STRAT MANA EXAM 1

which of these evokes powerful and compelling mental images of a shared future? a. Strategic objectives b. mission c. vision

c. vision

whats the order of hierarchy of goals? (top to bottom) a. mission, strategic objectives, vision b. vision, strategic objectives, mission c. vision, mission, strategic objectives

c. vision, mission, strategic objectives

is Social Responsibility and Environmental Sustainability worth it for businesses?

can also have high costs CEOs are fired when environmental and social responsibility initiatives harm quarterly reports quarterly earnings report system makes it difficult for organizations to invest in anything beyond short term goals.

In 1962, Harvard professor Alfred Chandler published ____________ which emphasized how strategy and organizational structure need to be consistent with each other for strong firm performance.

strategy and Structure: Chapters in the History of the Industrial Enterprise.

SWOT

strengths (internal) weaknesses (internal) opportunities (external) threats (external)

Environmental scanning

surveillance of a firm's external environment Predicts environmental changes to come

what does (V) yes, (R) yes, (I) yes, (O) yes lead to?

sustained competitive advantage

Buyers have bargaining power, whats does this mean?

can force down prices, bargain for higher quality or more services, or play competitors against each other

In 1959, The Ford Foundation recommended that all business schools offer a "_________" course to integrate knowledge across different business fields such as marketing, finance, and accounting to help students devise better ideas for addressing complex business problems.

capstone

Executive leaders responsibilities

champion and guide ideas.

Strategic groups

clusters of firms that share similar strategies: -Breadth of product & geographic scope -Price/quality -Degree of vertical integration -Type of distribution

interrelationships

collaborative relationships between value-chain activities either within firms or between firms

Competitive Intelligence

collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors' strengths and weaknesses.

Outbound logistics

collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

Organizational capabilities

competencies or skills that a firm employs to transform inputs into outputs.

what does (V) no, (R) no, (I) no, (O) no lead to?

competitive disadvantage

Without unique resources, companies can only achieve __________

competitive parity

what does (V) yes, (R) no, (I) no, (O) no lead to?

competitive parity

general environment

composed of factors that are both hard to predict and difficult to control: -Demographic -Sociocultural -Political/Legal -Technological -Economic -Global

Strategy implementation

takes action to implement the formulated strategy: Ensure proper strategic control systems. Coordinate activities with suppliers, customers, alliance partners Create effective organizational designs. Create a learning organization and an ethical organization Foster corporate entrepreneurship.

is evaluation and control systems a tangible or intangible resource?

tangible, organizational resources

is data analytic algorithms a tangible or intangible resource?

tangible, technological resources

what does (V) yes, (R) yes, (I) no, (O) no lead to?

temporary competitive advantage

Corporate governance

the RELATIONSHIP among various participants in determining the DIRECTION and PERFORMANCE of corporations.

Value

the amount buyers are willing to pay for what a firm provides. (measured by total revenue)

whats ROMANTIC VIEW? (micro focus)

the leader is the key force that drives an organization's success like steve jobs and bill gates

Strategy analysis

the starting point in the strategic management process. careful analysis of goals of the organization analysis of external and internal environment.

buyers are powerful bc

they can: -purchase standard products in large volumes -Profits are low & switching costs are few -Backward integration is possible -Buyer's product quality is not affected by industry product. diff between buyer and customer: walmart is buyer

history of strategic management can be traced back several ________ years.

thousand

competitive environment

consists of factors in the task or industry environment that are particularly relevant to a firm's strategy: -Competitors -Customers -Suppliers

What is Strategic Management?

consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

Primary activities

contributes to direct physical creation of the product. the sale and transfer to the buyer; and service after the sale -Inbound logistics -Operations -Outbound logistics -Marketing and sales -Service

Synergy

create more value by working together than by operating as standalone businesses Sharing knowledge, Resources, Skilled Labor to be more efficient and strengthen the organization.

which of these describes General Administration? a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs d. -effective planning to achieve goals -good relations with stakeholders -info technology to integrate value-creating activities across value-chain

d. -effective planning to achieve goals -good relations with stakeholders -info technology to integrate value-creating activities across value-chain

Porter's Five Forces Model

tool for examining the industry-level competitive environment, the ability of firms in that industry to set prices and minimize costs (look on slide 8, pg. 11) Includes: -threat of new entrants -bargaining power of buyers -bargaining power of suppliers -threat of substitute products and services -intensity of rivalry among competitors in an industry Together they determine the PROFIT POTENTIAL for a particular industry.

Environmental monitoring

tracks evolution of environmental trends

which of these is NOT a part of mission statement? a. Can and should change when competitive conditions change b. Focuses on the means by which the firm will compete c. More specific than vision d. Communicates why an organization is similar to others in the industry e. Encompasses purpose of company and the basis of competition and competitive advantage

d. Communicates why an organization is similar to others in the industry should communicate why its diff and special

which strategy asks How do we recognize viable opportunities and How do we formulate effective strategies? a. Corporate-level strategy b. Business-level strategy c. International strategy d. Entrepreneurial strategy

d. Entrepreneurial strategy

which of these is a negative of suppliers exerting bargaining power? a. Internet-based storage capabilities create more opportunities for substitution. b. Switching costs decrease. Information availability online empowers users. c. Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated. d. Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

d. Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

who believed in maximizing the long-term return to the owners? a. Sun Tzu b. Alfred Chandler c. Igor Ansoff d. Milton Friedman

d. Milton Friedman

which of these is a positive of buyers exerting bargaining power? a. Can offer premium services Gain access to previously closed distribution channels or manufacturers. b. Internet-based increases in overall efficiency can expand industry sales. c. Online procurement can increase bargaining power over suppliers. d. Reduces the power of buyer intermediaries in many distribution channels

d. Reduces the power of buyer intermediaries in many distribution channels

T/F Successful managers are always aware of what's going on outside their company.

true

which of these describes Outbound logistics? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing c. all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

which of these describes support activity? a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs d. either add value by themselves or add value through important relationships with both primary activities and other support activities -Procurement -Technology development -Human resource management -General administration

d. either add value by themselves or add value through important relationships with both primary activities and other support activities -Procurement -Technology development -Human resource management -General administration

which of these most describes social responsibility? a. Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers b. Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS c. assessing financial, social, and environmental performance. d.. expectation that businesses or individuals will strive to improve the overall welfare of society.

d. expectation that businesses or individuals will strive to improve the overall welfare of society.

which of these describes Substitute products & services? a. can force down prices, bargain for higher quality or more services, or play competitors against each other b. threatening to raise prices or reduce the quality of purchased goods and services. c. possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs d. limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

d. limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

which of these is value-chain analysis? a. The value received exceeds the total costs of creating the product or service b. the amount buyers are willing to pay for what a firm provides. (measured by total revenue) c. Creating value for buyers that exceeds the costs of production d. looks at the sequential process of value-creating activities.

d. looks at the sequential process of value-creating activities.

which of these describes Environmental forecasting? a. allows people to sense what's coming b. tracks evolution of environmental trends c. surveillance of a firm's external environment, Predicts environmental changes to come d. predicts change indirection, scope, speed, intensity

d. predicts change indirection, scope, speed, intensity

what is NOT under Innovation and Learning Perspective? a. human capital b. info capital c. organization capital d. profit capital

d. profit capital

which of these is NOT an intellectual assets? a. Knowledge workers b. relationships (w/ other companies) c. technology d. raw materials

d. raw materials

competitive parity a. can lead to a competitive advantage. b. integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment. c. are collaborative relationships between value-chain activities either within firms or between firms d. something companies can only achieve if they dont have unique resources

d. something companies can only achieve if they dont have unique resources

which of these is NOT a part of Competitive Intelligence? a. collecting and interpreting data on competitors b. and identifying competitors' strengths and weaknesses c. defining and understanding the industry d. using SWOT analysis regularly

d. using SWOT analysis regularly

Strategy research is usually __________ with _________ questions and answers.

data-driven, specific

Strategy Formulation

developed at several levels: Business-level Corporate-level International Entrepreneurial

Technological

developments lead to new products and services. They can create new industries and alter existing ones

Intangible resources

difficult for competitors to account for or imitate. They are embedded in unique routines and practices. - Human resources: trust, experience and capabilities of employees; managerial skills, firm specific practices and procedures - Innovation resources: technical and scientific expertise and ideas; innovation capabilities - Reputation resources: brand names, reputation for fairness with suppliers, non-zero sum relationships; reputation for reliability and product quality with customers.

what does (V) yes, (R) yes, (I) yes, (O) no lead to?

unused competitive advantage

which of these is NOT a primary activity? a. -Inbound logistics b. -Operations c. -Marketing and sales d. -Service e. -Technology development f. -Outbound logistics

e. -Technology development

what is NOT a type of financial ratios? a. Long-term solvency measures b. Asset management or turnover c. Profitability d. Short-term solvency or liquidity e. marketability f. Market value

e. marketability

Demographics

easily understandable & quantifiable: Aging population Rising affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels

Support activities

either add value by themselves or add value through important relationships with both primary activities and other support activities -Procurement -Technology development -Human resource management -General administration

Mission

encompasses the organization's current purpose, basis of competition, and competitive advantage.

Firm resources

everything controlled by a firm - resources that enable it to develop and implement value-creating strategies two types: Tangible and Intangible

Vision

evokes powerful and compelling mental images of a shared future.

Social responsibility

expectation that businesses or individuals will strive to improve the overall welfare of society.

what is NOT a limit of Balanced Scorecard? a. It's not a "quick fix" - needs proper execution b. Needs cultural change c. Needs a commitment to learning d. Needs employee involvement in continuous process improvement e. Needs a focus on nonfinancial rather than financial measures f. Needs more money to create g. Needs data on actual performance.

f. Needs more money to create

Economic

forces that affect all industries - Interest rates - Unemployment - Consumer Price Index - Trends in GDP - Changes in stock market valuations - National debt

Sociocultural

forces that influence the values, beliefs, and lifestyles of a society: - More women in the workforce - Increase in temporary workers - Greater concern for fitness - Greater concern for the environment - Postponement of family formation

Global

forces that offer both opportunities & risks - Changes in global trade - Currency exchange rates - Emergence of the Indian and Chinese economies - Trade agreements among regional blocs (NAFTA, EU, ASEAN) - rapid rise of the middle class in emerging market countries.

what is the decision stage?

formulation: What industry should we compete in? - How should we compete in those industries?

learning and ethical organizations:

have Effective leaders who - set direction - commits to ethical behavior - design organization

Internal networkers responsibilities

hold little positional power, but have conviction and clarity of ideas

Procurement

how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier

what is the actions stage?

implementation: Allocate necessary resources- Design the organization to bring intended strategies to reality

is managerial skills a tangible or intangible resource?

intangible, human resources

is innovation capabilities a tangible or intangible resource?

intangible, innovation

resource-based view of the firm (RBV)

integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment.

Albert Humphrey

invented SWOT at Stanford in 1960s

Substitute products & services

limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

competitive advantage chart (VRIO)

look at slide 11 pg. 22-24

what is the analysis stage?

looking at: Strategic goals (vision, mission, and strategic objectives) Internal and external environment

Value-chain analysis

looks at the sequential process of value-creating activities.

Do strengths and weaknesses alone lead to competitive advantage?

no

Rather than seeking "________", capstone course would emphasize critical thinking skills and idea that ________ of addressing a problem can be equally successful.

one best way, multiple ways

Strategic objectives

operationalize the mission statement with specific yardsticks.

What People THINK Strategy Is:

(CEO) developing plans for an organization Strategy isn't the same as developing a plan

hierarchy of goals

(top to bottom) Vision (short-term)(general) Mission Strategic Objectives (long term)(specific)

Meaningful ratio analysis must include:

- Analysis of how ratios change over time - Comparison with industry norms - Comparison with key competitors

Financial Ratio Analysis

- Balance sheet -Income statement -Market valuation -Historical comparison -Comparison with industry norms -Comparison with key competitors

Balanced Scorecard Analysis

- Employees - Owners - Customer satisfaction - Internal processes - Innovation, learning and improvement activities - Financial perspectives.

Primary participants in corporate governance:

- Shareholders - Management - The Board of Directors

key attributes of strategic management

-Directs the organization toward overall goals and objectives. -Includes multiple stakeholders in decision making. -Needs to incorporate short-term and long-term perspectives. -Recognizes trade-offs between efficiency and effectiveness.

General Administration

-effective planning to achieve goals -good relations with stakeholders -info technology to integrate value-creating activities across value-chain

Supplier groups are powerful bc

-few firms dominate the industry -no competition from substitute products -Suppliers sell to several industries -Buyer quality is affected by industry product -Products are differentiated & have switching costs -Vertical and horizontal integration possible

Technology development

-research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics

threat of new entrants

possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs

Environmental forecasting

predicts change: direction scope speed intensity

Strategic Management Involves Three Things:

1. Analysis 2. decision 3. actions

Rivalry tactics

price competition advertising battles new products customer service

how employees and managers can retain profits?

1. Employee bargaining power 2. Employee replacement cost 3. Employee exit costs 4. Manager bargaining power

Political/Legal

processes & legislation influence environmental regulations with which industries must comply

4 key perspectives of balanced scorecard

1. How do customers see us? (customer perspective) 2. What must we excel at? (internal perspective) 3. Can we continue to improve and create value? (innovation and learning perspective) 4. How do we look to shareholders? (financial perspective)

types of financial ratios

1. Short-term solvency or liquidity 2. Long-term solvency measures 3. Asset management or turnover 4. Profitability 5. Market value

Local line leaders responsibilities

profit and loss responsibility.

what two pivotal events firmly established strategic management as a field of study?

1. creation of the Strategic Management Journal (SMJ). 2. publication of Competitive Strategy: Techniques for Analyzing Industries and Competitors by Harvard professor Michael Porter.

t's estimated that more than _______% of the strategies are not successfully implemented.

60

Marketing and sales activities

purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing

Five forces analysis implicitly assumes a __________

zero-sum game

Limits of Balanced Scorecard

• It's not a "quick fix" - needs proper execution • Needs a commitment to learning • Needs employee involvement in continuous process improvement • Needs cultural change • Needs a focus on nonfinancial rather than financial measures • Needs data on actual performance.

Corporate-level strategy

Addresses a firm's portfolio (or group) of businesses. Synergy

what do people consider the first work of strategic management research?

Alfred Chandler's book, strategy and Structure: Chapters in the History of the Industrial Enterprise.

Stakeholder

An individual or group, inside or outside the company, that has a stake in and can influence an organization's performance.

Leaders need to:

Anticipate change Refine strategies continually Be aware of external opportunities and threats Understand firm's resources and capabilities

Scenario analysis

Asks what would happen if the environment should change dramatically? - Can we project alternative futures based on these assessments? - What are some of the ways trends may affect an issue?

is external control perspective or romantic view important?

BOTH External forces and great leadership work in harmony to create better organizations

Milton Friedman

Believed that the purpose of a public corporation is to maximize the long-term return to the owners (shareholders).

benefits of threat of new entrants

Can offer premium services Gain access to previously closed distribution channels or manufacturers.

In 1965, Igor Ansoff discussed the notion of "________", a relatively new concept at the time.

Corporate strategy

Margin

Creating value for buyers that exceeds the costs of production

Inbound logistics

receiving, storing and distributing inputs to the product -Material handling -Warehousing -Inventory control -Vehicle scheduling -Returns to suppliers ex. Dell and Toyota have just-in-time (JIT) inventory system

Human resource management

recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs

Realized Strategy

Decisions are determined by both analysis and unforeseen developments

Intended Strategy

Decisions are determined only by analysis

Which is better in the long run? Cost Leadership or Differentiation?

Differentiation like Apple and Target

Stockholders have what kind of claim?

Dividends, capital appreciation

Value Chain

Each Step in the process adds value to the final product

Board of Directors

Elected representatives of the owners. procedures for formal evaluation of directors to ensure management is acting in best interests of shareholders Must act on behalf of the organization and not for the benefit of themselves participate in an average of 7.9 meetings/ year

Mission statement.

Encompasses purpose of company and the basis of competition and competitive advantage More specific than vision Focuses on the means by which the firm will compete Communicates why an organization is special and different Can and should change when competitive conditions change

whats EXTERNAL CONTROL PERSPECTIVE? (macro focus)

External forces determine success like Economic Downturns & Market Conditions blaming external forces for failure, Root is the customer

T/F Elements of the general environment are INDEPENDENT of each other.

False, Elements of the general environment interact with each other ex: Demographic trends have implications for economics Greater access to information technology affects both economics and global relationships

T/F Strategy Principles are just for CEOs and billion-dollar organizations.

False, also for: entrepreneur in new business ventures evaluating the longevity and legitimacy of organizations as an investor making you a more knowledgeable employee at an organization

T/F managers must consider EITHER internal factors OR external factors

False, managers must consider internal and external factors simultaneously

T/F profits can't be retained by employees

False, profits can be retained or appropriated by employees or managers (and not owners or shareholders) by various methods.

Who created the assembly line?

Ford organized assembly lines for creating automobiles that lowered costs dramatically.

Major steps toward developing the scientific aspect of strategic management were taken in the early twentieth century by __________

Frederick W. Taylor

Community have what kind of claim?

Good behavior like charities, employment, not polluting

In 1912, ________ became the first higher-education institution to offer a course business policy course focused on maximizing performance

Harvard University

Why is Strategic Management Important?

Helps an organization and its leadership to think about and plan for its future existence and set a direction for the organization and its employees.

Entrepreneurial initiatives

How do we recognize viable opportunities? How do we formulate effective strategies?

Business-level strategy

How to compete in a given business to attain competitive advantage? can do so through: Cost leadership Differentiation

review

review

human capital, info capital, and organization capital are under which perspective?

Innovation and Learning Perspective

negatives of Suppliers can exert bargaining power

Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

benefits of Substitute products & services

Internet-based increases in overall efficiency can expand industry sales.

negatives of Substitute products & services

Internet-based storage capabilities create more opportunities for substitution.

intellectual assets

Knowledge workers relationships (w/ other companies) technology

_________ is the goal. ________ is the byproduct

Longevity, Wealth

negatives of threat of new entrants

Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated.

Informational Control

Monitor and scan the environment Respond effectively to threats and opportunities

benefits of Suppliers can exert bargaining power

Online procurement can increase bargaining power over suppliers.

effective organizational designs are:

Organizational structures consistent with strategy Organizational boundaries flexible and permeable Strategic alliances capitalize on capabilities of other organizations

Creditors have what kind of claim?

Payment of interest, repayment of principal

Suppliers have what kind of claim?

Payment on time, assurance of continued relationship

Sources of Inimitability

Physical uniqueness: Path dependency: hard to copy bc of path of development Causal ambiguity: hard to explain what caused resource to exist/how to recreate it (what made google, can it be recreated?) Social complexity: the reputation, interpersonal relationships and company culture

Firms engage in environmental ________ and then CHOOSE trends and then MONITOR them (environmental ________ )

scanning, monitoring

Michael Porter

Professor at Harvard Most famous book is Competitive Advantage

Behavioral Control

Proper balance of rewards and incentives Appropriate cultures and boundaries

Stakeholder Symbiosis

Recognizes that stakeholders are dependent upon each other for their success and well-being. Stakeholder groups do not have to be in conflict with each other.

benefits of Buyers have bargaining power

Reduces the power of buyer intermediaries in many distribution channels

__________ can lead to a competitive advantage.

Resources - If they are valuable, rare, hard to duplicate - If tangible resources, intangible resources, and organizational capabilities are combined.

more intense rivalry results in

Slow industry growth. Lack of differentiation or switching costs. High fixed or shortage costs. more equally balanced competitors.

ZERO SUM

Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers

SYMBIOSIS

Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS

Types of Stakeholders

Stockholders Employees Suppliers Creditors Customers Government Community

negatives of Buyers have bargaining power

Switching costs decrease. Information availability online empowers users.

Vertical Integration

Takes control over one or more stages in the production or distribution of a product

the two types of unique resources?

Tangible and Intangible

Government have what kind of claim?

Taxes, compliance with regulations

Sun Tzu's best-known work is __________, which stated strategic management is part _________ and part ________.

The Art of War, art, science

In 1911, Taylor published __________ which stressed "one best way", maximizing organizational performance

The Principles of Scientific Management

Horizontal Integration

The acquisition of another company in the same business line

Differentiation

sell a unique product that is different from competitors, niche market

Cost leadership

sell the product cheaper than competitors

Profit

The value received exceeds the total costs of creating the product or service

how do managers become environmentally aware?

They do it by SCANNING and MONITORING environment GATHERING competitive intelligence to develop forecasts.

T/F JUST doing (SWOT) analysis does NOT = Competitive Advantage!

True

T/F Strategic management is important for new organizations AND existing organizations

True

T/F Strategy research can be theoretical or data-driven

True

T/F The goal is to combine tangible and intangible resources to create organizational capabilities = the secret sauce of success

True

how can you use internal perspective to solve customer problem?

Using the balanced scorecard, managers articulate goals for customer concerns - Time versus Quality - Performance and service versus cost Then focus on those critical internal operations that enable them to satisfy customer needs - Business processes (Cycle time, quality, employee skills, productivity) - Decisions - Coordinated actions - Key resources and capabilities.

sustainable competitive advantage have 4 attributes.

VRIO: Valuable Rare difficult to imitate difficult to substitute

Customers have what kind of claim?

Value , warranties

Organizations can fight back against the bargaining power of suppliers by:

Vertical and horizontal integration

The Value Net

Vertical dimension = suppliers & customers Horizontal dimension = substitutes & complements

Employees have what kind of claim?

Wages, benefits, safe working environment, job security

International strategy

What is the appropriate entry strategy? How do we go about attaining a competitive advantage in international markets? adapting product to different markets ex. mcdonalds

Competitive Advantage

a condition or circumstance that puts a company in a favorable or superior business position

What Strategy ACTUALLY Is:

a discipline of practice and it involves understanding certain processes, terms, and best practices a continually developing discipline with new research being published continually that alters and changes the approaches we take

Stakeholder Management

a firm's strategy for recognizing and responding to the interests of all its salient stakeholders.

what is included in Balanced Scorecard Analysis? a. - Employees - Owners - Customer satisfaction - Internal processes - Innovation, learning and improvement activities - Financial perspectives. b. - Balance sheet -Income statement -Market valuation -Historical comparison -Comparison with industry norms -Comparison with key competitors c. 1. Short-term solvency or liquidity 2. Long-term solvency measures 3. Asset management or turnover 4. Profitability 5. Market value d. - Analysis of how ratios change over time - Comparison with industry norms - Comparison with key competitors

a. - Employees - Owners - Customer satisfaction - Internal processes - Innovation, learning and improvement activities - Financial perspectives.

