people directly and is affiliated with more than 100 additional physicians. The system offers a wide breadth of medical services, including all of the major specialties. The system was recently recognized as the top cardiac hospital in the state. Which of these represents the company's capabilities? a. The hospital buildings and facilities b. The staff of 500 people c. Its complete list of medical services d. Its cardiac services

c. Its complete list of medical services

Companies must be aware of technological advances within their industry and make strategic management decisions that take into account perpetual innovation and disruptive technologies. Which of these is an example of a company that did not respond strategically to technological changes? a. After Google introduced the concept of Pay-Per-Click advertising, a competing search engine, Bing, introduced a similar advertising model. b. Samsung, LG and other cell phone manufacturers continued to innovate their products after the introduction of the Apple iPhone to keep up with customer expectations of smartphones. c. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making photography accessible to everyone. When innovators brought digital cameras to the marketplace, Kodak focused on making it easy for people to print their photos using this technology. d. Amazon's decision to enter into the online streaming video market with Amazon Instant Video to compete directly with NetFlix.

c. Kodak revolutionized the automatic snapshot camera more than 100 years ago, making photography accessible to everyone. When innovators brought digital cameras to the marketplace, Kodak focused on making it easy for people to print their photos using this technology.

A single-business diversification strategy and a dominant-business diversification strategy are both examples of what level of diversification? a. Moderate level b. High level c. Low level d. Medium level

c. Low level

A multi-divisional corporation that manufactures large steel tanks is considering starting a new business unit to serve the transportation industry. The company is utilizing the I/O model to develop its strategy. Which of these decisions is consistent with this model? a. The company determines that it has an internal asset in a piece of software it developed for scheduling manufacturing processes and decides to make the software the centerpiece of its new business unit, selling it to transportation companies to manage their schedules. b. The company identifies a large steel tank it is currently selling to customers in the brewing industry and decides to begin selling it to customers in the transportation industry for transporting liquids. c. The company's research into a new railcar guideline that requires all tanker cars to be replaced or retrofitted over the next five years leads its leaders to start a business that manufactures tanker cars to capitalize on the new demand. d. The company decides to increase its investment in research and development to catch a competitor who has surpassed it in the technology it is using to produce steel tanks.

c. The company's research into a new railcar guideline that requires all tanker cars to be replaced or retrofitted over the next five years leads its leaders to start a business that manufactures tanker cars to capitalize on the new demand.

Which is not a reason for a firm to respond to a competitor's action? a. The action leads to better use of the competitor's capabilities to develop a stronger competitor advantage or an improvement in its market position. b. The action damages the firm's ability to use its core competencies to create or maintain an advantage. c. The firm's market position becomes easier to defend. d. The firm's market position becomes harder to defend.

c. The firm's market position becomes easier to defend.

In 2011, Apple and Samsung were in a legal battle over patenting. Apple and Samsung were mutually accusing each other of infringing on intellectual property and each took action legally. Why would both parties want to spend the time and resources to reclaim their intellectual property? a. To ruin the reputation of the other company b. To distract the competition and hopefully gain a competitive edge in the meantime c. To neutralize a threat that will hinder strategic competitiveness d. To receive compensation as both companies were struggling financially

c. To neutralize a threat that will hinder strategic competitiveness

In a focused strategy: a. A company focuses on a broad, integrated group of customers. b. A company produces goods or services with features that are acceptable to customers at the lowest cost. c. a company selects a more narrow group, or niche, of customers on which to concentrate its efforts. d. A company produces goods or services that customers perceive as being different in ways that are important to them.

c. a company selects a more narrow group, or niche, of customers on which to concentrate its efforts.

A software company that is seeking a sustained competitive advantage will constantly be facing obsolescence because of environmental change. To generate a sustained competitive advantage, this company must: a. develop strategies to push competitors out of the business early so it is not faced with technological pressures. b. capture as much revenue as it can quickly, and then close the business when technology surpasses it. c. be continually building its technological capabilities to develop new skills as technology advances so that it can offer constant upgrades to meet customers' needs. d. always hire new people to gain new experience and knowledge into the firm.

c. be continually building its technological capabilities to develop new skills as technology advances so that it can offer constant upgrades to meet customers' needs.

A firm seeking to improve its market position or proactively defend its competitive advantage would be engaging in a: a. competitive response. b. strategic action. c. competitive action. d. tactical action.

c. competitive action.

By introducing Android Pay in response to Apple Pay, Google hopes to build and defend its competitive advantages and improve its market position through: a. competitive rivalry. b. competitive dynamics. c. competitive behavior. d. competitor analysis.

c. competitive behavior.

The ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position is a: a. competitive behavior. b. competitive dynamics. c. competitive rivalry. d. multimarket competition.

c. competitive rivalry.

If two well-known shoe stores, Famous Footwear and Journey's, compared their resource similarities and market commonalities, they would find that, aside from competing in the same industry and carrying some of the same shoe brands, they target very different markets. In using market commonalities and resource similarities, either Famous Footwear or Journey's can conduct a: a. SWOT analysis. b. competitive dynamics. c. competitor analysis. d. compare and contrast exercise.

c. competitor analysis.

A sporting goods company developed an innovative material for the manufacture of baseball bats. For many years, the material and its process for manufacturing served as a rare and valuable capability, distinguishing it from competitors. Unfortunately, many of the baseball leagues have been changing their regulations to outlaw bats made of this material because they constitute an unfair advantage for players. As part of its internal analysis, its leaders might: a. examine the trends in the industry to see what materials competitors are using in their bat manufacturing. b. lobby the sports leagues to ask them not to outlaw the bat material. c. determine if the company's core competency is in research and development of different materials, or if it is in working with this material specifically. d. research other kinds of materials to find one that is not outlawed but that could be produced at a lower cost.

c. determine if the company's core competency is in research and development of different materials, or if it is in working with this material specifically.

An industrial fabrication firm has purchased a facility capable of housing large-scale projects - as long as 120 feet. The firm could develop this tangible resource into a capability by: a. purchasing additional buildings of similar size across the country. b. buying raw metals and shipping them to the facility. c. employing engineers who can design large projects and welders with expertise in these projects. d. selling the building to its customers for them to use for their projects.

c. employing engineers who can design large projects and welders with expertise in these projects.

Michelle opens a residential heating company dedicated to geothermal heating systems. She is pursuing a focused differentiation strategy, serving the needs of customers who are looking for environmentally-friendly solutions to heat and cool their homes. Which of these represents a risk to the company because Michelle is using a focused strategy rather than a broad strategy? a. Competitor residential heating and cooling companies offer mainstream options at lower prices than Michelle's company is offering geothermal solutions. b. The cost of geothermal technology comes down and it is more aligned with mainstream options, increasing the number of customers who consider geothermal options. c. New technology in the solar energy business is developed that makes efficient heating and cooling solutions based on power available to customers. d. As renewable energy continues to gain popularity, mainstream residential heating and cooling companies that are larger and have more resources decide to offer more geothermal options.

d. As renewable energy continues to gain popularity, mainstream residential heating and cooling companies that are larger and have more resources decide to offer more geothermal options.

Car manufacturers have a large lead time on new products. If an idea for a feature on a vehicle is developed, it will likely be two years before consumers know about it and can decide if they want to buy it. Consumer trends are sometimes short lived as they are always evolving. Which external analysis element is a primary focus of car manufacturers? a. Scanning b. Monitoring c. Forecasting d. Assessing

d. Assessing

Prioritize the three drivers of competitive action ranking their importance from least to most important. a. Ability, motivation, awareness b. Awareness, ability, motivation c. Ability, awareness, motivation d. Awareness, motivation, ability

d. Awareness, motivation, ability

An industrial tool manufacturer relies on a particular distributor network. This distributor network has the largest online outlet and store network, and its product lines are aimed at construction workers. The distributor network is seeking a manufacturer to provide it with private label products, as it has decided to offer only its own product line in this category of industrial tools. Now, the industrial tool company must decide whether to agree to this proposition or lose this network as a customer. This is an example of which of the competitive forces at play in this industry? a. Industry competitive structure b. Rivalry among established companies c. Bargaining power of suppliers d. Bargaining power of buyers

d. Bargaining power of buyers

In the toy industry, Mattel is one of the world leaders, especially with their line of Barbie dolls. However, it has faced competition from MGA Entertainment, who has produced Bratz dolls since the 1990s. Which of these statements is true about the strategic group in which these companies compete? a. The two companies occupy different strategic groups and will likely have very different competitive forces and different strategies. b. The companies are dealing with the same competitive forces as all the other companies in the toy industry. c. Since they are both toy companies, they both have the ability to quickly pursue the toy truck market with minimal investment. d. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other.

d. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other.

The executive leadership team of a large corporation is analyzing a report. The report's contents have information that can be used to better understand and anticipate a competitor's objectives, strategies, assumptions, and capabilities. What is the term for the report being analyzed? a. External analysis b. Internal analysis c. SWOT analysis d. Competitor intelligence

d. Competitor intelligence

Which of these represents a risk for companies pursuing a cost leadership strategy? a. Buyers choosing to purchase lower priced products during a recession b. Counterfeit versions of a company's products c. Pricing that is higher than customers' perceived value of a quality product d. Competitors' innovations resulting in their ability to drive costs lower

d. Competitors' innovations resulting in their ability to drive costs lower

A popular TV network, QTV, wishes to gain a competitive advantage by managing several businesses from its headquarters. Among its goals, QTV hopes to acquire its competitor, RTV, in the process. In this instance, QTV is using which type of strategy? a. Business-level strategy b. Network-level strategy c. Global-level strategy d. Corporate-level strategy

d. Corporate-level strategy

According to Hitt et al., which of these would be considered an important step in the ASP strategic management process? a. Building the company's organizational chart of strategic leaders b. Acquiring a new business unit to gain access to new markets and product lines c. Utilizing an outside consultant to lead the company through the planning process d. Defining the company's corporate mission and major corporate goals

d. Defining the company's corporate mission and major corporate goals

Apple quickly launches their next wave of innovative iPhones in order to keep up with competitors like Samsung and Microsoft. Imitation is rapid and inexpensive in the smartphone industry. Apple is a part of what kind of market? a. Standard-cycle market b. Slow-cycle market c. Medium-cycle market d. Fast-cycle market

d. Fast-cycle market

Christopher is the CEO of a company. Recently, he scheduled a meeting with a challenging objective - to discuss with a team of his employees a project that is failing. It is costing a lot of investment in time and money and does not appear to have any return on investment in sight. Which of these approaches would demonstrate successful strategic leadership? a. He should inform them that the project they are working on is no longer aligned with the company, he's killing it, and that all of their work has been in vain. b. He should keep the project going despite its failure because he doesn't have any better projects for them to work on. c. He should blame the markets for making the project unsuccessful. He'll then announce that the company is shifting customer targets and will work on the project in the context of a new industry. d. He should start by thanking the team for their hard work on the project so far but explain the company is no longer pursuing it. He should clearly articulate his vision for the future of the company and the team and set a meeting to debrief on the project.

d. He should start by thanking the team for their hard work on the project so far but explain the company is no longer pursuing it. He should clearly articulate his vision for the future of the company and the team and set a meeting to debrief on the project.

Which of these is an example of the mobility of strategies and resources across firms in the mobile network industry, one of the assumptions of the industrial organization (I/O) model of above-average returns? a. Sprint utilizes an innovative marketing strategy to illustrate its price competitiveness compared to Verizon and AT&T. b. Verizon utilizes its high capital availability to invest in a higher quantity of cell towers to achieve a broad geographic network, serving both urban and rural areas. c. A high-level engineer from AT&T is prevented from working for Verizon for five years by a non-compete agreement. d. The spread of 4G technology between Verizon, AT&T, and Sprint, so that the high-speed network is available to nearly all mobile phone customers.

d. The spread of 4G technology between Verizon, AT&T, and Sprint, so that the high-speed network is available to nearly all mobile phone customers.

Blackberry, a one-time leader in secure cellphones, has lost its edge. Without significant upgrades or innovation, the company quickly lost marketshare to iPhones and Android devices. When attempting to imitate these advances with the Blackberry Storm product, it flopped. Blackberry was criticized as trying to leverage capabilities beyond its core competencies. What tool should Blackberry use to regain a scope of their core competencies and determine potential sources of competitive advantage? a. External analysis b. Competitive analysis c. Strategy analysis d. Value chain analysis

d. Value chain analysis

What is the distinction between value-neutral reasons and value-increase reasons for a firm to diversify? a. Value-neutral reasons seek to help the firm develop a more competitive position, whereas value-increase reasons seek to serve the managers of the firm. b. Value-neutral reasons seek to serve the managers of the firm, whereas value-increase reasons seek to establish a more competitive position. c. Value-neutral reasons seek to improve the firm overall, whereas value-increase reasons seek to establish a more competitive position. d. Value-neutral reasons seek to help the firm develop a better competitive position, whereas value-increase reasons seek to improve the firm overall.

d. Value-neutral reasons seek to help the firm develop a better competitive position, whereas value-increase reasons seek to improve the firm overall.

Michael is the CEO of a manufacturer with plants in three countries. He currently has a product line that is manufactured only in the company's U.S. plant. That product has experienced a steady increase in its export sales to Europe over the last three years. The international sales director is recommending that the company expand manufacturing capabilities at the European plant to include this product line. Michael and his management team must consider whether to pursue this strategy. This is: a. a decision driven by the industrial organization model of above-average returns. b. a conflict between two of the company's stakeholder groups. c. the diffusion of technology and perpetual innovation to help the company achieve its goals. d. a decision that would benefit from using the entire strategic management process.

d. a decision that would benefit from using the entire strategic management process.

Firms that use an unrelated diversification strategy are referred to as conglomerates. An unrelated diversification strategy means: a. a highly-diversified firm that has a direct relationship between its businesses. b. a moderately-diversified firm that has a direct relationships between its businesses. c. a moderately-diversified firm that has no relationships between its businesses. d. a highly-diversified firm that has no relationships between its businesses.

d. a highly-diversified firm that has no relationships between its businesses.

A retail company feels that it has a mixed identity. Some of the leadership is focused on promoting the company as offering the highest quality, and other leaders argue they should be lowering prices to attract customers. The team is working through a strategic management process and determines that it needs better definition for the way it will compete against its rivals within the same industry and product category. This company needs to formulate and implement a(n): a. value chain strategy b. human resources strategy c. organizational strategy d. business-level strategy

d. business-level strategy

A strategic response to engaging in competitive rivalry is called a: a. competitive response. b. strategic action. c. tactical action. d. competitive action.

d. competitive action.

Fast food chain, Bob's Bigger Burgers, has just launched a campaign to market its new pound and a half burger against its competitor, Lou's Burgers, who has previously sold the biggest burger at a pound and a quarter. Bob's Bigger Burger's strategic move against Lou's Burgers is a: a. competitive response. b. strategic response. c. tactical response. d. competitive action.

d. competitive action.

Awareness affects the extent to which the firm understands the consequences of its: a. market commonality and resource similarity. b. competitive rivalry and dynamics. c. competitive motivation and ability. d. competitive actions and responses.

d. competitive actions and responses.

Rumor has it a new restaurant is coming to town called Italia Noodles. However, the owners are waiting to compare market commonalities and resource similarities to other local Italian restaurants. Italia Noodles is conducting a: a. tactical action plan. b. competitive action. c. strategic action. d. competitor analysis.

d. competitor analysis.

One constant improvement among smartphones of all brands is camera quality. As soon as Samsung, Google, or Apple introduces an updated phone, the others respond with equal or better quality in their next update. These competitive moves can be encompassed as the competitive _______________ of that market. a. rivalry b. analysis c. behavior d. dynamics

d. dynamics

Capabilities develop into core competencies that can serve as the source of competitive advantage when: a. a company invests a lot of financial capital into them. b. a firm copies the way other firms perform them. c. the leadership team chooses to highlight them as part of the company's core values. d. employees, or human capital, integrate them and deploy them to deliver value to customers.

d. employees, or human capital, integrate them and deploy them to deliver value to customers.