Question 1

Too much partnering experience with the same strategic partners generates diminishing returns over time and leads to reduced performance.

Accepted Answer

A) True 
 B)False

Question 2

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

Accepted Answer

A)  KFC. 
B)  The National Football League. 
C)  GE. 
D)  Major League Baseball. 
E)  ESPN. 
A)  KFC. 
B)  The National Football League. 
C)  GE. 
D)  Major League Baseball. 
E)  ESPN.

Question 3

Tacit collusion

Accepted Answer

A)  involves direct communication among competing firms. 
B)  is most likely to be successful if there are many competitors. 
C)  is seen with conscious parallelism as practiced by GE and Westinghouse in the pricing of turbine engines. 
D)  is not illegal. 
E)  is most effective when the industry does not have a firm that acts as a price leader. 
A)  involves direct communication among competing firms. 
B)  is most likely to be successful if there are many competitors. 
C)  is seen with conscious parallelism as practiced by GE and Westinghouse in the pricing of turbine engines. 
D)  is not illegal. 
E)  is most effective when the industry does not have a firm that acts as a price leader.

Question 4

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called

Accepted Answer

A)  competitive scope. 
B)  differentiation. 
C)  focus. 
D)  diversification. 
E)  cost leadership. 
A)  competitive scope. 
B)  differentiation. 
C)  focus. 
D)  diversification. 
E)  cost leadership.

Question 5

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Accepted Answer

A)  Should we compete on the basis of lower cost? 
B)  Should we compete head-to-head with major competitors? 
C)  Should we differentiate our products or services on some basis other than cost? 
D)  Should we compete by garnering political support of influential leaders? 
E)  Should we compete in a niche market that we can satisfy which is superior to that of the competition? 
A)  Should we compete on the basis of lower cost? 
B)  Should we compete head-to-head with major competitors? 
C)  Should we differentiate our products or services on some basis other than cost? 
D)  Should we compete by garnering political support of influential leaders? 
E)  Should we compete in a niche market that we can satisfy which is superior to that of the competition?

Question 6

Although Porter agrees that it is possible for a company to achieve low cost and differentiation simultaneously, he suggests that no company has been able to achieve this.

Accepted Answer

A) True 
 B)False

Question 7

One desired outcome of analyzing strategic factors is identifying niches where an organization can use its ________ to take advantage of a particular market opportunity.

Accepted Answer

A)  differentiating capabilities. 
B)  distinctive competencies. 
C)  situational proficiency. 
D)  core competencies. 
E)  distinctive characteristics. 
A)  differentiating capabilities. 
B)  distinctive competencies. 
C)  situational proficiency. 
D)  core competencies. 
E)  distinctive characteristics.

Question 8

The active cooperation of firms within an industry to reduce output and raise prices to get around the normal law of supply and demand is referred to as

Accepted Answer

A)  a strategic alliance. 
B)  collusion. 
C)  a strategic roll up. 
D)  a merger. 
E)  licensing. 
A)  a strategic alliance. 
B)  collusion. 
C)  a strategic roll up. 
D)  a merger. 
E)  licensing.

Question 9

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

Accepted Answer

A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus 
A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus

Question 10

An example of a company that was "stuck in the middle" was K-Mart as the company tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 11

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Accepted Answer

A) True 
 B)False

Question 12

Which of Porter's broad mass market competitive strategies requires tight cost control, frequent detailed control reports, and cost minimization in areas like R&D, service and advertising?

Accepted Answer

A)  focus 
B)  differentiation 
C)  cost leadership 
D)  focus differentiation 
E)  concentration 
A)  focus 
B)  differentiation 
C)  cost leadership 
D)  focus differentiation 
E)  concentration

Question 13

As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n)

Accepted Answer

A)  united industry. 
B)  fragmented industry. 
C)  consolidated industry. 
D)  isolated industry. 
E)  integrated industry. 
A)  united industry. 
B)  fragmented industry. 
C)  consolidated industry. 
D)  isolated industry. 
E)  integrated industry.