which of these is NOT a support activity? a. -Inbound logistics b. -Human resource management c. -Procurement d. -Technology development e. -General administration

a. -Inbound logistics

which of these describes Technology development? a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs d. -effective planning to achieve goals -good relations with stakeholders -info technology to integrate value-creating activities across value-chain

a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics

which of these describes a stakeholder? a. An individual or group, inside or outside the company, that has a stake in and can influence an organization's performance. b. Elected representatives of the owners. c. employees that work for the company and receive stocks

a. An individual or group, inside or outside the company, that has a stake in and can influence an organization's performance.

which of these is NOT a part of scenario analysis? a. Asks how we can competitively compete in the market? b. Asks what are some of the ways trends may affect an issue? c. Asks can we project alternative futures based on these assessments? d. Asks what would happen if the environment should change dramatically?

a. Asks how we can competitively compete in the market?

which of these is a positive of threat of new entrants? a. Can offer premium services Gain access to previously closed distribution channels or manufacturers. b. Internet-based increases in overall efficiency can expand industry sales. c. Online procurement can increase bargaining power over suppliers. d. Reduces the power of buyer intermediaries in many distribution channels

a. Can offer premium services Gain access to previously closed distribution channels or manufacturers.

which strategy addresses a firm's portfolio (or group) of businesses and Synergy? a. Corporate-level strategy b. Business-level strategy c. International strategy d. Entrepreneurial strategy

a. Corporate-level strategy

learning and ethical organizations need: a. Effective leaders who set direction, commits to ethical behavior, design organization b. to maximize the long-term return to the owners c. symbiosis

a. Effective leaders who set direction, commits to ethical behavior, design organization

whose responsibility is champion and guide ideas.? a. Executive leaders b. Internal networkers c. Local line leaders

a. Executive leaders

who published The Principles of Scientific Management which stressed "one best way", to maximize organizational performance? a. Frederick W. Taylor b. Alfred Chandler c. Harvard University d. Milton Friedman

a. Frederick W. Taylor

which of these is The acquisition of another company in the same business line? a. Horizontal Integration b. vertical integration c. Substitute products & services

a. Horizontal Integration

which of these is a negative of Substitute products & services? a. Internet-based storage capabilities create more opportunities for substitution. b. Switching costs decrease. Information availability online empowers users. c. Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated. d. Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

a. Internet-based storage capabilities create more opportunities for substitution

which of these most describes zero-sum? a. Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers b. Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS c. expectation that businesses or individuals will strive to improve the overall welfare of society.

a. Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers

which of these groups have claim on Dividends, capital appreciation? a. Stockholders b. Employees c. Suppliers

a. Stockholders

which of these operationalize the mission statement with specific yardsticks? a. Strategic objectives b. mission c. vision

a. Strategic objectives

which of these is Profit? a. The value received exceeds the total costs of creating the product or service b. the amount buyers are willing to pay for what a firm provides. (measured by total revenue) c. Creating value for buyers that exceeds the costs of production d. looks at the sequential process of value-creating activities.

a. The value received exceeds the total costs of creating the product or service

which of these describes Operations? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing c. all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system

which of these describes perceptual acuity? a. allows people to sense what's coming b. tracks evolution of environmental trends c. surveillance of a firm's external environment, Predicts environmental changes to come d. predicts change indirection, scope, speed, intensity

a. allows people to sense what's coming

which of these describes the bargaining power of buyers? a. can force down prices, bargain for higher quality or more services, or play competitors against each other b. threatening to raise prices or reduce the quality of purchased goods and services. c. possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs d. limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

a. can force down prices, bargain for higher quality or more services, or play competitors against each other

resources: a. can lead to a competitive advantage. b. integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment. c. are collaborative relationships between value-chain activities either within firms or between firms d. something companies can only achieve if they dont have unique resources

a. can lead to a competitive advantage.

which of these groups have claim on Payment of interest, repayment of principal? a. creditors b. suppliers c. government

a. creditors

which of these groups have claim on Value , warranties? a. customers b. community c. government

a. customers

which stage asks How should we compete in those industries? a. decisions b. actions c. analysis

a. decisions

which of these defines demographics? a. easily understandable & quantifiable: Aging population Rising affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels b. forces that influence the values, beliefs, and lifestyles of a society: - More women in the workforce - Increase in temporary workers - Greater concern for fitness - Greater concern for the environment - Postponement of family formation c. processes & legislation influence environmental regulations with which industries must comply

a. easily understandable & quantifiable: Aging population Rising affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels

what is NOT a way employees and managers can retain profits? a. employee union rights b. Employee bargaining power c. employee replacement cost d. Employee exit costs e. Manager bargaining power

a. employee union rights

which of these defines Global? a. forces that offer both opportunities & risks - Changes in global trade - Currency exchange rates - Emergence of the Indian and Chinese economies - Trade agreements among regional blocs (NAFTA, EU, ASEAN) - rapid rise of the middle class in emerging market countries. b. forces that affect all industries - Interest rates - Unemployment - Consumer Price Index - Trends in GDP - Changes in stock market valuations - National debt c. developments lead to new products and services. They can create new industries and alter existing ones

a. forces that offer both opportunities & risks - Changes in global trade - Currency exchange rates - Emergence of the Indian and Chinese economies - Trade agreements among regional blocs (NAFTA, EU, ASEAN) - rapid rise of the middle class in emerging market countries.

which strategy is where decisions are determined only by analysis? a. intended b. realized

a. intended

intense rivalry does NOT result in? a. less balanced competitors b. Slow industry growth. c. Lack of differentiation or switching costs. d. High fixed or shortage costs.

a. less balanced competitors more equally balanced competitors.

in the value net, what is the horizontal dimension? a. substitutes & complements b. suppliers & customers

a. substitutes & complements

which of these is NOT part of effective organizational designs? a. triple bottom line b. Strategic alliances capitalize on capabilities of other organizations c. Organizational boundaries flexible and permeable d. Organizational structures consistent with strategy

a. triple bottom line

Service

all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment

Operations

all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system

perceptual acuity

allows people to sense what's coming

managers need to be ________

ambidextrous focus on long-term effectiveness and short-term efficiency

triple bottom line

assessing financial, social, and environmental performance.

Tangible resources

assets that are relatively easy to identify. - Physical assets: plant and facilities, location, machinery and equipment -Financial assets: cash and cash equivalents, borrowing capacity, capacity to raise equity - Technological resources: data analytic algorithms, patents, copyrights, trademarks - Organizational resources: effective planning processes, evaluation and control systems.

what is included in Financial Ratio Analysis? a. - Employees - Owners - Customer satisfaction - Internal processes - Innovation, learning and improvement activities - Financial perspectives. b. - Balance sheet -Income statement -Market valuation -Historical comparison -Comparison with industry norms -Comparison with key competitors c. 1. Short-term solvency or liquidity 2. Long-term solvency measures 3. Asset management or turnover 4. Profitability 5. Market value d. - Analysis of how ratios change over time - Comparison with industry norms - Comparison with key competitors

b. - Balance sheet -Income statement -Market valuation -Historical comparison -Comparison with industry norms -Comparison with key competitors

Board of Directors participate in average of ______ meetings a year? a. 5 b. 8 c. 10 d. 12

b. 8

who published strategy and Structure: Chapters in the History of the Industrial Enterprise and emphasized how strategy and organizational structure need to be consistent with each other for strong firm performance? a. Sun Tzu b. Alfred Chandler c. Igor Ansoff d. Milton Friedman

b. Alfred Chandler

which of these involves Proper balance of rewards and incentives and Appropriate cultures and boundaries? a. Strategy implementation b. Behavioral Control c. Informational Control

b. Behavioral Control

which strategy asks how to compete in a given business to attain competitive advantage? Cost leadership, Differentiation? a. Corporate-level strategy b. Business-level strategy c. International strategy d. Entrepreneurial strategy

b. Business-level strategy

whats NOT a key perspectives of balanced scorecard? a. How do customers see us? (customer perspective) b. How do employees view us? (employee perspective) c. What must we excel at? (internal perspective) d. Can we continue to improve and create value? (innovation and learning perspective) e. How do we look to shareholders? (financial perspective)

b. How do employees view us? (employee perspective)

what does this describe: difficult for competitors to account for or imitate. They are embedded in unique routines and practices. - Human resources: trust, experience and capabilities of employees; managerial skills, firm specific practices and procedures - Innovation resources: technical and scientific expertise and ideas; innovation capabilities - Reputation resources: brand names, reputation for fairness with suppliers, non-zero sum relationships; reputation for reliability and product quality with customers. a. managerial skills b. Intangible resources c. Tangible resources d. innovation capabilities

b. Intangible resources

whose responsibility is hold little positional power, but have conviction and clarity of ideas? a. Executive leaders b. Internal networkers c. Local line leaders

b. Internal networkers

which of these is a positive of Substitute products & services? a. Can offer premium services Gain access to previously closed distribution channels or manufacturers. b. Internet-based increases in overall efficiency can expand industry sales. c. Online procurement can increase bargaining power over suppliers. d. Reduces the power of buyer intermediaries in many distribution channels

b. Internet-based increases in overall efficiency can expand industry sales.

who invented the Five Forces Model? a. Milton Friedman b. Michael Porter c. Frederick W. Taylor

b. Michael Porter

which of these most describes symbiosis? a. Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers b. Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS c. expectation that businesses or individuals will strive to improve the overall welfare of society.

b. Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS

which of these is a negative of buyers exerting bargaining power? a. Internet-based storage capabilities create more opportunities for substitution. b. Switching costs decrease. Information availability online empowers users. c. Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated. d. Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

b. Switching costs decrease. Information availability online empowers users.

which of these groups have claim on Good behavior like charities, employment, not polluting? a. customers b. community c. government

b. community

which of these groups have claim on Payment of interest, repayment of principal? a. Stockholders b. creditors c. government

b. creditors

which of these is NOT part of strategy analysis? a. the starting point in the strategic management process. b. figuring out a competitive advantage c. careful analysis of goals of the organization d. analysis of external and internal environment.

b. figuring out a competitive advantage

which of these defines Economic? a. forces that offer both opportunities & risks - Changes in global trade - Currency exchange rates - Emergence of the Indian and Chinese economies - Trade agreements among regional blocs (NAFTA, EU, ASEAN) - rapid rise of the middle class in emerging market countries. b. forces that affect all industries - Interest rates - Unemployment - Consumer Price Index - Trends in GDP - Changes in stock market valuations - National debt c. developments lead to new products and services. They can create new industries and alter existing ones

b. forces that affect all industries - Interest rates - Unemployment - Consumer Price Index - Trends in GDP - Changes in stock market valuations - National debt

which of these defines Sociocultural? a. easily understandable & quantifiable: Aging population Rising affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels b. forces that influence the values, beliefs, and lifestyles of a society: - More women in the workforce - Increase in temporary workers - Greater concern for fitness - Greater concern for the environment - Postponement of family formation c. processes & legislation influence environmental regulations with which industries must comply

b. forces that influence the values, beliefs, and lifestyles of a society: - More women in the workforce - Increase in temporary workers - Greater concern for fitness - Greater concern for the environment - Postponement of family formation

which of these describes Procurement? a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs d. either add value by themselves or add value through important relationships with both primary activities and other support activities -Procurement -Technology development -Human resource management -General administration

b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier

resource-based view of the firm (RBV): a. can lead to a competitive advantage. b. integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment. c. are collaborative relationships between value-chain activities either within firms or between firms d. something companies can only achieve if they dont have unique resources

b. integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment.

which of these is NOT a tangible resource? a. data analytic algorithms b. managerial skills c. evaluation and control systems

b. managerial skills

which of these encompasses the organization's current purpose, basis of competition, and competitive advantage? a. Strategic objectives b. mission c. vision

b. mission

which of these describes Marketing and sales activities? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing c. all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

b. purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing

which of these describes Inbound logistics? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. receiving, storing and distributing inputs to the product -Material handling -Warehousing -Inventory control -Vehicle scheduling -Returns to suppliers ex. Dell and Toyota have just-in-time (JIT) inventory system c. contributes to direct physical creation of the product. the sale and transfer to the buyer; and service after the sale -Inbound logistics -Operations -Outbound logistics -Marketing and sales -Service d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

b. receiving, storing and distributing inputs to the product -Material handling -Warehousing -Inventory control -Vehicle scheduling -Returns to suppliers ex. Dell and Toyota have just-in-time (JIT) inventory system

which of these is NOT a rivalry tactic? a. price competition b. social responsibility c. advertising battles d. new products

b. social responsibility

which of these groups have claim on Payment on time, assurance of continued relationship? a. creditors b. suppliers c. government

b. suppliers

in the value net, what is the vertical dimension? a. substitutes & complements b. suppliers & customers

b. suppliers & customers

which of these is value? a. The value received exceeds the total costs of creating the product or service b. the amount buyers are willing to pay for what a firm provides. (measured by total revenue) c. Creating value for buyers that exceeds the costs of production d. looks at the sequential process of value-creating activities.

b. the amount buyers are willing to pay for what a firm provides. (measured by total revenue)

which of these describes the bargaining power of suppliers? a. can force down prices, bargain for higher quality or more services, or play competitors against each other b. threatening to raise prices or reduce the quality of purchased goods and services. c. possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs d. limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

b. threatening to raise prices or reduce the quality of purchased goods and services.

which of these describes Environmental monitoring? a. allows people to sense what's coming b. tracks evolution of environmental trends c. surveillance of a firm's external environment, Predicts environmental changes to come d. predicts change indirection, scope, speed, intensity

b. tracks evolution of environmental trends

which of these Takes control over one or more stages in the production or distribution of a product? a. Horizontal Integration b. vertical integration c. Substitute products & services

b. vertical integration

Suppliers can exert bargaining power

by threatening to raise prices or reduce the quality of purchased goods and services.

who invented SWOT analysis? a. Milton Friedman b. Frederick W. Taylor c. Albert Humphrey

c. Albert Humphrey

what is NOT included in Meaningful ratio analysis? a. Comparison with industry norms b. Comparison with key competitors c. Comparison with internal operations d. Analysis of how ratios change over time

c. Comparison with internal operations

which of these is margin? a. The value received exceeds the total costs of creating the product or service b. the amount buyers are willing to pay for what a firm provides. (measured by total revenue) c. Creating value for buyers that exceeds the costs of production d. looks at the sequential process of value-creating activities.

c. Creating value for buyers that exceeds the costs of production

which of these involves Monitor and scan the environment, and Respond effectively to threats and opportunities? a. Strategy implementation b. Behavioral Control c. Informational Control

c. Informational Control

which strategy asks What is the appropriate entry strategy and How do we go about attaining a competitive advantage in international markets? a. Corporate-level strategy b. Business-level strategy c. International strategy d. Entrepreneurial strategy

c. International strategy

whose responsibility is profit and loss responsibility.? a. Executive leaders b. Internal networkers c. Local line leaders

c. Local line leaders

which of these is a negative of threat of new entrants? a. Internet-based storage capabilities create more opportunities for substitution. b. Switching costs decrease. Information availability online empowers users. c. Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated. d. Internet gives suppliers access to more customers Online procurement practices deter competition and reduce differentiating features.

c. Lower barriers to entry increased number of entrants Many Internet-based capabilities can be easily imitated.

whats NOT part of Strategy implementation? a. Ensure proper strategic control systems. b. Coordinate activities with suppliers, customers, alliance partners c. Monitor and scan the environment d. Create effective organizational designs.

c. Monitor and scan the environment

which of these is a positive of suppliers exerting bargaining power? a. Can offer premium services Gain access to previously closed distribution channels or manufacturers. b. Internet-based increases in overall efficiency can expand industry sales. c. Online procurement can increase bargaining power over suppliers. d. Reduces the power of buyer intermediaries in many distribution channels

c. Online procurement can increase bargaining power over suppliers.

what does this describe: assets that are relatively easy to identify. - Physical assets: plant and facilities, location, machinery and equipment -Financial assets: cash and cash equivalents, borrowing capacity, capacity to raise equity - Technological resources: data analytic algorithms, patents, copyrights, trademarks - Organizational resources: effective planning processes, evaluation and control systems. a. managerial skills b. Intangible resources c. Tangible resources d. innovation capabilities

c. Tangible resources

which of these describes Service? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. purchases of products and services by end users, and how to get buyers to make those purchases -Advertising and promotion -Sales force management -Pricing and price quoting -Channel selection and channel relations ex. coke introduced "new coke" in strangers things before releasing c. all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

c. all actions associated with providing service to enhance or maintain the value of the product. -Installation and repair -Training -Parts supply -Product adjustment

which stage looks at strategic goals and internal/external environment? a. decisions b. actions c. analysis

c. analysis

interrelationships: a. can lead to a competitive advantage. b. integrates 1. An internal analysis of phenomena within a company 2. An external analysis of the industry and its competitive environment. c. are collaborative relationships between value-chain activities either within firms or between firms d. something companies can only achieve if they dont have unique resources

c. are collaborative relationships between value-chain activities either within firms or between firms

which of these most describes triple bottom line? a. Stakeholders compete for attention and resources, gain of one is a loss to the other. conflict b/w management and workers b. Stakeholders dependent upon each other for success and well-being, Stakeholders receive MUTUAL BENEFITS c. assessing financial, social, and environmental performance. d.. expectation that businesses or individuals will strive to improve the overall welfare of society.

c. assessing financial, social, and environmental performance.

what is NOT a negative of businesses focusing on social responsibility and environmental sustainability? a. CEOs are fired when environmental and social responsibility initiatives harm quarterly reports b. can also have high costs c. can cause stockholders to sell their stocks d. quarterly earnings report system makes it difficult for organizations to invest in anything beyond short term goals.

c. can cause stockholders to sell their stocks

what is NOT an attribute of sustainable competitive advantage? a. Valuable b. Rare c. cheap d. difficult to imitate e. difficult to substitute

c. cheap

what is true of strategic groups? a. looks at the sequential process of value-creating activities. b. contributes to direct physical creation of the product. the sale and transfer to the buyer; and service after the sale -Inbound logistics -Operations -Outbound logistics -Marketing and sales -Service c. clusters of firms that share similar strategies: -Breadth of product & geographic scope -Price/quality -Degree of vertical integration -Type of distribution d. Slow industry growth. Lack of differentiation or switching costs. High fixed or shortage costs. more equally balanced competitors.

c. clusters of firms that share similar strategies: -Breadth of product & geographic scope -Price/quality -Degree of vertical integration -Type of distribution

which is NOT key attributes of strategic management? a. Directs the organization toward overall goals and objectives. b. Includes multiple stakeholders in decision making. c. come up with a mission statement d. Needs to incorporate short-term and long-term perspectives.

c. come up with a mission statement

which of these describes Primary activities? a. all activities associated with transforming inputs into the final product form -Machining -Packaging and Assembly -Testing or quality control -Printing -Facility operations ex. ford's assembly line system b. receiving, storing and distributing inputs to the product -Material handling -Warehousing -Inventory control -Vehicle scheduling -Returns to suppliers ex. Dell and Toyota have just-in-time (JIT) inventory system c. contributes to direct physical creation of the product. the sale and transfer to the buyer; and service after the sale -Inbound logistics -Operations -Outbound logistics -Marketing and sales -Service d. collecting, storing, and distributing the product or service to buyers -Finished goods and warehousing -Material Handling -Delivery vehicle operation -Order processing, scheduling and distribution ex. amazon revolutionized outbound logistics by doing everything in house (prime delivery)

c. contributes to direct physical creation of the product. the sale and transfer to the buyer; and service after the sale -Inbound logistics -Operations -Outbound logistics -Marketing and sales -Service

what is the RELATIONSHIP among various participants in determining the DIRECTION and PERFORMANCE of corporations? a. board of directors b. stakeholder management c. corporate governance

c. corporate governance

which of these IS a tangible resource? a. innovation capabilities b. managerial skills c. data analytic algorithms

c. data analytic algorithms

which of these defines Technological? a. forces that offer both opportunities & risks - Changes in global trade - Currency exchange rates - Emergence of the Indian and Chinese economies - Trade agreements among regional blocs (NAFTA, EU, ASEAN) - rapid rise of the middle class in emerging market countries. b. forces that affect all industries - Interest rates - Unemployment - Consumer Price Index - Trends in GDP - Changes in stock market valuations - National debt c. developments lead to new products and services. They can create new industries and alter existing ones

c. developments lead to new products and services. They can create new industries and alter existing ones

which of these groups have claim on Taxes, compliance with regulations? a. customers b. community c. government

c. government

which of these describes the threat of new entrants? a. can force down prices, bargain for higher quality or more services, or play competitors against each other b. threatening to raise prices or reduce the quality of purchased goods and services. c. possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs d. limit the potential returns of an industry Substitutes come from another industry Substitutes place a ceiling on prices that firms in an industry can profitably charge

c. possibility that the profits of established firms in the industry may be eroded by new competitors Depends on existing barriers to entry: -Economies of scale -Product differentiation -switching costs

which of these defines Political/Legal? a. easily understandable & quantifiable: Aging population Rising affluence Changes in ethnic composition Geographic distribution of population Greater disparities in income levels b. forces that influence the values, beliefs, and lifestyles of a society: - More women in the workforce - Increase in temporary workers - Greater concern for fitness - Greater concern for the environment - Postponement of family formation c. processes & legislation influence environmental regulations with which industries must comply

c. processes & legislation influence environmental regulations with which industries must comply

which of these describes Human resource management? a. -research & development -collabs between R&D and other departments -new facilities and equipment -skilled employees data analytics b. how the firm purchases inputs used in its value chain -raw materials -developing better relationship with supplier -selecting alternative sources to minimize dependence on one supplier c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs d. -effective planning to achieve goals -good relations with stakeholders -info technology to integrate value-creating activities across value-chain

c. recruitment, hiring, training and development, and compensation of all types of personnel -relations with unions -incentive programs

which of these describes Environmental scanning? a. allows people to sense what's coming b. tracks evolution of environmental trends c. surveillance of a firm's external environment, Predicts environmental changes to come d. predicts change indirection, scope, speed, intensity

c. surveillance of a firm's external environment, Predicts environmental changes to come