Quiz 4 MGMT 300

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

A situational analysis

____ is the measure of the intensity of competitive behavior between companies in an industry.

Character of the rivalry

Which of the following statements about portfolio strategy is true?

Dysfunctional consequences can occur when companies are categorized

Companies face very little uncertainty in their strategic business environments.

False

Most companies compete directly with all the firms in their industry.

False

The greater the market commonality, the less intense the direct competition between two companies.

False

The only kinds of adaptive strategies are defending, analyzing, and reacting

False, There are four kinds of adaptive strategies: defending, analyzing, prospecting, and reacting.

When companies are performing above or better than their strategic reference points, top management is more likely to choose a daring, risk-taking strategy.

False;

If retrenchment works, it is typically followed by a stability strategy.

False; If retrenchment works, it is often followed by a recovery strategy that focuses on growing the business again.

The two major approaches to corporate-level strategy are ____.

Grand and the portfolio strategy

McDonald's uses a ____ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich.

Growth

An organization that has ____ has the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

Resources

Companies use their resources to improve organizational efficiency and effectiveness

True

From a competitive standpoint, resource similarity means that the strategic actions your company takes can probably be matched by your direct competitors.

True

Portfolio strategy is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.

True

The three positioning strategies are cost leadership, differentiation, and focus

True

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms

rare

Which of the following statements about the Strategic Reference Point Theory is true?

None are true.

The first step in the strategy-making process is to ____.

assess the need for strategic change

White ___ are tangible, ___ are not

distinctive competencies; core capabilities;