Question 14

In the development of an SFAS matrix, the first step is to

Accepted Answer

A)  enter the ratings of how the company's management is responding to each of the strategic factors. 
B)  calculate the weighted scores. 
C)  list the most important EFAS and IFAS items. 
D)  indicate short-term goals for the duration. 
E)  enter the weights for all of the internal factors. 
A)  enter the ratings of how the company's management is responding to each of the strategic factors. 
B)  calculate the weighted scores. 
C)  list the most important EFAS and IFAS items. 
D)  indicate short-term goals for the duration. 
E)  enter the weights for all of the internal factors.

Question 15

What are cooperative strategies?

Accepted Answer

Cooperative strategies are used to gain

Question 16

The last stage of a hypercompetitive industry is reached when the remaining large global competitors

Accepted Answer

A)  raise entry barriers. 
B)  move into untapped markets. 
C)  attack the strongholds of other firms. 
D)  compete on cost and quality. 
E)  work their way to a situation of perfect competition in which no one has any advantage and profits are minimal. 
A)  raise entry barriers. 
B)  move into untapped markets. 
C)  attack the strongholds of other firms. 
D)  compete on cost and quality. 
E)  work their way to a situation of perfect competition in which no one has any advantage and profits are minimal.

Question 17

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

Accepted Answer

A) True 
 B)False

Question 18

In tacit collusion, there is no direct communication among competing firms.

Accepted Answer

A) True 
 B)False

Question 19

The text authors note that the essence of strategy is

Accepted Answer

A)  opportunity divided by capacity. 
B)  strength divided by opportunity. 
C)  threat divided by capacity. 
D)  threat divided by opportunity. 
E)  opportunity divided by threat. 
A)  opportunity divided by capacity. 
B)  strength divided by opportunity. 
C)  threat divided by capacity. 
D)  threat divided by opportunity. 
E)  opportunity divided by threat.

Question 20

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?

Accepted Answer

A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus 
A)  differentiation 
B)  cost leadership 
C)  differentiation focus 
D)  competitive advantage 
E)  cost focus

Too much partnering experience with the same strategic partners generates diminishing returns over time and leads to reduced performance.

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

Tacit collusion

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Although Porter agrees that it is possible for a company to achieve low cost and differentiation simultaneously, he suggests that no company has been able to achieve this.

One desired outcome of analyzing strategic factors is identifying niches where an organization can use its ________ to take advantage of a particular market opportunity.

The active cooperation of firms within an industry to reduce output and raise prices to get around the normal law of supply and demand is referred to as

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

An example of a company that was "stuck in the middle" was K-Mart as the company tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy.

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Which of Porter's broad mass market competitive strategies requires tight cost control, frequent detailed control reports, and cost minimization in areas like R&D, service and advertising?

As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n)

In the development of an SFAS matrix, the first step is to

What are cooperative strategies?

The last stage of a hypercompetitive industry is reached when the remaining large global competitors

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

In tacit collusion, there is no direct communication among competing firms.

The text authors note that the essence of strategy is

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 6: Strategy Formulation: Business Strategy

Too much partnering experience with the same strategic partners generates diminishing returns over time and leads to reduced performance.

A secret salary cap was the contention in a 2012 collusion lawsuit filed against

Tacit collusion

According to Porter, the term that applies to the breadth of a company's or business unit's target market is called

Which of the following is not cited as one of the questions that development of a competitive strategy should raise?

Although Porter agrees that it is possible for a company to achieve low cost and differentiation simultaneously, he suggests that no company has been able to achieve this.

One desired outcome of analyzing strategic factors is identifying niches where an organization can use its ________ to take advantage of a particular market opportunity.

The active cooperation of firms within an industry to reduce output and raise prices to get around the normal law of supply and demand is referred to as

Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic strategies?

An example of a company that was "stuck in the middle" was K-Mart as the company tried to imitate both Walmart's low-cost strategy and Target's differentiation strategy.

One of the first steps in good strategy design should include crafting the mission statement for the organization.

Which of Porter's broad mass market competitive strategies requires tight cost control, frequent detailed control reports, and cost minimization in areas like R&D, service and advertising?

As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it tends to become a(n)

In the development of an SFAS matrix, the first step is to

What are cooperative strategies?

The last stage of a hypercompetitive industry is reached when the remaining large global competitors

An effective mission statement not only needs to be specific to that organization; it must enable a common thread to highlight and focus the energy of everyone in the organization in the direction that the top management team believes is best for the business.

In tacit collusion, there is no direct communication among competing firms.

The text authors note that the essence of strategy is

Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters